<PAGE>   1
                                                                   EXHIBIT 10.08








                           [LOGO] ATHEROGENICS, INC.


                             EQUITY OWNERSHIP PLAN
<PAGE>   2

                                TABLE OF CONTENTS

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<S>        <C>                                                                  <C>
SECTION 1  DEFINITIONS                                                            1

           1.1      Definitions                                                   1


SECTION 2  GENERAL TERMS                                                          5

           2.1      Purpose of the Plan                                           5
           2.2      Stock Subject to the Plan                                     5
           2.3      Administration of the Plan                                    5
           2.4      Eligibility and Limits                                        5


SECTION 3  TERMS OF AWARDS                                                        6

           3.1      Terms and Conditions of All Awards                            6
           3.2      Terms and Conditions of Options                               6
                    (a)      Option Price                                         7
                    (b)      Option Term                                          7
                    (c)      Payment                                              7
                    (d)      Conditions to the Exercise of an Option              7
                    (e)      Termination of Incentive Stock Option                7
                    (f)      Special Provisions for Certain Substitute Options    8
           3.3      Terms and Conditions of Stock Appreciation Rights             8
                    (a)      Payment                                              8
                    (b)      Conditions to Exercise                               8
           3.4      Terms and Conditions of Stock Awards                          8
           3.5      Treatment of Awards Upon Termination of Employment            9


SECTION 4  RESTRICTIONS ON STOCK                                                 10

           4.1      Escrow of Shares                                             10
           4.2      Forfeiture of Shares                                         10
           4.3      Restrictions on Transfer                                     10
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                                       ii
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                                TABLE OF CONTENTS
                                   (continued)


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<S>        <C>                                                                  <C>
SECTION 5  GENERAL PROVISIONS                                                    11

           5.1      Withholding                                                  11
           5.2      Changes in Capitalization; Merger; Liquidation               11
           5.3      Cash Awards                                                  12
           5.4      Compliance with Code                                         12
           5.5      Right to Terminate Employment                                12
           5.6      Restrictions on Delivery and Sale of Shares; Legends         12
           5.7      Non-alienation of Benefits                                   13
           5.8      Termination and Amendment of the Plan                        13
           5.9      Stockholder Approval                                         13
           5.10     Choice of Law                                                13
           5.11     Effective Date of Plan                                       13

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                                       iii

<PAGE>   4
                               ATHEROGENICS, INC.
                              EQUITY OWNERSHIP PLAN



AtheroGenics, Inc. hereby establishes this Plan to be called the AtheroGenics,
Inc. Equity Ownership Plan to encourage employees of the Company to acquire an
equity interest in the Company, to make monetary payments to certain employees
based upon the value of the Company's Stock, or based upon achieving certain
goals on a basis mutually advantageous to such employees and the Company and
thus provide an incentive for continuation of the efforts of the employees for
the success of the Company, for continuity of employment and to further the
interests of the shareholders.


                              SECTION 1 DEFINITIONS

         1.1      Definitions. Whenever used herein, the masculine pronoun shall
be deemed to include the feminine, the singular to include the plural, unless
the context clearly indicates otherwise, and the following capitalized words and
phrases are used herein with the meaning thereafter ascribed:

                  (a) "Administrator" means the Board or its designee(s).

                  (b) "Award" means any Stock Option, Stock Appreciation Right,
Restricted Stock or Performance Award granted under the Plan.

                  (c) "Beneficiary" means the person or persons designated by a
Participant to exercise an Award in the event of the Participant's death while
employed by the Company, or in the absence of such designation, the executor or
administrator of the Participant's estate.

                  (d) "Board" means the Board of Directors of the Company.

                  (e) "Cause" means conduct by the Participant amounting to (1)
fraud or dishonesty against the Company, (2) willful misconduct, repeated
refusal to follow the reasonable directions of an individual or group authorized
to give such directions, or knowing violation of law in the course of
performance of the duties of Participant's employment with the Company, (3)
repeated absences from work without a reasonable excuse, (4) intoxication with
alcohol or drugs while on the Company's premises during regular business hours,
(5) a conviction or plea of guilty or nolo contendere to a felony or a crime
involving dishonesty, or (6) a breach or violation of the terms of any
employment or other agreement to which Participant and the employer are party.

                  (f) "Change in Control" shall be deemed to have occurred if
(i) a tender offer shall be made and consummated of the ownership of 50% or more
of the outstanding voting securities of the Company, (ii) the Company shall be
merged or consolidated with another


                                      -1-
<PAGE>   5
corporation and as a result of such merger or consolidation less than 50% of the
outstanding voting securities of the surviving or resulting corporation shall be
owned in the aggregate by the former shareholders of the Company, other than
affiliates (within the meaning of the Securities Exchange Act of 1934) of any
party to such merger or consolidation, (iii) the Company shall sell
substantially all of its assets to another corporation which corporation is not
wholly owned by the Company, or (iv) a person, within the meaning of Section
3(a)(9) or of Section 13(d)(3) (as in effect on the date hereof) of the
Securities Exchange Act of 1934, shall acquire 50% or more of the outstanding
voting securities of the Company (whether directly, indirectly beneficially or
of record). For purposes hereof, ownership of voting securities shall take into
account and shall include ownership as determined by applying the provisions of
Rule 13d-3(d)(1)(i) (as in effect on the date hereof) pursuant to the Securities
Exchange Act of 1934.

                  (g) "Code" means the Internal Revenue Code of 1986, as
amended.

                  (h) "Company" means AtheroGenics, Inc. a Georgia corporation.

                  (i) "Constructive Discharge" means a Termination of Employment
by the Participant on account of (i) any material reduction in the Participant's
Compensation, (ii) any material reduction in the level or scope of job
responsibility or status of the Participant occurring without the consent of the
Participant, or (iii) any relocation to an office of the Company which is more
than fifty (50) miles from the office where the Participant was previously
located to which the Participant has not agreed.

                  (j) "Disability" has the same meaning as provided in the
long-term disability plan maintained by the Company. In the event of a dispute,
the determination of Disability shall be made by the Administrator. If, at any
time during the period that this Plan is in operation, the Company does not
maintain a long term disability plan, Disability shall mean a physical or mental
condition which, in the judgment of the Administrator, permanently prevents a
Participant from performing his usual duties for the Company or such other
position or job which the Company makes available to him and for which the
Participant is qualified by reason of his education, training and experience. In
making its determination the Administrator may, but is not required to, rely on
advice of a physician competent in the area to which such Disability relates.
The Administrator may make the determination in its sole discretion and any
decision of the Administrator will be binding on all parties.

                  (k) "Disposition" means any conveyance, sale, transfer,
assignment, pledge or hypothecation, whether outright or as security, inter
vivos or testamentary, with or without consideration, voluntary or involuntary.

                  (l) "Equity Ownership Agreement" means an agreement between
the Company and a Participant or other documentation evidencing an Award.

                  (m) "Expiration Date" means, the last date upon which an Award
can be exercised.


                                      -2-
<PAGE>   6

                  (n) "Fair Market Value" means, for any particular date, (i)
for any period during which the Stock shall be listed for trading on a national
securities exchange or the National Association of Securities Dealers Automated
Quotation System ("NASDAQ"), the closing price per share of Stock on such
exchange or the NASDAQ closing bid price as of the close of such trading day, or
(ii) the market price per share of Stock as determined in good faith by the
Board in the event (i) above shall not be applicable. If the Fair Market Value
is to be determined as of a day when the securities markets are not open, the
Fair Market Value on that day shall be the Fair Market Value on the next
succeeding day when the markets are open.

                  (o) "Incentive Stock Option" means an incentive stock option,
as defined in Code Section 422, and described in Plan Section 3.2.

                  (p) "Initial Public Offering" means the first instance in
which the Company Stock is offered for sale to the public following successful
registration of the Stock with the Securities and Exchange Commission.

                  (q) "Involuntary Termination" means a Termination of
Employment but does not include a Termination of Employment for Cause or a
Voluntary Resignation.

                  (r) "Non-Qualified Stock Option" means a stock option, other
than an option qualifying as an Incentive Stock Option, described in Plan
Section 3.2.

                  (s) "Non-Employee Board Member" means a member of the
Board who is not an employee of the Company.

                  (t) "Option" means a Non-Qualified Stock Option or an
Incentive Stock Option.

                  (u) "Over 10% Owner" means an individual who at the time an
Incentive Stock Option is granted owns Stock possessing more than 10% of the
total combined voting power of the Company or one of its Parents or
Subsidiaries, determined by applying the attribution rules of Code Section
424(d).

                  (v) "Parent" means any corporation (other than the Company) in
an unbroken chain of corporations ending with the Company if, with respect to
Incentive Stock Options, at the time of granting of the Option, each of the
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in the chain.

                  (w) "Participant" means an individual who receives an Award
hereunder.

                  (x) "Plan" means the AtheroGenics, Inc. Equity Ownership
Plan.

                  (y) "Retirement" means a Termination of Employment after
attaining the normal retirement age specified in the qualified retirement plan
maintained by the Company.


                                      -3-
<PAGE>   7

                  (z)  "Stock" means the Company's common stock.

                  (aa) "Stock Appreciation Right" means a stock appreciation
right described in Plan Section 3.3.

                  (ab) "Stock Award" means a stock award described in Plan
Section 3.4.

                  (ac) "Subsidiary" means any corporation (other than the
Company) in an unbroken chain of corporations beginning with the Company if,
with respect to Incentive Stock Options, at the time of the granting of the
Option, each of the corporations other than the last corporation in the unbroken
chain owns stock possession 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in the chain.

                  (ad) "Termination of Affiliation" means the termination of a
business relationship, for any reason, between an advisor or consultant who is a
Participant and the Company or its affiliates. A Termination of Affiliation
shall be deemed to have occurred as of the date written notice to that effect is
received by the Participant.

                  (ae) "Termination of Employment" means the termination of the
employee-employer relationship between a Participant and the Company and its
affiliates regardless of the fact that severance or similar payments are made to
the Participant, for any reason, including, but not by way of limitation, a
Voluntary Resignation, Constructive Discharge, Involuntary Termination, death,
Disability or Retirement. The Administrator shall, in its absolute discretion,
determine the effect of all matters and questions relating to Termination of
Employment, including, but not by way of limitation, the question of whether a
leave of absence constitutes a Termination of Employment, or whether a
Termination of Employment is for Cause or is a Constructive Discharge. With
regard to a member of the Board, Termination of Employment shall mean the date
on which the individual ceases to be a member of the Board for any reason.

                  (af) "Vested" means that an Award is nonforfeitable and
exercisable with regard to a designated number of shares of Stock.

                  (ag) "Voluntary Resignation" means a Termination of Employment
as a result of the Participant's resignation but does not include a Constructive
Discharge.


                                      -4-
<PAGE>   8




                             SECTION 2 GENERAL TERMS

         2.1 Purpose of the Plan. The Plan is intended to (a) provide incentive
to employees of the Company and its affiliates to stimulate their efforts toward
the continued success of the Company and to operate and manage the business in a
manner that will provide for the long-term growth and profitability of the
Company; (b) encourage stock ownership by employees by providing them with a
means to acquire a proprietary interest in the Company by acquiring shares of
Stock or to receive compensation which is based upon appreciation in the value
of Stock; and (c) provide a means of obtaining and rewarding employees,
directors, advisors and consultants.

         2.2 Stock Subject to the Plan. Subject to adjustment in accordance with
Section 5.2, 1,484,416 shares of Stock (the "Maximum Plan Shares") are hereby
reserved and subject to issuance under the Plan. At no time shall the Company
have outstanding Awards and shares of Stock issued in respect to Awards in
excess of the Maximum Plan Shares. To the extent permitted by law, the shares of
Stock attributable to the nonvested, unpaid, unexercised, unconverted or
otherwise unsettled portion of any Award that is forfeited, canceled, expired or
terminated for any reason without becoming vested, paid, exercised, converted or
otherwise settled in full shall again be available for purposes of the Plan.

         2.3 Administration of the Plan. The Plan shall be administered by the
Administrator. The Administrator shall have full authority in its discretion to
determine the employees of the Company or its affiliates to whom Awards shall be
granted and the terms and provisions of Awards, subject to the Plan. Subject to
the provisions of the Plan, the Administrator shall have full and conclusive
authority to interpret the Plan; to prescribe, amend and rescind rules and
regulations relating to the Plan; to determine the terms and provisions of the
respective Equity Ownership Agreements and to make all other determinations
necessary or advisable for the proper administration of the Plan. The
Administrator's determination under the Plan need not be uniform and may be made
by it selectively among persons who receive, or are eligible to receive, Awards
under the Plan (whether or not such persons are similarly situated). The
Administrator's decisions shall be final and binding on all Participants.

         2.4 Eligibility and Limits. Participants in the Plan shall be selected
by the Administrator. No Participant may be granted Awards in excess of 30% of
the Maximum Plan Shares. In the case of Incentive Stock Options, the aggregate
Fair Market Value (determined as at the date an Incentive Stock Option is
granted) of Stock with respect to which Stock Options intended to meet the
requirements of Code Section 422 become exercisable for the first time by an
individual during any calendar year under all plans of the Company and its
Parents and Subsidiaries shall not exceed $100,000; provided further, that if
the limitation is exceeded, the Incentive Stock Option(s) which cause the
limitation to be exceeded shall be treated as Non-Qualified Stock Option(s).


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                            SECTION 3 TERMS OF AWARDS

         3.1      Terms and Conditions of All Awards.

                  (a) The number of shares of Stock as to which an Award shall
be granted shall be determined by the Administrator in its sole discretion,
subject to the provisions of Sections 2.2 and 2.4 as to the total number of
shares available for grants under the Plan.

                  (b) Each Award shall be evidenced by an Equity Ownership
Agreement in such form as the Administrator may determine is appropriate,
subject to the provisions of the Plan.

                  (c) The date an Award is granted shall be the date on which
the Administrator has approved the terms and conditions of the Equity Ownership
Agreement and has determined the recipient of the Award and the number of shares
covered by the Award and has taken all such other action necessary to complete
the grant of the Award.

                  (d) The Administrator may provide in any Equity Ownership
Agreement a vesting schedule. The vesting schedule shall specify when such
Awards shall become Vested and thus exercisable. The Administrator may
accelerate the vesting schedule set forth in the Equity Ownership Agreement if
the Administrator determines that it is in the best interests of the Company and
Participant to do so. Notwithstanding any vesting schedule which may be
specified in an Equity Ownership Agreement, or any determination made by the
Administrator, no award will vest if, to do so, would create a situation in
which the exercisability of any such Award would result in an "excess parachute
payment" within the meaning of Section 280G of the Code.

                  (e) Awards shall not be transferable or assignable except by
will or by the laws of descent and distribution and shall be exercisable, during
the Participant's lifetime, only by the Participant, or in the event of the
Disability of the Participant, by the legal representative of the Participant.

         3.2      Terms and Conditions of Options. At the time any Option is
granted, the Administrator shall determine whether the Option is to be an
Incentive Stock Option or a Non-Qualified Stock Option, and the Option shall be
clearly identified as to its status as an Incentive Stock Option or a
Non-Qualified Stock Option. At the time any Incentive Stock Option is exercised,
the Company shall be entitled to place a legend on the certificates representing
the shares of Stock purchased pursuant to the Option to clearly identify them as
shares of Stock purchased upon exercise of an Incentive Stock Option. An
Incentive Stock Option may only be granted within ten (10) years from the date
the Plan, as amended and restated, is adopted or the date such Plan is approved
by the Company's stockholders, whichever is earlier. Incentive stock options may
only be granted to employees of the Company.

                  (a) Option Price. Subject to adjustment in accordance with
Section 5.2 and the other provisions of this Section 3.2, the exercise price
(the "Exercise Price") per share of the


                                      -6-
<PAGE>   10

Stock purchasable under any Option shall be as set forth in the applicable
Equity Ownership Agreement. With respect to each grant of an Incentive Stock
Option to a Participant who is not an Over 10% Owner, the Exercise Price per
share shall not be less than the Fair Market Value on the date the Option is
granted. With respect to each grant for an Incentive Stock Option to a
Participant who is an Over 10% Owner, the Exercise Price shall not be less than
110% of the Fair Market Value on the date the Option is granted.

                  (b) Option Term. The Equity Ownership Agreement shall set
forth the term of each option. Any Incentive Stock Option granted to a
Participant who is not an Over 10% Owner shall not be exercisable after the
expiration of ten (10) years after the date the Option is granted. Any Incentive
Stock Option granted to an Over 10% Owner shall not be exercisable after the
expiration of five (5) years after the date the Option is granted. In either
case, the Administrator may specify a shorter term and state such term in the
Equity Ownership Agreement.

                  (c) Payment. Payment for all shares of Stock purchased
pursuant to exercise of an Option shall be made in any form or manner authorized
by the Administrator in the Equity Ownership Agreement or by amendment thereto,
including, but not limited to, cash or, if the Equity Ownership Agreement
provides, (i) by delivery or deemed delivery (based on an attestation to the
ownership thereof) to the Company of a number of shares of Stock which have been
owned by the holder for at least six (6) months prior to the date of exercise
having an aggregate Fair Market Value on the date of exercise equal to the
Exercise Price or (ii) by tendering a combination of cash, and Stock. Payment
shall be made at the time that the Option or any part thereof is exercised, and
no shares shall be issued or delivered upon exercise of an option until full
payment has been made by the Participant. The holder of an Option, as such,
shall have none of the rights of a stockholder.

                  (d) Conditions to the Exercise of an Option. Each Option
granted under the Plan shall be exercisable by whom, at such time or times, or
upon the occurrence of such event or events, and in such amounts, as the
Administrator shall specify in the Equity Ownership Agreement; provided,
however, that subsequent to the grant of an Option, the Administrator, at any
time before complete termination of such Option, may accelerate the time or
times at which such Option may be exercised in whole or in part, including,
without limitation, upon a Change in Control and may permit the Participant or
any other designated person acting for the benefit of the Participant to
exercise the Option, or any portion thereof, for all or part of the remaining
Option term notwithstanding any provision of the Equity Ownership Agreement to
the contrary.

                  (e) Termination of Incentive Stock Option. With respect to an
Incentive Stock Option, in the event of Termination of Employment of a
Participant, the Option or portion thereof held by the Participant which is
unexercised shall expire, terminate, and become unexercisable no later than the
expiration of three (3) months after the date of Termination of Employment;
provided, however, that in the case of a holder whose Termination of Employment
is due to death or Disability, one (1) year shall be substituted for such three
(3) month period. For purposes of this Subsection (e), Termination of Employment
of the Participant shall not be deemed to have occurred if the Participant is
employed by another corporation (or a parent or



                                      -7-
<PAGE>   11

subsidiary corporation of such other corporation) which has assumed the
Incentive Stock Option of the Participant in a transaction to which Code Section
424(a) is applicable.

                  (f) Special Provisions for Certain Substitute Options.
Notwithstanding anything to the contrary in this Section 3.2, any Option issued
in substitution for an option previously issued by another entity, which
substitution occurs in connection with a transaction to which Code Section
424(a) is applicable, may provide for an exercise price computed in accordance
with such Code Section and the regulations thereunder and may contain such other
terms and conditions as the Administrator may prescribe to cause such substitute
Option to contain as nearly as possible the same terms and conditions (including
the applicable vesting and termination provisions) as those contained in the
previously issued option being replaced thereby.

         3.3      Terms and Conditions of Stock Appreciation Rights. A Stock
Appreciation Right may be granted in connection with all or any portion of a
previously or contemporaneously granted Award or not in connection with an
Award. A Stock Appreciation Right shall entitle the Participant to receive the
excess of (1) the Fair Market Value of a specified or determinable number of
shares of the Stock at the time of payment or exercise over (2) a specified
price which, in the case of a Stock Appreciation Right granted in connection
with an Option, shall be not less than the Exercise Price for that number of
shares. A Stock Appreciation Right granted in connection with an Award may only
be exercised to the extent that the related Award has not been exercised, paid
or otherwise settled. The exercise of a Stock Appreciation Right granted in
connection with an Award shall result in a pro rata surrender or cancellation of
any related Award to the extent the Stock Appreciation Right has been exercised.

                  (a) Payment. Upon payment or exercise of a Stock Appreciation
Right, the Company shall pay to the Participant the appreciation in cash or
shares of Stock (valued at the aggregate Fair Market Value on the date of
payment or exercise) as provided in the Equity Ownership Agreement or, in the
absence of such provision, as the Administrator may determine.

                  (b) Conditions to Exercise. Each Stock Appreciation Right
granted under the Plan shall be exercisable or payable at such time or times, or
upon the occurrence of such event or events, and in such amounts, as the
Administrator shall specify in the Equity Ownership Agreement; provided,
however, that subsequent to the grant of a Stock Appreciation Right, the
Administrator, at any time before complete termination of such Stock
Appreciation Right, may accelerate the time or times at which such Stock
Appreciation Right may be exercised or paid in whole or in part.

         3.4      Terms and Conditions of Stock Awards. The number of shares of
Stock subject to a Stock Award and restrictions or conditions on such shares, if
any, shall be as the Administrator determines, and the certificate for such
shares shall bear evidence of any restrictions or conditions. Subsequent to the
date of the grant of the Stock Award, the Administrator shall have the power to
permit, in its discretion, an acceleration of the expiration of an applicable
restriction period with respect to any part or all of the shares awarded to a
Participant. The Administrator may require a cash payment from the Participant
in an amount no greater than the aggregate Fair


                                      -8-
<PAGE>   12
Market Value of the shares of Stock awarded determined at the date of grant in
exchange for the grant of a Stock Award or may grant a Stock Award without the
requirement of a cash payment.

         3.5      Treatment of Awards Upon Termination of Employment or
Affiliation. Except as otherwise provided by Plan Section 3.2(e), any award
under this Plan to a Participant who incurs a Termination of Employment or
Affiliation may be canceled, accelerated, paid or continued, as provided in the
Equity Ownership Agreement or, in the absence of such provision, as the
Administrator may determine. The portion of any award exercisable in the event
of continuation or the amount of any payment due under a continued award may be
adjusted by the Administrator to reflect the Participant's period of service
from the date of grant through the date of the Participant's Termination of
Employment or Affiliation or such other factors as the Administrator determines
are relevant to its decision to continue the award.

                         SECTION 4 RESTRICTIONS ON STOCK

         4.1      Escrow of Shares. Any certificates representing the shares of
Stock issued under the Plan shall be issued in the Participant's name, but, if
the Equity Ownership Agreement so provides, the shares of Stock shall be held by
a custodian designated by the Administrator (the "Custodian"). Each Equity
Ownership Agreement providing for transfer of shares of Stock to the Custodian
shall appoint the Custodian as the attorney-in-fact for the Participant for the
term specified in the Equity Ownership Agreement, with full power and authority
in the Participant's name, place and stead to transfer, assign and convey to the
Company any shares of Stock held by the Custodian for such Participant, if the
Participant forfeits the shares under the terms of the Equity Ownership
Agreement. During the period that the Custodian holds the shares subject to this
Section, the Participant shall be entitled to all rights, except as provided in
the Equity Ownership Agreement, applicable to shares of Stock not so held. Any
dividends declared on shares of Stock held by the Custodian shall, as the
Administrator may provide in the Equity Ownership Agreement, be paid directly to
the Participant or, in the alternative, be retained by the Custodian until the
expiration of the term specified in the Equity Ownership Agreement and shall
then be delivered, together with any proceeds, with the shares of Stock to the
Participant or the Company, as applicable.

         4.2      Forfeiture of Shares. Notwithstanding any vesting schedule set
forth in any Equity Ownership Agreement, in the event that the Participant
violates a non competition agreement as set forth in the Equity Ownership
Agreement, all Awards and shares of Stock issued to the holder pursuant to the
Plan shall be forfeited; provided, however, that the Company shall return to the
holder the lesser of any consideration paid by the Participant in exchange for
Stock issued to the Participant pursuant to the Plan for the then Fair Market
Value of the Stock forfeited hereunder.

         4.3      Restrictions on Transfer. The Participant shall not have the
right to make or permit to exist any Disposition of the shares of Stock issued
pursuant to the Plan except as provided in the Plan or the Equity Ownership
Agreement. Any Disposition of the shares of Stock issued under the Plan by the
Participant, not made in accordance with the Plan or the


                                      -9-
<PAGE>   13
Equity Ownership Agreement, including, but not limited to, any right of
repurchase or right of first refusal, shall be void. The Company shall not
recognize, or have the duty to recognize, any Disposition not made in accordance
with the Plan and the Equity Ownership Agreement, and the shares of Stock so
transferred shall continue to be bound by the Plan and the Equity Ownership
Agreement.


                                      -10-
<PAGE>   14



                          SECTION 5 GENERAL PROVISIONS

         5.1      Withholding. The Company shall deduct from all cash
distributions under the Plan any taxes required to be withheld by federal, state
or local government. Whenever the Company proposes or is required to issue or
transfer shares of Stock under the Plan or upon the vesting of any Stock Award,
the Company shall have the right to require the recipient to remit to the
Company an amount sufficient to satisfy any federal, state and local withholding
tax requirements prior to the delivery of any certificate or certificates for
such shares or the vesting of such Stock Award. A Participant may pay the
withholding tax in cash, or, if the Equity Ownership Agreement provides, a
Participant may also elect to have the number of shares of Stock he is to
receive reduced by, or with respect to a Stock Award, tender back to the
Company, the smallest number of whole shares of Stock which, when multiplied by
the Fair Market Value of the shares determined as of the Tax Date (defined
below), is sufficient to satisfy federal, state and local, if any, withholding
taxes arising from exercise or payment of an Award (a "Withholding Election"). A
Participant may make a Withholding Election only if both of the following
conditions are met:

                  (a) The Withholding Election must be made on or prior to the
date on which the amount of tax required to be withheld is determined (the "Tax
Date") by executing and delivering to the Company a properly completed notice of
Withholding Election as prescribed by the Administrator; and

                  (b) Any Withholding Election made will be irrevocable;
however, the Administrator may in its sole discretion approve or give no effect
to the Withholding Election.

         5.2      Changes in Capitalization; Merger; Liquidation.

                  (a) The number of shares of Stock reserved for the grant of
Options, Dividend Equivalent Rights, Performance Unit Awards, Phantom Shares,
Stock Appreciation Rights and Stock Awards; the number of shares of Stock
reserved for issuance upon the exercise or payment, as applicable, of each
outstanding Option, Dividend Equivalent Right, Performance Unit Award, Phantom
Share and Stock Appreciation Right and upon vesting or grant, as applicable, of
each Stock Award; the Exercise Price of each outstanding Option and the
specified number of shares of Stock to which each outstanding Dividend
Equivalent Right, Phantom Share and Stock Appreciation Right pertains may be
proportionately adjusted by the Administrator for any increase or decrease in
the number of issued shares of Stock resulting from a subdivision or combination
of shares or the payment of a stock dividend in shares of Stock to holders of
outstanding shares of Stock or any other increase or decrease in the number of
shares of Stock outstanding effected without receipt of consideration by the
Company.

                  (b) In the event of a merger, consolidation or other
reorganization of the Company or tender offer for shares of Stock, the
Administrator may make such adjustments with respect to awards and take such
other action as it deems necessary or appropriate to reflect or in anticipation
of such merger, consolidation, reorganization or tender offer, including,
without limitation, the substitution of new awards, the termination or
adjustment of outstanding awards,


                                      -11-
<PAGE>   15
the acceleration of awards or the removal of restrictions on outstanding awards.
Any adjustment pursuant to this Section 5.2 may provide, in the Administrator's
discretion, for the elimination without payment therefore of any fractional
shares that might otherwise become subject to any Award.

                  (c) The existence of the Plan and the Awards granted pursuant
to the Plan shall not affect in any way the right or power of the Company to
make or authorize any adjustment, reclassification, reorganization or other
change in its capital or business structure, any merger or consolidation of the
Company, any issue of debt or equity securities having preferences or priorities
as to the Stock or the rights thereof, the dissolution or liquidation of the
Company, any sale or transfer of all or any part of its business or assets, or
any other corporate act or proceeding.

         5.3      Cash Awards. The Administrator may, at any time and in its
discretion, grant to any holder of an Award the right to receive, at such times
and in such amounts as determined by the Administrator in its discretion, a cash
amount which is intended to reimburse such person for all or a portion of the
federal, state and local income taxes imposed upon such person as a consequence
of the receipt of the Award or the exercise of rights thereunder.

         5.4      Compliance with Code. All Incentive Stock Options to be
granted hereunder are intended to comply with Code Section 422, and all
provisions of the Plan and all Incentive Stock Options granted hereunder shall
be construed in such manner as to effectuate that intent.

         5.5      Right to Terminate Employment. Nothing in the Plan or in any
Award shall confer upon any Participant the right to continue as an employee or
officer of the Company or any of its affiliates or affect the right of the
Company or any of its affiliates to terminate the Participant's employment at
any time.

         5.6      Restrictions on Delivery and Sale of Shares; Legends. Each
Award is subject to the condition that if at any time the Administrator, in its
discretion, shall determine that the listing, registration or qualification of
the shares covered by such Award upon any securities exchange or under any state
or federal law is necessary or desirable as a condition of or in connection with
the granting of such Award or the purchase or delivery of shares thereunder, the
delivery of any or all shares pursuant to such Award may be withheld unless and
until such listing, registration or qualification shall have been effected. If a
registration statement is not in effect under the Securities Act of 1933 or any
applicable state securities laws with respect to the shares of Stock purchasable
or otherwise deliverable under Awards then outstanding, the Administrator may
require, as a condition of exercise of any Option or as a condition to any other
delivery of Stock pursuant to an Award, that the Participant or other recipient
of an Award represent, in writing, that the shares received pursuant to the
Award are being acquired for investment and not with a view to distribution and
agree that shares will not be disposed of except pursuant to an effective
registration statement, unless the Company shall have received an opinion of
counsel that such disposition is exempt from such requirement under the
Securities Act of 1933 and any applicable state securities laws. The Company may
include on certificates representing shares delivered pursuant to an Award such
legends referring to the foregoing


                                      -12-
<PAGE>   16
representations or restrictions or any other applicable restrictions on resale
as the Company, in its discretion, shall deem appropriate.

         5.7      Non-alienation of Benefits. Other than as specifically
provided with regard to the death of a Participant, no benefit under the Plan
shall be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or charge; and any attempt to do so shall be
void. No such benefit shall, prior to receipt by the Participant, be in any
manner liable for or subject to the debts, contracts, liabilities, engagements
or torts of the Participant.

         5.8      Termination and Amendment of the Plan. The Board at any time
may amend or terminate the Plan without stockholder approval; provided, however,
that the Board may condition any amendment on the approval of stockholders of
the Company if such approval is necessary or advisable with respect to tax,
securities or other applicable laws. No such termination or amendment without
the consent of the holder of an Award shall adversely affect the rights of the
Participant under such Award.

         5.9      Stockholder Approval. The Plan shall be submitted to the
stockholders of the Company for their approval within twelve (12) months before
the adoption of the Plan by the Board. If such approval is not obtained, any
Award granted hereunder shall be void.

         5.10     Choice of Law. The laws of the State of Georgia shall govern
the Plan, to the extent not preempted by federal law.

         5.11     Effective Date of Plan.  The Plan shall be effective as of
July 30, 1997.

                               * * * * * * * * * *


ATHEROGENICS, INC.                             ATTEST:


By: /s/ Russell M. Medford                     /s/ Mark Colonnese
   ------------------------------              --------------------------------
      Russell M. Medford, MD, PhD              Mark Colonnese
      President and C.E.O.                     Assistant Secretary

                                               [CORPORATE SEAL]


                                      -13-
<PAGE>   17


                                AMENDMENT NO. 1
                                       TO
                               ATHEROGENICS, INC.
                             EQUITY OWNERSHIP PLAN


         THIS AMENDMENT NO. 1 to the ATHEROGENICS, INC. EQUITY OWNERSHIP PLAN
(the "Plan"), made by ATHEROGENICS, INC. (the "Company"), effective as of the
2nd day of February, 2000 (subject to the approval of the Company's
shareholders, as provided below):

                                  WITNESSETH:

         WHEREAS, the Board of Directors of the Company (the "Board") has
previously adopted the Plan, and pursuant to Section 5.8 thereof, the Board has
the right to amend the Plan at any time (subject to certain restrictions not
applicable in this case); and

         WHEREAS, at its meeting on February 2, 2000, the Board approved and
recommended to the shareholders of the Company an increase the number of shares
of the Company's common stock available for issuance upon the exercise of stock
options which may be granted under the Plan;

         NOW, THEREFORE, the Plan is amended as follows, effective as stated
above:

1.       Section 2.2 of the Plan shall be amended in its entirety as follows:

                  "2.2     Stock Subject to the Plan.  Subject to adjustment in
         accordance with Section 5.2, 3,724,416 shares of Stock (the "Maximum
         Plan Shares") are hereby reserved and subject to issuance under the
         Plan. At no time shall the Company have outstanding Awards and shares
         of Stock issued in respect to Awards in excess of the Maximum Plan
         Shares. To the extent permitted by law, the shares of Stock
         attributable to the nonvested, unpaid, unexercised, unconverted or
         otherwise unsettled portion of any Award that is forfeited, canceled,
         expired or terminated for any reason without becoming vested, paid,
         exercised, converted or otherwise settled in full shall again be
         available for purposes of the Plan."

2.       This amendment shall not take effect unless approved by the
         shareholders of the Company prior to February 2, 2001.

3.       All other provisions of the Plan not inconsistent herewith are hereby
         confirmed and ratified.

         IN WITNESS WHEREOF, the Company has caused this Amendment No. 1 to the
Plan to be executed by its duly authorized officer as of the date first above
written.

                                        ATHEROGENICS, INC.


                                        By: /s/ RUSSELL M. MEDFORD, M.D., PH.D.
                                           -------------------------------------
                                           Russell M. Medford, M.D., Ph.D.
                                           President and Chief Executive Officer


                   APPROVED BY SHAREHOLDERS: January 28, 2000

<PAGE>   18



                                AMENDMENT NO. 2
                                     TO THE
                               ATHEROGENICS, INC.
                             EQUITY OWNERSHIP PLAN


         THIS AMENDMENT NO. 2 to the ATHEROGENICS, INC. EQUITY OWNERSHIP PLAN
(the "Plan"), made by ATHEROGENICS, INC. (the "Company"), effective as stated
in Section 2 below:

                              W I T N E S S E T H:

         WHEREAS, the Board of Directors of the Company (the "Board") has
previously adopted the Plan, and pursuant to Section 5.8 thereof, the Board has
the right to amend the Plan at any time (subject to certain restrictions not
applicable in this case); and

         WHEREAS, the Board has determined that it would be consistent with the
purposes of the AtheroGenics, Inc. 1997 Equity Ownership Plan (the "Plan") and
in the Company's best interest to amend the Plan to permit the grant of
non-qualified stock options to an entity of which a Director is an affiliate
(the "Alternate Grantee") in circumstances under which the Director, by reason
of his/her relationship to the Alternate Grantee, may be contractually or
otherwise barred from receiving, in his/her individual capacity, option grants
made to him by reason of his service as a Director;

         NOW, THEREFORE, the Plan is amended as follows, effective as stated
below:

1.       Section 2.4 of the Plan shall be amended in its entirety as follows:

                  "2.4     Eligibility and Limits.

                           "(a)  Participants in the Plan shall be selected by
                  the Administrator from among the classes of recipients
                  specified in Section 2.1(c), provided, however, that (i) only
                  individuals who are employees of the Company on the date of
                  grant may receive Incentive Stock Options and (ii) under the
                  circumstances specified below in this subsection (a), an
                  Alternate Grantee who is an affiliate of a Director may, at
                  the discretion of the Administrator, be granted Non-Qualified
                  Stock Options even if such entity does not meet the criteria
                  of Section 2.1(c). A grant of Non-Qualified Stock Options may
                  be made to an Alternate Grantee if the Administrator in its
                  discretion determines that (i) a Director to whom an option
                  grant would normally be made is barred from receiving or
                  retaining such grant by contractual or legal restrictions
                  applicable to him/her by virtue of his/her relationship to an
                  entity of which he/she is an affiliate (the "Alternate
                  Grantee"), (ii) the Director has refused or waived the grant
                  originally intended for him/her (and such grant has been
                  cancelled) and has informed the Administrator of the identity
                  of the Alternate Grantee; (iii) there is an appropriate
                  exemption under the Securities Act of 1933

<PAGE>   19

         pursuant to which a grant to the Alternate Payee may be made without
         meeting the registration requirements of such act; and (iv) it would
         be consistent with the purposes of the Plan and in the Company's best
         interest to make such a grant of Non-Qualified Stock Options to
         Alternate Grantee.

                           "(b)     In the case of Incentive Stock Options, the
         aggregate Fair Market Value (determined at the date an Incentive Stock
         Option is granted) of Stock with respect to which Stock Options
         intended to meet the requirements of Code Section 422 become
         exercisable for the first time by an individual during any calendar
         year under all plans of the Company and its Parents and subsidiaries
         shall not exceed $100,000; provided further, that if the limitation is
         exceeded, the Incentive Stock Option(s) which cause the limitation to
         be exceeded shall be treated as Non-Qualified Stock Option(s)."

2.       This amendment shall be effective from and after the date of its
         adoption by the Board, provided that the Administrator may make option
         grants to Alternate Grantees only with respect to Stock Options which
         were granted (or which would have been granted but for the contractual
         or legal restrictions referenced above) to a Director on or after
         January 28, 2000.

3.       All other provisions of the Plan not inconsistent herewith are hereby
         confirmed and ratified.

         IN WITNESS WHEREOF, the Company has caused this Amendment No. 2 to the
Plan to be executed by its duly authorized officer as of the date first above
written.

                                             ATHEROGENICS, INC.


                                             By: /s/ Michael A. Henos
                                                 ---------------------------


                                             Title: CHAIRMAN OF THE BOARD
                                                    ------------------------



               [ADOPTED BY THE BOARD OF DIRECTORS JUNE 22, 2000]



                                       2