Document:

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                                                                    EXHIBIT 10.2

                 BANK OF AMERICA SUMMARY OF TERMS AND CONDITIONS

                                 USA TRUCK INC.

                       $60,000,000 SENIOR CREDIT FACILITY

BORROWER:               USA Truck Inc., a Delaware corporation (the "Borrower").

ADMINISTRATIVE AGENT:   Bank of America, N.A. (the "Administrative Agent" or
                        "Bank of America") will act as sole and exclusive
                        administrative and collateral agent.

LENDERS:                A syndicate of financial institutions (including Bank of
                        America) arranged on a best efforts basis, which
                        institutions shall be acceptable to the Borrower and the
                        Administrative Agent (collectively, the "Lenders").

SENIOR CREDIT FACILITY: An aggregate principal amount of up to $60,000,000 will
                        be available upon the terms and conditions hereinafter
                        set forth:

                        Senior Credit Facility: A $60,000,000 revolving credit
                        facility (the "Senior Credit Facility") with a sublimit
                        for the issuance of letters of credit (each a "Letter of
                        Credit") and a sublimit for swingline loans (each a
                        "Swingline Loan"). Letters of Credit will be issued by
                        Bank of America (in such capacity, the "Fronting Bank")
                        and Swingline loans will be made available by Bank of
                        America, and each Lender will purchase an irrevocable
                        and unconditional participation in each Letter of Credit
                        and Swingline Loan.

SWINGLINE OPTION:       Swingline Loans will be made available on a same day
                        basis in an aggregate amount not exceeding $5,000,000.
                        Borrower must repay each Swingline Loan in full no later
                        than seven days after such loan is made.

PURPOSE:                The proceeds of the Senior Credit Facility shall be
                        used: (i) to refinance the outstanding principal amount
                        of existing indebtedness of the Borrower; (ii) to pay
                        for capital expenditures; (iii) to provide for working
                        capital, letters of credit and other general corporate
                        purposes of the Borrower.

CLOSING:                The execution of definitive loan documentation, to occur
                        on or before April 28, 2000 ("Closing").

INTEREST RATES:         As set forth in Addendum I.

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MATURITY:               The Senior Credit Facility shall terminate and all
                        amounts outstanding thereunder shall be due and payable
                        in full five years from Closing.

AVAILABILITY/SCHEDULED
AMORTIZATION:           Senior Credit Facility: Loans under the Senior Credit
                        Facility ("Revolving Credit Loans") may be made, and
                        Letters of Credit may be issued, in each case subject to
                        availability. Availability shall be determined by a
                        Borrowing Base. Advance rates will be 85% for Eligible
                        Accounts Receivable and 85% of the lower of book value
                        or market value (per sampling of fleet) of Eligible
                        Unencumbered Equipment.

SECURITY:               The Senior Credit Facility will be secured by a first
                        priority lien on Accounts Receivable, as defined in the
                        Loan Documents, and at closing, a conditional security
                        interest in Unencumbered Revenue Equipment, as defined
                        in the Loan Documents, which shall attach and be
                        perfected as follows: (i) upon the occurrence of a
                        Triggering Event, as defined below, the security
                        interest shall attach to the Unencumbered Revenue
                        Equipment, (ii) upon the occurrence of a Triggering
                        Event, the Borrower shall deliver all titles and other
                        documents necessary to Administrative Agent to perfect a
                        lien on the Unencumbered Revenue Equipment ("Perfection
                        Documents") to the Collateral Agent. The collateral
                        agent shall be a bank mutually acceptable to Lenders and
                        Borrower and (iii) upon receipt of the Perfection
                        Documents, the Administrative Agent shall have option to
                        perfect the Administrative Agent's security interest in
                        the Unencumbered Revenue Equipment by recording such
                        security interest on one or more titles to the
                        Unencumbered Revenue Equipment. Borrower shall advance
                        to Administrative Agent the cost to be incurred by
                        Administrative Agent in accomplishing such perfection.
                        The Loan Documents shall also contain a negative pledge
                        as to all other unencumbered corporate assets.
                        Triggering Event shall be defined as an Event of
                        Default, as defined in the Loan Documents, or the Total
                        Funded Debt to EBITDAR being greater than 2.50x until
                        September 30, 2000, then 2.35x thereafter.

                        Borrower shall prior to or at closing take all actions
                        necessary to insure that in the event the security
                        interest of the Administrative Agent attaches, it will
                        constitute a first priority lien on Borrower's
                        Unencumbered Revenue Equipment, including, but not
                        limited to obtaining third party consents, intercreditor
                        agreements and other agreements as shall be requested by
                        the Administrative Agent, in each case in form and
                        substance satisfactory to the Administrative Agent.

                        The foregoing security shall ratably secure the Senior
                        Credit Facility and any interest rate swap/foreign
                        currency swap or similar agreements with a Lender or its
                        affiliates under the Senior Credit Facility.

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MANDATORY PREPAYMENTS
AND COMMITMENT
REDUCTIONS:             In addition to the normal advances and payments on the
                        Senior Credit Facility, the Senior Credit Facility will
                        be prepaid by an amount equal to (i) 100% of the net
                        cash proceeds of all asset sales by the Borrower or any
                        subsidiary of the Borrower (including sales of stock of
                        subsidiaries), other than sale of revenue equipment and
                        inventory through the normal course of business, subject
                        to de minimus baskets and reinvestment provisions to be
                        agreed upon and net of selling expenses and taxes to the
                        extent such taxes are paid; (ii) 100% of the net cash
                        proceeds from the issuance of any debt (excluding
                        certain permitted debt to be agreed upon) by the
                        Borrower or any subsidiary of the Borrower; and (iii)
                        50% of the net cash proceeds from the issuance of equity
                        by the Borrower or any subsidiary of the Borrower.

OPTIONAL PREPAYMENTS
AND COMMITMENT
REDUCTIONS:             The Borrower may prepay the Senior Credit Facility in
                        whole or in part at any time without penalty, subject to
                        reimbursement of the Lenders' breakage and redeployment
                        costs in the case of prepayment of LIBOR borrowings.

CONDITIONS PRECEDENT
TO CLOSING:             The Closing (and the initial funding) of the Senior
                        Credit Facility will be subject to satisfaction of the
                        conditions precedent deemed appropriate by the
                        Administrative Agent and the Lenders for transactions of
                        this type, including, but not limited to, the following:

                        (i)     The Administrative Agent's satisfactory review
                                of the Loan Documents (including all schedules
                                and exhibits thereto). The Loan Documents shall
                                not have been altered, amended or otherwise
                                changed or supplemented or any condition therein
                                waived without the prior written consent of the
                                Administrative Agent.

                        (ii)    Receipt and review, with results satisfactory to
                                the Administrative Agent and its counsel, of
                                information regarding litigation, tax,
                                accounting, labor, insurance, pension
                                liabilities (actual or contingent), real estate
                                leases, environmental matters, material
                                contracts, debt agreements, property ownership,
                                contingent liabilities and management of the
                                Borrower, and its respective subsidiaries, which
                                information will include a review of
                                unencumbered revenue equipment and related
                                systems.

                        (iii)   Receipt of audited consolidated financial
                                statements of USA Truck Inc. for the fiscal
                                years ended 1997, 1998 and 1999. Receipt of
                                company-prepared annual projections for the
                                transaction horizon.

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                        (iv)    The negotiation, execution and delivery of
                                definitive documentation for the Senior Credit
                                Facility satisfactory to the Administrative
                                Agent and the Lenders (the "Loan Documents"),
                                which shall include, without being limited to
                                (a) satisfactory opinions of counsel to the
                                Borrower (which shall cover, among other things,
                                authority, legality, validity, binding effect
                                and enforceability of the documents for the
                                Senior Credit Facility) and of local counsel and
                                such other customary closing documents as the
                                Administrative Agent shall reasonably request,
                                and (b) satisfactory evidence that the
                                Administrative Agent (on behalf of the Lenders)
                                upon attachment of the conditional security
                                interest, will hold a perfected, first priority
                                lien in all of the collateral for the Senior
                                Credit Facility, subject to no other liens
                                except for permitted liens to be determined.

                        (v)     There shall not exist any pending or threatened
                                action, suit, investigation or proceeding,
                                which, if adversely determined, could materially
                                and adversely affect the Borrower or its
                                subsidiaries, any transaction contemplated
                                hereby or the ability of the Borrower and its
                                subsidiaries to perform its obligations under
                                the documentation for the Senior Credit Facility
                                or the ability of the Lenders to exercise their
                                rights thereunder.

                        (vi)    There shall not have occurred a material adverse
                                change since the most recently ended fiscal year
                                for which an audit has been completed in the
                                business, assets, liabilities (actual or
                                contingent), operations, condition (financial or
                                otherwise) or prospects of the Borrower, in each
                                case together with its subsidiaries taken as a
                                whole, or in the facts and information regarding
                                such entities as represented to date.

                        (vii)   There shall be no less than $10 million of
                                availability under the Revolving Credit Facility
                                at Closing after giving effect to the payoff of
                                Deposit Guaranty Bank and all borrowings under
                                the Revolving Credit Facility on such date.

                        (viii)  The Administrative Agent, any Lender and/or
                                their affiliates shall have received all fees
                                and expenses required to be paid on or before
                                Closing.

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                        (ix)    Receipt and review, with results satisfactory to
                                the Administrative Agent and the Lenders, of
                                information confirming that the Borrower's
                                material computer applications and those of its
                                key vendors and customers adequately address the
                                Year 2000 problem in all material respects.

                        (x)     The absence of any material disruption of or a
                                material adverse change in conditions in the
                                financial, banking or capital markets which the
                                Administrative Agent in their sole discretion,
                                deem material in connection with the syndication
                                of the Senior Credit Facility.

REPRESENTATIONS
AND WARRANTIES:         Usual and customary representations and warranties for
                        transactions of this type, including, but not limited
                        to, the following: (i) corporate existence and status;
                        (ii) corporate power and authority/enforceability; (iii)
                        no violation of law or contracts or organizational
                        documents; (iv) no material litigation; (v) correctness
                        of specified financial statements and other information
                        and no material adverse change; (vi) no required
                        governmental or third party approvals; (vii) use of
                        proceeds/compliance with margin regulations; (viii)
                        status under Investment Company Act; (ix) ERISA matters;
                        (x) environmental matters; (xi) perfected liens and
                        security interests; (xii) payment of taxes; (xiii)
                        accuracy of disclosure; and (xiv) Year 2000
                        preparedness.

COVENANTS:              Usual and customary covenants for transactions of this
                        type, including, but not limited to, the following: (i)
                        delivery of financial statements and other reports; (ii)
                        delivery of compliance and borrowing base certificates;
                        (iii) delivery of notices of default, material
                        litigation and material governmental and environmental
                        proceedings; (iv) compliance with laws (including
                        environmental laws and ERISA matters) and material
                        contractual obligations; (v) payment of taxes; (vi)
                        maintenance of insurance; (vii) limitation on liens and
                        negative pledges; (viii) limitation on mergers,
                        consolidations and sale of the company and/or assets;
                        (ix) limitation on incurrence of debt; (x) limitation on
                        stock repurchases in excess of $5 million in any fiscal
                        year or $10 million in the aggregate over the life of
                        the facility. Stock repurchases will be subject to
                        before mentioned limits and to no proforma events of
                        default after giving effect to the redemptions; (xi)
                        redemptions and/or prepayment of other debt; (xii)
                        limitation on investments and acquisitions, provided
                        however such limitation shall not prohibit one or more
                        acquisitions if the aggregate purchase price for all
                        such acquisitions does not exceed $10 million; (xiii)
                        limitation on transactions with affiliates; and (xiv)
                        Year 2000 compliance.

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                        Financial covenants to include (but not be limited to):

               o    Maintenance on a rolling four quarter basis of a Maximum
                    Leverage Ratio (total funded debt/EBITDAR) of 3.00x (total
                    funded debt is to include capitalized leases and the present
                    value of operating leases).

               o    Maintenance on a rolling four quarter basis of a Minimum
                    Fixed Charge Coverage Ratio (EBITDAR/(cash interest expense
                    plus scheduled principal/lease repayments plus 25% Revolving
                    Credit Facility outstandings plus rents plus cash taxes)) of
                    1.25x.

               o    Minimum Net Worth of $65 million with step-ups equal to 50%
                    of cumulative net income, less any stock repurchases,
                    subject to the above limits.

EVENTS OF DEFAULT:      Usual and customary for financings of this type,
                        including, but not limited to, the following: (i)
                        nonpayment of principal, interest, fees or other
                        amounts, (ii) violation of covenants, (iii) inaccuracy
                        of representations and warranties, (iv) cross-default to
                        other material agreements and indebtedness, with
                        "material" for purposes of this event of default meaning
                        one or more defaults outstanding at any one time on
                        indebtedness that equals or exceeds $2 million in the
                        aggregate, (v) bankruptcy and other insolvency events,
                        (vi) material judgments, (vii) ERISA matters, (viii)
                        actual or asserted invalidity of any loan documentation
                        or security interests.

ASSIGNMENTS AND
PARTICIPATIONS:         Each Lender will be permitted to make assignments in
                        acceptable minimum amounts to other financial
                        institutions approved by the Administrative Agent and
                        Borrower, which approval shall not be unreasonably
                        withheld. Lenders will be permitted to sell
                        participations with voting rights limited to significant
                        matters such as changes in amount, rate and maturity
                        date and releases of all or substantially all of the
                        collateral.

WAIVERS AND
AMENDMENTS:             Amendments and waivers of the provisions of the loan
                        agreement and other definitive credit documentation will
                        require the approval of Lenders holding loans and
                        commitments representing a percentage to be determined
                        of the aggregate amount of loans and commitments under
                        the Senior Credit Facility, except that (i) the consent
                        of all of the Lenders affected thereby shall be required
                        with respect to (a) increases in the commitment of such
                        Lenders, (b) reductions of principal, interest, or fees,
                        (c) extensions of scheduled maturities or times for
                        payment, and (d) releases of all or substantially all of
                        the collateral or consents to waivers of the negative
                        pledge.

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INDEMNIFICATION:        The Borrower shall indemnify the Administrative Agent
                        and the Lenders and their respective affiliates from and
                        against all losses, liabilities, claims, damages or
                        expenses arising out of or relating to the Senior Credit
                        Facility, the Borrower's use of loan proceeds or the
                        commitments, including, but not limited to, reasonable
                        attorneys' fees (including the allocated cost of
                        internal counsel) and settlement costs. This
                        indemnification shall survive and continue for the
                        benefit of the indemnitees at all times after the
                        Borrower's acceptance of the Lenders' commitments for
                        the Senior Credit Facility, notwithstanding any failure
                        of the Senior Credit Facility to close.

CLEAR MARKET
PROVISION:              From the date of acceptance of the commitment until
                        Closing, there shall be no competing offering, placement
                        or arrangement of any debt securities or bank financing
                        by or on behalf of the Borrower. The Borrower will
                        immediately advise Bank of America if any such
                        transaction is contemplated.

GOVERNING LAW:          Missouri.

FEES/EXPENSES:          As set forth in Addendum I.

OTHER:                  This Summary of Terms is intended as an outline of
                        certain of the material terms of the Senior Credit
                        Facility and does not purport to summarize all of the
                        conditions, covenants, representations, warranties and
                        other provisions which would be contained in definitive
                        legal documentation for the Senior Credit Facility
                        contemplated hereby. The Borrower shall waive its right
                        to a trial by jury. The Borrower and other parties to
                        the Loan Documents shall agree to binding arbitration in
                        the event of a dispute or disagreement.<PAGE>   1
                                                                    EXHIBIT 4.13

                    THIS SETTLEMENT AGREEMENT MADE EFFECTIVE
                        AS OF THE ___TH DAY OF JULY, 2000

BETWEEN

                           Queen Sand Resources, Inc. a Delaware corporation
                                    (herein called the "Company")

AND

                           Joint Energy Development Investments Limited
                           Partnership
                                       (herein called "JEDI")

AND

                           Marshall Capital Management, Inc. (fka as
                           "Proprietary Convertible Investment Group, Inc."),
                           Stark International, Shepherd Investments
                           International, Ltd., Westover Investments L.P., and
                           Montrose Investments L.P., Palisades Capital, Inc.

                              (herein collectively called the "C Holders")

AND

                           JNC Opportunity Fund Ltd., Diversified Strategies
                           Fund L.P., KA Investments, LDC, Sovereign Partners,
                           L.P., Advantage (Bermuda) Fund, Ltd., Canadian
                           Advantage, L.P., Dominion Capital Fund Ltd.

                            (herein collectively called the "Reset Holders")

WHEREAS:

   a.    Pursuant to the Securities Purchase Agreement dated as of March 27,
         1997 between JEDI and the Company (the "JEDI Purchase Agreement"), JEDI
         acquired 9,600,000 shares of the Company's Series A Participating
         Convertible Preferred Stock (the "A Preferred Shares") together with
         the certain maintenance rights as more particularly defined in the JEDI
         Purchase Agreement; and

   b.    JEDI and the Company also entered into a Registration Rights Agreement
         (the "JEDI Registration Rights Agreement"), an Earn-Up Agreement, a
         Letter Agreement dated May 6, 1997 regarding advisory services, a
         Stockholders' Agreement dated May 6, 1997 among themselves, EIBOC
         Investments Ltd. ("EIBOC") and certain officers of the Company and the
         said officers also entered into an Escrow Agreement with EIBOC with
         respect to the shares of the Company's common stock held by EIBOC and
         the said officers delivered a

<PAGE>   2

         Declaration of Trust to JEDI in respect of the shares of EIBOC
         beneficially owned by them (the aforesaid Stockholders Agreement,
         Escrow Agreement and Declaration of Trust shall be referred to
         collectively as the "Other JEDI Agreements"); and

   c.    Pursuant to the Securities Purchase Agreement dated as of December 22,
         1997 between themselves and the Company (the "C Purchase Agreement"),
         the C Holders signatory thereto purchased an aggregate of 10,000 shares
         of the Company's Series C preferred stock together with warrants to
         purchase an additional 340,138 shares of the Company's common stock
         (the "C Warrants"); and

   d.    On December 24, 1997, the Company issued an additional 400 shares of
         Series C preferred stock to Palisades Capital, Inc. in partial
         consideration for acting as the Company's placement agent in connection
         with the purchase and sale of the shares of Series C Preferred Stock
         (which 10,400 shares of Series C preferred stock are collectively
         referred to herein as the "C Shares"); and

   e.    Pursuant to the Amended and Restated Securities Purchase Agreement
         dated as of July 8, 1998 between themselves and the Company (the "July
         Reset Agreement"), the Reset Holders acquired a total of 3,428,571
         shares of the Company's common stock (the "July Shares") together with
         warrants to purchase an additional 605,000 shares of the Company's
         common stock (the "July Warrants");

   f.    Pursuant to a Securities Purchase Agreement dated as of November 10,
         1998 between themselves and the Company (the "November Reset
         Agreement"), the Reset Holders party thereto acquired a total of
         416,667 shares of the Company's common stock (the "November Shares")
         together with warrants to purchase an additional 50,000 shares of the
         Company's common stock (the "November Warrants"); and

   g.    The July Reset Agreement and the November Reset Agreement also granted
         one repricing right (as defined in the said agreements) to each of the
         Reset Holders signatory thereto for each share of the July Shares and
         the November Shares; and

   h.    Contemporaneously with the execution of the C Purchase Agreement, the
         July Reset Agreement and the November Reset Agreement, the Company
         entered into certain registration rights agreements with the C Holders
         and the Reset Holders (referred to respectively as the "C Registration
         Rights Agreement", the "July Reset Registration Rights Agreement" and
         the "November Reset Right Agreement"); and

   i.    As of the date hereof each of JEDI, the C Holders and the Reset Holders
         (collectively referred to as the "Stakeholders") beneficially own the
         equity interests, warrants and other intangible rights set forth beside
         its name in Schedule 1; and

<PAGE>   3

   j.    The Company has advised the Stakeholders that it believes that it is in
         the best interests of the Company, the Stakeholders and the other
         stockholders of the Company generally to reorganize the Company's
         capital structure and that, as part of such a reorganization, the
         Company proposes to change its name, implement a 156 for 1 reverse
         stock split of its common stock, purchase a certain quantity of its
         Senior 12.5% Notes due July 2008, undertake a public offering or
         private placement of stock and exchange, convert, repurchase, cancel or
         otherwise eliminate all the equity interests, warrants and other
         intangible rights described in Schedule 2; and

   k.    In order to facilitate the intended recapitalization of the Company, as
         described in the preceding paragraph, the Stakeholders are willing to
         exchange all their remaining equity interests, warrants and other
         intangible rights as set out in Schedule 1 for a certain number of post
         reverse-split shares of the Company's common stock according to the
         terms of this Agreement.

THEREFORE in consideration of the mutual covenants contained herein, the payment
of $1.00 by the Company to each Stakeholder and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties agree as follows.

1. DEFINITIONS

All terms defined in the recitals hereof shall have the meanings indicated in
the recitals and all other capitalized terms in this Agreement shall, unless
otherwise defined herein, have the meaning set out for such term in the JEDI
Purchase Agreement, the Series C Agreement, the July Purchase Agreement or the
November Purchase Agreement as the case may be. In case of conflict, the
definitions set out in this Agreement shall govern.

2. EXCHANGE

At the Closing as hereinafter defined, each of the Stakeholders agree to
exchange all the equity interests, warrants and intangible rights set forth
beside its name in Schedule 1 for that number of post reverse-split shares of
the Company's common stock (the "Final Settlement Shares") set forth beside its
name on Schedule 2.

3. CLOSING

Closing shall occur within 3 business days of the later to occur of (i) the
closing of the Financing as contemplated by paragraph 6 hereof or (ii) the
closing of the Note repurchase, as contemplated by paragraph 8.4 hereof.

<PAGE>   4
4. CLOSING DOCUMENTS

At Closing the Stakeholders shall deliver:

    4.1.   For cancellation all certificates and agreements representing any of
           the A Preferred Shares, the C Shares and any warrants of the Company
           held by such Stakeholder;

    4.2.   In the case of JEDI, such notices as the Company may reasonably
           require to confirm JEDI's consent to or effect the termination of the
           Other JEDI Agreements and

the Company shall deliver:

    4.3.   to each Stakeholder the number of Final Settlement Shares set forth
           beside its name on Schedule 2.

Upon Closing the JEDI Purchase Agreement, the JEDI Registration Rights
Agreement, the C Purchase Agreement, the July Reset Agreement, the November
Reset Agreement, and all Registration Rights Agreements made contemporaneous
with or ancillary thereto, together with all outstanding warrants, maintenance
rights and Repricing Rights held by or issued to any Stakeholder, shall be
automatically terminated without further action or demand by the Company or any
of the Stakeholders party or entitled thereto.

5. STANDSTILL

Until such time as this Agreement is terminated pursuant to the provisions of
paragraph 9 hereof, each Stakeholder agrees that it will not submit any Series A
Conversion Notice, Series C Conversion Notice or Repricing Right Exercise Notice
as the case may be, nor take any action to enforce any rights and remedies to
which it might be entitled under any agreement to which it is a party with the
Company or otherwise.

6. FINANCING

The Company shall use its best efforts to close on or before October 31, 2000 a
private placement or public offering of common stock generating net proceeds to
the Company of at least $50 million (the "Financing"). Notwithstanding anything
to the contrary in any registration rights agreement to which the Stakeholders
or any of them are a party with the Company, no Stakeholder shall have the right
to any notice of or to have its shares included in any registration statement to
be filed by the Company in connection with the Financing or to otherwise
participate therein except as may hereafter be determined by the Company and its
underwriters in their sole discretion. Stakeholders may sell Final Settlement
Shares following the Closing provided that on any given trading day during the
six (6) month period immediately following such closing date, no Stakeholder may
sell more than that number of such Stakeholder's Final Settlement Shares that is
determined by multiplying the total number of Final Settlement Shares received
by such Stakeholder by the percentage that the particular Stakeholder's Final
Settlement Shares is to all post reverse-split Common Shares outstanding
immediately after the Closing of the Financing. Notwithstanding anything in this
paragraph to the

<PAGE>   5

contrary, a Stakeholder shall be permitted to sell all or any part of such
Stakeholder's Final Settlement Shares during the aforesaid 6 month period in
connection with (i) any transaction or series of related transactions that is or
are approved by the board of directors of the Company in which more than 50% of
the voting power of the Company is disposed of or that results in the sale of
all or substantially all of the assets of the Company or in the consolidation,
merger or other business combination of the Company with or into any other
entity, immediately following which the stockholders of the Company fail to own
directly or indirectly at least 50% of the surviving entity (a "Change of
Control Transaction"), or (ii) a non-public sale provided that the purchaser in
the non-public sale agrees in writing to be bound by the provisions of this
paragraph.

7. STOCKHOLDER APPROVAL

Within 5 days of obtaining the signatures of all Stakeholders on this Agreement,
the Company shall file with the SEC preliminary proxy materials in respect of a
stockholders' meeting to be held not later than the later of (i) September 21,
2000, or (ii) if the SEC notifies the Company of its intention to review the
proxy materials, 15 days following the date on which the Company receives
notification from the SEC that it has no further comments. Such proxy materials
shall solicit each stockholder's affirmative vote for approval of the
transactions pertaining to the A Preferred Shares, the C Shares and the
Repricing Rights as contemplated by this Agreement including a 156 for one
reverse split of the Company's common stock. Such proxy materials may also seek
approval of an increase in the Company's authorized capital, one or more mergers
or acquisitions, the election of directors and the appointment of auditors for
the current fiscal year, change of name, change of fiscal year end of the
Company and such other amendments to the Company's Certificate of Incorporation,
as amended, as the Company may determine is necessary or desirable to effect
this Agreement. The Company shall use its best efforts to solicit its
stockholders' approval of such matters and to cause its Board of Directors to
recommend such stockholder approval. Each Stakeholder agrees to vote not less
than that number of shares shown beside the name of such Stakeholder on Schedule
3 hereof in favor of the election of directors, the adoption by the Company of
this Agreement and the consummation of the transactions contemplated hereby
including the 156:1 reverse stock split, and the change of name.

8. CONDITIONS

The obligation of the Company to deliver and the Stakeholders to accept the
Final Settlement Shares shall be conditional upon the following:

    8.1.   Stockholder approval of the recapitalization transactions and the
           reverse split contemplated by this Agreement.

    8.2.   The Final Settlement Shares shall be delivered without any
           restrictive legend or stop transfer orders, except for that number of
           Final Settlement Shares identified in Schedule 2 as Restricted Final
           Settlement Shares.

<PAGE>   6

    8.3.   Not later than October 31, 2000, the Company shall have closed the
           Financing;

    8.4.   Not later than October 31, 2000, the Company shall have closed the
           repurchase of not less than $75 million in original principal amount
           of the Company's 12.5% Senior Notes due July 2008.

    8.5.   The representations and warranties contained in this Agreement shall
           be true as of the date of this Agreement and the date of delivery of
           the Final Settlement Shares.

9. TERMINATION

This Agreement shall automatically terminate on the date (the "Termination
Date") that is the earlier of (i) 5:00 p.m. (ET) July 21, 2000, unless all
Stakeholders shall have executed this Agreement prior to such time; (ii) 5:00
p.m. (ET) October 31, 2000 unless Closing shall have taken place prior to such
time; (iii) the failure of the Company to timely file the proxy materials as
contemplated by paragraph 7 hereof; (iv) failure of the Company to obtain
stockholder approval of the recapitalization as contemplated by paragraph 7
hereof, (v) the commencement by the Company of a voluntary case or proceeding
under any applicable Federal or State bankruptcy, insolvency, reorganization or
similar law or a decree or order of any court of competent jurisdiction
adjudging the Company insolvent or a bankrupt, (vi) an Event of Default
occurring under the Trust Indenture governing the Company's 12.5% Senior Notes
due July 2008, or, (vii) a Change of Control transaction occurs, unless Closing
has occurred prior to any such time. Immediately upon termination as aforesaid,
all obligations of the parties under this Agreement shall cease and each
Stakeholder may take any action to enforce any rights and remedies to which it
may be entitled under any agreement to which it is a party with the Company or
otherwise.

10. STAKEHOLDER REPRESENTATIONS

Each Stakeholder represents and warrants with respect to itself only that:

    10.1.  Ownership of Rights. Such Stakeholder is the legal and beneficial
           owner of all the common stock, equity interests, warrants and other
           intangible rights set forth beside its name on Schedule 1 hereof free
           and clear of any encumbrances;

    10.2.  Ownership of Shares. As of the Record Date to be specified by the
           Company in the proxy materials contemplated by this Agreement, it
           will be the legal or beneficial owner of not less than the number of
           shares of voting stock set forth beside its name in Schedule 3
           hereof;

    10.3.  Accredited Investor Status. Such Holder is an "accredited investor"
           as that term is defined in Rule 501(a) of Regulation D;

<PAGE>   7

    10.4.  Information. It has had an opportunity to pose such questions and
           request such materials relating to the offer of the Final Settlement
           Shares as it deems necessary. No failure by the Stakeholder to pose
           questions, request information or carry out any other due diligence
           investigations shall modify, amend or affect such Stakeholder's right
           to rely on the accuracy of any materials provided to such Stakeholder
           by or on behalf of the Company with respect to the transactions
           contemplated hereby or on the Company's representations and
           warranties contained in this Agreement. Such Stakeholder understands
           that its investment in the Final Settlement Shares involves a high
           degree of risk. Such Stakeholder has sought such accounting, legal
           and tax advice as it has considered necessary to make an informed
           investment decision with respect to its acquisition of the Final
           Settlement Shares;

    10.5.  No Governmental Review. Such Stakeholder understands that no United
           States federal or state agency or any other government or
           governmental agency has passed on or made any recommendation or
           endorsement of the Final Settlement Shares or the fairness or
           suitability of the investment in the Final Settlement Shares nor have
           such authorities passed upon or endorsed the merits of the offering
           of the Final Settlement Shares;

    10.6.  Authorization; Enforcement. This Agreement has been duly and validly
           authorized, executed and delivered on behalf of such Stakeholder and
           is a valid and binding agreement of such Stakeholder enforceable
           against such Stakeholder in accordance with its terms;

    10.7.  Residency. Such Stakeholder remains a resident of that country or
           jurisdiction specified in the JEDI Purchase Agreement, the C Purchase
           Agreement, the July Purchase Agreement or the November Purchase
           Agreement to which it is a party.

11. REPRESENTATIONS AND WARRANTIES OF THE COMPANY

    11.1.  Organization and Qualification. The Company is duly organized and
           validly existing in good standing under the laws of the jurisdiction
           it is incorporated, and has the requisite corporate power and
           authorization to execute this agreement and carry out its obligations
           hereunder.

    11.2.  No Other Agreements Other than as set out in this Agreement, the
           Company has no agreements or undertakings with any Stakeholder or any
           affiliate of any Stakeholder to make any cash payment, issue any
           shares or to otherwise do anything pertaining to the subject matter
           of this Agreement.

    11.3.  Authorization; Enforcement. This Agreement has been duly and validly
           authorized, executed and delivered on behalf of the Company and is a
           valid

<PAGE>   8

           and binding agreement of the Company enforceable against the Company
           in accordance with its terms.

    11.4.  Validity of Shares. The Final Settlement Shares, when issued in
           accordance with the terms of this Agreement will be duly authorized,
           validly issued, fully paid and non-assessable shares of common stock
           of the Company and shall be delivered free and clear of any liens,
           charges or encumbrances. The issuance of the Final Settlement Shares
           will be exempt from the registration provisions of the Securities Act
           of 1933 by virtue of the exemption set forth in Section 3(a)9
           thereof. The Company acknowledges and agrees that the Stakeholders
           shall be entitled for all purposes under Rule 144 of said Act to tack
           onto the holding period of their respective Final Settlement Shares
           the full period in which they have held the A Preferred Shares, the C
           Shares or the shares of common stock giving rise to the repricing
           rights as the case may be.

12. RELEASE

Effective upon Closing, the Stakeholders, on behalf of themselves and each of
their respective affiliates over which they respectively exercise control, and
the Company, on behalf of itself and each of its affiliates over which it
exercises control, hereby releases and forever discharges the other and its and
their respective individual, joint or mutual, past, present and future
directors, officers, affiliates, controlling persons, subsidiaries, successors
and assigns (individually, a "Releasee" and collectively, "Releasees") from any
and all claims, demands, proceedings, causes of action (other than fraud),
orders, obligations, contracts, agreements, debts and liabilities whatsoever,
whether known or unknown, suspected or unsuspected, both at law and in equity,
which each of the Stakeholders or the Company and any of their respective
affiliates over which they respectively exercise control now has, have ever had
or may hereafter have against the respective Releasees of the other arising from
the beginning of time until Closing on account or arising out of or in any way
relating to the respective Stakeholder's investments in or dealings with the
Company, including without limitation, the JEDI Purchase Agreement, the JEDI
Registration Rights Agreement, the Other JEDI Agreements, the C Purchase
Agreement, the C Registration Rights Agreement, the July Reset Agreement, the
November Reset Agreement, the Reset Registration Rights Agreement, any
Certificate of Designation of the Company pertaining to the A Preferred Shares
or the C Shares as the case may be, or other cause or event occurring
contemporaneously with or prior to such date, provided, however, that nothing
contained herein shall operate to release any obligations arising under this
Agreement.

Effective upon Closing the Company and each Stakeholder hereby irrevocably
covenants to refrain from, directly or indirectly, asserting any claim or
demand, or commencing, instituting or causing to be commenced, any proceeding of
any kind against any Releasee, based upon any matter purported to be released
hereby.

<PAGE>   9

13. WAIVER

Each Stakeholder for itself only waives any right such Stakeholder may have to
require the Company to repurchase any equity interest or intangible right held
by such Stakeholder arising as a consequence of any change of control that may
result from the Financing or the delivery of the Final Settlement Shares, or
from the Company's failure to maintain the listing of its common stock on the
Nasdaq SmallCap Market or on any subsequent market.

14.      MISCELLANEOUS

    14.1.  Governing Law. The corporate laws of the State of Delaware shall
           govern all issues concerning the relative rights of the Company and
           its stockholders. All other questions concerning the construction,
           validity, enforcement and interpretation of this Agreement shall be
           governed by and interpreted in accordance with the laws of the State
           of New York without regard to the principles of conflict of laws.
           Each party hereby irrevocably submits to the exclusive jurisdiction
           of the state and federal courts sitting in the City of New York,
           borough of Manhattan, for the adjudication of any dispute hereunder
           or in connection herewith or with any transaction contemplated hereby
           or discussed herein, and hereby irrevocably waives, and agrees not to
           assert in any suit, action or proceeding, any claim that it is not
           personally subject to the jurisdiction of any such court, that such
           suit, action or proceeding is brought in an inconvenient forum or
           that the venue of such suit, action or proceeding is improper.
           Notwithstanding anything to the contrary in the foregoing, the laws
           of the state of Texas shall govern any dispute as between the Company
           and JEDI with respect to this Agreement, the JEDI Purchase Agreement,
           the JEDI Registration Rights Agreement, or the Other JEDI Agreements
           without regard to the principles of conflict of laws and for such
           purpose JEDI and the Company irrevocably submit to the exclusive
           jurisdiction of the state and federal courts sitting in the City of
           Dallas, county of Dallas with respect to such disputes. Each party
           hereby irrevocably waives personal service of process and consents to
           process being served in any such suit, action or proceeding by
           mailing a copy thereof to such party at the address for such notices
           to it under this Agreement and agrees that such service shall
           constitute good and sufficient service of process and notice thereof.
           Nothing contained herein shall be deemed to limit in any way any
           right to serve process in any manner permitted by law.

    14.2.  Counterparts. This Agreement may be executed in two or more identical
           counterparts, all of which shall be considered one and the same
           agreement and shall become effective when counterparts have been
           signed by each party and delivered to the other party; provided that
           a facsimile signature shall be considered due execution and shall be
           binding upon the signatory thereto with

<PAGE>   10

           the same force and effect as if the signature were an original, not a
           facsimile signature.

    14.3.  Headings. The headings of this Agreement are for convenience of
           reference and shall not form part of, or affect the interpretation
           of, this Agreement.

    14.4.  Severability. If any provision of this Agreement shall be invalid or
           unenforceable in any jurisdiction, such invalidity or
           unenforceability shall not affect the validity or enforceability of
           the remainder of this Agreement in that jurisdiction or the validity
           or enforceability of any provision of this Agreement in any other
           jurisdiction.

    14.5.  Entire Agreement; Amendments. This Agreement supersedes all other
           prior oral or written agreements between the Stakeholders, the
           Company, their affiliates and persons acting on their behalf with
           respect to the matters discussed herein, and contains the entire
           understanding of the parties with respect to the matters covered
           herein. No provision of this Agreement may be amended other than by
           an instrument in writing signed by the Company and Stakeholders
           representing not less than 80% of the Final Settlement Shares as set
           out in Schedule 3.

    14.6.  Notices. Any notices, consents, waivers or other communications
           required or permitted to be given under the terms of this Agreement
           must be in writing and will be deemed to have been delivered (i) upon
           receipt, when delivered personally; (ii) the date of transmission, if
           such notice or communication is delivered via facsimile at the
           facsimile telephone number specified in this Section prior to 6:00
           p.m. (New York City time) on a Business Day, (iii) the Business Day
           after the date of transmission, if such notice or communication is
           delivered via facsimile at the facsimile telephone number specified
           in this Section later than 6:00 p.m. (New York City time) on any date
           and earlier than 11:59 p.m. (New York City time) on such date; or
           (iv) upon receipt, when delivered by a reputable overnight delivery
           service, in each case properly addressed to the party to receive the
           same. The addresses and facsimile numbers for such communications
           shall be:

           If to the Company:
                  Queen Sand Resources, Inc.
                  13760 Noel Rd. Suite 1030
                  Dallas, Texas 75240-7336
                  Telephone: 972-233-9906
                  Facsimile: 972-233-9575
                  Attention: President

                  and

<PAGE>   11

                  Queen Sand Resources, Inc.
                  30 Metcalfe Street, Suite 620
                  Ottawa, Ontario, Canada K1P 5L4
                  Telephone: 613-230-7211
                  Facsimile: 613-230-6055
                  Attention: President

                  With a copy to:

                  Haynes and Boone, LLP
                  1600 North Collins Blvd.,
                  Suite 2000,
                  Richardson, TX ,75080
                  Telephone: 972-680-7553
                  Facsimile: 972-692-9053
                  Attention: William L. Boeing, Esq.

           If to a Stakeholder, to its address and facsimile number set out in
           the JEDI Purchase Agreement, the C Purchase Agreement, the July
           Agreement or the November Agreement as the case may be.

           Each party shall provide five days' prior written notice of any
           change in address or facsimile number.

    14.7.  Successors and Assigns. This Agreement shall be binding upon and
           inure to the benefit of the parties and their respective successors
           and permitted assigns.

    14.8.  No Third Party Beneficiaries. This Agreement may not be assigned by
           any Stakeholder without the prior written approval of the Company.
           This Agreement is intended for the benefit of the parties hereto and
           their respective permitted successors and assigns, and is not for the
           benefit of, nor may any provision hereof be enforced by, any other
           person.

    14.9.  Survival. The representations, warranties, covenants, releases and
           agreements of the parties hereto, shall survive the execution of this
           agreement and the issuances of the Final Settlement Shares. Each
           Stakeholder shall be responsible only for its own representations,
           warranties, agreements and covenants hereunder and shall not be
           responsible for any act or omission of any other Stakeholder. The
           waiver contained in paragraph 13 shall survive the termination of
           this Agreement.

    14.10. Further Assurances. Each party shall do and perform, or cause to be
           done and performed, all such further acts and things, and shall
           execute and deliver all such other agreements, certificates,
           instruments and documents, as the other party may reasonably request
           in order to carry out the intent and accomplish the purposes of this
           Agreement and the consummation of the transactions

<PAGE>   12

           contemplated thereby. The Company will notify all Stakeholders of any
           default of this Agreement by any Stakeholder as soon as practicable
           after the Company becomes aware of same.

    14.11. No Strict Construction. The language used in this Agreement will be
           deemed to be the language chosen by the parties to express their
           mutual intent, and no rules of strict construction will be applied
           against any party.

IN WITNESS WHEREOF duly authorized representatives of the Company and each
Stakeholder have executed this agreement effective as of the date set out on the
top of page 1 hereof.

Queen Sand Resources, Inc.

/s/ AUTHORIZED SIGNATORY
------------------------
By:
/s/ AUTHORIZED SIGNATORY
------------------------
By:
Joint Energy Development Investments Limited Partnership

                                       By: Enron Capital Management Limited
                                       Partnership, General Partner of Joint
                                       Energy Development Investments Limited
                                       Partnership
                                       By: Enron Capital Corp., General Partner
                                       of Enron Capital Management Limited
                                       Partnership

                                       /s/ AUTHORIZED SIGNATORY
                                       ------------------------
                                       By:

Marshall Capital Management Inc.       Palisades Capital Inc.

/s/ AUTHORIZED SIGNATORY               /s/ AUTHORIZED SIGNATORY
------------------------               ------------------------
By:                                    By:

<PAGE>   13

Westover Investments L.P.              Montrose Investments L.P.,

/s/ AUTHORIZED SIGNATORY               /s/ AUTHORIZED SIGNATORY
------------------------               ------------------------
By:                                    By:

Stark International                    Shepherd Investments International, Ltd.

/s/ AUTHORIZED SIGNATORY               /s/ AUTHORIZED SIGNATORY
------------------------               ------------------------
By:                                    By:

<PAGE>   14

JNC Opportunities Fund Ltd.,           Diversified Strategies Fund L.P.,

/s/ AUTHORIZED SIGNATORY               /s/ AUTHORIZED SIGNATORY
------------------------               ------------------------
By:                                    By:

KA Investments, LDC,

/s/ AUTHORIZED SIGNATORY
------------------------
By:

Sovereign Partners, L.P.,              Advantage (Bermuda) Fund, Ltd.,

/s/ AUTHORIZED SIGNATORY               /s/ AUTHORIZED SIGNATORY
------------------------               ------------------------
By:                                    By:

Canadian Advantage, L.P.,              Dominion Capital Fund Ltd.

/s/ AUTHORIZED SIGNATORY               /s/ AUTHORIZED SIGNATORY
------------------------               ------------------------
By:                                    By:

<PAGE>   15

        QUEEN SAND RESOURCES, INC. RECAPITALIZATION AGREEMENT, JUNE 2000
                                   SCHEDULE 1

<TABLE>
<CAPTION>
                                               Series A     Series C     Repricing                  Maintenance
            Name of Stakeholder                 Shares       Shares        Rights       Warrants       Rights
<S>                                            <C>          <C>          <C>            <C>         <C>
Joint Energy Development Investments L.P.       9,600,000                                            12,157,501

Marshall Capital Management, Inc.                              1,030                     115,647
Stark International                                              260                      56,123
Shepherd Investments International, Ltd.                         260                      56,123
Montrose Investments L.P.                                        209                      67,347
Westover Investments L.P.                                        162                      44,898
Pallisades Capital, Inc.                                         252                          --

JNC Opportunity Fund Ltd.                                                  779,514       364,500
Diversified Strategies Fund, L.P.                                           17,131        10,500
KA Investments, LDC                                                        257,084        80,000
Dominion Capital Fund Ltd.                                                 141,388       100,000
Sovereign Partners, L.P.                                                   398,799       130,000
Canadian Advantage, L.P.                                                        --        10,000
Advantage (Bermuda) Fund, Ltd.                                                  --        10,000

TOTAL                                           9,600,000      2,173     1,593,916     1,045,138     12,157,501
</TABLE>

<PAGE>   16

        QUEEN SAND RESOURCES, INC. RECAPITALIZATION AGREEMENT, JUNE 2000
                                   SCHEDULE 2

<TABLE>
<CAPTION>
                                                              Restricted        Unrestricted        Total Final
                                                           Final Settlement   Final Settlement      Settlement
               Name of Stakeholder                              Shares             Shares             Shares
<S>                                                        <C>                <C>                   <C>
Joint Energy Development Investments L.P.                                --            212,500          212,500

Marshall Capital Management, Inc.                                        --             56,880           56,880
Stark International                                                      --             14,352           14,352
Shepherd Investments International, Ltd.                                 --             14,352           14,352
Montrose Investments L.P.                                                --             11,520           11,520
Westover Investments L.P.                                                --              8,976            8,976
Pallisades Capital, Inc.                                                 --             13,920           13,920
                                                                   --------            -------          -------
                                                                         --            120,000          120,000

JNC Opportunity Fund Ltd.                                                --            200,780          200,780
Diversified Strategies Fund, L.P.                                        --              4,412            4,412
KA Investments, LDC                                                      --             66,217           66,217
Dominion Capital Fund Ltd.                                           31,144                 --           31,145
Sovereign Partners, L.P.                                             31,144             66,303           97,446
Canadian Advantage, L.P.                                                 --                 --               --
Advantage (Bermuda) Fund, Ltd.                                           --                 --               --
                                                                         --                 --               --
                                                                   --------            -------          -------
                                                                     62,288            337,712          400,000

TOTAL                                                                62,288            670,212          732,500
</TABLE>

<PAGE>   17

        QUEEN SAND RESOURCES, INC. RECAPITALIZATION AGREEMENT, JUNE 2000
                                   SCHEDULE 3

<TABLE>
<CAPTION>
               Name of Stakeholder                               Voting Shares

<S>                                                              <C>
Joint Energy Development Investments L.P.                           12,234,952

Marshall Capital Management, Inc.                                    1,451,798
Stark International                                                    365,291
Shepherd Investments International, Ltd.                               365,291
Montrose Investments L.P.                                              290,360
Westover Investments L.P.                                              234,161
Pallisades Capital, Inc.                                               355,925

JNC Opportunity Fund Ltd.                                           11,083,063
Diversified Strategies Fund, L.P.                                      225,000
KA Investments, LDC                                                  2,834,505
Dominion Capital Fund Ltd.                                           3,877,257
Sovereign Partners, L.P.                                             5,642,251
Canadian Advantage, L.P.                                                    --
Advantage (Bermuda) Fund, Ltd.                                              --

TOTAL                                                               38,959,854
</TABLE>

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