SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 --------------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 13, 2003 HARKEN ENERGY CORPORATION (Exact name of registrant as specified in its charter) Delaware 1-10262 13-2841597 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 580 WestLake Park Boulevard, Suite 600 Houston, Texas 77079 (Address of principal executive offices) (ZIP Code) Registrant's telephone number, including area code: (281) 504-4000 Former Name or Former Address, if Changed Since Last Report: Not applicable Item 5. Other Events On February 13, 2003, Harken Energy Corporation (the "Company") issued $1.6 million in principal amount of 7% Senior Convertible Notes due 2006, Series A, to The Liverpool Limited Partnership and Elliot International LP (collectively the "Investors") in exchange for $2 million in principal amount of 5% Senior Convertible Notes due 2003 ("5% European Notes"). The Company also entered into an Option Agreement with the Investors, dated February 13, 2003 (the "Option Agreement"), that provides for a call option in favor of the Company and a put option in favor of the Investors. The call option will obligate the Investors to sell up to an aggregate of $6.57 million principal amount of 5% European Notes at an option price of 60% of the principal amount of the 5% European Notes plus accrued and unpaid interest through the date of payment (the "Option Price"). The put option will obligate the Company to purchase from the Investors for cash at the Option Price an amount of 5% European Notes that, when aggregated with any 5% European Notes purchased pursuant to the call option, equals $3.3 million principal amount. The call option may be exercised from February 13, 2003 through April 30, 2003 and the put option may be exercised from May 1, 2003 through May 31, 2003. In addition, the put option may only be exercised if the Company receives $10 million in gross proceeds pursuant to the Company's underwritten rights offering prior to exercise of the put option. A portion of the proceeds of the rights offering may be used for the payment of the put option and/or the call option. This description of the Option Agreement is qualified in its entirety by the complete text of the Option Agreement attached hereto as Exhibit 10.1. Item 7. Financial Statements and Exhibits (c) Exhibits. -------- Exhibit Number Description ------- ----------- 3.1 -- Certificate of Incorporation of Harken Energy Corporation 3.2 -- Certificate of Amendment to Certificate of Incorporation of Harken Energy Corporation 3.3 -- Certificate of Amendment to Certificate of Incorporation of Harken Energy Corporation 3.4 -- Certificate of Amendment to Certificate of Incorporation of Harken Energy Corporation 3.5 -- Certificate of Amendment to Certificate of Incorporation of Harken Energy Corporation 3.6 -- Certificate of Amendment to Certificate of Incorporation of Harken Energy Corporation 3.7 -- Certificate of Designations of Series G1 Convertible Preferred Stock of Harken Energy Corporation 3.8 -- Certificate of Increase of Series G1 Convertible Preferred Stock of Harken Energy Corporation 10.1 -- Option Agreement between Harken Energy Corporation, The Liverpool Limited Partnership and Elliot International LP, dated February 13, 2003. 10.2 -- 7% Senior Convertible Note due 2006, Series A by Harken Energy Corporation payable to The Liverpool Limited Partnership in the principal amount of $720,000.00, dated February 13, 2003. 10.3 -- 7% Senior Convertible Note due 2006, Series A by Harken Energy Corporation payable to Elliot International LP in the principal amount of $880,000.00, dated February 13, 2003. 10.4 -- 7% Senior Convertible Note due 2007, Series E by Harken Energy Corporation payable to the Bank of New York Depository in the principal amount of $1,420,000.00, dated January 28, 2003. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Harken Energy Corporation Date: February 14, 2003 By: /s/ Anna M. Williams -------------------------------- Anna M. Williams Executive Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit Number Description ------- ----------- 3.1 -- Certificate of Incorporation of Harken Energy Corporation 3.2 -- Certificate of Amendment to Certificate of Incorporation of Harken Energy Corporation 3.3 -- Certificate of Amendment to Certificate of Incorporation of Harken Energy Corporation 3.4 -- Certificate of Amendment to Certificate of Incorporation of Harken Energy Corporation 3.5 -- Certificate of Amendment to Certificate of Incorporation of Harken Energy Corporation 3.6 -- Certificate of Amendment to Certificate of Incorporation of Harken Energy Corporation 3.7 -- Certificate of Designations of Series G1 Convertible Preferred Stock of Harken Energy Corporation 3.8 -- Certificate of Increase of Series G1 Convertible Preferred Stock of Harken Energy Corporation 10.1 -- Option Agreement between Harken Energy Corporation, The Liverpool Limited Partnership and Elliot International LP, dated February 13, 2003. 10.2 -- 7% Senior Convertible Note due 2006, Series A by Harken Energy Corporation payable to The Liverpool Limited Partnership in the principal amount of $720,000.00, dated February 13, 2003. 10.3 -- 7% Senior Convertible Note due 2006, Series A by Harken Energy Corporation payable to Elliot International LP in the principal amount of $880,000.00, dated February 13, 2003. 10.4 -- 7% Senior Convertible Note due 2007, Series E by Harken Energy Corporation payable to the Bank of New York Depository in the principal amount of $1,420,000.00, dated January 28, 2003.