Document:

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                                                                     EXHIBIT 4.8

                      AMENDMENT NO. 1 TO RIGHTS AGREEMENT

     THIS AMENDMENT NO. 1 TO RIGHTS AGREEMENT (this "Amendment"), dated as of
December 1, 2001, is between Quanta Services, Inc., a Delaware corporation (the
"Company"), and American Stock Transfer & Trust Company, as rights agent (the
"Rights Agent").

     WHEREAS, the Company and the Rights Agent are parties to a Rights
Agreement, dated as of March 8, 2000 (the "Rights Agreement"); and

     WHEREAS, pursuant thereto and the provisions of the certificate of
incorporation of the Company, the Company distributed a Right (as defined in the
Rights Agreement) to each holder of common stock, limited vote common stock and
series A convertible preferred stock of the Company; and

     WHEREAS, the Company desires to amend the Rights Agreement pursuant to
Section 27 of the Rights Agreement as set forth below;

     NOW, THEREFORE, the Rights Agreement is hereby amended as follows:

     1.   Amendment of Section 1(g).

          Section 1 of the Rights Agreement is amended by deleting subsection
(g) thereof and replacing it with the following:

               (g) "Series B Preferred Stock Equivalents" shall have the meaning
     set forth in Section 11(a)(iii) hereof.

     2.   Amendment of Section 1(k).

          Section 1 of the Rights Agreement is amended by deleting subsection
(k) thereof and replacing it with the following:

               (k) "Exempt Person" shall mean (i) the Company or any Subsidiary
     (as such term is hereinafter defined) of the Company, in each case
     including, without limitation, in its fiduciary capacity, or any employee
     benefit plan of the Company or of any Subsidiary of the Company, or any
     entity or trustee holding Common Stock for or pursuant to the terms of any
     such plan or for the purpose of funding any such plan or funding other
     employee benefits for employees of the Company or of any Subsidiary of the
     Company, and (ii) the corporation known as of the date hereof as UtiliCorp
     United Inc. ("UtiliCorp") or any Affiliate or Associate of UtiliCorp,
     unless and until (1) UtiliCorp or such Affiliate or Associate shall be
     deemed to be the Beneficial Owner of more than 39.0% of the total number of
     shares of Common Stock outstanding (on an as converted basis), assuming
     full conversion of all securities (provided, however, if UtiliCorp or such
     Affiliate or Associate shall be deemed to be the Beneficial Owner of more
     than
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     39.0% of such number of shares of Common Stock prior to the earlier of
     notice to UtiliCorp of or first public announcement of the December 2001
     amendments to the Agreement, UtiliCorp or such Affiliate or Associate will
     continue to qualify as an Exempt Person unless and until UtiliCorp or such
     Affiliate or Associate shall, at any time after such earlier time, become
     the Beneficial Owner of any additional shares of Common Stock (other than
     pursuant to a dividend or distribution paid or made by the Company on the
     outstanding Common Stock or Series A Preferred Stock or pursuant to a split
     or subdivision of the outstanding Common Stock or Series A Preferred
     Stock), unless, upon becoming the Beneficial Owner of such additional
     shares of Common Stock, UtiliCorp or such Affiliate or Associate is not
     then the Beneficial Owner of 39.0% of the total number of shares of Common
     Stock outstanding (on an as converted basis), assuming full conversion of
     all securities), (2) UtiliCorp or such Affiliate or Associate makes a
     public announcement of the intent to commence a tender or exchange offer
     which would result in UtiliCorp, or any Affiliate or Associate of
     UtiliCorp, becoming the Beneficial Owner of more than 49.9% of the total
     number of shares of Common Stock outstanding (on an as converted basis),
     assuming full conversion of all securities and full exercise of all
     outstanding rights, options and warrants to acquire the Common Stock, or
     (3) there is a UtiliCorp Change of Control.

     3.   Amendment of Section 1(ee).

          Section 1 of the Rights Agreement is amended by deleting subsection
(ee) thereof and replacing it with the following:

          (ee) Intentionally Omitted.

     4.   Amendment of Section 1.

          Section 1 of the Rights Agreement is amended by adding two new
subsections, subsection (ii) and subsection (jj), at the end thereof which shall
read in their entirety as follows:

               (ii) "Acquiring Person Rights" shall have the meaning set forth
     in Section 11(a)(ii) hereof.

               (jj) "Series C Preferred Stock" shall mean the Series C Junior
     Convertible Preferred Stock, par value $0.00001 per share, of the Company
     having the rights and preferences set forth in the Form of Certificate of
     Designation attached to this Agreement as Exhibit D.

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     5.   Amendment of Section 3(a).

          Section 3(a) of the Rights Agreement is amended by deleting the second
sentence thereof and replacing it with the following:

     As soon as practicable after the Distribution Date, the Company will
     prepare and execute, the Rights Agent will countersign and the Company will
     send or cause to be sent (and the Rights Agent will, if requested, send) by
     first-class, insured, postage-prepaid mail, to each record holder of Common
     Stock and Series A Preferred Stock as of the Close of Business on the
     Distribution Date, at the address of such holder shown on the records of
     the Company, a Right Certificate, in substantially the form of Exhibit B
     hereto (a "Right Certificate"), evidencing one Right (subject to adjustment
     as provided herein) for each share of Common Stock or Series A Preferred
     Stock (on an as converted basis) so held.

     6.   Amendment of Section 3(c).

          Section 3(c) of the Rights Agreement is amended by deleting the final
sentence of the stock certificate legend provided for therein.

     7.   Amendment of Section 7(c).

          Section 7(c) of the Rights Agreement is amended by adding the
following at the end thereof:

     Notwithstanding the foregoing, upon the due tender of a Right Certificate
     representing Acquiring Person Rights upon or after a Flip-In Event, the
     Company shall cause the delivery of certificates representing shares of
     Series C Preferred Stock, rather than shares of Series B Preferred Stock,
     to, or upon the order of, the holder of the Rights pursuant to the terms
     hereof.

     8.   Amendment of Section 11(a)(ii).

          Section 11(a) of the Rights Agreement is amended by deleting
subsection (ii) thereof and replacing it with the following:

               (ii) Subject to Section 24 of this Agreement, in the event any
     Person becomes an Acquiring Person (the first occurrence of such event
     being referred to hereinafter as the "Flip-In Event"), then (A) the
     Purchase Price shall be adjusted to be the Purchase Price in effect
     immediately prior to the Flip-In Event multiplied by the number of one one-
     thousandths of a share of Series B Preferred Stock for which a Right was
     exercisable immediately prior to such Flip-In Event, whether or not such
     Right was then exercisable, and (B) each holder of a Right, except as
     otherwise provided in this Section 11(a)(ii) and Section 11(a)(iii) hereof,
     shall thereafter have the right to receive, upon exercise thereof at a
     price equal to the Purchase Price (as so adjusted), in

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     accordance with the terms of this Agreement, such number of one one-
     thousandths of a share of Series B Preferred Stock as shall equal the
     result obtained by dividing the Purchase Price (as so adjusted) by 50% of
     the current per share market price of the Common Stock (determined pursuant
     to Section 11(d) hereof) on the date of such Flip-In Event; provided,
     however, that the Purchase Price (as so adjusted) and the number of shares
     of Series B Preferred Stock so receivable upon exercise of a Right shall,
     following the Flip-In Event, be subject to further adjustment as
     appropriate in accordance with Section 11(f) hereof. Notwithstanding
     anything in this Agreement to the contrary, however, from and after the
     Flip-In Event, any Rights ("Acquiring Person Rights") that are beneficially
     owned by (x) any Acquiring Person (or any Affiliate or Associate of any
     Acquiring Person), (y) a transferee of any Acquiring Person (or any such
     Affiliate or Associate) who becomes a transferee after the Flip-In Event or
     (z) a transferee of any Acquiring Person (or any such Affiliate or
     Associate) who became a transferee prior to or concurrently with the Flip-
     In Event pursuant to either (I) a transfer from the Acquiring Person to
     holders of its equity securities or to any Person with whom it has any
     continuing agreement, arrangement or understanding regarding the
     transferred Rights or (II) a transfer which the Board of Directors has
     determined is part of a plan, arrangement or understanding which has the
     purpose or effect of avoiding the provisions of this paragraph, and
     subsequent transferees of such Persons, shall not be exercisable for Series
     B Preferred Stock pursuant to the immediately preceding sentence, but
     rather shall entitle the holder thereof to receive, upon exercise thereof
     at a price equal to the Purchase Price (as adjusted pursuant to clause (A)
     of the first sentence of this subparagraph (ii)), in accordance with the
     terms of this Agreement, such number of one one-thousandths of a share of
     Series C Preferred Stock as shall equal the number of one one-thousandths
     of a share of Series B Preferred Stock the holder thereof would otherwise
     receive upon exercise of such Rights pursuant to the immediately preceding
     sentence; provided, however, that the Purchase Price (as so adjusted) and
     the number of shares of Series C Preferred Stock so receivable upon
     exercise of an Acquiring Person Right shall, following the Flip-In Event,
     be subject to further adjustment as appropriate in accordance with Section
     11(f) hereof. The Company shall use all reasonable efforts to ensure that
     the provisions of this Section 11(a)(ii) are complied with, but shall have
     no liability to any holder of Right Certificates or other Person as a
     result of its failure to make any determinations with respect to an
     Acquiring Person or its Affiliates, Associates or transferees hereunder.
     From and after the occurrence of an event specified in Section 13(a)
     hereof, any Rights that theretofore have not been exercised pursuant to the
     first sentence of this Section 11(a)(ii) shall thereafter be exercisable
     only in accordance with Section 13 and not pursuant to the first sentence
     of this Section 11(a)(ii).

     9.   Amendment of Section 11(a)(iii).

          Section 11(a) of the Rights Agreement is amended by deleting
subsection (iii) thereof and replacing it with the following:

               (iii)  In the event that there shall not be sufficient shares of
     Series B Preferred Stock issued but not outstanding or authorized but
     unissued to permit the exercise in full of the Rights in accordance with
     the first sentence of the foregoing subparagraph (ii), the Board of

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     Directors shall, with respect to such deficiency, to the extent permitted
     by applicable law and any material agreements then in effect to which the
     Company is a party (A) determine the excess (such excess, the "Spread") of
     (1) the value of the shares of Series B Preferred Stock issuable upon the
     exercise of a Right in accordance with the first sentence of the foregoing
     subparagraph (ii) (the "Current Value") over (2) the Purchase Price (as
     adjusted in accordance with the first sentence of the foregoing
     subparagraph (ii)), and (B) with respect to each Right (other than
     Acquiring Person Rights), make adequate provision to substitute for the
     shares of Series B Preferred Stock issuable in accordance with the first
     sentence of the foregoing subparagraph (ii) upon exercise of the Right and
     payment of the Purchase Price (as adjusted in accordance therewith), (1)
     cash, (2) a reduction in such Purchase Price, (3) other equity securities
     of the Company (including, without limitation, shares or fractions of
     shares of preferred stock which, by virtue of having dividend, voting and
     liquidation rights substantially comparable to those of the shares of
     Series B Preferred Stock, are deemed in good faith by the Board of
     Directors to have substantially the same value as the shares of Series B
     Preferred Stock (such shares or fractions of shares of stock are
     hereinafter referred to as "Series B Preferred Stock Equivalents")), (4)
     debt securities of the Company, (5) other assets, or (6) any combination of
     the foregoing, having a value which, when added to the value of the shares
     of Series B Preferred Stock issued upon exercise of such Right, shall have
     an aggregate value equal to the Current Value (less the amount of any
     reduction in such Purchase Price), where such aggregate value has been
     determined by the Board of Directors upon the advice of a nationally
     recognized investment banking firm selected in good faith by the Board of
     Directors; provided, however, that if the Company shall not make adequate
     provision to deliver value pursuant to clause (B) above within thirty (30)
     days following the Flip-In Event (the date of the Flip-In Event being the
     "Section 11(a)(ii) Trigger Date"), then the Company shall be obligated to
     deliver, to the extent permitted by applicable law and any material
     agreements then in effect to which the Company is a party, upon the
     surrender for exercise of such a Right and without requiring payment of
     such Purchase Price, shares of Series B Preferred Stock (to the extent
     available), and then, if necessary, cash, which shares and/or cash have an
     aggregate value equal to the Spread.  To the extent that the Company
     determines that some action need be taken pursuant to the first sentence of
     this Section 11(a)(iii), the Company shall provide, subject to Section
     11(a)(ii) hereof and the last sentence of this Section 11(a)(iii) hereof,
     that such action shall apply uniformly to all outstanding Rights (other
     than Acquiring Person Rights).  For purposes of this Section 11(a)(iii),
     the value of the shares of Common Stock and the shares of Series B
     Preferred Stock shall be the current per share market price (as determined
     pursuant to Section 11(d)(i) and (ii), respectively) on the Section
     11(a)(ii) Trigger Date and the per share or fractional value of any "Series
     B Preferred Stock Equivalent" shall be deemed to equal the current per
     share market price of the Common Stock.  The Board of Directors of the
     Company may, but shall not be required to, establish procedures to allocate
     the right to receive shares of Series B Preferred Stock upon the exercise
     of the Rights (other than Acquiring Person Rights) among holders of such
     Rights pursuant to this Section 11(a)(iii).

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     10.  Amendment of Section 13(a).

          Section 13 of the Rights Agreement is amended by deleting subsection
(a) thereof and replacing it with the following:

               (a) In the event, directly or indirectly, at any time after the
     Flip-In Event (i) the Company shall consolidate with or shall merge into
     any other Person, (ii) any Person shall merge with and into the Company and
     the Company shall be the continuing or surviving corporation of such merger
     and, in connection with such merger, all or part of the Common Stock,
     Series A Preferred Stock or both shall be changed into or exchanged for
     stock or other securities of any other Person (or of the Company) or cash
     or any other property, or (iii) the Company shall sell or otherwise
     transfer (or one or more of its Subsidiaries shall sell or otherwise
     transfer), in one or more transactions, assets or earning power aggregating
     50% or more of the assets or earning power of the Company and its
     Subsidiaries (taken as a whole) to any other Person (other than the Company
     or one or more wholly-owned Subsidiaries of the Company), then upon the
     first occurrence of such event, proper provision shall be made so that: (A)
     each holder of a Right (other than Acquiring Person Rights) shall
     thereafter have the right to receive, upon the exercise thereof at the
     Purchase Price (as theretofore adjusted in accordance with the first
     sentence of Section 11(a)(ii) hereof), in accordance with the terms of this
     Agreement and in lieu of shares of Series B Preferred Stock, such number of
     validly authorized and issued, fully paid, non-assessable and freely
     tradeable shares of Common Stock of the Principal Party (as such term is
     hereinafter defined), not subject to any liens, encumbrances, rights of
     first refusal or other adverse claims, as shall equal the result obtained
     by dividing the Purchase Price (as theretofore adjusted in accordance with
     the first sentence of Section 11(a)(ii) hereof) by 50% of the current per
     share market price of the Common Stock of such Principal Party (determined
     pursuant to Section 11(d) hereof) on the date of consummation of such
     consolidation, merger, sale or transfer; provided, however, that the
     Purchase Price (as theretofore adjusted in accordance with the first
     sentence of Section 11(a)(ii) hereof) and the number of shares of Common
     Stock of such Principal Party so receivable upon exercise of such a Right
     shall be subject to further adjustment as appropriate in accordance with
     Section 11(f) hereof to reflect any events occurring in respect of the
     Common Stock of such Principal Party after the occurrence of such
     consolidation, merger, sale or transfer; (B) such Principal Party shall
     thereafter be liable for, and shall assume, by virtue of such
     consolidation, merger, sale or transfer, all the relevant obligations and
     duties of the Company pursuant to this Agreement; (C) the term "Company"
     shall thereafter be deemed to refer to such Principal Party; and (D) such
     Principal Party shall take such steps (including, but not limited to, the
     reservation of a sufficient number of its shares of Common Stock in
     accordance with Section 9 hereof) in connection with such consummation of
     any such transaction as may be necessary to assure that the provisions
     hereof shall thereafter be applicable, as nearly as reasonably may be, in
     relation to the shares of its Common Stock thereafter deliverable upon the
     exercise of the Rights (other than Acquiring Person Rights); provided that,
     upon the subsequent occurrence of any consolidation, merger, sale

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     or transfer of assets or other extraordinary transaction in respect of such
     Principal Party, each holder of such a Right shall thereupon be entitled to
     receive, upon exercise of such a Right and payment of the Purchase Price as
     provided in this Section 13(a), such cash, shares, rights, warrants and
     other property which such holder would have been entitled to receive had
     such holder, at the time of such transaction, owned the Common Stock of the
     Principal Party receivable upon the exercise of a Right pursuant to this
     Section 13(a), and such Principal Party shall take such steps (including,
     but not limited to, reservation of shares of stock) as may be necessary to
     permit the subsequent exercise of the Rights in accordance with the terms
     hereof for such cash, shares, rights, warrants and other property.

     11.  Amendment of Section 13(c).

          Section 13 of the Rights Agreement is amended by deleting subsection
(c) thereof and replacing it with the following:

               (c) The Company shall not consummate any consolidation, merger,
     sale or transfer referred to in Section 13(a) hereof unless prior thereto
     the Company and the Principal Party involved therein shall have executed
     and delivered to the Rights Agent an agreement confirming that the
     requirements of Sections 13(a) and (b) hereof shall promptly be performed
     in accordance with their terms and that such consolidation, merger, sale or
     transfer of assets shall not result in a default by the Principal Party
     under this Agreement as the same shall have been assumed by the Principal
     Party pursuant to Sections 13(a) and (b) hereof and providing that, as soon
     as practicable after executing such agreement pursuant to this Section 13,
     the Principal Party will:

                    (i) prepare and file a registration statement under the
          Securities Act, if necessary, with respect to the Rights  (other than
          Acquiring Person Rights) and the securities purchasable upon exercise
          of the Rights  (other than Acquiring Person Rights) on an appropriate
          form, use its best efforts to cause such registration statement to
          become effective as soon as practicable after such filing and use its
          best efforts to cause such registration statement to remain effective
          (with a prospectus at all times meeting the requirements of the
          Securities Act) until the Expiration Date and similarly comply with
          applicable state securities laws;

                    (ii) use its best efforts, if the Common Stock of the
          Principal Party shall be listed or admitted to trading on the New York
          Stock Exchange or on another national securities exchange, to list or
          admit to trading (or continue the listing of) the Rights  (other than
          Acquiring Person Rights) and the securities purchasable upon exercise
          of the Rights  (other than Acquiring Person Rights) on the New York
          Stock Exchange or such securities exchange, or, if the Common Stock of
          the Principal Party shall not be listed or admitted to trading on the
          New York Stock Exchange or a national securities exchange, to cause
          the Rights (other

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          than Acquiring Person Rights) and the securities receivable upon
          exercise of the Rights (other than Acquiring Person Rights) to be
          authorized for quotation on NASDAQ or on such other system then in
          use;

                    (iii)  deliver to holders of the Rights  (other than
          Acquiring Person Rights) historical financial statements for the
          Principal Party which comply in all respects with the requirements for
          registration on Form 10 (or any successor form) under the Exchange
          Act; and

                    (iv) obtain waivers of any rights of first refusal or
          preemptive rights in respect of the Common Stock of the Principal
          Party subject to purchase upon exercise of outstanding Rights (other
          than Acquiring Person Rights).

     12.  Amendment of Section 13(d).

          Section 13 of the Rights Agreement is amended by deleting subsection
(d) thereof and replacing it with the following:

               (d) In case the Principal Party has provision in any of its
     authorized securities or in its certificate of incorporation or by-laws or
     other instrument governing its affairs, which provision would have the
     effect of (i) causing such Principal Party to issue (other than to holders
     of Rights (excluding Acquiring Person Rights) pursuant to this Section 13),
     in connection with, or as a consequence of, the consummation of a
     transaction referred to in this Section 13, shares of Common Stock or
     functional equivalents thereto of such Principal Party at less than the
     then current market price per share thereof (determined pursuant to Section
     11(d) hereof) or securities exercisable for, or convertible into, Common
     Stock or  functional equivalents thereto of such Principal Party at less
     than such then current market price, or (ii) providing for any special
     payment, tax or similar provision in connection with the issuance of the
     Common Stock of such Principal Party pursuant to the provisions of Section
     13, then, in such event, the Company hereby agrees with each holder of
     Rights that it shall not consummate any such transaction unless prior
     thereto the Company and such Principal Party shall have executed and
     delivered to the Rights Agent a supplemental agreement providing that the
     provision in question of such Principal Party shall have been canceled,
     waived or amended, or that the authorized securities shall be redeemed, so
     that the applicable provision will have no effect in connection with, or as
     a consequence of, the consummation of the proposed transaction.

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     13.  Amendment of Section 14.

          Section 14 of the Rights Agreement is amended by adding a new
subsection, subsection (e), at the end thereof which shall read in its entirety
as follows:

               (e) The Company shall not be required to issue fractions of
     Series C Preferred Stock (other than fractions which are integral multiples
     of one one-thousandth of a share of Series C Preferred Stock) or to
     distribute certificates which evidence fractional shares of Series C
     Preferred Stock (other than fractions which are integral multiples of one
     one-thousandth of a share of Series C Preferred Stock) upon the exercise of
     Rights.  Interests in fractions of Series C Preferred Stock in integral
     multiples of one one-thousandth of a share of Series C Preferred Stock may,
     at the election of the Company, be evidenced by depositary receipts,
     pursuant to an appropriate agreement between the Company and a depositary
     selected by it; provided, that such agreement shall provide that the
     holders of such depositary receipts shall have all the rights, privileges
     and preferences to which they are entitled as beneficial owners of the
     Series C Preferred Stock represented by such depositary receipts.

     14.  Amendment of Section 20(e).

          Section 20 of the Rights Agreement is amended by deleting subsection
(e) thereof and replacing it with the following:

               (e) The Rights Agent shall not be under any responsibility in
     respect of the validity of this Agreement or the execution and delivery
     hereof (except the due execution hereof by the Rights Agent) or in respect
     of the validity or execution of any Right Certificate (except its
     countersignature thereof); nor shall it be responsible for any breach by
     the Company of any covenant or condition contained in this Agreement or in
     any Right Certificate; nor shall it be responsible for any change in the
     exercisability of the Rights or any change or adjustment in the terms of
     the Rights provided for in Sections 3, 11, 13, 23 and 24, or the
     ascertaining of the existence of facts that would require any such change
     or adjustment (except with respect to the exercise of Rights evidenced by
     Right Certificates after receipt of a certificate furnished pursuant to
     Section 12, describing such change or adjustment); nor shall it by any act
     hereunder be deemed to make any representation or warranty as to the
     authorization or reservation of any shares of Series B Preferred Stock or
     other securities to be issued pursuant to this Agreement or any Right
     Certificate or as to whether any shares of Series B Preferred Stock or
     other securities will, when issued, be validly authorized and issued, fully
     paid and nonassessable.

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     15.  Amendment of Section 20(j).

          Section 20 of the Rights Agreement is amended by deleting subsection
(j) thereof and replacing it with the following:

               (j) If, with respect to any Rights Certificate surrendered to the
     Rights Agent for exercise or transfer, the certificate contained in the
     form of assignment or the form of election to purchase set forth on the
     reverse thereof, as the case may be, has not been completed to certify
     whether or not the holder is an Acquiring Person (or an Affiliate or
     Associate thereof) or a transferee thereof, the Rights Agent shall not take
     any further action with respect to such requested exercise or transfer
     without first consulting with the Company.

     16.  Amendment of Section 24(a).

          Section 24 of the Rights Agreement is amended by deleting subsection
(a) thereof and replacing it with the following:

               (a) The Board of Directors of the Company may, at its option, at
     any time after the Flip-In Event, exchange all or part of the then
     outstanding and exercisable Rights (other than Acquiring Person Rights) for
     Series B Preferred Stock at an exchange ratio of one one-thousandth of a
     share of Series B Preferred Stock per Right (such amount per Right being
     hereinafter referred to as the "Exchange Ratio").  Notwithstanding the
     foregoing, the Board of Directors shall not be empowered to effect such
     exchange at any time after an Acquiring Person shall have become the
     Beneficial Owner of shares of Common Stock aggregating 50% or more of the
     shares of Common Stock then outstanding.  From and after the occurrence of
     an event specified in Section 13(a) hereof, any Rights that theretofore
     have not been exchanged pursuant to this Section 24(a) shall thereafter be
     exercisable only in accordance with Section 13 and may not be exchanged
     pursuant to this Section 24(a).  The exchange of the Rights by the Board of
     Directors may be made effective at such time, on such basis and with such
     conditions as the Board of Directors in its sole discretion may establish.

     17.  Amendment of Section 24(b).

          Section 24 of the Rights Agreement is amended by deleting subsection
(b) thereof and replacing it with the following:

               (b) Immediately upon the effectiveness of the action of the Board
     of Directors of the Company ordering the exchange of any Rights pursuant to
     paragraph (a) of this Section 24 and without any further action and without
     any notice, the right to exercise such Rights shall terminate and the only
     right thereafter of a holder of such Rights shall be to receive that number
     of shares of Series B Preferred Stock equal to the number

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     of such Rights held by such holder multiplied by the Exchange Ratio. The
     Company shall promptly give public notice of any such exchange; provided,
     however, that the failure to give, or any defect in, such notice shall not
     affect the validity of such exchange. The Company shall promptly mail a
     notice of any such exchange to all of the holders of the Rights so
     exchanged at their last addresses as they appear upon the registry books of
     the Rights Agent. Any notice which is mailed in the manner herein provided
     shall be deemed given, whether or not the holder receives the notice. Each
     such notice of exchange will state the method by which the exchange of the
     shares of Series B Preferred Stock for Rights will be effected and, in the
     event of any partial exchange, the number of Rights which will be
     exchanged. Any partial exchange shall be effected pro rata based on the
     number of Rights (other than Acquiring Person Rights) held by each holder
     of Rights.

     18.  Amendment of Section 24(c).

          Section 24 of the Rights Agreement is amended by deleting subsection
(c) thereof and replacing it with the following:

               (c) The Company may at its option substitute, and, in the event
     that there shall not be sufficient shares of Series B Preferred Stock
     issued but not outstanding or authorized but unissued to permit an exchange
     of Rights for Series B Preferred Stock as contemplated in accordance with
     this Section 24, the Company shall substitute to the extent of such
     insufficiency, for each share of Series B Preferred Stock or fraction
     thereof that would otherwise be issuable upon exchange of a Right, a number
     of equivalent preferred shares (as such term is defined in Section 11(b))
     such that the current per share market price (determined pursuant to
     Section 11(d) hereof) of one equivalent preferred share multiplied by such
     number or fraction is equal to the current per share market price of one
     share of Series B Preferred Stock (determined pursuant to Section 11(d)
     hereof) as of the date of such exchange.

     19.  Amendment of Section 30.

          Section 30 of the Rights Agreement is amended by deleting subsection
(a) thereof and replacing it with the following:

               (a) The Board of Directors of the Company shall have the
     exclusive power and authority to administer this Agreement and to exercise
     the rights and powers specifically granted to the Board of Directors of the
     Company or to the Company, or as may be necessary or advisable in the
     administration of this Agreement, including, without limitation, the right
     and power to (i) interpret the provisions of this Agreement, and (ii) make
     all determinations deemed necessary or advisable for the administration of
     this Agreement (including, without limitation, a determination whether: to
     exchange the outstanding Rights for Series B Preferred Stock pursuant to
     Section 24; to redeem or not redeem the Rights; or to amend or not to amend
     this Agreement).  All such actions,

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     calculations, interpretations and determinations that are done or made by
     the Board of Directors of the Company in good faith, shall be final,
     conclusive and binding on the Company, the Rights Agent, the holders of the
     Rights, as such, and all other parties.

     20.  Amendment to Exhibits.

          The Exhibits to the Rights Agreement are amended by (i) deleting
Exhibit B thereto and replacing it with the new form of Exhibit B which is
attached hereto and (ii) adding thereto a new Exhibit, Exhibit D, as the final
Exhibit which shall read in its entirety as attached hereto.

     21.  Effectiveness.

     This Amendment shall be deemed effective as of the date hereof as if
executed by both parties hereto on such date.  Except as amended hereby, the
Rights Agreement shall remain in full force and effect and shall be otherwise
unaffected hereby.

     22.  Miscellaneous.

     This Amendment shall be deemed to be a contract made under the laws of the
State of Delaware and for all purposes shall be governed by and construed in
accordance with the laws of such state applicable to contracts to be made and
performed entirely within such state.  This Amendment may be executed in any
number of counterparts, each of such counterparts shall for all purposes be
deemed to be an original, and all such counterparts shall together constitute
but one and the same instrument.  If any term, provision, covenant or
restriction of this Amendment is held by a court of competent jurisdiction or
other authority to be invalid, illegal, or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Amendment shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.

                                       12
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of the date set forth above.

                         QUANTA SERVICES, INC.

                         By: /s/ Dana A. Gordon
                         Name: Dana A. Gordon
                         Title: Vice President - General Counsel

                         AMERICAN STOCK TRANSFER & TRUST COMPANY,
                          as rights agent

                         By:
                            ----------------------------------
                         Name:
                         Title:

                                       13
<PAGE>

                                                                       EXHIBIT B

                           FORM OF RIGHT CERTIFICATE

                         Certificate No. R - __________

NOT EXERCISABLE AFTER MARCH 8, 2010 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS.
THE RIGHTS ARE SUBJECT TO REDEMPTION AT $0.01 PER RIGHT AND TO EXCHANGE ON THE
TERMS SET FORTH IN THE RIGHTS AGREEMENT.

                               RIGHT CERTIFICATE

                             QUANTA SERVICES, INC.

          This certifies that ______________________________________ or
registered assigns, is the registered owner of the number of Rights set forth
above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Rights Agreement, dated as of March 8, 2000, as
the same may be amended from time to time (the "Rights Agreement"), between
Quanta Services, Inc., a Delaware corporation (the "Company"), and American
Stock Transfer & Trust Company, as Rights Agent (the "Rights Agent"), to
purchase from the Company at any time after the Distribution Date (as such term
is defined in the Rights Agreement) and prior to 5:00 p.m., New York City time,
on March 8, 2010 at the office or agency of the Rights Agent designated for such
purpose, or of its successor as Rights Agent, one one-thousandth of a fully paid
non-assessable share of Series B Junior Participating Preferred Stock, par value
$0.00001 per share (the "Series B Preferred Stock"), of the Company at a
purchase price of $230.00 per one one-thousandth of a share of Series B
Preferred Stock (the "Purchase Price"), upon presentation and surrender of this
Right Certificate with the Form of Election to Purchase duly executed; provided,
however, that to take into account the 3 for 2 stock dividend payable on April
7, 2000, the Purchase Price shall, on April 7, 2000, automatically and without
any notice, certificate or other action by or to the Company, Rights Agent or
holders of the Rights (under Section 12 of the Rights Agreement or otherwise),
be $153.33.  The number of Rights evidenced by this Rights Certificate (and the
number of one one-thousandths of a share of Series B Preferred Stock which may
be purchased upon exercise hereof) set forth above, and the Purchase Price set
forth above, are the number and Purchase Price as of __________, based on the
Series B Preferred Stock as constituted at such date.  As provided in the Rights
Agreement, the Purchase Price, the number of one one-thousandths of a share of
Series B Preferred Stock (or other securities or property) which may be
purchased upon the exercise of the Rights and the number of Rights evidenced by
this Right Certificate are subject to modification and adjustment upon the
happening of certain events.

          This Right Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Right Certificates.  Copies of
the Rights Agreement are on file at the principal executive

                                       14
<PAGE>

offices of the Company and the above-mentioned office or agency of the Rights
Agent. The Company will mail to the holder of this Right Certificate a copy of
the Rights Agreement without charge after receipt of a written request therefor.

          This Right Certificate, with or without other Right Certificates, upon
surrender at the office or agency of the Rights Agent designated for such
purpose, may be exchanged for another Right Certificate or Right Certificates of
like tenor and date evidencing Rights entitling the holder to purchase a like
aggregate number of shares of Series B Preferred Stock as the Rights evidenced
by the Right Certificate or Right Certificates surrendered shall have entitled
such holder to purchase. If this Right Certificate shall be exercised in part,
the holder shall be entitled to receive upon surrender hereof another Right
Certificate or Right Certificates for the number of whole Rights not exercised.

          Subject to the provisions of the Rights Agreement, the Rights
evidenced by this Certificate (i) may be redeemed by the Company at a redemption
price of $0.01 per Right or (ii) may be exchanged in whole or in part for shares
of Series B Preferred Stock.

          No fractional shares of Preferred Stock will be issued upon the
exercise or exchange of any Right or Rights evidenced hereby (other than
fractions of Preferred Stock which are integral multiples of one one-thousandth
of a share of Preferred Stock, which may, at the election of the Company, be
evidenced by depository receipts), but in lieu thereof a cash payment will be
made, as provided in the Rights Agreement.

          No holder of this Right Certificate, as such, shall be entitled to
vote or receive dividends or be deemed for any purpose the holder of the Series
B Preferred Stock or of any other securities of the Company which may at any
time be issuable on the exercise or exchange hereof, nor shall anything
contained in the Rights Agreement or herein be construed to confer upon the
holder hereof, as such, any of the rights of a stockholder of the Company or any
right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in the Rights Agreement) or to receive
dividends or subscription rights, or otherwise, until the Right or Rights
evidenced by this Right Certificate shall have been exercised or exchanged as
provided in the Rights Agreement.

          This Right Certificate shall not be valid or obligatory for any
purpose until it shall have been countersigned by the Rights Agent.

                                       15
<PAGE>

          WITNESS the facsimile signature of the Chief Executive Officer and the
Secretary of the Company and its corporate seal.

Dated as of _________________.

QUANTA SERVICES, INC.

By:
    ------------------------------------------
     Chief Executive Officer

ATTEST:

----------------------------------------------
Secretary

Countersigned:

AMERICAN STOCK TRANSFER & TRUST COMPANY, as Rights Agent

By:
   ----------------------------------------
Name:
     --------------------------------------
Its:
     --------------------------------------

                                       16
<PAGE>

                   FORM OF REVERSE SIDE OF RIGHT CERTIFICATE

                               FORM OF ASSIGNMENT
                (TO BE EXECUTED BY THE REGISTERED HOLDER IF SUCH
               HOLDER DESIRES TO TRANSFER THE RIGHT CERTIFICATE)

          FOR VALUE RECEIVED ___________________________________ hereby sells,
assigns and transfers unto ___________________________________________________
                              (Please print name and address of transferee)

_____________ Rights represented by this Right Certificate, together with all
right, title and interest therein, and does hereby irrevocably constitute and
appoint _________________________________________ Attorney, to transfer said
Rights on the books of the within-named Company, with full power of
substitution.

Dated:
      ------------------------------------

------------------------------------------
Signature

Signature Guaranteed:

          Signatures must be guaranteed by a bank, trust company, broker, dealer
or other eligible institution participating in a recognized signature guarantee
medallion program.

                               (To be completed)

          The undersigned hereby certifies that the Rights evidenced by this
Right Certificate are ______ [or] are not ________ beneficially owned by, were
________ [or] were not ________ acquired by the undersigned from, and are
________ [or] are not ________ being assigned to an Acquiring Person or an
Affiliate or Associate thereof (as defined in the Rights Agreement). (Please
Mark with an X as appropriate)

------------------------------
Signature

                                       17
<PAGE>

            FORM OF REVERSE SIDE OF RIGHT CERTIFICATE - (CONTINUED)

                          FORM OF ELECTION TO PURCHASE
                 (TO BE EXECUTED IF HOLDER DESIRES TO EXERCISE
                 RIGHTS REPRESENTED BY THE RIGHTS CERTIFICATE)

To Quanta Services, Inc.

          The undersigned hereby irrevocably elects to exercise
___________________________ Rights represented by this Right Certificate to
purchase the shares of Series B Preferred Stock (or other securities or
property) issuable upon the exercise of such Rights and requests that
certificates for such shares of Series B Preferred Stock (or such other
securities) be issued in the name of:

-------------------------------------------------------------------------------
                        (Please print name and address)

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

If such number of Rights shall not be all the Rights evidenced by this Right
Certificate, a new Right Certificate for the balance remaining of such Rights
shall be registered in the name of and delivered to:

Please insert social security or other identifying number

-------------------------------------------------------------------------------
                        (Please print name and address)

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

Dated:
      ---------------------------------

---------------------------------------
Signature

       (Signature must conform to holder specified on Right Certificate)

Signature Guaranteed:

          Signature must be guaranteed by a bank, trust company, broker, dealer
or other eligible institution participating in a recognized signature guarantee
medallion program.

                               (To be completed)

                                       18
<PAGE>

          The undersigned certifies that the Rights evidenced by this Right
Certificate are ________ [or] are not ________ beneficially owned by, and were
________ [or] were not ________ acquired by the undersigned from, an Acquiring
Person or an Affiliate or Associate thereof (as defined in the Rights
Agreement).  (Please Mark with an X as appropriate)

-----------------------------------
Signature

                                       19
<PAGE>

                                     NOTICE

          The signature in the Form of Assignment or Form of Election to
Purchase, as the case may be, must conform to the name as written upon the face
of this Right Certificate in every particular, without alteration or enlargement
or any change whatsoever.

          In the event the certification set forth above in the Form of
Assignment or the Form of Election to Purchase, as the case may be, is not
completed, such Assignment or Election to Purchase will not be honored.

                                       20
<PAGE>

                                                                       EXHIBIT D

                                    FORM OF
                           CERTIFICATE OF DESIGNATION

                                       OF

                  SERIES C JUNIOR CONVERTIBLE PREFERRED STOCK

                                       OF

                             QUANTA SERVICES, INC.

             PURSUANT TO SECTION 151 OF THE GENERAL CORPORATION LAW
                            OF THE STATE OF DELAWARE

          QUANTA SERVICES, INC., a corporation organized and existing under the
General Corporation Law of the State of Delaware (the "Corporation"), in
accordance with the provisions of Section 103 thereof, DOES HEREBY CERTIFY:

          That pursuant to the authority vested in the Board of Directors in
accordance with the provisions of the Restated Certificate of Incorporation of
the said Corporation, a committee of the Board of Directors of the Corporation,
pursuant to the authority conferred upon the committee by the said Board of
Directors, adopted the following resolution creating a series of 1,000,000
shares of Preferred Stock designated as "Series C Junior Convertible Preferred
Stock":

          RESOLVED, that pursuant to the authority vested in the Board of
Directors of this Corporation in accordance with the provisions of the Restated
Certificate of Incorporation and the authority conferred upon this committee of
the Board of Directors by the Board of Directors, a series of Preferred Stock,
par value $0.00001 per share, of the Corporation be and hereby is created, and
that the designation and number of shares thereof and the voting and other
powers, preferences and relative, participating, optional or other rights of the
shares of such series and the qualifications, limitations and restrictions
thereof are as follows:

          SERIES C JUNIOR CONVERTIBLE PREFERRED STOCK

          1.   Designation and Amount.   There shall be a series of Preferred
Stock that shall be designated as "Series C Junior Convertible Preferred Stock,"
and the number of shares constituting such series shall be 1,000,000. Such
number of shares may be increased or decreased by resolution of the Board of
Directors; provided, however, that no decrease shall reduce the number of shares
of Series C Junior Convertible Preferred Stock to less than the number of shares
then issued and outstanding plus the number of shares issuable upon exercise of
outstanding rights, options or warrants or upon conversion of outstanding
securities issued by the Corporation.

                                       21
<PAGE>

          2.   Dividends.  The holders of shares of Series C Junior Convertible
Preferred Stock shall not be entitled to receive any dividends.

          3.   Voting Rights.   The holders of shares of Series C Junior
Convertible Preferred Stock shall not be entitled to vote, except as otherwise
required by applicable law.  In each such matter where applicable law affords
the holders of Series C Junior Convertible Preferred Stock the right to vote,
each share of Series C Junior Convertible Preferred Stock shall entitle the
holder thereof to one vote.

          4.   Reacquired Shares.  Any shares of Series C Junior Convertible
Preferred Stock purchased or otherwise acquired by the Corporation in any manner
whatsoever shall be retired promptly after the acquisition thereof.  All such
shares shall upon their retirement become authorized but unissued shares of
Preferred Stock and may be reissued as part of a new series of Preferred Stock
to be created by resolution or resolutions of the Board of Directors, subject to
any conditions and restrictions on issuance set forth herein.

          5.   Liquidation, Dissolution or Winding Up.

          (a) Upon any liquidation, dissolution or winding up of the
Corporation, voluntary or otherwise, no distribution shall be made to the
holders of shares of stock ranking junior upon liquidation, dissolution or
winding up to the Series C Junior Convertible Preferred Stock unless, prior
thereto, the holders of shares of Series C Junior Convertible Preferred Stock
shall have received an amount per share (the "Series C Liquidation Preference")
equal to $10.00.

          (b) In the event, however, that there are not sufficient assets
available to permit payment in full of the Series C Liquidation Preference and
the liquidation preferences of all other classes and series of stock of the
Corporation, if any, that rank on a parity with the Series C Junior Convertible
Preferred Stock in respect thereof, then the assets available for such
distribution shall be distributed ratably to the holders of the Series C Junior
Convertible Preferred Stock and the holders of such parity shares in proportion
to their respective liquidation preferences.

          (c) Neither the merger or consolidation of the Corporation into or
with another entity nor the merger or consolidation of any other entity into or
with the Corporation shall be deemed to be a liquidation, dissolution or winding
up of the Corporation within the meaning of this Section 5.

          6.   No Redemption.   Shares of Series C Junior Convertible Preferred
Stock shall not be subject to redemption by the Corporation.

          7.   Conversion.

          (a) Each whole share of Series C Junior Convertible Preferred Stock is
convertible, at any time from and after the thirtieth day following the
conclusion of the next annual meeting of stockholders of the Corporation
following the initial issuance of any shares of Series C Junior Convertible

                                       22
<PAGE>

Preferred Stock (provided, however, such date shall be extended to the first
anniversary of such thirtieth day if prior thereto any person has become an
"Acquiring Person" (as defined in the Rights Agreement, dated as of March 8,
2000, between the Corporation and American Stock Transfer & Trust Company, as
rights agent, as such may be amended from time to time)), at the option of the
holder thereof, into one thousand (as such may be adjusted from time to time
pursuant to Section 7(b) hereof, the "Conversion Ratio") shares of Common Stock,
par value $0.00001 per share, of the Corporation (the "Common Stock").

          (b) If the Corporation shall at any time or from time to time (i)
declare and pay any dividend on Common Stock payable in shares of Common Stock,
(ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding
Common Stock into a smaller number of shares, then in each such case the
Conversion Ratio in effect immediately prior to such event shall be adjusted by
multiplying such Conversion Ratio by a fraction the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and
the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event. Any adjustments made pursuant to
this Section 7(b) shall become effective on the date of the respective dividend,
subdivision or combination. Such adjustments shall be made successively.

          (c) Before any holder of Series C Junior Convertible Preferred Stock
shall be entitled to convert the same into Common Stock, such holder shall
surrender the certificate or certificates for such Series C Junior Convertible
Preferred Stock to the Corporation at the Corporation's principal office, or at
the office of any transfer agent appointed by the Corporation, which certificate
or certificates, if the Corporation shall so request, shall be duly endorsed to
the Corporation or in blank, and shall give written notice to the Corporation
that the holder elects to convert such shares of Series C Junior Convertible
Preferred Stock into Common Stock and shall state in such notice the name or
names in which he wishes the certificate or certificates for Common Stock to be
issued.

          (d) The Corporation will, as soon as practicable after such surrender
of certificates for Series C Junior Convertible Preferred Stock accompanied by
the written notice above prescribed, issue and deliver or cause to be issued and
delivered, to the holder or to his nominee or nominees, certificates for the
number of shares of Common Stock to which the holder shall be entitled.  Subject
to the following provisions of this Section, such conversion shall be deemed to
have been made as of the date of such surrender of the Series C Junior
Convertible Preferred Stock to be converted, and the person or persons entitled
to receive the Common Stock issuable upon conversion of such Series C Junior
Convertible Preferred Stock shall be treated for all purposes as the record
holder or holders of such Common Stock on such date.

          (e) As soon as practicable after the surrender of a certificate
representing shares of Series C Junior Convertible Preferred Stock that is
converted in part, the Corporation shall issue or cause to be issued for the
holder a new certificate representing shares of Series C Junior Convertible
Preferred Stock equal in number to the unconverted portion of the shares of
Series C Junior Convertible Preferred Stock represented by the certificate so
surrendered.

                                       23
<PAGE>

          (f) The Corporation shall reserve and keep available, out of its
authorized and unissued Common Stock, solely for the purpose of effecting the
conversion of the Series C Junior Convertible Preferred Stock, such number of
shares of Common Stock as shall from time to time be sufficient to effect the
conversion of all shares of Series C Junior Convertible Preferred Stock from
time to time outstanding.

          (g) The Corporation will pay any and all issue and other taxes (other
than taxes based on income) that may be payable in respect of any issuance or
delivery of shares of Common Stock on conversion of the Series C Junior
Convertible Preferred Stock pursuant hereto.  The Corporation shall not,
however, be required to pay any tax which may be payable in respect of any
transfer involving the issuance and delivery of Common Stock in a name other
than that in which the Series C Junior Convertible Preferred Stock so converted
was registered, and no such issuance or delivery shall be made unless and until
the person requesting such issuance has paid to the Corporation the amount of
any such tax, or has established, to the satisfaction of the Corporation, that
such tax has been paid.

          8.   Consolidation, Merger.   In case the Corporation shall enter into
any consolidation or merger transaction in which the outstanding shares of
Common Stock are exchanged for or changed into other stock or securities, cash
and/or any other property, then in any such case each share of Series C Junior
Convertible Preferred Stock shall at the same time be converted into the right
to receive an amount per share equal to $10.00, and, in connection with any such
transaction where appraisal rights are available to the holders of the Series C
Junior Convertible Preferred Stock under Section 262 of the General Corporation
Law of the State of Delaware, each such share shall be deemed to have a fair
value of $10.00 per share for purposes thereof.

          9.   Ranking.  The Series C Junior Convertible Preferred Stock shall
rank on a parity with the Series B Junior Participating Preferred Stock, par
value $0.00001 per share, of the Corporation as to the distribution of assets
upon liquidation, dissolution or winding up.  The Series C Junior Convertible
Preferred Stock shall rank junior to all other series of Preferred Stock as to
the distribution of assets upon liquidation, dissolution or winding up, unless
the terms of any such series shall provide otherwise, and shall rank senior to
the Common Stock as to such matters.

          10.  Amendment.  At any time that any shares of Series C Junior
Convertible Preferred Stock are outstanding, the Restated Certificate of
Incorporation of the Corporation shall not be amended in any manner which would
materially alter or change the powers, preferences or special rights of the
Series C Junior Convertible Preferred Stock so as to affect them adversely
without the affirmative vote of the holders of two-thirds of the outstanding
shares of Series C Junior Convertible Preferred Stock, voting separately as a
class.

          11.  Fractional Shares.  Series C Junior Convertible Preferred Stock
may be issued in fractions of a share that shall entitle the holder, in
proportion to such holder's fractional shares, to exercise voting rights, if
any, participate in distributions and to have the benefit of all other rights of
holders of Series C Junior Convertible Preferred Stock.

                                       24
<PAGE>

          IN WITNESS WHEREOF, the undersigned has executed this Certificate this
1st day of December 1, 2001.

QUANTA SERVICES, INC.

By:
   -------------------------------------------
Name: Dana A. Gordon
Title: Vice President - General Counsel

                                       25<PAGE>

                                                                    Exhibit 4.10

                          CERTIFICATE OF DESIGNATIONS
                                      OF
                     SERIES G2 CONVERTIBLE PREFERRED STOCK
                                      OF
                           HARKEN ENERGY CORPORATION

     Harken Energy Corporation, a Delaware corporation, DOES HEREBY CERTIFY:

     That, pursuant to the authority conferred upon the Board of Directors of
said corporation by virtue of its certificate of incorporation as amended and in
accordance with Section 151 of the General Corporation Law of the State of
Delaware (the "DGCL"), said Board of Directors has duly adopted a resolution at
a special meeting of the Board of Directors held on May 30, 2001, providing for
the issuance of a series of preferred stock, par value $1.00 per share,
designated as Series G2 Convertible Preferred Stock, which resolution reads as
follows:

     "RESOLVED, that the Board of Directors (the "BOARD OF DIRECTORS") of Harken
Energy Corporation (the "CORPORATION") hereby authorizes the issuance of a
series of preferred stock and fixes its designation, powers, preferences and
relative, participating, optional or other special rights, and qualifications,
limitations and restrictions thereof, as follows:

     Section 1.  Designation.  The distinctive serial designation of said series
shall be "SERIES G2 CONVERTIBLE PREFERRED STOCK" (hereinafter called "SERIES G2
PREFERRED STOCK").  Each share of Series G2 Preferred Stock shall be identical
in all respects with all other shares of Series G2 Preferred Stock.

     Section 2.  Number of Shares.  The number of authorized shares of Series G2
Preferred Stock shall be, in aggregate, 100,000 shares.  The number of
authorized shares of Series G2 Preferred Stock may be increased or reduced by
the Board of Directors of the Corporation by the filing of a certificate
pursuant to the provisions of the DGCL stating that the change has been so
authorized.  When shares of Series G2 Preferred Stock are purchased or otherwise
acquired by the Corporation or converted into Common Stock, par value $0.01 per
share, of the Corporation (the "COMMON STOCK"), the Corporation shall take all
necessary action to cause the shares of Series G2 Preferred Stock so purchased
or acquired to be canceled and reverted to authorized but unissued shares of
Series G2 Preferred Stock undesignated as to series.

     Section 3.  Rank.  The Series G2 Preferred Stock shall, with respect to
dividend rights and rights on liquidation, winding-up and dissolution, rank (i)
junior to all claims of creditors, including holders of the Corporation's
outstanding debt securities, (ii) junior to all obligations of the Corporation's
Subsidiaries (as defined in Section 13 below), (iii) senior to all classes of
Common Stock and to each other class of preferred stock established hereafter by
the Board of Directors of the Corporation, the terms of which expressly provide
that it ranks junior to the Series G2 Preferred Stock as to dividend rights and
rights on liquidation, winding-up and dissolution of the Corporation
(collectively referred to, together with all classes of Common Stock of the
Corporation, as "JUNIOR STOCK"), and (iv) on a parity with each other class of
preferred stock established or issued hereafter by the Board of Directors of the
Corporation the terms of which expressly provide that such class or series shall
rank on a parity with the Series G2 Preferred Stock as to dividend rights and
rights on liquidation, winding-up and dissolution (collectively referred to as
"PARITY STOCK").  The Corporation may authorize the issuance of any amount of
Parity Stock (which may provide for the payment of dividends in additional
shares of Parity Stock in lieu of cash dividends) without the approval of the
holders of the Series G2 Preferred Stock.   The Series G2 Preferred Stock shall
rank as Parity Stock to the Series G1 Preferred Stock, previously authorized by
the Board.

                                       1
<PAGE>

     Section 4. Dividends.

     (a) The holders of record, as of the Record Date therefor, of the
outstanding shares of Series G2 Preferred Stock shall be entitled to receive,
when, as and if declared by the Board of Directors of the Corporation, out of
funds legally available therefor, dividends on the Series G2 Preferred Stock at
an annual rate equal to $8.00 per share (equivalent to 8% of the liquidation
preference annually), payable semi-annually in arrears in cash or, at the option
of the Corporation, in Freely Tradeable shares of the Corporation's Common
Stock. If and when the Corporation shall elect from time to time to pay such
dividends in shares of Common Stock, such shares will be valued at $3.00 per
share; provided, however, that the Corporation may elect to pay such dividends
in shares of the Corporation's Common Stock only if such shares of Common Stock
would upon issuance be Freely Tradeable (as defined in Section 13 below) by the
Corporation; and, provided further, that (i) if the outstanding shares of Common
Stock shall be subdivided into a greater number of shares of Common Stock, such
$3.00 per share valuation shall be proportionately reduced on the day upon which
such subdivision becomes effective, and (ii) if the outstanding shares of Common
Stock shall be combined into a smaller number of shares of Common Stock, such
$3.00 per share valuation shall be proportionately increased on the day such
combination becomes effective.  In case the Corporation shall take any action
affecting the Common Stock, other than the aforementioned adjustments, which in
the Board of Directors would materially adversely affect the conversion right of
the holders of the shares of Series G2 Preferred Stock, such $3.00 valuation may
be adjusted, to the extent permitted by law, in such manner, if any, and at such
time, as the Board of Directors may determine to be equitable in the
circumstances; provided, however, that in no event shall the Board of Directors
be required to take such action.

     (b) All dividends shall be cumulative, whether or not earned or declared,
and shall accrue from the date of issuance of the Series G2 Preferred Stock and
shall be payable semi-annually in arrears, when, as and if declared by the Board
of Directors.  Such dividends will be payable on December 30 and June 30 of each
year (a "DIVIDEND PAYMENT DATE"), commencing on December 31, 2001; provided,
however, that if a Dividend Payment Date is not a Stock Exchange Business Day,
then the dividend shall be payable on the first immediately succeeding Stock
Exchange Business Day.  Dividends shall be paid to the holders of record of the
Series G2 preferred Stock as their names appear on the stock transfer records of
the Corporation on the date designated by the Board of Directors ("RECORD
DATE"), provided, however, that such Record Date may not precede the date upon
which the resolution fixing the Record Date is adopted, and which Record Date
may not be more than sixty (60) days prior to the Dividend Payment Date. The
amount of the dividends payable on the Series G2 Preferred Stock for each semi-
annual dividend period shall be computed by dividing by two (2) the annual rate
per share set forth in subsection (a) above.  Dividends shall be computed on the
basis of a 360-day year of twelve 30-day months.

     (c) No dividends may be declared or paid or funds set apart for the payment
of dividends on any Parity Stock for any period unless full cumulative dividends
shall have been or contemporaneously are declared and paid in full or declared
and a sum in cash or shares of Common Stock sufficient for such payment set
apart for such payment on the Series G2 Preferred Stock except in the event of
the conversion of any such Parity Stock into Common Stock.  If full dividends
are not so paid, the Series G2 Preferred Stock shall share dividends pro rata
with the Parity Stock.  No dividends may be paid or set apart for such payment
on Junior Stock (except dividends on Junior Stock payable in additional shares
of Junior Stock) and no Junior Stock or Parity Stock may be repurchased or
otherwise retired for value nor may funds be set apart for payment with respect
thereto, if cumulative dividends have not been paid in full on the Series G2
Preferred Stock in cash or shares of Common Stock; provided, however, that the
Corporation may repurchase Junior Stock (i) in the open market from time to time
as and to the fullest extent permitted by Rule 10b-18 promulgated under the
Securities Exchange Act of 1934, as amended (240 C.F.R. ' 10b-18), or
corresponding rule from time to time in effect, and (ii) in a private purchase
or in an "issuer tender offer" as defined in Rule 13e-4 under the Exchange Act
from time to time so long as such repurchases do not exceed ten percent (10%) of
the then outstanding shares of Junior Stock.  Dividends on account of arrears
for any past dividend period may be declared and paid at any time without
reference to any regular Dividend Payment Date, to holders of record on a date
not more than forty-five (45) calendar days prior to the payment thereof, as

                                       2
<PAGE>

may be fixed by the Board of Directors of the Corporation. No interest shall be
payable with respect to any dividend payment that may be in arrears. Except as
provided above, so long as any shares of the Series G2 Preferred Stock are
outstanding, the Corporation shall not make payment on account of the purchase
or other retirement of any Parity Stock or Junior Stock, and shall not permit
any corporation or other entity directly or indirectly controlled by the
Corporation to purchase any Parity Stock, Junior Stock or any warrants, rights,
calls or options unless full cumulative dividends determined to be in accordance
herewith on the Series G2 Preferred Stock have been paid (or are deemed paid) in
full.

     (d) All dividends payable on the Series G2 Preferred Stock shall be paid
net of withholding tax, if any, under all applicable laws (including applicable
income tax treaties).  The Corporation will, subject to certain exceptions and
limitations set forth below, pay, as additional dividends, such additional
amounts (the "ADDITIONAL AMOUNTS") to the holder of any Series G2 Preferred
Stock as may be necessary in order that every net payment of the principal or
dividends on such Series G2 Preferred Stock, after withholding for or on account
of any present or future tax, duty, assessment or governmental charge imposed or
levied upon or as a result of such payment by or on behalf of the United States
(or any political subdivision, authority or agency thereof or therein having the
power to tax) (collectively, "TAXES"), will not be less than the amount such
holder would have received if such Taxes had not been withheld, provided that no
Additional Amounts will be payable with respect to a payment which is subject to
such Taxes by reason of such holder being connected with the United States (or
any political subdivision thereof) otherwise than by the mere holding of the
Series G2 Preferred Stock or the receipt of payments made under or with respect
to the Series G2 Preferred Stock.  In addition, the Corporation will indemnify
and hold harmless each holder of the Series G2 Preferred Stock (subject to the
exclusion set forth above) and will, upon written request of each holder
(subject to the exclusion set forth above), and provided that reasonable
supporting documentation is provided, reimburse each other holder for the amount
of any Taxes levied or imposed by the United States and paid by or on behalf of
the holder as a result of payments made under or with respect to the Series G2
Preferred Stock.  Any payment made pursuant to this paragraph shall be
considered and Additional Amount.  If the Corporation becomes generally subject
at any time to any taxing jurisdiction other than or in addition to the United
States, references in this Certificate of Designations to the United States
shall be read and construed as reference to the United States and/or such other
jurisdiction.

     Section 5.  Preference on Liquidation.

     (a) Upon any voluntary or involuntary liquidation, dissolution or winding-
up of the Corporation, holders of Series G2 Preferred Stock shall be entitled to
be paid, out of the assets of the Corporation available for distribution to
stockholders, the liquidation preference of $100.00 per share of Series G2
Preferred Stock, plus, without duplication, an amount in cash equal to all
accrued and unpaid dividends thereon to the date fixed for liquidation,
dissolution or winding-up (including an amount equal to a prorated dividend for
the period from the last Dividend Payment Date, or if such event is prior to the
first Dividend Payment Date, from the Closing Date, to the date fixed for
liquidation, dissolution or winding-up), before any distribution is made on any
Junior Stock, including, without limitation, any class of common stock of the
Corporation.

     (b) If, upon any voluntary or involuntary liquidation, dissolution or
winding-up of the Corporation, the amounts payable with respect to the Series G2
Preferred Stock and all Parity Stock are not paid in full, then the assets of
the Corporation available for distribution among the holders of the Series G2
Preferred Stock and any Parity Stock shall bear to each other the same ratio
that the full amounts payable on liquidation, dissolution or winding-up of the
Corporation to the holders of shares of Series G2 Preferred Stock and any Parity
Stock bear to each other.

     (c) After payment of the full amount of the liquidation preference and
accumulated and unpaid dividends to which they are entitled, the holders of
shares of Series G2 Preferred Stock shall not be entitled to any further
participation in any distribution of assets of the Corporation.

                                       3
<PAGE>

     (d) Neither the sale, conveyance, exchange or transfer (for cash, shares of
stock, securities or other consolidation) of all or substantially all of the
property or assets of the Corporation nor the consolidation or merger of the
Corporation with one or more entities shall be deemed to be or constitute a
liquidation, dissolution or winding-up of the Corporation.

     (e) Notice of any payment to the holders of Series G2 Preferred Stock as a
result of the liquidation, dissolution or winding-up of the Corporation, stating
the payment date or dates when and the place or places where the amounts
distributable in such circumstances shall be payable, shall be given not more
than sixty (60) but not less than thirty (30) days prior to any payment date
stated therein, to the holders of shares of Series G2 Preferred Stock as
provided in Section 11 herein.

     Section 6.  Voting.  The holders of Series G2 Preferred Stock shall have no
voting rights except as required by law.  In exercising any voting rights, each
outstanding share of Series G2 Preferred Stock shall be entitled to one vote.

     Section 7.  Holder Conversion Rights.

     (a) Each holder of shares of Series G2 Preferred Stock shall have the right
("CONVERSION RIGHT"), subject as provided herein and to any applicable laws and
regulations, at any time and from time to time at the holder's option to convert
each share of Series G2 Preferred Stock into shares of Common Stock at the
conversion price (subject to adjustment as described in Section 8 below) of
$3.00 per share of underlying Common Stock (the "CONVERSION PRICE") for each
$100.00 liquidation value per share of Series G2 Preferred Stock plus the amount
of any accrued and unpaid dividends (whether or not earned or declared) on the
Series G2 Preferred Stock delivered for conversion as specified herein
(including an amount equal to a prorated dividend from the immediately preceding
Dividend Payment Date to the date of such conversion, or, if such conversion is
prior to the first Dividend Payment Date, from the Closing Date to the date of
such conversion); provided, however, that the Corporation may, at its sole
discretion, pay any or all of such accrued and unpaid dividends in cash. Subject
to the provisions of the DGCL, no fractional shares of Common Stock shall be
issued upon conversions, but the number of shares shall be rounded up or down to
the nearest whole number.

     (b) If the Corporation elects to pay any accrued and unpaid dividends in
cash, the amount of any such accrued and unpaid dividends shall be promptly sent
to the holder thereof by means of check or other means provided by the
Corporation after the receipt of the notice and funds, if any, referred to in
Sections 7(d) and 7(e) below.

     (c) As promptly as practicable after the surrender of certificates for
shares of the Series G2 Preferred Stock for conversion and the receipt of the
notice and funds, if any, as described in Sections 7(d) and 7(e) below, the
Corporation shall issue and shall deliver to such holder, or on such holder's
written order, a certificate or certificates for the number of shares of Common
Stock issuable upon the conversion of such shares of the Series G2 Preferred
Stock in accordance with the provisions of this Section 7, together with
certificates representing the number of shares of Common Stock in payment of any
accrued but unpaid dividends if the Corporation elects to pay such dividends in
Common Stock.  Each conversion with respect to such shares of the Series G2
Preferred Stock shall be deemed to have been effected immediately prior to the
close of business on the date on which the certificates for shares of the Series
G2 Preferred Stock shall have been surrendered and such notice shall have been
received by the Corporation as aforesaid, and the Person or Persons entitled to
receive the Common Stock issuable upon such conversion shall be deemed for all
purposes to be the record holder or holders of such Common Stock upon that date.

                                       4
<PAGE>

     (d) In order to exercise the conversion right, the holder of each share of
Series G2 Preferred Stock to be converted shall surrender that certificate
representing such shares, duly endorsed or assigned to the Corporation or in
blank, at the office of the transfer agent for the Series G2 Preferred Stock and
shall give written notice to the Corporation in the form of Exhibit A attached
hereto.  Such notice shall also state the name or names (with address) in which
the shares of Common Stock that shall be issuable upon such conversion shall be
issued.  Each share surrendered for conversion shall, unless the shares issuable
on conversion are to be issued in the same name as the name in which such shares
of the Series G2 Preferred Stock is registered, be duly endorsed by, or
accompanied by, instruments of transfer (in each case, in form reasonably
satisfactory to the Corporation), duly executed by the holder or such holder's
duly authorized attorney-in-fact.

     (e) If a holder converts shares of the Series G2 Preferred Stock, the
Corporation shall pay any and all documentary, stamp or similar issue or
transfer tax payable in respect of the issue or delivery of the shares of the
Series G2 Preferred Stock (or any other securities issued on account thereof
pursuant hereto) or Common Stock upon the conversion; provided, however, the
Corporation shall not be required to pay any such tax that may be payable
because any such shares are issued at the request of the holder in a name other
than the name of the holder. In the event that the shares are to be issued in a
name other than that of the holder, the holder shall provide funds necessary to
pay any and all of the foregoing taxes, if any shall be applicable.

     (f) The Corporation shall reserve out of its authorized but unissued Common
Stock or its Common Stock held in treasury enough shares of Common Stock to
permit the conversion of all of the outstanding shares of the Series G2
Preferred Stock, but in no event shall the Corporation be required to reserve
sufficient shares of Common Stock to permit the conversion of any accrued and
unpaid dividends on the Series G2 Preferred Stock.  The Corporation shall from
time to time, in accordance with the DGCL, increase the authorized amount of its
Common Stock if at any time the authorized amount of its Common Stock remaining
unissued shall not be sufficient to permit the conversion of all shares of the
Series G2 Preferred Stock at the time outstanding.  If any shares of Common
Stock required to be reserved for issuance upon conversion of shares of the
Series G2 Preferred Stock hereunder require registration with or approval of any
governmental authority under any federal or state law before the shares may be
issued upon conversion, the Corporation shall in good faith and as expeditiously
as possible endeavor to cause the shares to be so registered or approved.  All
shares of Common Stock delivered upon conversion of the shares of the Series G2
Preferred Stock will, upon delivery, be duly authorized and validly issued,
fully paid and nonassessable, free from all taxes, liens and charges with
respect to the issue thereof.

     Section 8.  Conversion Price Adjustments.

     (a) Subdivision of Common Stock. In case outstanding shares of Common Stock
shall be subdivided into a greater number of shares of Common Stock, the
Conversion Price in effect at the opening of business on the day following the
day upon which such subdivision becomes effective shall be proportionately
reduced, and, conversely, in case outstanding shares of Common Stock shall each
be combined into a smaller number of shares of Common Stock, the Conversion
Price in effect at the opening of business on the day following the day upon
which such combination becomes effective shall be proportionately increased,
such reduction or increase, as the case may be, to become effective immediately
after the opening of business on the day following the day upon which such
subdivision or combination becomes effective.

     (b) Certificate of Adjustment and Notice.  Whenever the Conversion Price is
adjusted as herein provided, the Corporation shall promptly file with the
transfer agent for the Series G2 Preferred Stock a certificate of an officer of
the Corporation setting forth the Conversion Price after the adjustment and
setting forth a brief statement of the facts requiring such adjustment and a
computation thereof. The Corporation shall promptly cause a notice of the
adjusted Conversion Price be given to the holders of shares of the Series G2
Preferred Stock as provided in Section 11 herein.

                                       5
<PAGE>

     (c) Adjustment in Conversion Price in Case of Certain Events.  In case the
Corporation shall take any action affecting the Common Stock, other than actions
described in Section 7 or this Section 8, which in the opinion of the Board of
Directors would materially adversely affect the conversion right of the holders
of the shares of the Series G2 Preferred Stock, the Conversion Price may be
adjusted, to the extent permitted by law, in such manner, if any, and at such
time, as the Board of Directors may determine to be equitable in the
circumstances; provided, however, that in no event shall the Board of Directors
be required to take any such action.

     (d) Registration of Conversion Shares.  Following receipt by the
Corporation of the first notice of conversion from a holder of Series G2
Preferred Stock, the Corporation shall file a registration statement on Form S-3
(or such other form as the Corporation may determine is appropriate) with
respect to all the Common Stock that may be issuable at any time upon the
conversion or redemption of any of the Series G2 Preferred Stock ("CONVERSION
SHARES") at the earliest practicable date, but in any event prior to 90 days
following the receipt by the Corporation of the first notice of conversion from
a holder of Series G2 Preferred Stock.  The Corporation shall use its best
efforts to cause the Commission to declare such registration statement (and any
necessary amendments thereto) effective.  The Corporation shall also use its
best efforts to maintain the effectiveness of such registration statement, and
to refile such a registration statement from time to time in the event its
effectiveness lapses, until all Conversion Shares either issued or that may be
issued are Freely Tradeable (as defined in Section 13 below) in the United
States.

     Section 9. Mandatory Conversion by Corporation.

     (a) At any time after the earlier of (i) the registration statement
referred to in subsection (d) above has been declared effective, or (ii) the
Conversion Shares are Freely Tradeable, the Corporation may, at its option,
cause all of the outstanding Series G2 Preferred Stock to be converted into
shares of Common Stock, in accordance with Section 9(b), at any time and from
time to time, if the average of the Market Prices of the Common Stock over the
Stock Exchange Business Days in any twenty (20) consecutive calendar day period
ending not more than five (5) days prior to the giving of the notice referred to
below equaled or exceeded $3.75.

     Notwithstanding the preceding,  if the outstanding shares of Common Stock
shall be subdivided into a greater number of shares of Common Stock or if the
outstanding shares of Common Stock shall be combined into a smaller number of
shares of Common Stock, such $3.75 amount shall be proportionately adjusted on
the day such combination becomes effective.  In case the Corporation shall take
any action affecting the Common Stock, other than the aforementioned
adjustments, which in the Board of Directors would materially adversely affect
the conversion right of the holders of the shares of Series G2 Preferred Stock,
such $3.75 valuation may be adjusted, to the extent permitted by law, in such
manner, if any, and at such time, as the Board of Directors may determine to be
equitable in the circumstances; provided, however, that in no event shall the
Board of Directors be required to take such action.

     (b) Each share of Series G2 Preferred Stock shall be converted into a
number of shares of Common Stock equal to: (x) each $100.00 liquidation value
per share of Series G2 Preferred Stock plus the amount of any accrued and unpaid
dividends (whether or not earned or declared) on the Series G2 Preferred Stock
(including an amount equal to a prorated dividend from the immediately preceding
Dividend Payment Date, or if such conversion is prior to the first Dividend
Payment Date, from the Closing Date, to the date of such conversion) divided by
(y) the Conversion Price.

     Notwithstanding the preceding, the Corporation may, at its sole discretion,
pay any or all of the accrued and unpaid dividends in cash. Subject to the
provisions of the DGCL, no fractional shares of Common Stock shall be issued the
optional conversion, but the number of shares shall be rounded up or down to the
nearest whole number.  The amount of any accrued and unpaid dividends that the
Corporation elects to pay in cash shall be promptly sent to the holder thereof
by means of check or other means provided by the Corporation.

                                       6
<PAGE>

     (c) The Corporation shall give thirty (30) days notice as provided in
Section 11 hereof of its intent to convert in accordance with this Section 9 no
later than thirty (30) calendar days from the end of the twenty (20) day period
described above.  Upon the giving of the notice referred to above, the
Corporation shall be bound to convert the Series G2 Preferred Stock as to which
notice has been provided.  During the 30 day notice period, holders of the
Series G2 Preferred Stock will retain their right to convert their shares of
Series G2 Preferred Stock in accordance with Section 7 above.

      Section 10.  Optional Redemption by Corporation.

     (a) Optional Redemption. In addition to its right to redeem the Series G2
Preferred Stock as provided in Section 9 above, the Corporation shall have the
option to redeem the Series G2 Preferred Stock in whole or in part in cash at
any time, and from time to time, unless the holder thereof shall have converted
such stock into Common Stock pursuant to Section 7 prior to the date of
redemption hereof, at a redemption price ("REDEMPTION PRICE") equal to (i)
$100.00 per share and (ii) accrued and unpaid dividends (whether or not
declared), such dividends being payable in cash or Freely Tradeable Common Stock
(including an amount equal to a prorated dividend from the immediately preceding
Dividend Payment Date, or if such conversion is prior to the first Dividend
Payment Date, from the Closing Date, to the redemption date).

     (b)  Procedures for Redemption.

          (i) In case of redemption of less than all shares of Series G2
     Preferred Stock at the time outstanding, the shares to be redeemed shall be
     selected pro rata, at random, or by lot or a method that complies with the
     requirements of any national stock exchange on which Series G2 Preferred
     Stock is listed as determined by the Board of Directors in its sole
     discretion.

          (ii) Notice of any redemption shall be given as provided in Section 11
     by or on behalf of the Corporation not more less than thirty (30) days
     prior to the date of redemption hereof; provided, however, that such notice
     of redemption may be a conditional notice of redemption which may condition
     the redemption upon making the redemption subject to the prior conversion
     of the Series G2 Preferred Stock before the redemption date; and provided
     further, that no failure to give such notice or any defect therein or in
     the transmission or mailing thereof shall affect the validity of the
     proceedings for the redemption of any shares of Series G2 Preferred Stock
     except as to the holder to whom the Corporation has failed to give notice
     or except as to the holder to whom notice was defective.  In addition to
     any information required by law, such notice shall state:  such redemption
     is being made pursuant to the optional redemption provisions hereof; the
     date of redemption; the Redemption Price; the number of shares of Series G2
     Preferred Stock to be redeemed and, if less than all shares held by such
     holder are to be redeemed; the number of such shares to be redeemed; the
     place or places where certificates for such issued shares are to be
     surrendered for payment of the Redemption Price; and that dividends on the
     shares to be redeemed shall cease to accrue on the date of redemption.
     Upon the expiry of the notice so given, except with respect to the
     conditions specified above, the Corporation shall become obligated to
     redeem at the time of redemption specified thereon all shares called for
     redemption.

          (iii)  If notice has been given in accordance with Section 10(b)(ii)
     above and provided that on or before the date of redemption specified in
     such notice, all funds necessary for such redemption shall have been set
     aside by the Corporation, separate and apart from its other funds in trust
     for the pro rata benefit of the holders of the shares so called for
     redemption, so as to be, and to continue to be available therefor, then,
     from and after the date of redemption,

                                       7
<PAGE>

     dividends on the shares of the Series G2 Preferred Stock so called for
     redemption shall cease to accrue, and said shares shall no longer be deemed
     to be outstanding and shall not have the status of shares of Series G2
     Preferred Stock, and all rights of the holders thereof as shareholders of
     the Corporation (except the right to receive from the Corporation the
     Redemption Price) shall cease. Upon surrender, in accordance with said
     notice, of the certificates for any issued shares so redeemed (properly
     endorsed or assigned for transfer, if the Corporation shall so require and
     the notice shall so state), such shares shall be redeemed by the
     Corporation at the Redemption Price by mailing a check to such holder's
     last registered address listed on the stock transfer records of the
     Corporation, or as otherwise agreed by the holders of Series G2 Preferred
     Stock and the Corporation. In case fewer than all the shares represented by
     any such certificate are redeemed, a new certificate or certificates shall
     be issued representing the unredeemed shares without cost to the holder
     thereof.

          (iv) Any funds deposited with a bank or trust corporation for the
     purpose of redeeming Series G2 Preferred Stock shall be irrevocable except
     that:  the Corporation shall be entitled to receive from such bank or trust
     company the interest or other earnings, if any, earned on any money so
     deposited in trust, and the holders of any shares redeemed shall have no
     claim to such interest or other earnings; and any balance of monies so
     deposited by the Corporation and unclaimed by the holders of the Series G2
     Preferred Stock entitled thereto at the expiration of two years from the
     applicable date of redemption shall be repaid, together with any interest
     or other earnings earned thereon, to the Corporation, and after any such
     repayment, the holders of the shares entitled to the funds so repaid to the
     Corporation shall look only to the Corporation for payment without interest
     or other earnings.

          (v) No Series G2 Preferred Stock may be redeemed except with funds
     legally available for the payment of the Redemption Price.

          (vi) Holders of Series G2 Preferred Stock shall retain the conversion
     rights described in Section 7 hereof until the date of any redemption of
     the shares of Series G2 Preferred Stock in accordance with this Section 10.

     (c)        Redemption by Conversion. In addition to the rights of
conversion pursuant to Section 9 hereof, on or after June 1, 2004, the
Corporation may further elect, in any six (6) month period, to redeem up to 50%
of the outstanding Series G2 Preferred Stock in accordance with this Section
10(c) by requiring their redemption on thirty (30) days notice pursuant to the
terms of this Section 10(c) (the "REDEMPTION BY CONVERSION OPTION"). The
redemption price for purposes of this Section 10(c) shall be equal to the
average Market Price of the Common Stock during the twenty (20) consecutive
Stock Exchange Business Days ending not more than five (5) Stock Exchange
Business days prior to the date notice is given by the Corporation concerning
its exercise of this Redemption by Conversion Option, subject to appropriate
adjustments to account for the effects of dividends, distributions, stock
splits, recapitalizations and similar events. If the Market Capitalization of
the Corporation is less than $300 million on the date the notice by the
Corporation of its exercise of this Redemption by Conversion Option is given,
then each share of Series G2 Preferred Stock will be redeemed for the number of
shares of Common Stock equal to 110% of the $100.00 liquidation value per share
(the "REDEMPTION VALUE") divided by the redemption price.  If the Market
Capitalization of the Corporation is $300 million or more on the date the notice
by the Corporation of its exercise of this Redemption by Conversion Option is
given, then each share of Series G2 Preferred Stock will be redeemed for the
number of shares of Common Stock equal to 105% of the Redemption Value divided
by the redemption price. The amount of the accrued and unpaid dividends (whether
or not earned or declared) accrued by the Series G2 Preferred Stock delivered
for redemption as specified above (computed to the end of the day the Series G2
Preferred Stock is so redeemed) shall be sent to the holder thereof by means of
check or other means established by the Corporation, if the dividend is in cash,
or if the dividend is in

                                       8
<PAGE>

shares of Common Stock, each as determined by the Corporation, by such means as
selected by the Corporation. All Common Stock issued pursuant to the Redemption
by Conversion Option shall be Freely Tradeable.

       Section 11.   Notice.  Where this Certificate of Designations provides
for notice of any event to the holders of the Series G2 Preferred Stock by the
Corporation or any other Person, such notice shall be sufficiently given (unless
otherwise herein specifically provided) if published in the Authorized
Newspapers.

       Section 12.    General Provisions Relating to the Series G2 Preferred
Stock.

      (a) Form.  The Series G2 Preferred Stock shall be issued in fully
registered form in the form satisfactory to the Corporation.

      (b) Compliance with United States Securities Laws.  Nothing contained
herein shall be deemed to authorize any transfers of certificates of the Series
G2 Preferred Stock otherwise than in accordance with the Securities Act.
Neither the Corporation or its transfer agent shall recognize or give effect to
any attempt to transfer (by book entry or otherwise) or convert any Series G2
Preferred Stock or any interest therein in violation of either the Securities
Act.  The certificates representing the Series G2 Preferred Stock and the
Conversion shares shall bear restrictive legends thereon recommended by legal
counsel for the Corporation regarding the restrictions on the transferability
thereof  to ensure compliance the Securities Act until the Series G2 Preferred
Stock and/or the Conversion Shares, as the case may be become Freely Tradeable.

     Section 13.  Certain Definitions.

     "Alternative Stock Exchange" means any other national or regional stock
exchange or quotation service such as the Nasdaq Market System or any similar
quotation service maintained by the National Quotation Bureau or any successor
thereto.

     "Authorized Newspapers" means the Luxembourg Wort of Luxembourg and The
Financial Times (European Edition) of London, England.  If either such newspaper
shall cease to be published, the Corporation shall substitute for it another
newspaper in Europe, customarily published at least once a day for at least five
(5) days in each calendar week, of general circulation.  If, because of
temporary suspension of publication or general circulation of either such
newspaper or for any other reason, it is impossible or, in the opinion of the
Corporation, impracticable to make any publication of any notice required by
this Certificate of Designations in the manner herein provided, such publication
or other notice in lieu thereof which is made by the Corporation in the exercise
of its reasonable discretion shall constitute a sufficient publication of such
notice.

     "Capital Stock" of any Person means the Common Stock or preferred stock of
such Person. Unless otherwise stated herein or the context otherwise requires,
"Capital Stock" means Capital Stock of the Corporation

     "Closing Date" means the date of which the Series G2 Preferred Stock is
sold to the holders thereof.

     "Commission" means the Securities and Exchange Commission.

     "Conversion Agent" means any Person (including the Corporation acting as
Conversion Agent) authorized by the Corporation to effect conversions of the
Series G2 Preferred Stock on behalf of the Corporation.

     "Dividend Payment Date" has the meaning given to it in Section 4(b) hereof.

     "Freely Tradeable" means, with respect to the Common Stock issuable upon
the conversion of or the payment of a dividend upon the Series G2 Preferred
Stock, that under the Securities Act the holders thereof may

                                       9
<PAGE>

then offer and sell any amount of such outstanding securities to the public in
the United States in transactions that are not brokers' transactions (as defined
in the Securities Act) either (i) pursuant to an effective registration
statement then in effect or (ii) pursuant to Rule 144(k). For purposes of
determining whether such securities are Freely Tradeable, it shall be assumed
that no affiliate of the issuer has ever held such securities from and after
their issuance.

     "Group" means the Corporation and all its Principal Subsidiaries.

     "Market Capitalization" means, on any date, the average, over the thirty
(30) calendar day period commencing thirty-five (35) calendar days prior to such
date, of the product of the Market Price of the Common Stock and the number of
shares of Common Stock of the Corporation issued and outstanding on such date;
provided, however, that appropriate adjustments shall be made to the Market
Prices and number of shares used in determining such Market Capitalization to
account fairly for the effect of dividends payable in equity securities of the
Corporation or any other Person, spin-offs of subsidiaries, mergers in which the
Corporation or a Principal Subsidiary is a constituent party, and similar
events.

     "Market Price" means the closing sales price on the American Stock Exchange
or any Alternative Stock Exchange on any Stock Exchange Business Day.

     "Person" means any individual, corporation, partnership, association, trust
or other entity or organization, including a government or political subdivision
or any agency or instrumentality thereof.

     "Principal Subsidiary" means a Subsidiary of either the Corporation or any
Principal Subsidiary:

     (a)   whose gross assets represent 10 percent or more of the consolidated
gross assets of the Group as calculated by reference to the then latest audited
financial statements of the Group;  or

     (b)   to which is transferred all or substantially all of the business,
undertaking and assets of a Subsidiary of the Corporation which immediately
prior to such transfer is a Principal Subsidiary, whereupon the transferor
Subsidiary shall immediately cease to be a Principal Subsidiary and the
transferee Subsidiary shall cease to be a Principal Subsidiary under the
provisions of this sub-paragraph (b) (but without prejudice to the provisions of
sub-paragraph (a) above), upon publication of its next audited financial
statements.

     "Property" means any kind of property or asset, whether real, personal,
mixed, or tangible or intangible, and any interest therein.

     "Securities Act" means the United States Securities Act of 1933 as in
effect on the date of the filing of this Certificate with the Secretary of State
of Delaware or as such act may hereafter be amended.

     "Series G2 Preferred Stock" means the Corporation's Series G2 Convertible
Preferred Stock, $1.00 par value.

     "Stock Exchange Business Day" means any day (other than a Saturday or
Sunday) on which the American Stock Exchange or the Alternative Stock Exchange,
as the case may be, is open for business.

     "Subsidiary" of any Person means any Corporation of which at least a
majority of the shares of stock having by the terms thereof ordinary voting
power to elect a majority of the Board of Directors of such Corporation
(irrespective of whether or not at the time stock of any other class or classes
of such Corporation shall have voting power by reason of the happening of any
contingency) is directly or indirectly owned or controlled by any one of or any
combinations of the Corporation or one or more of its Subsidiaries."

                                      10
<PAGE>

     IN WITNESS WHEREOF, the Corporation has caused this Certificate to be duly
executed on its behalf by its undersigned Secretary this 20th day of July, 2001.

                                    HARKEN ENERGY CORPORATION,
                                    a Delaware corporation

                                    By:  /s/ Larry E. Cummings
                                       -----------------------
                                    Name:  Larry E. Cummings
                                    Title:  Secretary

                                      11
<PAGE>

                                   EXHIBIT A

                             NOTICE OF CONVERSION

To:  Harken Energy Corporation

To:  [Conversion Agent]

          The undersigned holder of the Series G2 Convertible Preferred Stock,
par value U.S. $1.00 (the "PREFERRED STOCK") of Harken Energy Corporation (the
"CORPORATION") in the aggregate liquidation preference value of U.S. $100.00
irrevocably exercises the option to convert [INSERT NUMBER] shares of Preferred
Stock into shares of Common Stock of the Corporation, par value U.S. $0.01 (the
"COMMON STOCK"), in accordance with the terms of the Certificate of Designations
relating to the issuance by the Corporation of the Preferred Stock and directs
that the Common Stock issuable and deliverable upon such conversion be issued
and delivered to the undersigned in the name and at the address set forth below.

          If the Common Stock is not Freely Tradeable at the date hereof, the
undersigned holder hereby certifies to the Corporation that it:

          (1)(a) is an "accredited investor" (as defined in Rule 501 of
Regulation D under the U.S. Securities Act of 1933, as amended (the "SECURITIES
ACT")), or  (b) is acquiring the Common Stock in a transaction exempt from the
registration requirements of the Securities Act; and

          (2) acknowledges that the Common Stock has not been registered under
the Securities Act and are "restricted securities" within the meaning of the
Securities Act; and

          (3) understands and agrees that if within two years after the date of
the original issuance of the Preferred Stock or within three months after it
ceases to be an affiliate (within the meaning of Rule 144 under the Securities
Act) of the Corporation, upon conversion thereof the Common Stock may be resold,
pledged, or transferred only (i) to the Corporation, (ii) pursuant to an
exemption from the registration requirements of the Securities Act provided by
Rule 144 (if applicable) under the Securities Act, or (iii) pursuant to an
effective registration statement under the Securities Act, in each case in
accordance with any applicable securities law of any state of the United States;
and

          (4) it understands that the certificates representing the Common Stock
will bear a restrictive legend describing the foregoing restriction on transfer,
unless otherwise agreed by the Corporation.

          If the Common Stock is to be issued in the name of a person other than
the undersigned or a nominee of the undersigned, the undersigned will pay all
transfer taxes payable with respect thereto and is delivering herewith a
certificate in proper form that the applicable restrictions on transfer have
been complied with.

          All terms not otherwise defined herein shall have the respective
meanings set forth in the Certificate of Designations relating to the Preferred
Stock.

                                    * * * *

                                       1
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DATE:
     --------------------           --------------------------------
                                    Name of Holder

                                   --------------------------------
                                   Signature(s) of Holder

Address for Delivery of Shares:    --------------------------------
                                   --------------------------------
                                   --------------------------------
                                   --------------------------------

Name for Registration of Shares
 (if different than Holder):       --------------------------------

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