Document:

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                                                                    EXHIBIT 10.3

                        AMENDED AND RESTATED WMF WARRANT

                               September 10, 1999

      THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAW OF ANY STATE AND
      MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO
      AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE
      SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE
      REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

                                                    Warrant to Purchase 503,126
                                                    Shares of Common Stock

                             MERCURY AIR GROUP, INC.

                          COMMON STOCK PURCHASE WARRANT

                          Void after September 9, 2006

      Mercury Air Group, Inc. (the "Company" ), a Delaware corporation,
hereby certifies that for value received, J. H. Whitney Mezzanine Debt Fund,
L.P. ("WMF"), a Delaware limited partnership, or its successors or assigns
(the "Holder"), is entitled to purchase, subject to the terms and conditions
hereinafter set forth, an aggregate of 503,126 fully paid and nonassessable
shares of Common Stock (as hereinafter defined) of the Company, at an
exercise price of $3.742 per share (the "Purchase Price"), subject to
adjustment as provided herein, at any time or from time to time beginning on
the date hereof and prior to 5:00 P.M., New York City time, on September 9,
2006 (the "Expiration Date").

      This Amended and Restated WMF Warrant amends and restates the Warrant
issued pursuant to the Securities Purchase Agreement (the "PURCHASE Agreement"),
dated as of the date hereof, between Mercury Air Group, Inc. and WMF, as
amended, and is subject to the terms thereof. Capitalized terms used herein and
not otherwise defined shall have the respective meanings assigned to such terms
in the Purchase Agreement. The Holder is entitled to the rights and subject to
the obligations contained in the Purchase Agreement, the Stockholders' Agreement
and the Registration Rights Agreement relating to this Warrant and the shares of
Common Stock issuable upon exercise of this Warrant.

      1. Definitions. For the purposes of this Warrant, the following terms
shall have the meanings indicated:

      "Applicable Price" shall mean the higher of (a) the Current Market Price
per share of Common Stock on the applicable record or other relevant date and
(b) the Dilution Price.
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      "Business Day" shall mean any day other than a Saturday, Sunday or other
day on which commercial banks in the City of New York are authorized or required
by law or executive order to close.

      "Closing Price" shall mean, with respect to each share of Common Stock for
any day, (a) the last reported sale price regular way or, in case no such sale
takes place on such day, the average of the closing bid and asked prices regular
way, in either case as reported on the principal national securities exchange on
which the Common Stock is listed or admitted for trading or (b) if the Common
Stock is not listed or admitted for trading on any national securities exchange,
the last reported sale price or, in case no such sale takes place on such day,
the average of the highest reported bid and the lowest reported asked quotation
for the Common Stock, in either case as reported on the NASDAQ or a similar
service if NASDAQ is no longer reporting such information.

      "Common Stock" means the common stock, par value $.01 per share, of the
Company, and any class of stock resulting from successive changes or
reclassification of such Common Stock.

      "Company" has the meaning ascribed to such term in the first paragraph of
this Warrant.

      "Current Market Price" shall be determined in accordance with Subsection
3(e).

      "Dilution Price" shall mean, with respect to each share of Common Stock,
$3.742, subject to appropriate adjustment for events described in Subsection
3(a).

      "Exercise Date" has the meaning ascribed to such term in Subsection 2(d).

      "Expiration Date" has the meaning ascribed to such term in the first
paragraph of this Warrant.

      "Holder" has the meaning ascribed to such term in the first paragraph and
Section 9 of this Warrant.

      "Issued Warrant Shares" means any shares of Common Stock issued upon
exercise of the Warrant.

      "NASDAQ" shall mean the Automatic Quotation System of the National
Association of Securities Dealers, Inc.

      "Person" shall mean any individual, firm, corporation, limited liability
company, partnership, trust, incorporated or unincorporated association, joint
venture, joint stock company, government (or an agency or political subdivision
thereof) or other entity of any kind, and shall include any successor (by merger
or otherwise) of such entity.

      "Purchase Agreement" has the meaning ascribed to such term in the second
paragraph of this Warrant.

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      "Purchase Price" has the meaning ascribed to such term in the first
paragraph of this Warrant.

      "Stockholders' Agreement" means the Stockholders' Agreement substantially
in the form attached to the Purchase Agreement as Exhibit E.

      "Warrant" shall mean this Warrant and any subsequent Warrant issued
pursuant to the terms of this Warrant.

      "Warrant Register" has the meaning ascribed to such term in Subsection
9(c).

      2. Exercise of Warrant.

            (a) Exercise. This Warrant may be exercised, in whole or in part, at
any time or from time to time during the period beginning on the date hereof and
ending on the Expiration Date, by surrendering to the Company at its principal
office this Warrant, with the form of Election to Purchase Shares (the "Election
to Purchase Shares") attached hereto as Exhibit A duly executed by the Holder
and accompanied by payment of the Purchase Price for the number of shares of
Common Stock specified in such form.

            (b) Delivery of Shares; Payment of Purchase Price. As soon as
practicable after surrender of this Warrant and receipt of payment, the Company
shall promptly issue and deliver to the Holder a certificate or certificates for
the number of shares of Common Stock set forth in the Election to Purchase
Shares, in such name or names as may be designated by such Holder, along with a
check for the amount of cash to be paid in lieu of issuance of fractional
shares, if any. Payment of the Purchase Price may be made as follows (or by any
combination of the following): (i) in United States currency by cash or delivery
of a certified check, bank draft or postal or express money order payable to the
order of the Company, (ii) by assigning to the Company all or any part of the
unpaid principal amount of the WMF Note held by the Holder in a principal amount
equal to the Purchase Price, (iii) by surrender of a number of shares of Common
Stock held by the Holder equal to the quotient obtained by dividing (A) the
Purchase Price payable with respect to the portion of this Warrant then being
exercised by (B) the Current Market Price per share of Common Stock on the
Exercise Date, or (iv) by cancellation of any portion of this Warrant with
respect to the number of shares of Common Stock equal to the quotient obtained
by dividing (A) the aggregate Purchase Price payable with respect to the portion
of this Warrant then being exercised by (B) the difference between (1) Current
Market Price per share of Common Stock on the Exercise Date, and (2) the
Purchase Price per share of Common Stock.

            (c) Partial Exercise. If this Warrant is exercised for less than all
of the shares of Common Stock purchasable under this Warrant, the Company shall
cancel this Warrant upon surrender hereof and shall execute and deliver to the
Holder a new Warrant of like tenor for the balance of the shares of Common Stock
purchasable hereunder.

            (d) When Exercise Effective. The exercise of this Warrant shall be
deemed to have been effective immediately prior to the close of business on the
Business Day on which this Warrant is surrendered to and the Purchase Price is
received by the Company as provided in this Section 2 (the "Exercise Date") and
the Person in whose name any certificate for shares of

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Common Stock shall be issuable upon such exercise, as provided in Subsection
2(b), shall be deemed to be the record holder of such shares of Common Stock for
all purposes on the Exercise Date.

            (e) Issued Warrant Shares Fully Paid, Nonassessable. The Company
shall take all actions necessary to ensure that following exercise of this
Warrant in accordance with the provisions of this Section 2, the Issued Warrant
Shares issued hereunder shall, without further action by the Holder, be fully
paid and nonassessable.

            (f) Continued Validity. A Holder of shares of Common Stock issued
upon the exercise of this Warrant, in whole or in part, shall continue to be
entitled to all of the rights and subject to all of the obligations set forth in
Section 9.

      3. Adjustment of Purchase Price and Number of Shares. The Purchase Price
and the number of shares of Common Stock issuable upon exercise of this Warrant
shall be adjusted from time to time upon the occurrence of the following events:

            (a) Dividend, Subdivision, Combination or Reclassification of Common
Stock. If the Company shall, at any time or from time to time, (i) declare a
dividend on the Common Stock payable in shares of its capital stock (including
Common Stock), (ii) subdivide the outstanding Common Stock into a larger number
of shares of Common Stock, (iii) combine the outstanding Common Stock into a
smaller number of shares of its Common Stock, or (iv) issue any shares of its
capital stock in a reclassification of the Common Stock (including any such
reclassification in connection with a consolidation or merger in which the
Company is the continuing corporation), then in each such case, the Purchase
Price in effect at the time of the record date for such dividend or of the
effective date of such subdivision, combination or reclassification, and the
number and kind of shares of capital stock issuable on such date shall be
proportionately adjusted so that the Holder of any Warrant exercised after such
date shall be entitled to receive, upon payment of the same aggregate amount as
would have been payable before such date, the aggregate number and kind of
shares of capital stock which, if such Warrant had been exercised immediately
prior to such date, such Holder would have owned upon such exercise and been
entitled to receive by virtue of such dividend, subdivision, combination or
reclassification. Any such adjustment shall become effective immediately after
the record date of such dividend or the effective date of such subdivision,
combination or reclassification. Such adjustment shall be made successively
whenever any event listed above shall occur. If a dividend is declared and such
dividend is not paid, the Purchase Price shall again be adjusted to be the
Purchase Price in effect immediately prior to such record date (giving effect to
all adjustments that otherwise would be required to be made pursuant to this
Section 3 from and after such record date).

            (b) Issuance of Rights to Purchase Common Stock Below Current Market
Price or Dilution Price. If the Company shall, at any time or from time to time,
fix a record date for the issuance of rights, options or warrants to all holders
of Common Stock entitling them to subscribe for or purchase Common Stock, or
securities convertible into Common Stock at a price per share of Common Stock or
having a conversion price per share of Common Stock if a security is convertible
into Common Stock (determined in either such case by dividing (x) the total
consideration payable to the Company upon exercise, conversion or exchange of
such

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rights, options, warrants or other securities convertible into Common Stock by
(y) the total number of shares of Common Stock covered by such rights, options,
warrants or other securities convertible into Common Stock) which is lower than
either the Current Market Price per share of Common Stock on such record date
(or, if an ex-dividend date has been established for such record date, on the
day next preceding such ex-dividend date) or the Dilution Price, then, the
Purchase Price shall be reduced to the price determined by multiplying the
Purchase Price in effect immediately prior to such record date by a fraction,
the numerator of which shall be the sum of the number of shares of Common Stock
outstanding on such record date plus the number of additional shares of Common
Stock which the aggregate offering price of the total number of shares of Common
Stock so to be offered (or the aggregate initial conversion price of the
convertible securities so to be offered) would purchase at the Applicable Price
and the denominator of which shall be the number of shares of Common Stock
outstanding on such record date plus the number of additional shares of Common
Stock to be offered for subscription or purchase (or into which the convertible
securities so to be offered are initially convertible). In case such price for
subscription or purchase may be paid in a consideration part or all of which
shall be in a form other than cash, the value of such consideration shall be
determined in good faith by the Board of Directors of the Company. Any such
adjustment shall become effective immediately after the record date for such
rights or warrants. Such adjustment shall be made successively whenever such a
record date is fixed. If such rights, options or warrants are not so issued, the
Purchase Price shall be adjusted to the Purchase Price that otherwise would be
in effect but for the fact such record date was fixed (giving effect to all
adjustments that otherwise would be required to be made pursuant to this Section
3 from and after such record date).

            (c) Certain Distributions. If the Company shall, at any time or from
time to time, fix a record date for the distribution to all holders of Common
Stock (including any such distribution made in connection with a consolidation
or merger in which the Company is the continuing corporation) of evidences of
indebtedness, assets or other property (other than regularly scheduled cash
dividends or cash distributions payable out of consolidated earnings or earned
surplus or dividends payable in capital stock for which adjustment is made under
Subsection 3(a)) or subscription rights, options or warrants (excluding those
referred to in Subsection 3(b)), then the Purchase Price shall be reduced to the
price determined by multiplying the Purchase Price in effect immediately prior
to such record date by a fraction (which shall in no event be less than zero),
the numerator of which shall be the Current Market Price per share of Common
Stock on such record date (or, if an ex-dividend date has been established for
such record date, on the next day preceding such ex-dividend date), less the
fair market value (as determined in good faith by the Board of Directors of the
Company) of the portion of the assets, evidences of indebtedness, other
property, subscription rights or warrants so to be distributed applicable to one
share of Common Stock and the denominator of which shall be such Current Market
Price per share of Common Stock. Any such adjustment shall become effective
immediately after the record date for such distribution. Such adjustments shall
be made successively whenever such a record date is fixed. In the event that
such distribution is not so made, the Purchase Price shall be adjusted to the
Purchase Price in effect immediately prior to such record date (giving effect to
all adjustments that otherwise would be required to be made pursuant to this
Section 3 from and after such record date).

            (d) Issuance of Common Stock Below Current Market Price or Dilution
Price. (i) If the Company shall, at any time and from time to time, after the
date hereof, directly or

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indirectly, sell or issue shares of Common Stock (regardless of whether
originally issued or from the Company's treasury), or rights, options, warrants
or convertible or exchangeable securities containing the right to subscribe for
or purchase shares of Common Stock) at a price per share of Common Stock
(determined, in the case of rights, options, warrants or convertible or
exchangeable securities, by dividing (x) the total consideration received or
receivable by the Company in consideration of the sale or issuance of such
rights, options, warrants or convertible or exchangeable securities, plus the
total consideration payable to the Company upon exercise or conversion or
exchange thereof, by (y) the total number of shares of Common Stock covered by
such rights, options, warrants or convertible or exchangeable securities) which
is lower than either the Current Market Price per share of Common Stock or the
Dilution Price immediately prior to such sale or issuance, then, subject to
clause 3(d)(ii), the Purchase Price shall be reduced to a price determined by
multiplying the Purchase Price in effect immediately prior thereto by a
fraction, the numerator of which shall be the sum of the number of shares of
Common Stock outstanding immediately prior to such sale or issuance plus the
number of shares of Common Stock which the aggregate consideration received
(determined as provided below) for such sale or issuance would purchase at the
Applicable Price and the denominator of which shall be the total number of
shares of Common Stock outstanding immediately after such sale or issuance. Such
adjustment shall be made successively whenever such sale or issuance is made.
For the purposes of such adjustments, the shares of Common Stock which the
holder of any such rights, options, warrants, or convertible or exchangeable
securities shall be entitled to subscribe for or purchase shall be deemed to be
issued and outstanding as of the date of such sale or issuance and the
consideration "received" by the Company therefor shall be deemed to be the
consideration actually received or receivable by the Company (plus any
underwriting discounts or commissions in connection therewith) for such rights,
options, warrants or convertible or exchangeable securities, plus the
consideration stated in such rights, options, warrants or convertible or
exchangeable securities to be payable to the Company for the shares of Common
Stock covered thereby. If the Company shall sell or issue shares of Common Stock
for a consideration consisting, in whole or in part, of property other than cash
or its equivalent, then in determining the "price per share of Common Stock" and
the "consideration" received or receivable by or payable to the Company for
purposes of the first sentence and the immediately preceding sentence of this
Subsection 3(d), the fair value of such property shall be determined in good
faith by the Board of Directors of the Company. The determination of whether any
adjustment is required under this Subsection 3(d) by reason of the sale and
issuance of rights, options, warrants or convertible or exchangeable securities
and the amount of such adjustment, if any, shall be made only at the time of
such issuance or sale and not at the subsequent time of issuance of shares of
Common Stock upon the exercise of such rights to subscribe or purchase.

                  (ii) No adjustment shall be made to the Purchase Price
pursuant to clause 3(d)(i) in connection with the issuance of (A) shares issued
upon exercise of this Warrant; or (B) options to purchase an aggregate of
141,693 shares of Common Stock granted on or after December 30, 2002, if such
shares would otherwise be included in clause 3(d)(i).

                  (iii) Notwithstanding any provision in Section 3 to the
contrary and without limitation to any other provision contained in Section 3,
in the event any securities of the Company (other than this Warrant), including,
without limitation, those securities set forth as exceptions in Subsection
3(d)(ii) (for purposes of this Subsection, collectively, the "SUBJECT
SECURITIES"), are amended or otherwise modified by operation of its terms or
otherwise

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(including, without limitation, by operation of such Subject Securities'
anti-dilution provisions, other than anti-dilution provisions substantially
similar to those set forth in Subsection 3(d)(i)) in any manner whatsoever that
results in (i) the reduction of the exercise, conversion or exchange price of
such Subject Securities payable upon the exercise for, or conversion or exchange
into, Common Stock or other securities exercisable for, or convertible or
exchangeable into, Common Stock and/or (ii) such Subject Securities becoming
exercisable for, or convertible or exchangeable into (A) more shares or dollar
amount of such Subject Securities which are, in turn exercisable for, or
convertible or exchangeable into, Common Stock, or (B) more shares of Common
Stock, then such amendment or modification shall be treated for purposes of
Section 3 as if the Subject Securities which have been amended or modified have
been terminated and new securities have been issued with the amended or modified
terms. The Company shall make all necessary adjustments (including successive
adjustments if required) to the Purchase Price in accordance with Section 3, but
in no event shall the Purchase Price be greater than it was immediately prior to
the application of this Subsection to the transaction in question. On the
expiration or termination of any such amended or modified Subject Securities for
which adjustment has been made pursuant to the operation of the provisions of
this Subsection under Section 3(b) or 3(d), as the case may be, without such
Subject Securities having been exercised, converted or exchanged in full
pursuant to their terms, the adjusted Purchase Price shall be appropriately
readjusted in the manner specified in such Section.

            (e) Determination of Current Market Price. For the purpose of any
computation under Subsections (b), (c) or (d) of this Section 3 or any other
provision of this Warrant, the Current Market Price per share of Common Stock on
any date shall be deemed to be the average of the daily Closing Prices per share
of Common Stock for the 10 consecutive trading days commencing 15 trading days
before such date. If on any such date the shares of Common Stock are not listed
or admitted for trading on any national securities exchange or quoted by NASDAQ
or a similar service, then the Company, on the one hand, and WMF on the other
hand, shall each promptly appoint as an appraiser an individual who shall be a
member of a nationally recognized investment banking firm. Each appraiser shall
be instructed to, within 30 days of appointment, determine the Current Market
Price per share of Common Stock which shall be deemed to be equal to the fair
market value per share of Common Stock as of such date. If the two appraisers
are unable to agree on the Current Market Price per share of Common Stock within
such 30 day period, then the two appraisers, within 10 days after the end of
such 30 day period shall jointly select a third appraiser. The third appraiser
shall, within 30 days of its appointment, determine, in good faith, the Current
Market Price per share of Common Stock and such determination shall be
controlling. If any party fails to appoint an appraiser or if one of the two
initial appraisers fails after appointment to submit its appraisal within the
required period, the appraisal submitted by the remaining appraiser shall be
controlling. The cost of the foregoing appraisals shall be shared one-half by
the Company and one-half by WMF, provided, however, in the event a third
appraiser is utilized and one of the two initial appraisals (but not the other
initial appraisal) is greater than or less than the appraisal by such third
appraiser by 10% or more, then the cost of all of the foregoing appraisals shall
be borne by the party who appointed the appraiser who made such initial
appraisal.

            (f) De Minimis Adjustments. No adjustment in the Purchase Price
shall be made if the amount of such adjustment would result in a change in the
Purchase Price per share of less than $0.05, but in such case any adjustment
that would otherwise be required to be made

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shall be carried forward and shall be made at the time of and together with the
next subsequent adjustment, which together with any adjustment so carried
forward, would result in a change in the Purchase Price of $0.05 per share or
more. If the Company shall, at any time or from time to time, issue Common Stock
by way of dividends on any stock of the Company or subdivide or combine the
outstanding shares of the Common Stock, such amount of $0.05 (as theretofore
increased or decreased, if such amounts shall have been adjusted in accordance
with the provisions of this clause) shall forthwith be proportionately increased
in the case of a combination or decreased in the case of a subdivision or stock
dividend so as appropriately to reflect the same. Notwithstanding the provisions
of the first sentence of this Subsection 3(f), any adjustment postponed pursuant
to this Subsection 3(f) shall be made no later than the earlier of (i) three
years from the date of the transaction that would, but for the provisions of the
first sentence of this Section 3(f), have required such adjustment, (ii) an
Exercise Date or (iii) the Expiration Date.

            (g) Adjustments to Other Shares. In the event that at any time, as a
result of an adjustment made pursuant to Subsection 3(a), the Holder shall
become entitled to receive, upon exercise of this Warrant, any shares of capital
stock of the Company other than shares of Common Stock, the number of such other
shares so receivable upon exercise of this Warrant shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the shares of Common Stock
contained in Subsections 3(a), (b), (c) and (d), inclusive, and the provisions
of Sections 2, 5, 6 and 7 with respect to the shares of Common Stock shall apply
on like terms to any such other shares.

            (h) Adjustment of Number of Shares Issuable Upon Exercise. Upon each
adjustment of the Purchase Price as a result of the calculations made in
Subsections 3(a), (b), (c) or (d), this Warrant shall thereafter evidence the
right to receive, at the adjusted Purchase Price, that number of shares of
Common Stock (calculated to the nearest one-hundredth) obtained by dividing (x)
the product of the aggregate number of shares of Common Stock covered by this
Warrant immediately prior to such adjustment and the Purchase Price in effect
immediately prior to such adjustment of the Purchase Price by (y) the Purchase
Price in effect immediately after such adjustment of the Purchase Price.

            (i) Reorganization, Reclassification, Merger and Sale of Assets. If
there occurs any capital reorganization or any reclassification of the Common
Stock of the Company, the consolidation or merger of the Company with or into
another Person (other than a merger or consolidation of the Company in which the
Company is the continuing corporation and which does not result in any
reclassification or change of outstanding shares of its Common Stock) or the
sale or conveyance of all or substantially all of the assets of the Company to
another Person, then the Holder will thereafter be entitled to receive, upon the
exercise of this Warrant in accordance with the terms hereof, the same kind and
amounts of securities (including shares of stock) or other assets, or both,
which were issuable or distributable to the holders of outstanding Common Stock
of the Company upon such reorganization, reclassification, consolidation,
merger, sale or conveyance, in respect of that number of shares of Common Stock
then deliverable upon the exercise of this Warrant if this Warrant had been
exercised immediately prior to such reorganization, reclassification,
consolidation, merger, sale or conveyance; and, in any such case, appropriate
adjustments (as determined in good faith by the Board of Directors of the
Company) shall be made to assure that the provisions hereof (including
provisions with

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respect to changes in, and other adjustments of, the Purchase Price) shall
thereafter be applicable, as nearly as reasonably may be practicable, in
relation to any securities or other assets thereafter deliverable upon exercise
of this Warrant.

      4. Certificate as to Adjustments. Whenever the Purchase Price and the
number of shares of Common Stock issuable, or the securities or other property
deliverable, upon the exercise of this Warrant shall be adjusted pursuant to the
provisions hereof, the Company shall promptly give written notice thereof to the
Holder, in accordance with Section 13, in the form of a certificate signed by
the Chairman of the Board, President or one of the Vice Presidents of the
Company, and by the Chief Financial Officer, Treasurer or one of the Assistant
Treasurers of the Company, stating the adjusted Purchase Price, the number of
shares of Common Stock issuable, or the securities or other property
deliverable, upon exercise of the Warrant and setting forth in reasonable detail
the method of calculation and the facts requiring such adjustment and upon which
such calculation is based. Each adjustment shall remain in effect until a
subsequent adjustment is required.

      5. Fractional Shares. Notwithstanding an adjustment pursuant to Section
3(h) in the number of shares of Common Stock covered by this Warrant or any
other provision of this Warrant, the Company shall not be required to issue
fractions of shares upon exercise of this Warrant or to distribute certificates
which evidence fractional shares. In lieu of fractional shares, the Company may
make payment to the Holder, at the time of exercise of this Warrant as herein
provided, of an amount in cash equal to such fraction multiplied by the greater
of the Current Market Price of a share of Common Stock on the Exercise Date and
the Dilution Price.

      6. Notice of Proposed Actions. In case the Company shall propose at any
time or from time to time (a) to declare or pay any dividend payable in stock of
any class to the holders of Common Stock or to make any other distribution to
the holders of Common Stock (other than a regularly scheduled cash dividend),
(b) to offer to the holders of Common Stock rights or warrants to subscribe for
or to purchase any additional shares of Common Stock or shares of stock of any
class or any other securities, rights or options, (c) to effect any
reclassification of its Common Stock, (d) to effect any consolidation, merger or
sale, transfer or other disposition of all or substantially all of the property,
assets or business of the Company which would, if consummated, adjust the
Purchase Price or the securities issuable upon exercise of the Warrants, (e) to
effect the liquidation, dissolution or winding up of the Company, or (f) to take
any other action that would require a vote of the Company's stockholders, then,
in each such case, the Company shall give to the Holder, in accordance with
Section 13, a written notice of such proposed action, which shall specify (i)
the record date for the purposes of such stock dividend, distribution of rights
or warrants or vote of the stockholders of the Company, or if a record is not to
be taken, the date as of which the holders of shares of Common Stock of record
to be entitled to such dividend, distribution of rights or warrants, or vote is
to be determined, or (ii) the date on which such reclassification,
consolidation, merger, sale, transfer, disposition, liquidation, dissolution or
winding up is expected to become effective, and such notice shall be so given as
promptly as possible but in any event at least ten (10) Business Days prior to
the applicable record, determination or effective date specified in such notice.

      7. No Dilution or Impairment. The Company will not, by amendment of its
Certificate of Incorporation or through any reorganization, transfer of assets,
consolidation,

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merger, dissolution, issue or sale of securities or any other action, avoid or
seek to avoid the observance or performance of any of the terms of this Warrant,
but will at all times in good faith assist in the carrying out of all such terms
and in the taking of all such action as may be necessary or appropriate in order
to protect the rights of the Holder of this Warrant against dilution or other
impairment. Without limiting the generality of the foregoing, the Company (a)
will not increase the par value of any shares of stock receivable on the
exercise of this Warrant above the amount payable therefor on such exercise, (b)
will at all times reserve and keep available the maximum number of its
authorized shares of Common Stock, free from all preemptive rights therein,
which will be sufficient to permit the full exercise of this Warrant, and (c)
will take all such action as may be necessary or appropriate in order that all
shares of Common Stock as may be issued pursuant to the exercise of this Warrant
will, upon issuance, be duly and validly issued, fully paid and nonassessable,
and free from all taxes, liens and charges with respect to the issue thereof.

      8. Replacement of Warrants. On receipt by the Company of an affidavit of
an authorized representative of the Holder stating the circumstances of the
loss, theft, destruction or mutilation of this Warrant (and in the case of any
such mutilation, on surrender and cancellation of such Warrant), the Company at
its expense will promptly execute and deliver, in lieu thereof, a new Warrant of
like tenor which shall be exercisable for a like number of shares of Common
Stock. If required by the Company, such Holder must provide an indemnity bond or
other indemnity sufficient in the judgment of the Company to protect the Company
from any loss which it may suffer if a lost, stolen or destroyed Warrant is
replaced.

      9. Restrictions on Transfer.

            (a) Subject to the provisions of this Section 9, this Warrant may be
transferred or assigned, in whole or in part, by the Holder at any time, and
from time to time. The term "Holder" as used herein shall also include any
transferee of this Warrant whose name has been recorded by the Company in the
Warrant Register (as hereinafter defined). Each transferee of the Warrant or the
Common Stock issuable upon the exercise of the Warrant acknowledges that the
Warrant or the Common Stock issuable upon the exercise of the Warrant has not
been registered under the Securities Act and may be transferred only pursuant to
an effective registration under the Securities Act or pursuant to an applicable
exemption from the registration requirements of the Securities Act.

            (b) With respect to a transfer that should occur prior to the time
that the Warrant or the Common Stock issuable upon the exercise thereof is
registered under the Securities Act, such Holder shall request an opinion of
counsel (which shall be rendered by counsel reasonably acceptable to the
Company) that the proposed transfer may be effected without registration or
qualification under any Federal or state securities or blue sky law. Counsel
shall, as promptly as practicable, notify the Company and the Holder of such
opinion and of the terms and conditions, if any, to be observed in such
transfer, whereupon the Holder shall be entitled to transfer this Warrant or
such shares of Common Stock (or portion thereof), subject to any other
provisions and limitations of this Warrant. In the event this Warrant shall be
exercised as an incident to such transfer, such exercise shall relate back and
for all purposes of this Warrant be deemed to have occurred as of the date of
such notice regardless of delays

                                       10
<PAGE>
incurred by reason of the provisions of this Section 9 which may result in the
actual exercise on any later date.

            (c) The Company shall maintain a register (the "Warrant Register")
in its principal office for the purpose of registering the Warrant and any
transfer thereof, which register shall reflect and identify, at all times, the
ownership of any interest in the Warrant. Upon the issuance of this Warrant, the
Company shall record the name of the initial purchaser of this Warrant in the
Warrant Register as the first Holder. Upon surrender for registration of
transfer or exchange of this Warrant together with a properly executed Form of
Assignment attached hereto as Exhibit B at the principal office of the Company,
the Company shall, at its expense, execute and deliver one or more new Warrants
of like tenor which shall be exercisable for a like aggregate number of shares
of Common Stock, registered in the name of the Holder or a transferee or
transferees.

            (d) Notwithstanding any provision in this Warrant to the contrary,
the Holder shall not sell, assign, or otherwise transfer to any Person (a
"Transferee") any Issued Warrant Shares prior to the Expiration Date unless such
Transferee agrees in writing to be bound in the same manner as the Holder by the
provisions of this Section 9.

      10. No Rights or Liability as a Stockholder. This Warrant does not entitle
the Holder hereof to any voting rights or other rights as a stockholder of the
Company. No provisions hereof, in the absence of affirmative action by the
Holder hereof to purchase Common Stock, and no enumeration herein of the rights
or privileges of the Holder shall give rise to any liability of such Holder as a
stockholder of the Company.

      11. Charges, Taxes and Expenses. Issuance of certificates for shares of
Common Stock upon the exercise of this Warrant shall be made without charge to
the Holder hereof for any issue or transfer tax, or other incidental expense, in
respect of the issuance or delivery of such certificates or the securities
represented thereby, all of which taxes and expenses shall be paid by the
Company.

      12. Amendment or Waiver. This Warrant and any term hereof may be amended,
waived, discharged or terminated only by and with the written consent of the
Company and the Holder.

      13. Notices. Any notice or other communication (or delivery) required or
permitted hereunder shall be made in writing and shall be by registered mail,
return receipt requested, telecopier, courier service or personal delivery to
the Company at its principal office as specified in Section 11.2 of the Purchase
Agreement and to the Holder at its address as it appears in the Warrant
Register. All such notices and communications (and deliveries) shall be deemed
to have been duly given: when delivered by hand, if personally delivered; when
delivered by courier, if delivered by commercial overnight courier service; five
Business Days after being deposited in the mail, postage prepaid, if mailed; and
when receipt is acknowledged, if telecopied.

      14. Certain Remedies. The Holder shall be entitled to an injunction or
injunctions to prevent breaches of the provisions of this Warrant and to enforce
specifically the terms and provisions of this Warrant in any court of the United
States or any state thereof having

                                       11
<PAGE>
jurisdiction, this being in addition to any other remedy to which such Holder
may be entitled at law or in equity.

      15. Governing Law. This Warrant shall be governed by and construed in
accordance with the laws of the State of New York, without regard to the
principles of conflicts of law of such State (including giving effect to GOL
Section 5-1401).

      16. Headings. The headings in this Warrant are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

                                          MERCURY AIR GROUP, INC.

                                          By:  _______________________________
                                               Name:
                                               Title:

                                       12
<PAGE>
                                                      EXHIBIT A TO COMMON STOCK
                                                               PURCHASE WARRANT

                           ELECTION TO PURCHASE SHARES

      The undersigned hereby irrevocably elects to exercise the Warrant to
purchase _____ shares of Common Stock, par value $.01 per share ("Common
Stock"), of Mercury Air Group, Inc. (the "Company") and hereby [makes payment of
$_______ therefor] [or] [makes payment therefor by assignment to the Company
pursuant to Section 2(b)(ii) of the Warrant of $_____________ aggregate
principal amount of WMF Note (as defined in the Warrant)] [or] [makes payment
therefore by surrendering pursuant to Section 2(b)(iii) _____ shares of Common
Stock of the Company] [or] [makes payment therefor by cancellation pursuant to
Section 2(b)(iv) of a portion of the Warrant with respect to _________ shares of
Common Stock]. The undersigned hereby requests that certificates for such shares
be issued and delivered as follows:

ISSUE TO:______________________________________________________________________
                                     (NAME)

_______________________________________________________________________________
                        (ADDRESS, INCLUDING ZIP CODE)

_______________________________________________________________________________
                (SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)

DELIVER TO:____________________________________________________________________
                                     (NAME)

_______________________________________________________________________________
                        (ADDRESS, INCLUDING ZIP CODE)

      If the number of shares of Common Stock purchased hereby is less than the
number of shares of Common Stock covered by the Warrant, the undersigned
requests that a new Warrant representing the number of shares of Common Stock
not purchased be issued and delivered as follows:

ISSUE TO:______________________________________________________________________
                                     (NAME)

_______________________________________________________________________________
                        (ADDRESS, INCLUDING ZIP CODE)

_______________________________________________________________________________
                (SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)

DELIVER TO:____________________________________________________________________
                                     (NAME)

                                      A-1
<PAGE>
_______________________________________________________________________________
                        (ADDRESS, INCLUDING ZIP CODE)

Dated:                                     [NAME OF HOLDER(1)]

                                           By: ________________________________
                                               Name:
                                               Title:

--------

1  Name of Holder must conform in all respects to name of Holder as specified on
   the face of the Warrant.

                                      A-2
<PAGE>
                                                      EXHIBIT B TO COMMON STOCK
                                                               PURCHASE WARRANT

                                   ASSIGNMENT

      FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers
unto the Assignee named below all of the rights of the undersigned to purchase
Common Stock, par value $0.01 per share ("Common Stock"), of Mercury Air Group,
Inc. represented by the Warrant, with respect to the number of shares of Common
Stock set forth below:

Name of Assignee           Address        No. of Shares
----------------           -------        -------------

and does hereby irrevocably constitute and appoint
____________________________ Attorney to make such transfer on the books of
Mercury Air Group, Inc. maintained for that purpose, with full power of
substitution in the premises.

Dated:                                     [NAME OF HOLDER(1)]

                                            By:  _____________________________
                                                 Name:
                                                 Title:

----------------

1  Name of Holder must conform in all respects to name of Holder as specified on
   the face of the Warrant.

                                      B-1<PAGE>

                                                                    EXHIBIT 10.4

                              AMENDED AND RESTATED

                     WMF SENIOR SUBORDINATED PROMISSORY NOTE

            THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
            ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
            STATE AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE
            DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
            STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES
            LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE
            REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

            THIS NOTE AND THE INDEBTEDNESS EVIDENCED HEREBY IS
            SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN
            THAT CERTAIN SUBORDINATION AGREEMENT, DATED AS OF
            DECEMBER 30, 2002, BY AND AMONG THE MAKER HEREOF, THE
            PAYEE NAMED HEREIN, AND FOOTHILL CAPITAL CORPORATION, AS
            SUCH AGREEMENT MAY BE AMENDED FROM TIME TO TIME, AND
            EACH HOLDER OF THIS NOTE, BY ITS ACCEPTANCE HEREOF,
            SHALL BE BOUND BY THE PROVISIONS OF SUCH SUBORDINATION
            AGREEMENT.

                             MERCURY AIR GROUP, INC.

                     12% SENIOR SUBORDINATED PROMISSORY NOTE
                              DUE December 31, 2005

$24,000,000                                                 New York, New York
                                                            September 10, 1999

            FOR VALUE RECEIVED, the undersigned, MERCURY AIR GROUP, INC., a
corporation organized under the laws of Delaware (the "Borrower"), hereby
promises to pay to the order of J.H. WHITNEY MEZZANINE FUND, L.P. ("WMF"), a
Delaware limited partnership, or its registered assigns (the "Holder"), the
principal sum of Twenty Four Million Dollars ($24,000,000) on December 31, 2005
(the "Maturity Date"), with interest thereon from time to time as provided
herein.

            1. Purchase Agreement. This Senior Subordinated Promissory Note (the
"Note") is issued by the Borrower, on the date hereof, pursuant to the
Securities Purchase Agreement (the "Purchase Agreement"), dated as of September
10, 1999, as amended to date, by
<PAGE>
and between the Borrower and WMF, and is subject to the terms thereof. This
Note, together with all other promissory notes issued under the Purchase
Agreement, and all promissory notes issued pursuant to paragraph 12 hereof or
any provision of the Purchase Agreement are hereinafter referred to as the
"Notes." The Holder is entitled to the benefits of this Note and the Purchase
Agreement, as it relates to the Note, and may enforce the agreements of the
Borrower contained herein and therein and exercise the remedies provided for
hereby and thereby or otherwise available in respect hereto and thereto.
Capitalized terms used herein without definition are used herein with the
meanings ascribed to such terms in the Purchase Agreement.

            2. Interest. (a) Basic Interest. The Borrower promises to pay
interest on the principal amount of this Note at the rate of 12% per annum. The
Borrower shall pay accrued interest quarterly on each March 31, June 30,
September 30 and December 31 of each year or, if any such date shall not be a
Business Day, on the next succeeding Business Day to occur after such date (each
date upon which interest shall be so payable, an "Interest Payment Date"),
beginning on September 30, 1999. Interest on this Note shall be paid by wire
transfer of immediately available funds to an account at a bank designated in
writing by the Holder. In the absence of any such written designation, any such
Interest payment shall be deemed made on the date a check in the applicable
amount payable to the order of Holder is received by the Holder at its last
address as reflected in Borrower's note register; if no such address appears,
then to such Holder in care of the last address in such note register of any
predecessor holder of this Note (or its predecessor). In addition to cash
interest, during the period beginning on January 1, 2004 and ending on June 30,
2004, the interest rate on this Note shall increase by a rate of 1% per annum
for each month Interest in excess of 12% per annum shall accrue and be added to
principal, and shall not be payable in cash. This increase in interest rate
shall take effect on the last day of each month from January 31, 2004 through
June 30, 2004, inclusive. Interest on this Note shall accrue from and including
the date of issuance through and until repayment of the principal and payment of
all accrued interest in full. Interest shall accrue and be computed on the basis
of a 360-day year of twelve 30-day months.

                  (b) Default Rate of Interest. Notwithstanding the foregoing
provisions of this Section 2, but subject to applicable law, any overdue
principal of and overdue interest on this Note shall bear interest, payable on
demand in immediately available funds, for each day from the date payment
thereof was due to the date of actual payment, at a rate equal to the rate of
interest otherwise in effect pursuant to the first sentence of this Section 2
plus 2% per annum, and, upon and during the occurrence of an Event of Default
(as hereinafter defined), this Note shall bear interest, from the date of the
occurrence of such Event of Default until such Event of Default is cured or
waived, payable on demand in immediately available funds, at a rate equal to the
rate of interest otherwise in effect pursuant to the first sentence of this
Section 2 plus 2% per annum. Subject to applicable law, any interest that shall
accrue on overdue interest on this Note as provided in the preceding sentence
and shall not have been paid in full on or before the next Interest Payment Date
to occur after the Interest Payment Date on which the overdue interest became
due and payable shall itself be deemed to be overdue interest on this Note to
which the preceding sentence shall apply.

                  (c) Maximum Interest. The maximum interest payable on this
Note pursuant to paragraphs (a) and (b) above is 18% per annum.

                                     - 2 -
<PAGE>
                  (d) No Usurious Interest. In the event that any interest rate
provided for herein shall be determined to be unlawful, such interest rate shall
be computed at the highest rate permitted by applicable law. Any payment by the
Borrower of any interest amount in excess of that permitted by law shall be
considered a mistake, with the excess being applied to the principal of this
Note without prepayment premium or penalty; if no such principal amount is
outstanding, such excess shall be returned to Borrower.

            3. Mandatory Prepayment.

                  (a) Public Offerings. Subject to the subordination provisions
of Section 7 hereof and the Subordination Agreement (as hereinafter defined),
upon the consummation of a Public Offering (as hereinafter defined), the
Borrower shall, at the election of the Holder, prepay the outstanding principal
amount of this Note at the redemption prices (the "Mandatory Redemption Price"),
set forth below (together with interest accrued thereon), immediately following
receipt by any of the Borrower, or any of its Subsidiaries of the proceeds of
such Public Offering. For the purposes hereof, "Public Offering" means the sale
by any of the Borrower, or any of its Subsidiaries of its equity securities
(other than (i) stock options or warrants to acquire Common Stock awarded to
employees and directors pursuant to incentive compensation plans or agreements
with such Persons in an aggregate amount for all such options and warrants not
to exceed $250,000 per annum, and (ii) stock issued to a seller party to, and as
consideration for a Permitted Acquisition) pursuant to a registration statement
(other than on Form S-4 or S-8) or otherwise under the Securities Act, including
without limitation any offering which contemplates resale of the securities
issued under Rule144A under the Securities Act, in which the issuer receives any
Net Cash Proceeds. For the purposes hereof, "Net Cash Proceeds" means (x) the
cash proceeds in respect of a Public Offering minus (y) all costs of sale,
underwriting or brokerage costs and taxes paid or payable as a result thereof by
the Borrower or any of its Subsidiaries. The foregoing notwithstanding, until
all Senior Indebtedness to which this Note is subordinated shall be paid in
full, the amount of Net Proceeds which the Borrower shall be obligated to pay
under this Section 3(a) to the Holder as a prepayment of this Note at the
election of the Holder, shall be limited as set forth in the Subordination
Agreement. No penalty or premium shall apply to a prepayment made in accordance
with this paragraph

                  (b) Change of Control. Subject to the subordination provisions
of Section 7 hereof and the Subordination Agreement, upon the occurrence of a
Change of Control (as hereinafter defined), the Borrower shall, at the election
of the Holder, prepay the outstanding principal amount of this Note in
accordance with the Mandatory Redemption Prices set forth in Section 3(a) above
(together with interest accrued thereon), within 5 Business Days after the

                                     - 3 -
<PAGE>
occurrence of such Change of Control. For the purposes hereof, "Change of
Control" means (i) any transaction or series of transactions in which any Person
or group, other than WMF, CFK Partners or any of their respective affiliates
becomes the beneficial owner of 35% or more of the then outstanding capital
stock of the Borrower or of any of its Subsidiaries, the operations of which
would constitute a material part of the business or operations of the Borrower
and all of its Subsidiaries, taken as a whole, (ii) the sale of all or
substantially all of the assets of the Borrower or of any of its Subsidiaries,
the operations of which would constitute a material part of the business or
operations of the Borrower and all of its Subsidiaries, taken as a whole, (iii)
the liquidation of the Borrower or any of its Subsidiaries, the operations of
which would constitute a material part of the business or operations of the
Borrower and all of its Subsidiaries, taken as a whole, other than transactions
defined as Permitted Financing Transactions in, and entered into in compliance
with, the Purchase Agreement, and/or (iv) the combination of the Borrower or of
any of its Subsidiaries, the operations of which would constitute a material
part of the business or operations of the Borrower and all of its Subsidiaries,
taken as a whole, with another entity, as a result of which (A) any Person or
group, other WMF, CFK Partners or any of their respective affiliates becomes the
beneficial owner of 35% or more of the then outstanding capital stock of the
combined entity or (B) the directors of the Borrower or such Subsidiary, as the
case may be, constitute less than a majority of the Board of Directors of the
combined entity.

                  (c) Notice. The Borrower shall give written notice to the
Holder of any mandatory prepayment pursuant to this Section 3 at least five (5)
Business Days prior to the date of such prepayment. Such notice shall be given
in the manner specified in Section 11.2 of the Purchase Agreement.

            4. Optional Prepayment.

                  (a) Upon notice given to the Holder as provided in Section
4(b), the Borrower, at its option, may, at any time prepay all or any portion of
the principal amount of this Note at any time, by paying to the Holder an amount
equal to the principal amount to be repaid together with interest accrued and
unpaid thereon to the date fixed for such prepayment, and reasonable
out-of-pocket costs and expenses (including, without limitation, reasonable
fees, charges and disbursements of counsel), if any, associated with such
prepayment; provided, however, each prepayment of less than the full outstanding
balance of the principal amount of this Note shall be in an aggregate principal
amount of this Note of $1,000,000 or integral multiples of $100,000 in excess
thereof, and provided, further, that unless this Note and all Notes shall be
paid in full, the aggregate principal balance of the Notes outstanding at any
time shall be at least $500,000. No prepayment penalty or premium shall apply in
respect of any optional prepayment made in accordance with this paragraph.(b)
The Borrower may give written notice of prepayment of this Note or any portion
thereof not less than 10 nor more than 60 days prior to the date fixed for such
prepayment. Such notice of prepayment shall be given in the manner specified in
Section 11.2 of the Purchase Agreement. Upon notice of prepayment being given by
the Borrower, the Borrower covenants and agrees that it will prepay, on the date
therein fixed for prepayment, this Note or the portion hereof so called for
prepayment, at the outstanding principal amount thereof or the portion thereof
so called for prepayment, together with interest accrued and unpaid thereon to
the date fixed for such prepayment, together with the costs and expenses
referred to in Section 4(a).

                                     - 4 -
<PAGE>
                  (c) All optional prepayments under this Section 4 shall
include payment of accrued interest on the principal amount so prepaid and shall
be applied first to all costs, expenses and indemnities payable under the
Purchase Agreement, then to payment of default interest, if any, then to payment
of accrued interest, and thereafter to principal.

            5. Amendment. Amendments and modifications of this Note may be made
only in the manner provided in Section 11.4 of the Purchase Agreement.

            6. Defaults and Remedies.

                  (a) Events of Default. An "Event of Default" shall occur if:

            (i)   the Borrower shall default in the payment of the principal of
                  this Note, when and as the same shall become due and payable,
                  whether at maturity or at a date fixed for prepayment or by
                  acceleration or otherwise; or

            (ii)  the Borrower shall default in the payment of any installment
                  of interest on this Note according to its terms, when and as
                  the same shall become due and payable and such default shall
                  continue for a period of 5 days; or

            (iii) the Borrower shall default in the due observance or
                  performance of any covenant to be observed or performed
                  pursuant to Sections 8.1, 8.2(a), 8.3, 8.7, 8.8, 8.10, 8.11 or
                  Article 9 of the Purchase Agreement, and provided, however,
                  that a default under Article 9 which does not or is not likely
                  to have a material adverse effect on the Condition of the
                  Company shall become an Event of Default only if such default
                  shall continue for a period of 10 days; or

            (iv)  the Borrower or any of its Subsidiaries shall default in the
                  due observance or performance of any other covenant, condition
                  or agreement on the part of the Borrower or any of its
                  Subsidiaries to be observed or performed pursuant to the terms
                  hereof or pursuant to the terms of the Purchase Agreement or
                  any of the Transaction Documents (other than those referred to
                  in clauses (i), (ii) or (iii) of this Section 6(a)), and such
                  default shall continue for 30 days after the earliest of (A)
                  the date the Borrower is required pursuant to the Transaction
                  Documents or otherwise to give notice thereof to the Holder
                  (whether or not such notice is actually given) or (B) the date
                  of written notice thereof, specifying such default and, if
                  such default is capable of being remedied, requesting that the
                  same be remedied, shall have been given to the Borrower by the
                  Holder; or

            (v)   any representation, warranty or certification made by or on
                  behalf of the Borrower or any of its Subsidiaries in the
                  Purchase Agreement, this Note, the Transaction Documents or in
                  any certificate or other document delivered pursuant hereto or
                  thereto shall have been incorrect when made; or

                                     - 5 -
<PAGE>
            (vi)  any event or condition shall occur that results in the
                  acceleration of the maturity of any Indebtedness of the
                  Borrower or any of its Subsidiaries, in a principal amount
                  aggregating $100,000 or more; or

            (vii) an involuntary proceeding shall be commenced or an involuntary
                  petition shall be filed in a court of competent jurisdiction
                  seeking (a) relief in respect of the Borrower or any of its
                  Subsidiaries, or of a substantial part of its property or
                  assets, under Title 11 of the United States Code, as now
                  constituted or hereafter amended, or any other Federal or
                  state bankruptcy, insolvency, receivership or similar law, (b)
                  the appointment of a receiver, trustee, custodian,
                  sequestrator, conservator or similar official for the Borrower
                  or any of its Subsidiaries, or for a substantial part of its
                  property or assets, or (c) the winding up or liquidation of
                  the Borrower or any Subsidiary; and such proceeding or
                  petition shall continue undismissed for 60 days, or an order
                  or decree approving or ordering any of the foregoing shall be
                  entered; or

            (viii) the Borrower or any of its Subsidiaries shall (a) voluntarily
                  commence any proceeding or file any petition seeking relief
                  under Title 11 of the United States Code, as now constituted
                  or hereafter amended, or any other Federal or state
                  bankruptcy, insolvency, receivership or similar law, (b)
                  consent to the institution of, or fail to contest in a timely
                  and appropriate manner, any proceeding or the filing of any
                  petition described in paragraph (vii) of this Section 6(a),
                  (c) apply for or consent to the appointment of a receiver,
                  trustee, custodian, sequestrator, conservator or similar
                  official for the Borrower or any of its Subsidiaries, or for a
                  substantial part of their property or assets, (d) file an
                  answer admitting the material allegations of a petition filed
                  against it in any such proceeding, (e) make a general
                  assignment for the benefit of creditors, (f) become unable,
                  admit in writing its inability or fail generally to pay its
                  debts as they become due or (g) take any action for the
                  purpose of effecting any of the foregoing; or

            (ix)  one or more judgments for the payment of money in an aggregate
                  amount in excess of $500,000 (to the extent not covered by
                  insurance) shall be rendered against the Borrower or any of
                  its Subsidiaries and the same shall remain undischarged for a
                  period of 30 days during which execution shall not be
                  effectively stayed, or any action shall be legally taken by a
                  judgment creditor to levy upon assets or properties of the
                  Borrower or any of its Subsidiaries to enforce any such
                  judgment.

      (b)   Acceleration. If an Event of Default occurs under Section 6(a)(vii)
            or (viii), then the outstanding principal of and all accrued
            interest on this Note shall automatically become immediately due and
            payable, without presentment, demand, protest or notice of any kind,
            all of which are hereby expressly waived. If any other Event of
            Default occurs and is continuing, other than a default under Section
            8.7 of the Purchase Agreement, the Holder, by written notice to the

                                     - 6 -
<PAGE>
            Borrower, may declare the principal of and accrued interest on this
            Note to be immediately due and payable. Upon such declaration, such
            principal and interest shall become immediately due and payable. The
            Holder may rescind an acceleration and its consequences if all
            existing Events of Default have been cured or waived, except
            nonpayment of principal or interest that has become due solely
            because of the acceleration, and if the rescission would not
            conflict with any judgment or decree. Any notice or rescission shall
            be given in the manner specified in Section 11.2 of the Purchase
            Agreement. If any Event of Default occurs under Section 8.7 of the
            Purchase Agreement related to the failure to prepay amounts required
            on or prior to December 31, 2003, then, unless Borrower fails to
            take the remedial action set forth in such Section 8.7, Holder may
            not accelerate this Note or declare the full amount of principal
            then due and payable. Nothing in the preceding sentence shall impair
            any other remedy available to Holder as a result of such Event of
            Default (including the right to charge interest at the Default Rate,
            or the right to accelerate this Note upon Borrower's failure to
            issue Additional Notes or Additional Warrants or to prepay principal
            as agreed on or before December 31, 2004).

7. Subordination. Subject to the limitations set forth in Section 7(p) below,
this Note shall at all times be wholly subordinate and junior in right of
payment to all Senior Indebtedness to the extent and in the manner provided in
this Section 7.

      (a)   Definitions. As used in this Section 7, the following terms shall
            have the following meanings:

            "Indebtedness" shall have the meaning assigned to that term in the
Purchase Agreement.

            "Senior Covenant Default" shall mean any event of default as defined
under any agreement pertaining to Senior Indebtedness, other than a Senior
Payment Default.

            "Senior Credit Agreement" means the Senior Credit Agreement, as in
effect on the date hereof, by and among the Company, certain of its subsidiaries
and Foothill Capital Corporation.

            "Senior Indebtedness" has the meaning given to such term in the
Purchase Agreement.

            "Senior Default" shall mean a Senior Payment Default or a Senior
Covenant Default.

            "Senior Payment Default" shall mean any default in the payment of
any Senior Indebtedness.

            "Subordinated Indebtedness" shall mean (i) the principal of and
interest on this Note; (ii) any other obligations of the Borrower arising out of
or in connection with the Purchase Agreement, this Note or the other Transaction
Documents and (iii) any obligations of any of

                                     - 7 -
<PAGE>
Borrower's Subsidiaries arising out of or in connection with the Guaranties or
the other Transaction Documents.

      (b)   General. Upon the maturity of any Senior Indebtedness by lapse of
            time, acceleration, required prepayment or otherwise, all Senior
            Indebtedness shall first be paid in full, or such payment duly
            provided for in cash or in a manner satisfactory to the holders of
            such Senior Indebtedness, before any payment is made on account of
            the Subordinated Indebtedness or by the Borrower or Affiliates of
            the Borrower to acquire this Note. Notwithstanding any provision in
            Section 7 of this Note to the contrary, (i) for so long as no Senior
            Default has occurred and is continuing, or would occur as a result
            of such a payment, the Borrower may pay and the Holder may receive
            (A) all regularly scheduled payments of interest under this Note,
            and (B) all amounts due to the Holder or its Affiliates pursuant to
            either Section 2.4 or Section 7.1 of the Purchase Agreement, (ii)
            for so long as no Senior Default has occurred and is continuing or
            would occur as a result of any such prepayment, Borrower may prepay
            this Note in accordance with the provisions of Section 3 hereof, and
            the Holder may receive such prepayments, (iii) for so long as no
            Senior Default has occurred and is continuing, or would occur as a
            result of such a payment, the Borrower may prepay this Note in
            accordance with the provisions of Section 4 hereof and the Holder
            may receive such prepayments, and (iv) the Holder may receive any
            distributions provided for in Section 7(e)(ii) or 7(e)(iv) hereof.

      (c)   Limitation on Payment.

            (i)   Upon receipt by the Borrower and the Holder of a Blockage
                  Notice (as defined below), then unless and until (1) all
                  Senior Defaults that gave rise to the Blockage Notice shall
                  have been remedied or effectively waived or shall have ceased
                  to exist, or (2) the Senior Indebtedness in respect of which
                  such Senior Defaults shall have occurred shall have been paid
                  in full, no direct or indirect payment (in cash, property,
                  securities or by set-off or otherwise) of or on account of the
                  principal of or interest on this Note or as a sinking fund for
                  this Note or in respect of any redemption, retirement,
                  purchase or other acquisition of this Note shall be made
                  during any period prior to the expiration of the Blockage
                  Period (as defined below). Notwithstanding the foregoing, all
                  interest paid with respect to this Note prior to the receipt
                  of the Blockage Notice in question by the Holder hereof may be
                  kept by such Holder.

            (ii)  For purposes of this Section 7, a "Blockage Notice" is a
                  notice of a Senior Default that in fact has occurred and is
                  continuing, given to the Borrower and the Holder by the
                  holders of a majority in principal amount of the Senior
                  Indebtedness then outstanding (or their authorized agent);
                  provided, however, that no such notice shall be effective as a
                  Blockage Notice if an effective Blockage Notice shall have
                  been given within 360 days prior thereto.

                                     - 8 -
<PAGE>
            (iii) For purposes of this Section 7, a "Blockage Period" with
                  respect to a Blockage Notice is the period commencing upon the
                  Borrower's receipt of such Blockage Notice and having a
                  duration as follows:

                        (1)   180 days if the Senior Default to which the
            Blockage Notice refers is a Senior Payment Default; or

                        (2)   90 days if the Senior Default to which the
            Blockage Notice refers is a Senior Covenant Default.

Notwithstanding any provision contained herein to the contrary: (A) the Borrower
shall not be prohibited from making, and the Holder shall not be prohibited from
receiving, payments under this Note pursuant to Section 7(c)(iii)(2) hereof for
more than an aggregate of 180 days within any 360 day period, (B) there shall
not be more than two Blockage Notices given in any 365 day period; (C) no Senior
Covenant Default existing on the date any Blockage Notice is given to the Holder
shall be used as a basis for any subsequent such notice, unless such Senior
Covenant Default shall have ceased to exist for a period of at least 180
consecutive days; and (D) once all Senior Defaults which gave rise to the
Blockage Notice in question shall have been remedied or effectively waived or
shall have ceased to exist, or the Senior Indebtedness in respect of which such
Senior Defaults shall have occurred shall have been paid in full, thereafter
(unless another Blockage Period shall then be in effect) all amounts which would
have been payable hereunder but for the existence of the Blockage Period
effected by the Blockage Notice delivered with respect to the Senior Default in
question shall be payable in their entirety.

      (d)   Limitation on Remedies. As long as any Senior Indebtedness remains
            outstanding, upon the occurrence of an Event of Default under this
            Note, the Holder shall not, unless the holders of any Senior
            Indebtedness shall have caused such Senior Indebtedness to become
            due prior to its stated maturity or any Event of Default pursuant to
            Section 6(a)(vii) or (viii) of this Note shall have commenced,
            declare or join in any declaration of this Note to be due and
            payable by reason of such Event of Default or otherwise take any
            action against the Borrower (including, without limitation,
            commencing any legal action against the Borrower or filing or
            joining in the filing of any insolvency petition against the
            Borrower) prior to the expiration of 30 days after the written
            notice of the Holder's ability to accelerate on account of the
            occurrence of such Event of Default (a "Remedy Notice") shall have
            been given by the Holder to the Borrower and the holders of the
            Senior Indebtedness (a "Remedy Standstill Period"), provided, that
            such Remedy Standstill Period shall be extended to (i) 60 days from
            the date of such Remedy Notice if, at the time the Remedy Standstill
            Period would otherwise expire, there exists any Senior Covenant
            Default, or (ii) 90 days from the date of such Remedy Notice if, at
            the time the Remedy Standstill Period would otherwise expire, there
            exists any Senior Payment Default.

            Notwithstanding the foregoing, the Remedy Standstill Period shall be
inapplicable or cease to be effective if the holders of any Senior Indebtedness
shall have caused such Senior Indebtedness to become due prior to its stated
maturity or an Event of Default pursuant to Section 6(a)(vii) or (viii) shall
have occurred. In addition, any Remedy Standstill Period shall

                                     - 9 -
<PAGE>
cease to be effective if at any time during such period: (i) (A) substantial
assets of Borrower or any of its Subsidiaries are sold or otherwise disposed of
(other than to a Person which is either wholly owned by Borrower or a wholly
owned Subsidiary thereof) outside of the ordinary course of business, (B) an
agreement or other arrangement for such sale or disposition is entered into, or
(C) the Board of Directors of the Borrower or such subsidiary authorizes or
approves such agreement, arrangement, sale or disposition or (ii)(A) payment or
any distribution of any character, whether in cash, securities or other property
of Borrower or any of its Subsidiaries shall be made to or received by any
creditor outside the ordinary course of business on any Indebtedness which is on
the same level of priority with or junior and subordinate in right of payment to
this Note, (B) an agreement or other arrangement for such payment or
distribution is entered into, or (C) the Board of Directors of the Borrower or
such Subsidiary authorizes or approves such agreement, arrangement, payment or
distribution.

            Upon the expiration or termination of any Remedy Standstill Period,
the Holder shall be entitled to exercise any of its rights with respect to this
Note other than any right to accelerate the maturity date of this Note based
upon the occurrence of any Event of Default in respect thereto which has been
cured or otherwise remedied during the Remedy Period.

      (e)   Subordination Upon Certain Events. Upon the occurrence of any Event
            of Default with respect to under Sections 6(a)(vii) or (viii) of
            this Note:

            (i)   Upon any payment or distribution of assets of the Borrower to
                  creditors of the Borrower, holders of Senior Indebtedness
                  shall be entitled to receive indefeasible payment in full of
                  all obligations with respect to the Senior Indebtedness before
                  the Holder shall be entitled to receive any payment in respect
                  of the Subordinated Indebtedness.

            (ii)  Until all Senior Indebtedness is paid in full, any
                  distribution to which the Holder would be entitled but for
                  this Section 7 shall be made to the holders of Senior
                  Indebtedness, as their interests may appear, except that the
                  Holder may, pursuant to a plan of reorganization under Chapter
                  11 of the Bankruptcy Code of 1978, as amended, or any similar
                  provision of any successor legislation thereto, receive
                  securities that are subordinate to the Senior Indebtedness to
                  at least the same extent as this Note if pursuant to such plan
                  the distributions to the holders of the Senior Indebtedness in
                  the form of cash, securities or other property, by set-off or
                  otherwise, provide for payment of the full amount of the
                  allowed claim of the holders of the Senior Indebtedness.

            (iii) For purposes of this Section 7, a distribution may consist of
                  cash, securities or other property, by set-off or otherwise.

            (iv)  Notwithstanding the foregoing provisions of Section 7(b),(c)
                  or (e), if payment or delivery by the Borrower of cash,
                  securities or other property to the Holder is authorized by an
                  order or decree giving effect, and stating in such order or
                  decree that effect is given, to the subordination of this Note
                  to the Senior Indebtedness, and made by a court of competent

                                     - 10 -
<PAGE>
                  jurisdiction in a proceeding under any applicable bankruptcy
                  or reorganization law, payment or delivery by such Borrower of
                  such cash, securities or other property shall be made to the
                  Holder in accordance with such order or decree.

      (f)   Payments and Distributions Received. If the Holder shall have
            received any payment from or distribution of assets of the Borrower
            in respect of the Subordinated Indebtedness in contravention of the
            terms of this Section 7 before all Senior Indebtedness is paid in
            full, then and in such event such payment or distribution shall be
            received and held in trust for and shall be promptly paid over or
            delivered to the holders of Senior Indebtedness to the extent
            necessary to pay all such Senior Indebtedness in full.

      (g)   Proofs of Claim. If, while any Senior Indebtedness is outstanding,
            any Event of Default under Section 6(a)(vii) or (viii) of this Note
            occurs with respect to the Borrower, the Holder shall duly and
            promptly take such action as any holder of Senior Indebtedness may
            reasonably request to collect any payment with respect to this Note
            for the account of the holders of the Senior Indebtedness and to
            file appropriate claims or proofs of claim in respect of this Note.
            Upon the failure of the Holder to take any such action, each holder
            of Senior Indebtedness is hereby irrevocably authorized and
            empowered (in its own name or otherwise), but shall have no
            obligation, to demand, sue for, collect and receive every payment or
            distribution referred to in respect of this Note and to file claims
            and proofs of claim and take such other action as it may deem
            necessary or advisable for the exercise or enforcement of any of the
            rights or interests of the Holder with respect to this Note.

      (h)   Subrogation. After all amounts payable under or in respect of Senior
            Indebtedness are paid in full, the Holder shall be subrogated to the
            rights of holders of Senior Indebtedness to receive payments or
            distributions applicable to Senior Indebtedness to the extent that
            distributions otherwise payable to the Holder have been applied to
            the payment of Senior Indebtedness. A distribution made under this
            Section 7 to a holder of Senior Indebtedness which otherwise would
            have been made to the Holder is not, as between the Borrower and the
            Holder, a payment by the Borrower on Senior Indebtedness.

      (i)   Relative Rights. This Section defines the relative rights of the
            Holder and the holders of Senior Indebtedness. Nothing in this
            Section shall: (1) impair, as between the Borrower and the Holder,
            the obligations of the Borrower, which are absolute and
            unconditional, to pay principal of and interest (including default
            interest) on this Note in accordance with its terms; (2) affect the
            relative rights of the Holder and creditors of the Borrower other
            than holders of Senior Indebtedness or (3) prevent the Holder from
            exercising its available remedies upon a default or Event of
            Default, subject to the rights, if any, under this Section 7 of
            holders of Senior Indebtedness.

                                     - 11 -
<PAGE>
      (j)   Subordination May Not Be Impaired by the Borrower. No right of any
            holder of any Senior Indebtedness to enforce the subordination of
            the Indebtedness evidenced by this Note shall be impaired by any
            failure to act by the Borrower or such holder of Senior Indebtedness
            or by the failure of the Borrower or such holder to comply with this
            Note. The provisions of this Section 7 shall continue to be
            effective or be reinstated, as the case may be, if at any time any
            payment of any of the Senior Indebtedness is rescinded or must
            otherwise be returned by any holder of Senior Indebtedness as a
            result of the insolvency, bankruptcy or reorganization of the
            Borrower or any of its Subsidiaries or otherwise, all as though such
            payment had not been made.

      (k)   Payments. A payment with respect to principal of or interest on the
            Subordinated Indebtedness shall include, without limitation, payment
            of principal of, and interest on this Note, any depositing of funds
            for the defeasance of the Subordinated Indebtedness, any sinking
            fund and any payment on account of mandatory prepayment or optional
            prepayment provisions.

      (l)   Section Not to Prevent Events of Default. The failure to make a
            payment on account of principal of or interest on or other amounts
            constituting Subordinated Indebtedness by reason of any provision of
            this Section 7 shall not be construed as preventing the occurrence
            of an Event of Default under Section 6.

      (m)   Subordination Not Impaired: Benefit of Subordination. The Holder
            agrees and consents that without notice to or assent by such Holder,
            and without affecting the liabilities and obligations of the
            Borrower and the rights and benefits of the holders of the Senior
            Indebtedness set forth in this Section 7:

            (i)   The obligations and liabilities of the Borrower and any other
                  party or parties for or upon the Senior Indebtedness may, from
                  time to time, be increased, renewed, refinanced, extended,
                  modified, amended, restated, compromised, supplemented,
                  terminated, waived or released, except as prohibited by
                  Sections 9.3 and 9.4 of the Purchase Agreement;

            (ii)  The holders of Senior Indebtedness, and any representative or
                  representatives acting on behalf thereof, may exercise or
                  refrain from exercising any right, remedy or power granted by
                  or in connection with any agreements relating to the Senior
                  Indebtedness; and

            (iii) Any balance or balances of funds with any holder of Senior
                  Indebtedness at any time outstanding to the credit of the
                  Borrower may, from time to time, in whole or in part, be
                  surrendered or released;

all as the holders of the Senior Indebtedness, and any representative or
representatives acting on behalf thereof, may deem advisable, and all without
impairing, abridging, diminishing, releasing or affecting the subordination of
the Subordinated Indebtedness to the Senior Indebtedness provided for herein.

                                     - 12 -
<PAGE>
      (n)   Modification of Section 7. The provisions of this Section 7 are for
            the benefit of the holders from time to time of Senior Indebtedness
            and, so long as any Senior Indebtedness remains unpaid, may not be
            modified, rescinded or canceled in whole or in part without the
            prior written consent thereto of all holders of Senior Indebtedness.

      (o)   Covenants of Holder. Until all of the Senior Indebtedness has been
            fully paid:

            (i)   The Holder shall not hereafter give any subordination in
                  respect of this Note.

            (ii)  Upon the occurrence and during the continuance of a Senior
                  Default, the Holder shall not release, exchange, extend the
                  time of payment of, compromise, set off or otherwise discharge
                  any part of this Note or modify or amend this Note; provided,
                  however, that at such time or times as the actions referred to
                  in this Section 7(o)(ii) may be taken by the Holder, such
                  Holder shall give the holders of Senior Indebtedness five
                  Business Days prior written notice before taking any of such
                  actions.

            (iii) The Holder hereby undertakes and agrees for the benefit of the
                  holders of Senior Indebtedness that, upon the occurrence and
                  during the continuance of a Senior Default, it shall take any
                  actions reasonably requested by any holder of Senior
                  Indebtedness to effectuate the full benefit of the
                  subordination contained herein.

      (p)   Covenant of the Borrower, Limitation on Indebtedness. Until all
            Subordinated Indebtedness shall have been paid in full, the Borrower
            shall not, and shall not cause, suffer or permit any of its
            Subsidiaries to, directly or indirectly, collectively and in the
            aggregate, issue, assume or otherwise incur Senior Indebtedness or
            other Indebtedness except as permitted under Section 9.4 of the
            Purchase Agreement, as it now exists or may be amended or modified.

      (q)   Miscellaneous.

            (i)   To the extent permitted by applicable law, the Holder and the
                  Borrower hereby waive (1) notice of acceptance hereof by the
                  holders of the Senior Indebtedness, and (2) all diligence in
                  the collection or protection of or realization upon the Senior
                  Indebtedness.

            (ii)  The Borrower and the Holder hereby expressly agree that the
                  holders of Senior Indebtedness may enforce any and all rights
                  derived herein by suit, either in equity or law, for specific
                  performance of any agreement contained in this Section 7 or
                  for judgment at law and any other relief whatsoever
                  appropriate to such action or procedure.

            (iii) The Holder acknowledges and agrees that the foregoing
                  subordination provisions are, and are intended to be, an
                  inducement and a consideration to each holder of Senior
                  Indebtedness, whether such Senior Indebtedness

                                     - 13 -
<PAGE>
                  was created or acquired before or after the issuance of this
                  Agreement, and each holder of Senior Indebtedness shall be
                  deemed conclusively to have relied upon such subordination
                  provisions in acquiring and continuing to hold such Senior
                  Indebtedness.

      (r)   Subordination Agreement. Notwithstanding anything to the contrary
            contained in this Section 7, the terms and conditions of the
            Subordination Agreement dated the date hereof among WMF, the
            Borrower and Foothill Capital Corporation (the "Subordination
            Agreement") shall govern the subordination of the Subordinated
            Indebtedness as long as the Subordination Agreement remains in full
            force and effect.

8. Use of Proceeds. The Borrower shall use the principal amount of this Note in
accordance with the permitted uses described in Section 8.10 of the Purchase
Agreement.

9. Suits for Enforcement.

      (a)   Subject to Section 7, upon the occurrence of any one or more Events
            of Default, the Holder of this Note may proceed to protect and
            enforce its rights hereunder by suit in equity, action at law or by
            other appropriate proceeding, whether for the specific performance
            of any covenant or agreement contained in the Purchase Agreement or
            this Note or in aid of the exercise of any power granted in the
            Purchase Agreement or this Note, or may proceed to enforce the
            payment of this Note, or to enforce any other legal or equitable
            right of the Holders of this Note.

      (b)   In case of any default under this Note, the Borrower will pay to the
            Holder such amounts as shall be sufficient to cover the costs and
            expenses of such Holder due to such default, as provided in Article
            7 of the Purchase Agreement.

10. Remedies Cumulative. No remedy herein conferred upon the Holder is intended
to be exclusive of any other remedy and each and every such remedy shall be
cumulative and shall be in addition to every other remedy given hereunder or now
or hereafter existing at law or in equity or by statute or otherwise.

11. Remedies Not Waived. No course of dealing between the Borrower and the
Holder or any delay on the part of the Holder in exercising any rights hereunder
shall operate as a waiver of any right.

12. Transfer.

      (a)   The term "Holder" as used herein shall also include any transferee
            of this Note whose name has been recorded by the Borrower in the
            Note Register. Each transferee of this Note acknowledges that this
            Note has not been registered under the Securities Act, and may be
            transferred only pursuant to an effective registration under the
            Securities Act or pursuant to an applicable exemption from the
            registration requirements of the Securities Act.

                                     - 14 -
<PAGE>
      (b)   The Borrower shall maintain a register (the "Note Register") in its
            principal offices for the purpose of registering the Note and any
            transfer or partial transfer thereof, which register shall reflect
            and identify, at all times, the ownership of record of any interest
            in the Note. Upon the issuance of this Note, the Borrower shall
            record the name and address of the initial purchaser of this Note in
            the Note Register as the first Holder. Upon surrender for
            registration of transfer or exchange of this Note at the principal
            offices of the Borrower, the Borrower shall, at its expense, execute
            and deliver one or more new Notes of like tenor and of denominations
            of at least $500,000 (except as may be necessary to reflect any
            principal amount not evenly divisible by $500,000 of a like
            aggregate principal amount, registered in the name of the Holder or
            a transferee or transferees. Every Note surrendered for registration
            of transfer or exchange shall be duly endorsed, or be accompanied by
            written instrument of transfer duly executed by the Holder of such
            Note or such holder's attorney duly authorized in writing.

      (c)   This Note may be transferred or assigned, in whole or in part, by
            the Holder at any time.

13. Replacement of Note. On receipt by the Borrower of an affidavit of an
authorized representative of the Holder stating the circumstances of the loss,
theft, destruction or mutilation of this Note (and in the case of any such
mutilation, on surrender and cancellation of such Note), the Borrower, at its
expense, will promptly execute and deliver, in lieu thereof, a new Note of like
tenor. If required by the Borrower, such Holder must provide indemnity
sufficient in the reasonable judgment of the Borrower to protect the Borrower
from any loss which they may suffer if a lost, stolen or destroyed Note is
replaced.

14. Covenants Bind Successors and Assigns. All the covenants, stipulations,
promises and agreements in this Note contained by or on behalf of the Borrower
shall bind its successors and assigns, whether so expressed or not.

15. Notices. All notices, demands and other communications provided for or
permitted hereunder shall be made in writing and shall be by registered or
certified first-class mail, return receipt requested, telecopier (with receipt
confirmed), courier service or personal delivery at the addresses specified in
Section 11.2 of the Purchase Agreement. All such notices and communications
shall be deemed to have been duly given when: delivered by hand, if personally
delivered; when delivered by courier, if delivered by commercial overnight
courier service; if mailed, five Business Days after being deposited in the
mail, postage prepaid; or if telecopied, when receipt is acknowledged.

16. GOVERNING LAW. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF
CONFLICTS OF LAW OF SUCH STATE (INCLUDING GIVING EFFECT TO GOL SECTION 5-1401).

17. Severability. If any one or more of the provisions contained herein, or the
application thereof in any circumstance, is held invalid, illegal or
unenforceable in any respect for any

                                     - 15 -
<PAGE>
reason, the validity, legality and enforceability of any such provision in every
other respect and of the remaining provisions hereof shall not be in any way
impaired, unless the provisions held

                                     - 16 -
<PAGE>
invalid, illegal or unenforceable shall substantially impair the benefits of
the remaining provisions hereof

18. Headings. The headings in this Note are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof

                                    MERCURY AIR GROUP, INC.

                                    By: ____________________________
                                        Name:
                                        Title:

                                     - 17 -

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