Document:

Exhibit 10.1

                          BacTech Enviromet Corporation
                        439 University Avenue, Suite 1450
                            Toronto, Ontario M5G 1Y8

                                                                  March 25, 2003

                         STRICTLY PRIVATE & CONFIDENTIAL

U.S. Gold Corporation
2201 Kipling Street, Suite 100
Lakewood, Colorado 80215

   Attention:  William W. Reid, President
               and Chief Executive Officer

Dear Sirs:

This letter confirms our agreement respecting the proposed acquisition (the
Transaction) by BacTech Enviromet Corporation (BacTech) of a 55% interest in
Tonkin Springs Limited Liability Company (TSLLC) from a subsidiary of U.S. Gold
Corporation (U.S. Gold) for a purchase price (the Purchase Price)of
US$1,750,000. Of the total Purchase Price, US$250,000 shall be paid to U.S. Gold
forthwith upon execution of the letter agreement, US$750,000 shall be payable
upon Closing (as hereinafter defined) and US$750,000 to be paid upon the
commencement of production at the Tonkin Springs Property at the rate of 40,000
ounces of gold per year (Commercial Production) or, if Commercial Production has
not been achieved within 12 months of the Closing, at the rate of US$62,500 per
month for twelve (12) months commencing on the first anniversary of Closing Date
and continuing for eleven (11) additional months . Upon completion of the
Transaction, TSLLC will be operated by BacTech, as Manager, as provided under
the Members' Agreement of TSLLC as Amended, and the Operating Agreement of TSLLC
as Amended, among and between BacTech and Tonkin Springs Venture Limited
Partnership and U.S. Environmental Corporation, and in accordance with the terms
set forth in Schedule "B" hereto.

1. BacTech represents, warrants to and in favour of U.S. Gold as follows and
acknowledges that U.S. Gold is relying on such representations and warranties in
connection with the matters set forth in this letter:

(a) BacTech is duly incorporated and validly subsisting under the laws of the
Province of Ontario and has all requisite power and authority and is duly
qualified to carry on its business as now conducted and to own its properties
and assets;

(b) The audited financial statements of BacTech for the year ended September 30,
2002 and the unaudited interim financial statements of BacTech for the three
months ended December 31, 2002 have been prepared in accordance with Canadian
generally accepted accounting principles applied on a basis consistent with that
of the respective previous fiscal period, are true, correct and complete in all
material respects and present fairly the financial condition of BacTech as at
September 30, 2002 and December 31, 2002, respectively, including assets and
liabilities as of September 30, 2002 and December 31, 2002 and revenues,
expenses and results of operations of BacTech for the fiscal year ended on
September 30, 2002 and the three months ended December 31, 2002, respectively;

(c) BacTech does not have any material liability or obligation whether accrued,
absolute, contingent or otherwise not reflected in its latest publicly-disclosed
financial statements;

<PAGE>

(d) there is currently no litigation or other proceedings pending or in progress
by or against BacTech before any court, regulatory or administrative agency or
tribunal, other than as publicly disclosed; and

(e) BacTech is current in the filing of all public disclosure documents required
to be filed by BacTech under applicable securities and other laws and all of
such filings are complete and correct and do not contain any misrepresentation,
as such term is defined in the Securities Act (Ontario).

2. U.S. Gold represents, warrants to and in favour of U.S. Gold as follows and
acknowledges that BacTech is relying on such representations and warranties in
connection with the matters set forth in this letter:

(a) U.S. Gold is duly incorporated and validly subsisting under the laws of the
State of Colorado, Tonkin Springs Venture L.P. (TSVLP) is a limited partnership
formed under the laws of Nevada, Tonkin Springs Gold Mining Company (TSGMC) is
duly incorporated and validly subsisting under the laws of the State of
Colorado, U.S. Environmental Corporation (USEC) is duly incorporated and validly
subsisting under the laws of the State of Colorado, and TSLLC is a limited
liability company formed under the laws of Delaware;

(b) each of U.S. Gold, TSGMC, TSVLP, USEC and TSLLC have all requisite power and
authority and is duly qualified to carry on its business as now conducted and to
own its property and assets;

(c) TSVLP is a wholly-owned subsidiary of U.S. Gold with interest in TSVLP held
through wholly-owned subsidiaries TSGMC (99.5%) and USEC (0.5%) and U.S. Gold
owns a 100% interest in TSVLP free and clear of all mortgages, liens, charges,
pledges, security interests, encumbrances (other than as publically disclosed in
its annual report on Form 10-KSB for the year ended December 31, 2002 and
subsequent interim reports, if any), claims or demands of any kind whatsoever
and no person has any right, agreement or option, present or future, contingent
or absolute, or any right capable of becoming a right, agreement or option, for
the purchase from U.S. Gold of any interest in TSVLP or for the issue or
allotment of any unissued interest in TSVLP or any securities convertible into
or exchangeable for such interest;

(d) TSLLC is owned by subsidiaries of U.S. Gold with TSVLP owning 99.5% and USEC
owning 0.5%, respectively, of the outstanding interest in TSLLC free and clear
of all mortgages, liens, charges, pledges, security interests, encumbrances,
claims or demands of any kind whatsoever and no person has any right, agreement
or option, present or future, contingent or absolute, or any right capable of
becoming a right, agreement or option, for the purchase from TSVLP or USEC of
any interest in TSLLC or for the issue or allotment of any unissued interest in
TSLLC or any securities convertible into or exchangeable for such interest;

(e) TSLLC is the sole owner or lessee of the mining property, fixed assets and
related obligations (under various leases and government permits) known as
Tonkin Springs, located in Nevada (the Tonkin Springs Property). All property
payments including, without limitation, payments relating to environmental
reporting, monitoring and work programs are current and are in good standing.
There are no liens or other encumbrances on the Tonkin Springs Property other
than: (i) a lien for payment of approximately US$85,000 in favour of HW Process
Technologies Inc. (HWPTI) and (ii) a lien for payment of personal property taxes
due March 2003 payable to Eureka Country Nevada for payment of approximately
US$6,000. There are no royalty obligations on the Tonkin Springs Property other
than as publicly disclosed;

(f) the audited financial statements of U.S. Gold for the year ended December
31, 2002 have been prepared in accordance with United States generally accepted
accounting principles applied on a basis consistent with that of the previous
fiscal period, are true, correct and complete in all material respects and
present fairly the financial condition of U.S. Gold as at December 31, 2002,
including assets and liabilities as of December 31, 2002 and revenues, expenses
and results of operations of U.S. Gold for the fiscal year ended on December 31,
2002;

<PAGE>

(g) U.S. Gold does not have any material liability or obligation related to the
Tonkin Springs Property whether accrued, absolute, contingent or otherwise not
reflected in its latest publicly-disclosed financial statements or in the Form
10-KSB for the year ended December 31, 2002.

(h) other than in connection with the HWPTI and Eureka Country Nevada liens
noted in paragraph 2(e) hereof, there is currently no litigation or other
proceedings pending or in progress by or against U.S. Gold before any court,
regulatory or administrative agency or tribunal, other than as publicly
disclosed; and

(i) U.S. Gold is current in the filing of all public disclosure documents
required to be filed by U.S. Gold under applicable securities and other laws and
all of such filings are complete and correct and do not contain any
misrepresentation, as such term is defined under applicable securities laws.

3. The closing of the Transaction will occur on or before July 31, 2003 (the
Closing Date or Closing).

4. BacTech's obligation to enter into the Purchase Agreement and Bill of Sale
with TSVLP for purchase of BacTech's 55% interest in TSLLC and to complete the
Transaction is subject to the satisfaction of the following conditions, which
conditions are for the exclusive benefit of BacTech and may be waived by it in
whole or in part:

(a) U.S. Gold shall have permitted BacTech and its representatives to have made
such due diligence investigations of the TSLLC and the Tonkin Springs Property
as BacTech shall have considered necessary or advisable to familiarize itself
with TSLLC and the Tonkin Springs Property;

(b) BacTech shall be satisfied from its due diligence investigation of TSLLC and
the Tonkin Springs Property on or before July 31, 2003;

(c) BacTech shall have completed one or more financing transactions to raise not
less than Cdn.$2,000,000 on or before the Closing Date;

(d) U.S. Gold shall not, from the date hereof and up to Closing, without the
prior written consent of BacTech, have effected or taken any steps to effect any
transaction or action involving TSLLC or the Tonkin Springs Property out of the
ordinary course of business; and

(e) TSVLP shall be responsible for discharging, or re-scheduling, those certain
obligations or encumbrances as specified in 2(e)(i) and (ii) at the Tonkin
Springs Property at the Closing Date (but shall have 5 business days for filing
of release of lien). At the Closing, and other than as provided immediately
above, there shall be no liens or encumbrances on the Tonkin Springs Property.
As provided in paragraph 15 below, BacTech shall be responsible for certain
funding of costs and expenses related to the Tonkin Springs Property subsequent
to this letter agreement.

If in its sole discretion, BacTech is not satisfied with the results of its due
diligence investigation and provides U.S. Gold with notice to that effect, or if
any of the conditions set forth in this section 3 have not been fulfilled or
performed on or prior to the date by which they are required to be fulfilled or
performed, BacTech may, by notice to U.S. Gold, rescind this agreement,
following which it will have no further obligations hereunder except pursuant to
paragraphs 10, 11, 12, 13, 14 and 19 hereof.

5. The obligation of each of BacTech and U.S. Gold to complete the Transaction
is subject to the satisfaction of the following conditions on or before Closing,
which conditions are for the benefit of each of BacTech and U.S. Gold and may be
waived by each of them, in whole or in part:

<PAGE>

(a) receipt of all necessary regulatory approvals; and

(b) receipt of all necessary third party consents.

If the conditions set forth in this section 5 has not been fulfilled or
performed on or prior to the Closing, either party may, by notice to the other,
rescind this agreement.

6. U.S. Gold covenants and agrees to satisfy or cause to be satisfied, the
conditions set forth in paragraphs 4(a), (d) and (e) and to use its best efforts
to satisfy the conditions set forth in paragraph 5(a). BacTech covenants and
agrees to use its best efforts to satisfy the conditions set forth in paragraph
4(c) and paragraphs 6(a) and (b).

7. In order to accomplish the Transaction, BacTech and U.S. Gold agree to
negotiate in good faith and use their best efforts to enter into definitive
agreements no later than July 31, 2003 embodying the terms and conditions of
this letter and containing other usual and customary provisions for the
transactions contemplated hereby (the Purchase Agreement and Bill of Sale, the
Members' Agreement of Tonkin Springs LLC, as Amended, the Operating Agreement of
Tonkin Springs LLC, As Amended), and to complete the Transaction by no later
than July 31, 2003.

8. In the event that prior to Closing, there should develop, occur or come into
effect any event of any nature, including without limitation, terrorism, war,
accident, or other condition or major financial occurrence of national or
international consequence, which, in the opinion of BacTech, materially affects,
or may materially affect, the financial markets generally or the market price of
BacTech's common shares, BacTech shall be entitled, at its sole option, to
terminate this letter, following which it shall have no further obligations
hereunder except pursuant to paragraphs 10, 11, 12, 13, 14 and 19.

9. In connection with the due diligence investigation of TSLLC and the Tonkin
Springs Property in furtherance of the Transaction, U.S. Gold agrees to make
available to BacTech, its directors, officers, employees, agents or
representatives, consultants and financial advisors (collectively,
Representatives) confidential, non-public and/or proprietary information
(Information) regarding the business and affairs of TSLLC and the Tonkin Springs
Property.

10. The Information will be kept confidential and except in the case of
disclosure to Representatives, will not, without the prior written consent of
U.S. Gold, be disclosed by BacTech in any manner whatsoever, in whole or in
part, and will not be used by BacTech, directly or indirectly, for any purpose
other than evaluating the Transaction.

11. Without the prior written consent of U.S. Gold, and except as required under
applicable law, BacTech agrees, and agrees to direct its Representatives, not to
disclose to any other person that the Information has been made available.
Without the prior written consent of the other party, and except as required by
applicable laws, each party agrees not to disclose to any other person that this
Agreement has been entered into, that discussions or negotiations are taking
place concerning the Transaction, or any of the terms, conditions or other facts
of the Transaction. Without limiting the generality of the foregoing, each party
acknowledge that the other party may be required under applicable securities
laws and/or stock exchange rules to disclose some of the facts described in this
paragraph 11. Each party agrees to advise and consult with the other party
concerning any facts proposed to be disclosed pursuant to applicable securities
laws and/or stock exchange rules prior to such disclosure being made and to
obtain such other party's consent as to the need for such disclosure and as to
the form, content and timing of such disclosure.

<PAGE>

12. If either party rescinds this agreement or in the event that the parties do
not effect the Transaction prior to July 31, 2003, BacTech will each promptly,
upon written request of U.S. Gold, deliver to U.S. Gold all documents furnished
by U.S. Gold or its Representatives to BacTech or its Representatives
constituting the Information, without retaining copies thereof. In such event,
all other documents concerning the Information will be destroyed, except that
any documents concerning the Information that have been prepared by or on behalf
of BacTech from publicly available information or from information not obtained
from U.S. Gold pursuant to this Agreement may be retained by such party.

13. Paragraphs 10, 11 and 12 shall be inoperative as to such portions of the
Information of a party which:

(a) are or become generally available to the public other than as a result of a
disclosure by BacTech;

(b) become available to BacTech on a non- confidential basis from a source other
than U.S. Gold or its Representatives, provided that such source is not bound by
a confidentiality agreement with U.S. Gold or otherwise prohibited from
transmitting the information to BacTech by a contractual, legal or fiduciary
obligation; or

(c) were known to BacTech on a non-confidential basis prior to its disclosure to
BacTech.

14. BacTech agrees to pay to U.S. Gold US$250,000 (the Payment) forthwith
following the execution of this letter. The Payment shall only be deducted from
the Purchase Price on Closing.

15. From the date of this letter, BacTech shall provide interim funding for the
Tonkin Springs Property, including reasonable property holding, care and
maintenance and staff expense, and regulatory expense. BacTech shall also have
the right, but not the obligation, to commence additional activities at the
Tonkin Springs Properties including but not limited to permitting, test work,
and other activities deemed in the interest of BacTech, at the sole cost and
expense of BacTech and with the obligation of BacTech not to allow any liens to
be placed on the Tonkin Springs Properties. All payments provided by BacTech
shall be included in the Funding Obligation as described in Schedule B,
attached.

16. Any notice, demand or other communication required or permitted to be given
or made hereunder shall be in writing and shall be sufficiently given or made if
delivered in person during normal business hours of the recipient on a business
day and left with a responsible employee of the recipient at the addresses set
out above or sent by facsimile or other electronic transmission, charges prepaid
and receipt confirmed.

17. None of the rights and benefits contained in this agreement may be assigned
by BacTech or U.S. Gold without the prior written consent of the other party
hereto.

18. This agreement shall be governed and construed in accordance with the laws
of the Nevada, United States of America.

19. Each of the parties warrants and covenants to the other that it has not
entered into any agreement which would have the effect of making the other
liable for any commissions or agents or brokerage fees in respect of this
transaction.

20. Except as otherwise provided herein, each party shall pay its own costs and
expenses in connection with the Transaction including, without limitation, any
reasonable legal, accounting and auditing fees, any fees or commissions of
brokers, finders or other third parties employed by either of such party in
connection with the Transaction.

<PAGE>

21. This agreement may be changed only by an agreement in writing signed by the
parties hereto. No waiver by any party of any breach of a right under any
provision of this agreement shall be effective unless in writing and signed by
the party purporting to give the same and no such waiver shall constitute a
waiver of any subsequent breach of or right under that or any other provision of
this agreement.

22. Each party agrees that upon the written request of the other party, it will
do all such acts and execute all such further documents, assignments, transfers
and the like and will cause the doing of all such acts and will cause the
execution of all such further documents as are within its power to cause the
doing or execution of, as other such party may from time to time reasonably
request be done and/or executed as may be necessary or desirable to give effect
to this agreement or any agreement referred to or contemplated herein.

Each party hereby represents and warrants to the other that such party has full
power and authority to execute and deliver this letter agreement, that the
execution and delivery of this letter by such party has been authorized by all
requisite action on the part of such party and that this letter agreement
constitutes a legal and binding obligation of such party enforceable against
such party in accordance with its terms.

If you are in agreement with the foregoing, please so indicate by signing and
returning one copy of this letter to us whereupon this letter will constitute
our agreement with respect to the subject matter hereof.

Yours very truly,

BACTECH ENVIROMET CORPORATION

By:/s/ Brad Marchant
--------------------
Brad Marchant
Director

By: /s/ Ross Orr
----------------
Ross Orr
Executive Vice President

Accepted and agreed to as of the date set forth above.

U.S. GOLD CORPORATION

By: /s/ William W. Reid
-----------------------
William R. Reid
President and Chief Executive Officer

<PAGE>

SCHEDULE B

TONKIN SPRINGS L.L.C.

TERM SHEET

A. The terms of the Joint Venture shall be set forth in the following
agreements:

1. Members' Agreement as Amended of TSLLC (initial draft to be provided by US
Gold).

2. Operating Agreement as Amended of TSLLC (initial draft to be provided by US
Gold).

The above-noted agreements will be entered into on the Closing Date.

B. BacTech will be appointed Manager of TSLLC.

C. BacTech shall fund 100% of the property holding costs, capital expenditures,
working capital and exploration expenses until BacTech shall have funded US$12
million (the "Funding Obligation").

D. Until BacTech has satisfied the Funding Obligation, all Cash Flow From
Operations (defined to be operating revenue less direct operating costs and
expenses) generated by the properties shall be distributed to the participants
based upon their respective equity ownership interest in TSLLC. After the
Funding Obligation has been satisfied the distribution of Cash Flow from
Operations will be based on gold price until the capital expenditures provided
by BacTech, up to a total of US$ 12 million, is repaid to BacTech, and
thereafter based on equity ownership in TSLLC. The distribution of Cash Flow
from Operations to BacTech shall be allocated during the capital repayment
period according to the following schedule:

US$ 360 per ounce gold or over     55%
US$ 350 per ounce gold up to $ 360 60%
US$ 340 per ounce gold up to $ 350 65%
US$ 330 per ounce gold up to $ 340 70%
US$ 320 per ounce gold up to $ 330 75%
Below US$ 320 per ounce gold       80%

The repayment schedule is based on a total capital expenditure of US$ 16
million. The repayment schedule shall be adjusted according to a ratio of actual
capital costs and $ 16 million. For example, at $ 350 per ounce gold, if the
total capital costs are $ 12 million then BacTech's incremental share of cash
flow until capital repayment will be reduced from 5% to 12/16 of 5%.

E. After BacTech has satisfied the Funding Obligation, any development capital,
exploration expense or other non-operating costs shall first be funded first
from available Cash Flow From Operations and then by cash calls to the
participants; provided however, if requested by US Gold, BacTech shall be
obligated to fund US Gold's share of any such cash calls (the "Elected Loans").
The Elected Loans will bear interest at LIBOR + 2% and will be repaid from 50%
of U.S. Gold's share of any subsequent cash distributions from TSLLC.

<PAGE>

F. The Manager shall determine the timing and the amounts of Distributions from
TSLLC to the participants to be made from Cash Flow From Operations (after
BacTech has satisfied the Funding Obligation) after reasonable provision for
working capital and capital expenditures requirement. BacTech, as Manager of
TSLLC, shall make controlling decisions regarding operations except for the
following which must be unanimously approved by the participants:

1. Sale of assets valued in the aggregate more than $250,000.

2. Borrowing money where the TSLLC assets are used as collateral.

3. Processing any non-TSLLC property material on or with TSLLC assets or
facilities.

Either participant may use and pledge its respective interest in TSLLC, subject
to the Members' Agreement or the Operating Agreement, as collateral.

G. BacTech, as Manager of TSLLC, shall be entitled to only reimbursement for its
actual costs, there shall be no management fee paid nor over-ride on expenses
(no unaccountable fees).

H. Each participant shall have a First Right of Refusal to buy any interest in
TSLLC proposed by another participant to be sold to an unrelated third party.

<PAGE>

                                                        March 28, 2003

                         STRICTLY PRIVATE & CONFIDENTIAL

U.S. Gold Corporation 2201 Kipling Street, Suite 100 Lakewood, Colorado 80215

Attention: William W. Reid, President
           and Chief Executive Officer

Dear Sirs:

Re:  Amendment to Letter Agreement dated
     March 25, 2003

This letter sets out our agreement to amend the terms of the letter agreement
(the Letter Agreement) dated as of March 25, 2003 between BacTech Enviromet
Corporation (BacTech) and U.S. Gold Corporation (U.S. Gold). Unless otherwise
defined herein, all capitalized terms hall have the respective meanings ascribed
to them in the Letter Agreement.

1. The second sentence in the introductory paragraph of the Letter Agreement is
amended and superseded by the following:

....Of the total Purchase Price, US$250,000 shall be deposited in escrow, pending
receipt by U.S. Gold of written approval (in a form satisfactory to BacTech) of
the transaction by at least 51% of the shareholders of U.S. Gold (the Payment
Release Condition),..."

2. Paragraph 14 of the Letter Agreement is amended and superseded by the
following:

14. BacTech agrees to deposit US$250,000 (the Payment) in escrow with Cassels
Brock & Blackwell LLP, or such other party in the capacity of escrow agent (the
Escrow Agent), on or before March 31, 2003, pending satisfaction of the Payment
Release Condition. U.S. Gold shall use its best efforts to satisfy the Payment
Release Condition. The Payment Release Condition may be waived in whole or in
part by BacTech, in its sole discretion. The Payment shall only be deducted from
the Purchase Price on Closing and shall be fully reimbursable to BacTech should
any of the representations and warranties made by U.S. Gold as contained in
paragraph 2 hereof be discovered to be untrue or incorrect.

Upon satisfaction of the Payment Release Condition, to be evidenced by written
notice provided to the Escrow Agent by BacTech, the Payment shall be sent by
wire transfer to TSLLV as set forth in Schedule C hereto.

If you are in agreement with the forgoing, please so indicate by signing and
returning one copy of this letter to us whereupon this letter will constitute
our agreement with respect to the subject matter hereof.

Yours very truly,

BACTECH ENVIROMET CORPORATION

By: /s/ Brad Marchant, Director
-------------------------------
By: /s/ Ross Orr, Executive Vice President
------------------------------------------

Accepted and agreed to as of the date set forth above.

U.S. GOLD CORPORATION

By: /s/ William W. Reid, President and Chief Executive Officer
--------------------------------------------------------------Exhibit 10.17

 

Execution Copy

 

SEVENTH AMENDMENT TO
CREDIT AGREEMENT

 

This SEVENTH AMENDMENT TO CREDIT AGREEMENT (this
“Amendment”), made and entered into as of March 29, 2003, is by and between
Marten Transport, Ltd., a Delaware corporation (the “Borrower”), the banks
which are signatories to the Credit Agreement described below (the “Banks”) and
U.S. Bank National Association, a national banking association, as agent for
the Banks (in such capacity, the “Agent”).

 

RECITALS

 

1.             The
Agent, the Banks and the Borrower entered into a Credit Agreement dated as of
October 30, 1998 as amended by a First Amendment dated as of January 3, 2000, a
Second Amendment dated as of January 19, 2000, a Third Amendment dated as of
April 5, 2000, a Fourth Amendment dated as of May 31, 2000, a Fifth Amendment
dated as of December 6, 2000 and a Sixth Amendment dated as of January 14, 2002
(as amended, restated or otherwise modified from time to time, the “Credit
Agreement”); and

 

2.             The
Borrower desires to amend certain provisions of the Credit Agreement, and the
Agent and the Banks have agreed to make such amendments, subject to the terms
and conditions set forth in this Amendment.

 

AGREEMENT

 

NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto hereby covenant
and agree to be bound as follows:

 

Section 1.         Capitalized Terms.  Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to them in the Credit
Agreement, unless the context shall otherwise require.

 

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

 

2.1          Definitions.

 

(a)           Section
1.1 of the Credit Agreement is amended by adding the definitions of “Applicable
Commitment Fee Percentage”, “Applicable Letter of Credit Fee Percentage”,
“Fixed Charge Coverage Ratio” and “Third Fee Letter” in the
correct alphabetical order to read as follows:

 

“Applicable Commitment Fee Percentage”:  Subject to the last sentence of this
definition, with respect to the period beginning five days after the financial
statements and compliance certificate required by Sections 5.1(c) and (d) are
delivered with respect to any fiscal quarter and ending on the day five days
after the date such financial statements and compliance certificate for the
next fiscal

 

 

quarter are actually
delivered, the percentage specified as the Applicable Commitment Fee Percentage
based on the Cash Flow Leverage Ratio calculated as of the end of the fiscal
quarter for which such statements were delivered:

 

	
  Cash Flow
  Leverage

  Ratio

  	
   

  	
  Applicable Commitment 

  Fee Percentage

  	
   

  
	
  >1.75

  	
   

  	
  0.375

  	
  %

  
	
  <1.75

  	
   

  	
  0.250

  	
  %

  

 

During
the period beginning on the date five days after the financial statements and
compliance certificate for a fiscal quarter are required to be delivered
pursuant to Sections 5.1(c) and (d) but are not delivered and ending five days
after the date such financial statements are delivered, the Applicable
Commitment Fee Percentage shall be as specified for a Cash Flow Leverage Ratio
greater than 1.75.

 

“Applicable Letter of Credit Fee Percentage”:  Subject to the last sentence of this
definition, with respect to the period beginning five days after the financial
statements and compliance certificate required by Sections 5.1(c) and (d) are
delivered with respect to any fiscal quarter and ending on the day five days
after the date such financial statements and compliance certificate for the
next fiscal quarter are actually delivered, the percentage specified as the
Applicable Letter of Credit Fee Percentage based on the Cash Flow Leverage
Ratio calculated as of the end of the fiscal quarter for which such statements
were delivered:

 

	
  Cash Flow
  Leverage

  Ratio

  	
   

  	
  Applicable Letter of 

  Credit Fee Percentage

  	
   

  
	
  > 2.25

  	
   

  	
  2.25

  	
  %

  
	
  >2.00 and <2.25

  	
   

  	
  2.00

  	
  %

  
	
  >1.75 and <2.00

  	
   

  	
  1.75

  	
  %

  
	
  >1.50 and <1.75

  	
   

  	
  1.50

  	
  %

  
	
  >1.25 and <1.50

  	
   

  	
  1.25

  	
  %

  
	
  <1.25

  	
   

  	
  1.00

  	
  %

  

 

During
the period beginning on the date five days after the financial statements and
compliance certificate for a fiscal quarter are required to be delivered pursuant
to Sections 5.1(c) and (d) but are not delivered and ending five days after the
date such financial statements are delivered, the Applicable Letter of Credit
Fee Percentage shall be as specified for a Cash Flow Leverage Ratio greater
than 2.25.

 

2

 

“Fixed Charge Coverage Ratio”:  For any period of determination, the ratio
of

 

(a)           EBITDAR
minus the sum of (i) any Restricted Payments, (ii) 25% of Capital Expenditures
(net of value received for trade-ins), and (iii) tax expenses of the Borrower
and the Subsidiaries paid in cash,

 

to

 

(b)           the sum of
(i) Interest Expense, (ii) transportation equipment operating lease expense and
(iii) an amount equal to one-sixth of Total Liabilities bearing interest,

 

in each case determined for said period on a consolidated
basis in accordance with GAAP.

 

“Third
Fee Letter”:  The confidential
letter, dated as of March 29, 2003, from the Agent to the Borrower.

 

(b)           The
definitions of “Applicable Margin”, “Cash Flow Leverage Ratio”
and “Required Banks” contained in Section 1.1 of the Credit Agreement is
amended in their entireties to read as follows:

 

“Applicable Margin”: Subject to the last
sentence of this definition, with respect to the period beginning five days
after the financial statements and compliance certificate required by Sections
5.1(c) and (d) are delivered with respect to any fiscal quarter and ending on
the day five days after the date such financial statements and compliance
certificate for the next fiscal quarter are actually delivered, the percentage
specified as applicable to Prime Rate Advances or Eurodollar Rate Advances,
based on the Cash Flow Leverage Ratio calculated as of the end of the fiscal
quarter for which such financial statements were delivered:

 

	
  Cash Flow

  Leverage Ratio

  	
   

  	
  Eurodollar

  Rate

  Advances

  	
   

  	
  Prime

  Rate

  Advances

  	
   

  
	
  > 2.25

  	
   

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  
	
  >2.00 and <2.25

  	
   

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  
	
  >1.75 and <2.00

  	
   

  	
  1.75

  	
  %

  	
  0.75

  	
  %

  
	
  >1.50 and <1.75

  	
   

  	
  1.50

  	
  %

  	
  0.50

  	
  %

  
	
  >1.25 and <1.50

  	
   

  	
  1.25

  	
  %

  	
  0.25

  	
  %

  
	
  <1.25

  	
   

  	
  1.00

  	
  %

  	
  0.00

  	
  %

  

 

3

 

During the period beginning on the date five days after the financial
statements and compliance certificate for a fiscal quarter are required to be
delivered pursuant to Sections 5.1(c) and (d) but are not delivered and ending
five days after the date such financial statements are delivered, the
Applicable Margin shall be as specified for a Cash Flow Leverage Ratio greater
than 2.25.

 

“Cash Flow Leverage Ratio”:  For any period of determination, the ratio of

 

(a)           the sum
(without duplication) of (i) the aggregate principal amount of all outstanding
Capitalized Lease Obligations of the Borrower and the Subsidiaries, (ii) that
portion of Total Liabilities bearing interest determined as of the last day of
that period, (iii) the stated amount of all Letters of Credit as of the last
day of that period, plus (iv) an amount equal to six times transportation
equipment operating lease expense for such period,

 

to

 

(b)           EBITDAR
determined for said period on a consolidated basis in accordance with GAAP.

 

“Required Banks”: At any time, Banks holding 100% of
the aggregate unpaid principal amount of the Revolving Notes or, if no
Revolving Loans are at the time outstanding hereunder, Banks holding 100%% of
the Aggregate Revolving Commitment Amounts.

 

2.2          Interest. 
Section 2.5 of the Credit Agreement is amended in its entirety to read
as follows:

 

2.5(b)      Subject
to paragraph (c) below, each Prime Rate Advance shall bear interest on the
unpaid principal amount thereof at a varying rate per annum equal to the sum of
(i) the Prime Rate, plus (ii) the Applicable Margin.

 

2.3          Revolving Commitment Fee. 
Section 2.15 of the Credit Agreement is amended in its entirety to read
as follows:

 

Section 2.15           Revolving
Commitment Fee.  The Borrower shall
pay to the Agent for the account of each Bank fees (the “Revolving Commitment
Fees”) in an amount determined by applying the Applicable Commitment Fee
Percentage to the average daily Unused Revolving Commitment of such Bank for
the period from the Closing Date to the Termination Date.  Such Revolving Commitment Fees are payable
in arrears monthly on the last day of each fiscal quarter and on the
Termination Date.

 

4

 

2.4          Letter of Credit and Administrative Fee. 
Section 2.16 of the Credit Agreement is amended in its entirety to read
as follows:

 

Section 2.16           Letter
of Credit Fees and Administrative Fees. 
For each Letter of Credit issued, the Borrower shall pay to the Agent
for the account of the Banks, in advance payable on the date of issuance, a fee
(a “Letter of Credit Fee”) in an amount determined by applying the Applicable
Letter of Credit Fee Percentage to the original face amount of the Letter of
Credit for the period from the date of issuance to the scheduled expiration
date of such Letter of Credit.  In
addition to the Letter of Credit Fee, the Borrower shall pay to the Agent, on
demand, all issuance, amendment, drawing and other fees regularly charged by
the Agent to its letter of credit customers and all out-of-pocket expenses
incurred by the Agent in connection with the issuance, amendment,
administration or payment of any Letter of Credit, and a fronting fee for each
Letter of Credit issued equal to 10 basis points of the stated amount of the
Letter of Credit as of the date of issuance.

 

2.5          Revolving Commitment Ending Date. 
Section 2.19 of the Credit Agreement is amended in its entirety to read
as follows:

 

Section 2.19           Revolving
Commitment Ending Date.  The
“Revolving Commitment Ending Date” is April 1, 2006.

 

2.6          Compliance Certificates. 
Section 5.1(d) of the Credit Agreement is amended in its entirety to
read as follows:

 

5.1(d)      As
soon as practicable and in any event within (a) 45 days after the end of each
of the first three fiscal quarters of each fiscal year and (b) 90 days after
the end of the last fiscal quarter of each fiscal year, a Compliance
Certificate in the form attached hereto as Exhibit 5.1(d) signed by the
chief financial officer of the Borrower demonstrating in reasonable detail
compliance (or noncompliance, as the case may be) with Sections 6.16, 6.17 and
6.18, as at the end of such quarter and stating that as at the end of such
quarter there did not exist any Default or Event of Default or, if such Default
or Event of Default existed, specifying the nature and period of existence
thereof and what action the Borrower proposes to take with respect thereto.

 

2.7          Tangible Net Worth. 
Section 6.16 of the Credit Agreement is amended in its entirety to read
as follows:

 

Section 6.16           Tangible
Net Worth.  The Borrower will not
permit its Tangible Net Worth to be less than $75,000,000 at any time during
the fiscal quarter ending December 31, 2002, which $75,000,000 shall be
cumulatively increased at the beginning of each fiscal quarter thereafter by an
amount equal to 75% of the consolidated net income of the Borrower (if a
positive number) as

 

5

 

shown
on its income statement for the immediately preceding fiscal quarter. (No
adjustments shall be made for net losses.)

 

2.8          Fixed Charge Coverage Ratio. 
Section 6.17 of the Credit Agreement is amended in its entirety to read
as follows:

 

Section 6.17           Fixed
Charge Coverage Ratio.  The Borrower
will not permit the Fixed Charge Coverage Ratio, as of the last day of any
fiscal quarter, for the four consecutive fiscal quarters ending on that date to
be less than 1.75 to 1.0.

 

2.9          Cash Flow Leverage Ratio. 
Section 6.18 of the Credit Agreement is amended in its entirety to read
as follows:

 

Section 6.18           Cash
Flow Leverage Ratio.  The Borrower
will not permit the Cash Flow Leverage Ratio, as of the last day of any fiscal
quarter, for the four consecutive fiscal quarters ending on that date to be
greater than 2.50 to 1.0.

 

2.10        Schedule I.  Schedule I to the Credit Agreement is hereby
amended in its entirety to read as set forth in Schedule I attached to this
Amendment, which is made a part of the Credit Agreement as Schedule I thereto.

 

Section 3.         Effectiveness of Amendments.  The amendments contained in this Amendment
shall become effective upon delivery by the Borrower of, and compliance by the
Borrower with, the following:

 

3.1          This Amendment duly executed by the
Borrower.

 

3.2          A copy of the resolutions of the
Board of Directors of the Borrower authorizing the execution, delivery and
performance of this Amendment certified as true and accurate by its Secretary
or Assistant Secretary, along with a certification by such Secretary or
Assistant Secretary (i) certifying that there has been no amendment to the
Certificate of Incorporation or Bylaws of the Borrower since true and accurate
copies of the same were delivered to the Agent with a certificate of the
Secretary of the Borrower dated October 30, 1998, and (ii) identifying each
officer of the Borrower authorized to execute this Amendment and any other
instrument or agreement executed by the Borrower in connection with this
Amendment  (collectively, the “Amendment
Documents”), and certifying as to specimens of such officer’s signature and
such  officer’s incumbency in such
offices as such officer holds.

 

3.3          A copy of the Third Fee Letter,
dated as of the date hereof, duly executed by the Borrower.

 

3.4          Certified copies of all documents
evidencing any necessary corporate action, consent or governmental or
regulatory approval (if any) with respect to this Amendment.

 

6

 

3.5          The Borrower shall have satisfied
such other conditions as specified by the Agent and the Banks, including
payment of all unpaid legal fees and expenses incurred by the Agent through the
date of this Amendment in connection with the Credit Agreement and the
Amendment Documents.

 

Section 4.         Representations,
Warranties, Authority, No Adverse Claim.

 

4.1          Reassertion
of Representations and Warranties, No Default.  The
Borrower hereby represents that on and as of the date hereof and after giving
effect to this Amendment (a) all of the representations and warranties
contained in the Credit Agreement are true, correct and complete in all respects
as of the date hereof as though made on and as of such date, except for changes
permitted by the terms of the Credit Agreement, and (b) there will exist no
Default or Event of Default under the Credit Agreement as amended by this
Amendment on such date which has not been waived by the Banks.

 

4.2          Authority,
No Conflict, No Consent Required. The Borrower represents and warrants that the Borrower
has the power and legal right and authority to enter into the Amendment
Documents and has duly authorized as appropriate the execution and delivery of
the Amendment Documents and other agreements and documents executed and
delivered by the Borrower in connection herewith or therewith by proper
corporate action, and none of the Amendment Documents nor the agreements
contained herein or therein contravenes or constitutes a default under any
agreement, instrument or indenture to which the Borrower is a party or a
signatory or a provision of the Borrower’s Certificate of Incorporation, Bylaws
or any other agreement or requirement of law, or result in the imposition of
any Lien on any of its property under any agreement binding on or applicable to
the Borrower or any of its property except, if any, in favor of the Agent.  The Borrower represents and warrants that no
consent, approval or authorization of or registration or declaration with any
Person, including but not limited to any governmental authority, is required in
connection with the execution and delivery by the Borrower of the Amendment
Documents or other agreements and documents executed and delivered by the
Borrower in connection therewith or the performance of obligations of the
Borrower therein described, except for those which the Borrower has obtained or
provided and as to which the Borrower has delivered certified copies of
documents evidencing each such action to the Agent.

 

4.3          No
Adverse Claim. The
Borrower warrants, acknowledges and agrees that no events have been taken place
and no circumstances exist at the date hereof which would give the Borrower a
basis to assert a defense, offset or counterclaim to any claim of the Agent or
the Banks with respect to the Obligations.

 

Section 5.         Affirmation of Credit Agreement, Further References.  The Agent, the Banks and the Borrower each
acknowledge and affirm that the Credit Agreement, as hereby amended, is hereby
ratified and confirmed in all respects and all terms, conditions and provisions
of the Credit Agreement, except as amended by this Amendment, shall remain

 

7

 

unmodified and in full
force and effect.  All references in any
document or instrument to the Credit Agreement are hereby amended and shall
refer to the Credit Agreement as amended by this Amendment.   All of the terms, conditions, provisions,
agreements, requirements, promises, obligations, duties, covenants and
representations of the Borrower under such documents and any and all other
documents and agreements entered into with respect to the obligations under the
Credit Agreement are incorporated herein by reference and are hereby ratified
and affirmed in all respects by the Borrower.

 

Section 6.         Merger and Integration, Superseding Effect.  This Amendment, from and after the date
hereof, embodies the entire agreement and understanding between the parties
hereto and supersedes and has merged into this Amendment all prior oral and
written agreements on the same subjects by and between the parties hereto with
the effect that this Amendment, shall control with respect to the specific
subjects hereof and thereof.

 

Section 7.         Severability.  Whenever possible, each provision of this
Amendment and the other Amendment Documents and any other statement, instrument
or transaction contemplated hereby or thereby or relating hereto or thereto
shall be interpreted in such manner as to be effective, valid and enforceable
under the applicable law of any jurisdiction, but, if any provision of this
Amendment, the other Amendment Documents or any other statement, instrument or
transaction contemplated hereby or thereby or relating hereto or thereto shall
be held to be prohibited, invalid or unenforceable under the applicable law,
such provision shall be ineffective in such jurisdiction only to the extent of
such prohibition, invalidity or unenforceability, without invalidating or
rendering unenforceable the remainder of such provision or the remaining
provisions of this Amendment, the other Amendment Documents or any other
statement, instrument or transaction contemplated hereby or thereby or relating
hereto or thereto in such jurisdiction, or affecting the effectiveness,
validity or enforceability of such provision in any other jurisdiction.

 

Section 8.         Successors.  The
Amendment Documents shall be binding upon the Borrower, the Agent and the Banks
and their respective successors and assigns, and shall inure to the benefit of
the Borrower, the Agent and the Banks and the successors and assigns of the
Agent and the Banks.

 

Section 9.         Legal Expenses.  As provided in Section 9.2 of the Credit
Agreement, the Borrower agrees to reimburse the Agent and the Banks, upon
execution of this Amendment, for all reasonable out-of-pocket expenses
(including attorney’ fees and legal expenses of Dorsey & Whitney LLP,
counsel for the Agent) incurred in connection with the Credit Agreement, including
in connection with the negotiation, preparation and execution of the Amendment
Documents and all other documents negotiated, prepared and executed in
connection with the Amendment Documents, and in enforcing the obligations of
the Borrower under the Amendment Documents, and to pay and save the Agent and
the Banks harmless from all liability for, any stamp or other taxes which may
be payable with respect to the execution or delivery of the Amendment
Documents, which obligations of the Borrower shall survive any termination of
the Credit Agreement.

 

8

 

Section 10.       Headings.  The headings of various sections of this Amendment have been
inserted for reference only and shall not be deemed to be a part of this Amendment.

 

Section 11.       Counterparts.  The Amendment Documents may be executed in
several counterparts as deemed necessary or convenient, each of which, when so
executed, shall be deemed an original, provided that all such counterparts
shall be regarded as one and the same document, and either party to the
Amendment Documents may execute any such agreement by executing a counterpart
of such agreement.

 

Section
12.       Governing Law.  THE AMENDMENT DOCUMENTS SHALL BE GOVERNED BY
THE INTERNAL LAWS OF THE STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO CONFLICT
OF LAW PRINCIPLES THEREOF, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO
NATIONAL BANKS, THEIR HOLDING COMPANIES AND THEIR AFFILIATES.

 

[THE REMAINDER OF THIS
PAGE LEFT BLANK INTENTIONALLY.]

 

9

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed as of the date and year first above written.

 

	
  BORROWER:

  	
   

  
	
   

  	
  MARTEN TRANSPORT, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title: 

  	
   

  	
   

  
	
   

  	
   

  
	
  Revolving Commitment Amount:

  $35,000,000

  	
  U.S. BANK NATIONAL
  ASSOCIATION,

  In its individual corporate capacity and as Agent

  
	
   

  	
   

  
	
   

  	
  By:  

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title: 

  	
   

  	
   

  
	
   

  	
   

  
	
  Revolving Commitment
  Amount:

  	
  THE NORTHERN TRUST
  COMPANY

  
	
  $10,000,000

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title: 

  	
   

  	
   

  
					

 

[Signature Page to Seventh
Amendment to Credit Agreement]

 

S - 1

 

SCHEDULE I

TO THE CREDIT AGREEMENT

 

	
  NAME AND

  NOTICE ADDRESS OF BANK

  	
   

  	
  REVOLVING
  COMMITMENT
AMOUNT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  U.S.
  Bank National Association

  	
   

  	
  $

  	
  35,000,000

  	
   

  
	
  BC-MN-H03P

  	
   

  	
   

  	
   

  
	
  800 Nicollet
  Mall

  	
   

  	
   

  	
   

  
	
  Minneapolis, MN
  55402

  	
   

  	
   

  	
   

  
	
  ATTN: Michael J.
  Reymann

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The
  Northern Trust Company

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  50
  South LaSalle Street

  	
   

  	
   

  	
   

  
	
  Chicago,
  IL 60675

  	
   

  	
   

  	
   

  
	
  ATTN:
  John Canty

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