Harken Energy Corporation
HBK MASTER FUND L.P.
March 18, 2003
This Option Agreement is entered into this 18th day of March 2003 between:
(1) HARKEN ENERGY CORPORATION ("HEC") of 580 WestLake Park Boulevard, Suite 600, Houston,
Texas 77079, United States of America; and
(2) HBK MASTER FUND L.P ("HBK") of c/o HBK Investments L.P., 300 Crescent Court, Suite 700, Dallas,
Texas 75201, United Stated of America.
WHEREAS, HBK holds $4.93 million nominal of Harken Energy Corporation 5% Senior Convertible Notes
due 2003 (the "2003 Notes").
NOW, for full and valuable consideration which the parties hereto acknowledge, HEC and HBK agree as
In this Agreement, unless the context otherwise requires, the following expressions have the following meanings:
(A) "business day" means each Monday, Tuesday, Wednesday, Thursday, and Friday which is a day on which
banking institutions in the City of New York, Houston Texas, and London England are not obligated or
authorized by law, regulation or executive order to close;
(B) "the Call Option" means the option granted in accordance with
(C) "the Call Option Period" means the period beginning on the date hereof and ending on 30 April 2003;
(D) "the Option Price" means the price, payable in cash, of 60% of nominal value of the 2003 Notes to be
purchased by HEC pursuant to the Put Option or Call Option;
(E) "the Put Option" means the option granted in accordance with
Section 3; and
(F) "the Put Option Period" means the period beginning on 1 May 2003 and ending on 26 May 2003;
2 Grant and Exercise of the Call Option
(A) In consideration of these presents, HBK hereby grants to HEC the right and option during the Call Option
Period to purchase from it, and it shall be obliged to sell, up to $4,930,000 nominal of 2003 Notes at the Option
Price on the terms of this Agreement.
(B) Notice of exercise of the Call Option may be given at any time and from time to time t