X0202 4 2004-08-12 0000786947 HALSEY DRUG CO INC/NEW HDGC.OB 0001260882 REDDICK ANDREW D C/O ACURA PHARMACEUTICALS, INC. 616 N. NORTH COURT, SUITE 120 PALATINE IL 60067 1 1 0 0 PRESIDENT and CEO Employee Stock Options .13 2004-08-12 4 A 0 0 0 A 2014-08-12 Common Stock 8750000 8750000 D Option to purchase 8,750,000 shares of the Issuer's common stock, $.01 par value per share. In May 2004, the Issuer ammended the Reporting Person's Executive Employment Agreement, among other things, to adjust the Issuer's commitment to issue a stock option to the Reporting Person from 5,500,000 shares to 8,750,000 shares. The grant of such option was contingent upon receipt of shareholder approval to amend the Issuer's stock option plan under which the stock option would be issued. Shareholder approval of the amended stock option plan was obtained August 12, 2004. Option vests and is exercisable as follows: (i) 3,000,000 on the date of Grant; and (ii) 250,000 monthly thereafter commencing on August 31, 2004 until fully vested. /s/ Andrew D. Reddick 2004-08-12