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                                                                    EXHIBIT 10.2

                          NEUROCRINE BIOSCIENCES, INC.

                            2003 INCENTIVE STOCK PLAN

         AS AMENDED MAY 25, 2005, NOVEMBER 7, 2005 AND JANUARY 12, 2006

1. PURPOSE OF THE PLAN. The purposes of this Incentive Stock Plan are to attract
and retain the best available personnel, to provide additional incentive to the
employees of Neurocrine Biosciences, Inc. (the "Company") and to promote the
success of the Company's business. Options granted hereunder may be either
Incentive Stock Options or Nonstatutory Stock Options, at the discretion of the
Board and as reflected in the terms of the written option agreement. The Board
also has the discretion to grant Restricted Stock awards, Restricted Stock Unit
awards and Stock Bonus awards.

2. DEFINITIONS.

            (a) "Award" shall mean any right granted under the Plan, including
an Option, a Restricted Stock award, Restricted Stock Unit award, and a Stock
Bonus award.

            (b) "Board" shall mean the Committee, if one has been appointed, or
the Board of Directors of the Company, if no Committee is appointed.

            (c) "Code" shall mean the Internal Revenue Code of 1986, as amended.

            (d) "Committee" shall mean the Committee appointed by the Board in
accordance with Section 4(a) of the Plan, if one is appointed.

            (e) "Common Stock" shall mean the common stock of the Company, par
value $.001 per share.

            (f) "Company" shall mean Neurocrine Biosciences, Inc.

            (g) "Consultant" shall mean any natural person who is engaged by the
Company or any Parent or Subsidiary to render bona fide consulting services and
is compensated for such consulting services, and any Director whether
compensated for such services or not.

            (h) "Continuous Status as an Employee or Consultant" shall mean the
absence of any interruption or termination of service as an Employee or
Consultant, as applicable. Continuous Status as an Employee or Consultant shall
not be considered interrupted in the case of sick leave, military leave, or any
other leave of absence approved by the Board; provided, that such leave is for a
period of not more than ninety (90) days or reemployment upon the expiration of
such leave is guaranteed by contract or statute.

            (i) "Director" means a member of the Board of Directors of the
Company.

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            (j) "Employee" shall mean any persons, including officers and
directors, employed by the Company or any Parent or Subsidiary of the Company.
The payment of a director's fee by the Company shall not be sufficient to
constitute "employment" by the Company.

            (k) "Holder" shall mean a person who has been granted or awarded an
Award pursuant to the Plan.

            (l) "Incentive Stock Option" shall mean an Option intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code.

            (m) "Nonstatutory Stock Option" shall mean an Option not intended to
qualify as an Incentive Stock Option.

            (n) "Option" shall mean a stock option granted pursuant to the Plan.
An Option may be either an Incentive Stock Option or a Nonstatutory Stock
Option.

            (o) "Option Agreement" shall mean any written or electronic
agreement, contract, or other instrument or document evidencing an Option.

            (p) "Optioned Stock" shall mean the Common Stock subject to an
Option.

            (q) "Optionee" shall mean an Employee or Consultant who receives an
Option.

            (r) "Outside Director" means a Director who is not an Employee.

            (s) "Parent" shall mean a "parent corporation," whether now or
hereafter existing, as defined in Section 424(e) of the Code.

            (t) "Performance Criteria" shall mean the following business
criteria with respect to the Company, any Subsidiary or any division or
operating unit: (a) net income, (b) pre-tax income, (c) operating income, (d)
cash flow, (e) earnings per share, (f) return on equity, (g) return on invested
capital or assets, (h) cost reductions or savings, (i) funds from operations,
(j) appreciation in the fair market value of Common Stock, and (k) earnings
before any one or more of the following items: interest, taxes, depreciation or
amortization; each as determined in accordance with generally accepted
accounting principles or subject to such adjustments as may be specified by the
Board.

            (u) "Plan" shall mean this 2003 Incentive Stock Plan, as amended.

            (v) "Restricted Stock" shall mean a right to purchase Common Stock
pursuant to Section 11 of the Plan.

            (w) "Restricted Stock Unit" shall mean a right to receive a
specified number of shares of Common Stock during specified time periods
pursuant to Section 12 of the Plan.

            (x) "Section 162(m) Participant" shall mean any key Employee
designated by the Board as a key Employee whose compensation for the fiscal year
in which the key Employee is so

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designated or a future fiscal year may be subject to the limit on deductible
compensation imposed by Section 162(m) of the Code.

            (y) "Share" shall mean a share of the Common Stock, as adjusted in
accordance with Section 15 of the Plan.

            (z) "Stock Bonus" shall mean the right to receive a bonus of Common
Stock for past services pursuant to Section 13 of the Plan.

            (aa) "Subsidiary" shall mean a "subsidiary corporation," whether now
or hereafter existing, as defined in Section 424(f) of the Code.

3. STOCK SUBJECT TO THE PLAN.

      (a) Subject to the provisions of Section 15 of the Plan, the maximum
aggregate number of shares under the Plan is three million three hundred
thousand (3,300,000) shares of Common Stock. The Shares may be authorized but
unissued, or reacquired Common Stock. If an Award should expire or become
unexercisable for any reason without having been exercised in full, then the
unpurchased Shares which were subject thereto shall, unless the Plan shall have
been terminated, become available for future grant or sale under the Plan.
Notwithstanding any other provision of the Plan, shares issued under the Plan
and later repurchased by the Company shall not become available for future grant
or sale under the Plan.

      (b) The following limitations shall apply to grants of Awards to
Employees:

                  (i) No Employee shall be granted, in any fiscal year of the
            Company, Awards pursuant to which more than an aggregate of two
            hundred and fifty thousand (250,000) Shares are issuable to such
            Employee.

                  (ii) In connection with his or her initial employment, an
            Employee may be granted Awards to purchase and/or receive up to an
            additional two hundred and fifty thousand (250,000) Shares which
            shall not count against the limit set forth in subsection (i) above.

                  (iii) The foregoing limitations shall be adjusted
            proportionately in connection with any change in the Company's
            capitalization as described in Section 15.

                  (iv) If an Option is canceled in the same fiscal year of the
            Company in which it was granted (other than in connection with a
            transaction described in Section 15), the canceled Option shall be
            counted against the limit set forth in subsection (i) above.

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4. ADMINISTRATION OF THE PLAN.

      (a) Procedure.

                  (i) Multiple Administrative Bodies. The Plan may be
            administered by different Committees with respect to different
            groups of Employees and Consultants.

                  (ii) Section 162(m). To the extent that the Board determines
            it to be desirable to qualify Awards granted hereunder as
            "performance-based compensation" within the meaning of Section
            162(m) of the Code, the Plan shall be administered by a Committee of
            two or more "outside directors" within the meaning of Section 162(m)
            of the Code.

                  (iii) Rule 16b-3. To the extent desirable to qualify
            transactions hereunder as exempt under Rule 16b-3, the transactions
            contemplated hereunder shall be structured to satisfy the
            requirements for exemption under Rule 16b-3.

                  (iv) Other Administration. Other than as provided above, the
            Plan shall be administered by (A) the Board or (B) a Committee,
            which committee shall be constituted to satisfy applicable laws.

      (b) Powers of the Board. Subject to the provisions of the Plan, the Board
shall have the authority, in its discretion: (i) to grant Incentive Stock
Options, Nonstatutory Stock Options, Restricted Stock awards, Restricted Stock
Unit awards, or Stock Bonus awards; (ii) to determine, upon review of relevant
information and in accordance with Section 7 of the Plan, the fair market value
of the Common Stock; (iii) to determine the exercise price per share of each
Award to be granted, if any, which exercise price shall be determined in
accordance with Section 7 of the Plan; (iv) to determine the Employees or
Consultants to whom, and the time or times at which, Awards shall be granted
and, subject to the limitations of Section 3(b) above, the number of shares to
be represented by each Award; (v) to interpret the Plan; (vi) to prescribe,
amend and rescind rules and regulations relating to the Plan; (vii) to determine
the terms and provisions of each Award granted (which need not be identical)
and, with the consent of the holder thereof, modify or amend any provisions
(including provisions relating to exercise price) of any Award; (viii) to
accelerate or defer (with the consent of the Optionee) the exercise date of any
Option, consistent with the provisions of Section 6 of the Plan; (ix) to
authorize any person to execute on behalf of the Company any instrument required
to effectuate the grant of an Award previously granted by the Board; (x) to
allow Optionees to satisfy withholding tax obligations by electing to have the
Company withhold from the Shares to be issued upon exercise of an Award that
number of Shares having a fair market value equal to the statutory minimum
amount required to be withheld (the fair market value of the Shares to be
withheld shall be determined on the date that the amount of tax to be withheld
is to be determined; and, all elections by an Award holder to have Shares
withheld for this purpose shall be made in such form and under such conditions
as the Board may deem necessary or advisable); and (xi) to make all other
determinations deemed necessary or advisable for the administration of the Plan.

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      (c) Effect of Board's Decision. All decisions, determinations and
interpretations of the Board shall be final and binding on all Holders of any
Awards granted under the Plan.

      (d) Provisions Applicable to Section 162(m) Participants.

                  (i) The Board, in its discretion, may determine whether an
            Award is to qualify as performance-based compensation as described
            in Section 162(m)(4)(C) of the Code.

                  (ii) Notwithstanding anything in the Plan to the contrary, the
            Board may grant any Award to a Section 162(m) Participant, including
            a Restricted Stock award, Restricted Stock Unit award, or Stock
            Bonus award the restrictions with respect to which lapse upon the
            attainment of performance goals which are related to one or more of
            the Performance Criteria.

                  (iii) To the extent necessary to comply with the
            performance-based compensation requirements of Section 162(m)(4)(C)
            of the Code, with respect to any Restricted Stock award, Restricted
            Stock Unit award, or Stock Bonus award granted under the Plan to one
            or more Section 162(m) Participants, no later than ninety (90) days
            following the commencement of any fiscal year in question or any
            other designated fiscal period or period of service (or such other
            time as may be required or permitted by Section 162(m) of the Code),
            the Board shall, in writing, (i) designate one or more Section
            162(m) Participants, (ii) select the Performance Criteria applicable
            to the fiscal year or other designated fiscal period or period of
            service, (iii) establish the various performance targets, in terms
            of an objective formula or standard, and amounts of such Restricted
            Stock awards, Restricted Stock Unit awards, and Stock Bonus awards,
            as applicable, which may be earned for such fiscal year or other
            designated fiscal period or period of service, and (iv) specify the
            relationship between Performance Criteria and the performance
            targets and the amounts of such Restricted Stock awards, Restricted
            Stock Unit awards, and Stock Bonus awards, as applicable, to be
            earned by each Section 162(m) Participant for such fiscal year or
            other designated fiscal period or period of service. Following the
            completion of each fiscal year or other designated fiscal period or
            period of service, the Board shall certify in writing whether the
            applicable performance targets have been achieved for such fiscal
            year or other designated fiscal period or period of service. In
            determining the amount earned by a Section 162(m) Participant, the
            Board shall have the right to reduce (but not to increase) the
            amount payable at a given level of performance to take into account
            additional factors that the Board may deem relevant to the
            assessment of individual or corporate performance for the fiscal
            year or other designated fiscal period or period of service.

                  (iv) Furthermore, notwithstanding any other provision of the
            Plan, any Award which is granted to a Section 162(m) Participant and
            is intended to qualify as performance-based compensation as
            described in Section 162(m)(4)(C) of the Code shall be subject to
            any additional limitations set forth in Section 162(m) of the Code

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            (including any amendment to Section 162(m) of the Code) or any
            regulations or rulings issued thereunder that are requirements for
            qualification as performance-based compensation as described in
            Section 162(m)(4)(C) of the Code, and the Plan shall be deemed
            amended to the extent necessary to conform to such requirements.

5. ELIGIBILITY.

      (a) Awards may be granted to Employees and Consultants; provided, that
Incentive Stock Options may only be granted to Employees. An Employee or
Consultant who has been granted an Award may, if such Employee or Consultant is
otherwise eligible, be granted additional Awards. Each Outside Director shall be
eligible to be automatically granted Options at the times and in the manner set
forth in Section 10.

      (b) Each Option shall be designated in the written Option Agreement as
either an Incentive Stock Option or a Nonstatutory Stock Option. However,
notwithstanding such designation, to the extent that the aggregate fair market
value of the Shares with respect to which Options designated as Incentive Stock
Options are exercisable for the first time by any Optionee during any calendar
year (under all plans of the Company) exceeds one hundred thousand dollars
($100,000), such Options shall be treated as Nonstatutory Stock Options.

      (c) For purposes of Section 5(b), Options shall be taken into account in
the order in which they were granted, and the fair market value of the Shares
shall be determined as of the time the Option with respect to such Shares is
granted.

      (d) The Plan shall not confer upon any Holder any right with respect to
continuation of employment by or the rendition of consulting services to the
Company, nor shall it interfere in any way with his or her right or the
Company's right to terminate his or her employment or services at any time, with
or without cause.

6. TERM OF PLAN. The Plan shall become effective upon the earlier to occur of
its adoption by the Board or its approval by vote of holders of a majority of
the outstanding shares of the Company entitled to vote on the adoption of the
Plan. It shall continue in effect until terminated under Section 17 of the Plan.
Notwithstanding the foregoing, no Incentive Stock Option may be granted under
this Plan after the first to occur of (a) the expiration of ten (10) years from
the date the Plan is adopted by the Board or (b) the expiration of ten (10)
years from the date the Plan is approved by the Company's stockholders under
Section 21.

7. EXERCISE PRICE AND CONSIDERATION.

      (a) The per Share exercise price for the Shares to be issued pursuant to
exercise of an Option shall be no less than one hundred percent (100%) of the
fair market value per Share on the date of grant; provided, however, that in the
case of an Incentive Stock Option granted to an Employee who, at the time of
grant of such Incentive Stock Option, owns stock representing more than ten
percent (10%) of the voting power of all classes of stock of the Company or any
Parent or Subsidiary, the per Share exercise price shall be no less than one
hundred and ten percent (110%) of the fair market value per Share on the date of
grant. Notwithstanding the foregoing, Options may be

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granted with a per Share exercise price of less than one hundred percent (100%)
of the fair market value per Share on the date of grant pursuant to a merger or
other corporate transaction.

      (b) The fair market value shall be determined by the Board in its
discretion; provided, however, that where there is a public market for the
Common Stock, the fair market value per Share shall be the mean of the bid and
asked prices (or the closing price per share if the Common Stock is listed on
the National Association of Securities Dealers Automated Quotation ("NASDAQ")
National Market System) of the Common Stock for the date of grant, as reported
in the Wall Street Journal (or, if not so reported, as otherwise reported by the
NASDAQ System) or, in the event the Common Stock is listed on a stock exchange,
the fair market value per Share shall be the closing price on such exchange on
the date of grant of the Option, Restricted Stock award, Restricted Stock Unit
award or Stock Bonus award, as reported in the Wall Street Journal.

      (c) The consideration to be paid for the Shares to be issued upon exercise
of an Award, including the method of payment, shall be determined by the Board
(and in the case of an Incentive Stock Option, shall be determined at the time
of grant) and to the extent permitted under applicable laws may consist entirely
of cash, check, promissory note, other Shares of Common Stock which (i) either
have been owned by the Optionee for more than six (6) months on the date of
surrender or were not acquired directly or indirectly, from the Company, and
(ii) have a fair market value on the date of surrender equal to the aggregate
exercise price of the Shares as to which said Award shall be exercised, or any
combination of such methods of payment, or such other consideration and method
of payment for the issuance of Shares to the extent permitted under applicable
law.

8. TERM OF OPTION. The term of each Option shall be the term stated in the
Option Agreement; provided, however, that the term shall be no more than ten
(10) years from the date of grant thereof. In the case of an Incentive Stock
Option granted to an Optionee who, at the time the Option is granted, owns stock
representing more than ten percent (10%) of the voting power of all classes of
stock of the Company or any Parent or Subsidiary, the term of the Option shall
be five (5) years from the date of grant thereof or such shorter term as may be
provided in the Option Agreement.

9. EXERCISE OF OPTION.

      (a) Procedure for Exercise; Rights as a Stockholder.

                  (i) Any Option granted hereunder shall be exercisable at such
            times and under such conditions as determined by the Board,
            including performance criteria with respect to the Company and/or
            the Optionee, and as shall be permissible under the terms of the
            Plan.

                  (ii) An Option may not be exercised for a fraction of a Share.

                  (iii) An Option shall be deemed to be exercised when written
            notice of such exercise has been given to the Company in accordance
            with the terms of the Option by the person entitled to exercise the
            Option and full payment for the Shares with respect to which the
            Option is exercised has been received by the Company. Full payment
            may, as authorized by the Board, consist of any consideration and

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            method of payment allowable under Section 7 of the Plan. Until the
            issuance (as evidenced by the appropriate entry on the books of the
            Company or of a duly authorized transfer agent of the Company) of
            the stock certificate evidencing such Shares, no right to vote or
            receive dividends or any other rights as a stockholder shall exist
            with respect to the Optioned Stock, notwithstanding the exercise of
            the Option. Upon an Optionee's request, the Company shall issue (or
            cause to be issued) such stock certificate promptly upon exercise of
            the Option. To the extent an Option designated as an Incentive Stock
            Option at grant that is treated as the exercise of a Nonstatutory
            Stock Option pursuant to Section 5(b), the Company shall issue a
            separate stock certificate evidencing the Shares treated as acquired
            upon exercise of an Incentive Stock Option and a separate stock
            certificate evidencing the Shares treated as acquired upon exercise
            of a Nonstatutory Stock Option and shall identify each such
            certificate accordingly in its stock transfer records. No adjustment
            will be made for a dividend or other right for which the record date
            is prior to the date the stock certificate is issued, except as
            provided in Section 15 of the Plan.

                  (iv) Exercise of an Option in any manner shall result in a
            decrease in the number of Shares which thereafter may be available,
            both for purposes of the Plan and for sale under the Option, by the
            number of Shares as to which the Option is exercised.

      (b) Termination of Status as an Employee or Consultant. In the event of
termination of an Optionee's Continuous Status as an Employee or Consultant (as
the case may be), such Optionee may, but only within such period of time as is
determined by the Board, with such determination in the case of an Incentive
Stock Option not exceeding three (3) months and in the case of Nonstatutory
Stock Option not exceeding six (6) months after the date of termination
(provided, that such period shall be three (3) months in the case of an Option
granted to an Outside Director pursuant to Section 10), with such determination
in the case of an Incentive Stock Option being made at the time of grant of the
Option, exercise the Option to the extent that such Employee or Consultant was
entitled to exercise it at the date of such termination (but in no event later
than the date of expiration of the term of such Option as set forth in the
Option Agreement). To the extent that such Employee or Consultant was not
entitled to exercise the Option at the date of such termination, or if such
Employee or Consultant does not exercise such Option (which such Employee or
Consultant was entitled to exercise) within the time specified herein, the
Option shall terminate.

      (c) Disability of Optionee. Notwithstanding the provisions of Section 9(b)
above, in the event of termination of an Optionee's Continuous Status as an
Employee or Consultant as a result of such Employee's or Consultant's total and
permanent disability (as defined in Section 22(e)(3) of the Code), such Employee
or Consultant may, but only within six (6) months (twelve (12) months in the
case of an Option granted to an Outside Director pursuant to Section 10) (or
such other period of time not exceeding twelve (12) months as is determined by
the Board, with such determination in the case of an Incentive Stock Option
being made at the time of grant of the Option) from the date of such termination
(but in no event later than the date of expiration of the term of such Option as
set forth in the Option Agreement), exercise the Option to the extent the right
to exercise would have accrued had the Optionee continued Continuous Status as
an Employee or Consultant for a period of

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six (6) months following termination of Continuous Status as an Employee or
Consultant by reason of disability. To the extent that such Employee or
Consultant was not entitled to exercise an Option in this period, or if such
Employee or Consultant does not exercise such Option (which such Employee or
Consultant was entitled to exercise) within the time specified herein, the
Option shall terminate.

      (d) Retirement of Employee. Notwithstanding the provisions of Section 9(b)
above, in the event of termination of an Employee's Continuous Status as an
Employee as a result of such Employee's retirement from the Company at age
fifty-five (55) or greater after having Continuous Status as an Employee for (5)
years or more, all Awards held by such Employee shall vest and such Employee
may, but only within three (3) years from the date of such termination (but in
no event later than the date of expiration of the term of such Award), exercise
the Award to the extent such Employee was entitled to exercise it at the date of
such termination.

      (e) Death of Optionee. In the event of the death of an Optionee:

                  (i) during the term of the Option who is at the time of his or
            her death an Employee or Consultant of the Company and who shall
            have been in Continuous Status as an Employee or Consultant since
            the date of grant of the Option, the Option may be exercised, at any
            time within six (6) months (twelve (12) months in the case of an
            Option granted to an Outside Director pursuant to Section 10) (or at
            such later time as may be determined by the Board but in no event
            later than the date of expiration of the term of such Option as set
            forth in the Option Agreement), by the Optionee's estate or by a
            person who acquired the right to exercise the Option by bequest or
            inheritance, but only to the extent that the right to exercise would
            have accrued had the Optionee continued living and remained in
            Continuous Status as an Employee or Consultant six (6) months (or
            such other period of time as is determined by the Board) after the
            date of death; or

                  (ii) within thirty (30) days (or such other period of time not
            exceeding three (3) months as is determined by the Board, with such
            determination in the case of an Incentive Stock Option being made at
            the time of grant of the Option) after the termination of Continuous
            Status as an Employee or Consultant, the Option may be exercised, at
            any time within six (6) months (twelve (12) months in the case of an
            Option granted to an Outside Director pursuant to Section 10) (or
            such other period of time as is determined by the Board at the time
            of grant of the Option) following the date of death (but in no event
            later than the date of expiration of the term of such Option as set
            forth in the Option Agreement), by the Optionee's estate or by a
            person who acquired the right to exercise the Option by bequest or
            inheritance, but only to the extent that the right to exercise that
            had accrued at the date of termination.

10. AUTOMATIC GRANTING OF OPTIONS TO OUTSIDE DIRECTORS.

      (a) First Option Grants. Unless otherwise determined by the Board, each
new Outside Director shall be automatically granted an Option to purchase twenty
thousand (20,000) Shares (a

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"First Option") on the date on which such person first becomes a Director,
whether through election by the stockholders of the Company or appointment by
the Board to fill a vacancy.

      (b) Subsequent Option Grants. Unless otherwise determined by the Board,
each Outside Director and the Chairman of the Board of Directors of the Company
shall be automatically granted an annual Option (a "Subsequent Option") to
purchase, in the case of an Outside Director, twelve thousand (12,000) Shares,
and in the case of the Chairman of the Board of Directors of the Company,
fifteen thousand (15,000) Shares, each on the date of each annual meeting of the
stockholders of the Company, if on such date, he or she shall have served on the
Board for at least six (6) months.

      (c) Terms of Options Granted to Outside Directors. Options granted to
Outside Directors pursuant to this Section 10 shall have a per Share exercise
price of no less than one hundred percent (100%) of the fair market value per
Share on the date of grant. Subject to Section 9, the term of each Option
granted to an Outside Director pursuant to this Section 10 shall be ten (10)
years from the date of grant thereof. First Options and Subsequent Options shall
become exercisable in cumulative monthly installments of 1/12 of the Shares
subject to such Option on each of the monthly anniversaries of the date of grant
of the Option, commencing with the first such monthly anniversary, such that
each such Option shall be one hundred percent (100%) vested on the first
anniversary of its date of grant.

11. RESTRICTED STOCK AWARDS.

      (a) Rights to Purchase. After the Board determines that it will offer an
Employee or Consultant a Restricted Stock award, it shall deliver to the offeree
a stock purchase agreement setting forth the terms, conditions and restrictions
relating to the offer. Such agreement shall further specify the number of Shares
which such person shall be entitled to purchase, and the time within which such
person must accept such offer, which shall in no event exceed six (6) months
from the date upon which the Board made the determination to grant the
Restricted Stock award. The offer shall be accepted by execution of a stock
purchase agreement in the form determined by the Board.

      (b) Purchase Price. The Board shall establish the purchase price, if any,
and form of payment for each Restricted Stock award; provided, however, that
such purchase price shall be no less than one hundred percent (100%) of the fair
market value per Share on the date of grant; provided, further, however, that
the purchase price per Share may be reduced on a dollar-for-dollar basis to the
extent the Restricted Stock award is granted to the Holder in lieu of cash
compensation otherwise payable to the Holder. In all cases, legal consideration
shall be required for each issuance of a Restricted Stock award.

      (c) Issuance of Shares. Forthwith after payment therefor, the Shares
purchased shall be duly issued; provided, however, that the Board may require
that the Holder make adequate provision for any Federal and State withholding
obligations of the Company as a condition to the Holder purchasing such Shares.

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      (d) Repurchase Option. Unless the Board determines otherwise, the stock
purchase agreement shall grant the Company a repurchase option exercisable upon
the voluntary or involuntary termination of the Holder's employment with the
Company for any reason (including death or disability). Subject to applicable
laws, if the Board so determines, the purchase price for shares repurchased may
be paid by cancellation of any indebtedness of the Holder to the Company.
Subject to Section 4(d) with respect to Restricted Stock awards granted to
Section 162(m) Participants, the repurchase option shall lapse at such rate as
the Board may determine.

      (e) Other Provisions. The stock purchase agreement shall contain such
other terms, provisions and conditions not inconsistent with the Plan as may be
determined by the Board.

12. RESTRICTED STOCK UNIT AWARDS.

      (a) Grant of Restricted Stock Units. Any Employee or Consultant selected
by the Board may be granted an Award of Restricted Stock Units in the manner
determined from time to time by the Board.

      (b) Vesting of Restricted Stock Units. The vesting of Restricted Stock
Units shall be determined by the Board and may be linked to specific performance
criteria determined to be appropriate by the Board, in each case on a specified
date or dates or over any period or periods determined by the Board. Common
Stock underlying a Restricted Stock Unit award will not be issued until the
Restricted Stock Unit award has vested, pursuant to a vesting schedule or
performance criteria set by the Board.

      (c) No Rights as a Stockholder. Unless otherwise provided by the Board, a
Holder awarded Restricted Stock Units shall have no rights as a Company
stockholder with respect to such Restricted Stock Units until such time as the
Restricted Stock Units have vested and the Common Stock underlying the
Restricted Stock Units has been issued.

      (d) Purchase Price. The Board shall establish the purchase price, if any,
and form of payment for each Restricted Stock Unit award; provided, however,
that such purchase price shall be no less than one hundred percent (100%) of the
fair market value per Share on the date of grant; provided, further, however,
that the purchase price per Share may be reduced on a dollar-for-dollar basis to
the extent the Restricted Stock Unit award is granted to the Holder in lieu of
cash compensation otherwise payable to the Holder. In all cases, legal
consideration shall be required for each issuance of a Restricted Stock Unit
award.

      (e) Other Provisions. The restricted stock unit award agreements shall
contain such other terms, provisions and conditions not inconsistent with the
Plan as may be determined by the Board.

13. STOCK BONUS AWARDS.

      (a) Terms of Award. After the Board determines that it will offer an
Employee or Consultant a Stock Bonus award, it shall deliver to the offeree a
stock bonus agreement setting forth the terms, conditions and restrictions
relating to the offer and the number of shares to be awarded.

                                      -11-
<PAGE>

The offer shall be accepted by execution of a stock bonus agreement in the form
determined by the Board.

      (b) Purchase Price. The Board shall establish the purchase price, if any,
and form of payment for each Stock Bonus award; provided, however, that such
purchase price shall be no less than one hundred percent (100%) of the fair
market value per Share on the date of grant; provided, further, however, that
the purchase price per Share may be reduced on a dollar-for-dollar basis to the
extent the Stock Bonus award is granted to the Holder in lieu of cash
compensation otherwise payable to the Holder.

      (c) Issuance of Shares. Forthwith after payment therefor, the Shares
purchased shall be duly issued; provided, however, that the Board may require
that the Holder make adequate provision for any Federal and State withholding
obligations of the Company as a condition to the Holder purchasing such Shares.

      (d) Repurchase Option. Unless the Board determines otherwise, the stock
bonus agreement shall grant the Company a repurchase option exercisable upon the
voluntary or involuntary termination of the Holder's employment with the Company
for any reason (including death or disability). Subject to applicable laws, if
the Board so determines, the purchase price for shares repurchased may be paid
by cancellation of any indebtedness of the Holder to the Company. Subject to
Section 4(d) with respect to Stock Bonus awards granted to Section 162(m)
Participants, the repurchase option shall lapse at such rate as the Board may
determine.

      (e) Other Provisions. The stock bonus agreement shall contain such other
terms, provisions and conditions not inconsistent with the Plan as may be
determined by the Board.

14. NON-TRANSFERABILITY OF AWARDS. Unless determined otherwise by the Board, an
Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed
of in any manner other than by will or by the laws of descent or distribution
and may be exercised, during the lifetime of the Holder, only by the Holder. If
the Board makes an Award transferable, such Award shall contain such additional
terms and conditions as the Board deems appropriate.

15. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION OR MERGER.

      (a) Changes in Capitalization. Subject to any action by the Company
required by applicable law or regulations or the requirements of the NASDAQ
Stock Market or an established stock exchange on which the Company's securities
are traded, and subject to Section 15(d), the number and kind of shares of
Common Stock (or other securities or property) covered by each outstanding
Award, and the number and kind of shares of Common Stock (or other securities or
property) which have been authorized for issuance under the Plan but as to which
no Awards have yet been granted or which have been returned to the Plan upon
cancellation or expiration of an Award, as well as the price per share of Common
Stock (or other securities or property) covered by each such outstanding Award,
shall be adjusted proportionately to the extent the Board determines that any
increase, decrease or adjustment in the number or kind of issued shares of
Common Stock (or other securities or property), dividend, distribution, stock
split, reverse stock split, stock

                                      -12-
<PAGE>

dividend, combination or reclassification of the Common Stock, reorganization,
merger, consolidation, split-up, repurchase, liquidation, dissolution, or sale,
transfer, exchange or other disposition of all or substantially all of the
assets of the Company, exchange of Common Stock or other securities of the
Company, or other similar corporate transaction or event, in the Board's sole
discretion, affects the Common Stock such that an adjustment is determined by
the Board to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan or
with respect to an Award. Such adjustment shall be made by the Board, whose
determination in that respect shall be final, binding and conclusive. Except as
expressly provided herein, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of shares of Common Stock subject to an Award.

      (b) Dissolution or Liquidation. In the event of the proposed dissolution
or liquidation of the Company, the Board shall notify the Holder at least
fifteen (15) days prior to such proposed action. To the extent it has not been
previously exercised, the Award shall terminate immediately prior to the
consummation of such proposed action.

      (c) Merger or Asset Sale. In the event of a merger, sale of all or
substantially all of the assets of the Company, tender offer or other
transaction or series of related transactions resulting in a change of ownership
of more than fifty percent (50%) of the voting securities of the Company
("Change in Control") approved by the majority of the members of the Board on
the Board prior to the commencement of such Change in Control, each outstanding
Option shall be assumed or an equivalent option or right substituted by the
successor corporation or a Parent or Subsidiary of the successor corporation;
provided, however, in the event that within one year of the date of the
completion of the Change in Control, the successor corporation or a Parent or
Subsidiary of the successor corporation terminates the employment of an Optionee
without Cause (as defined below), such Optionee shall fully vest in and have the
right to exercise the options assumed or substituted for the Option as to all of
the Optioned Stock, including Shares as to which it would not otherwise be
exercisable. In the event that the successor corporation refuses to assume or
substitute for the Option, the Optionee shall fully vest in and have the right
to exercise the Option as to all of the Optioned Stock, including Shares as to
which it would not otherwise be exercisable. If an Option becomes fully vested
and exercisable in lieu of assumption or substitution in the event of a Change
in Control, the Board shall notify the Optionee in writing or electronically
that the Option shall be fully vested and exercisable for a period of fifteen
(15) days from the date of such notice, and the Option shall terminate upon the
expiration of such period. For the purposes of this paragraph, the Option shall
be considered assumed if, following the Change in Control, the option confers
the right to purchase, for each Share of Optioned Stock subject to the Option
immediately prior to the Change in Control, the consideration (whether stock,
cash, or other securities or property) received in the Change in Control by
holders of Common Stock for each Share held on the effective date of the
transaction (and if holders were offered a choice of consideration, the type of
consideration chosen by the holders of a majority of the outstanding Shares);
provided, however, that if such consideration received in the Change in Control
is not solely common stock of the successor corporation or its Parent, the Board
may, with the consent of the successor corporation, provide for the
consideration to be received upon the exercise of the Option, for each Share of
Optioned Stock subject to the Option, to be solely common stock of the successor
corporation or its Parent equal in fair market

                                      -13-
<PAGE>

value to the per share consideration received by holders of Common Stock in the
Change in Control. For purposes of this paragraph, termination shall be for
"Cause" in the event of the occurrence of any of the following: (a) any
intentional action or intentional failure to act by employee which was performed
in bad faith and to the material detriment of the successor corporation or its
Parent or Subsidiary; (b) employee willfully and habitually neglects the duties
of employment; or (c) employee is convicted of a felony crime involving moral
turpitude; provided, that in the event that any of the foregoing events is
capable of being cured, the successor corporation or its Parent or Subsidiary
shall provide written notice to the employee describing the nature of such event
and the employee shall thereafter have five (5) business days to cure such
event.

      In the event of a Change in Control which is not approved by the majority
of the members of the Board on the Board prior to the commencement of a Change
in Control, each Optionee shall fully vest in and have the right to exercise all
outstanding Options as to all of the Optioned Stock, including Shares as to
which it would not otherwise be exercisable.

      (d) With respect to Awards which are granted to Section 162(m)
Participants and are intended to qualify as performance-based compensation under
Section 162(m)(4)(C), no adjustment or action described in this Section 15 or in
any other provision of the Plan shall be authorized to the extent that such
adjustment or action would cause such Award to fail to so qualify under Section
162(m)(4)(C), or any successor provisions thereto.

16. DATE OF GRANTING AWARDS. The date of grant of an Award shall, for all
purposes, be the date on which the Board makes the determination granting such
Award. Notice of the determination shall be given to each Employee or Consultant
to whom an Award is so granted within a reasonable time after the date of such
grant.

17. AMENDMENT AND TERMINATION OF THE PLAN.

      (a) Amendment and Termination. The Board may at any time amend, alter,
suspend or discontinue the Plan, but no amendment, alteration, suspension or
discontinuation shall be made which would impair the rights of any Holder under
any grant theretofore made, without his or her consent. In addition, to the
extent necessary and desirable to comply with Section 422 of the Code (or any
other applicable laws or regulation, the requirements of the NASDAQ Stock Market
or an established stock exchange), the Company shall obtain stockholder approval
of any Plan amendment in such a manner and to such a degree as required.

      (b) Effect of Amendment or Termination. Any such amendment or termination
of the Plan shall not affect Awards already granted, and such Awards shall
remain in full force and effect as if this Plan had not been amended or
terminated, unless mutually agreed otherwise between the Holder, as applicable,
and the Board, which agreement must be in writing and signed by the Holder, as
applicable, and the Company.

18. CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued pursuant to
the exercise of an Award unless the exercise of such Award and the issuance and
delivery of such Shares pursuant thereto shall comply with all relevant
provisions of law, including, without limitation, the Securities

                                      -14-
<PAGE>

Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the
rules and regulations promulgated thereunder, and the requirements of the NASDAQ
Stock Market or any stock exchange upon which the Shares may then be listed, and
shall be further subject to the approval of counsel for the Company with respect
to such compliance.

As a condition to the exercise of an Award, the Company may require the person
exercising such Award to represent and warrant at the time of any such exercise
that the Shares are being purchased only for investment and without any present
intention to sell or distribute such Shares if, in the opinion of counsel for
the Company, such a representation is required by any of the aforementioned
relevant provisions of law.

19. RESERVATION OF SHARES. The Company, during the term of this Plan, will at
all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan. The inability of the Company
to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.

20. AWARD AGREEMENTS. Options shall be evidenced by written Option Agreements in
such form as the Board shall approve. Restricted Stock awards, Restricted Stock
Unit awards, or Stock Bonus awards shall be evidenced by written restricted
stock award agreements, a restricted stock unit award agreements, or stock bonus
agreements, respectively, in such form as the Board shall approve.

21. STOCKHOLDER APPROVAL. Continuance of the Plan shall be subject to approval
by the stockholders of the Company within twelve (12) months before or after the
date the Plan is adopted. Such stockholder approval shall be obtained in the
degree and manner required under applicable laws and the rules of the NASDAQ
Stock Market or any stock exchange upon which the Common Stock is listed.

22. SECTION 409A OF THE CODE. In the event any provision of the Plan, or the
application thereof, is or becomes inconsistent with Section 409A of the Code
and any regulations promulgated thereunder, such provision shall be void or
unenforceable or in the sole discretion of the Board shall be deemed amended to
comply with Section 409A and any regulations promulgated thereunder. The other
provisions of the Plan shall remain in full force and effect.

                                      -15-<PAGE>
                                                                     EXHIBIT 4.4

                   AMENDED AND RESTATED STOCKHOLDERS AGREEMENT

         THIS AMENDED AND RESTATED STOCKHOLDERS AGREEMENT (this "Agreement") is
made as of __________, 2006 by and among (i) HealthSpring, Inc., a Delaware
corporation (formerly known as NewQuest Holdings, Inc.) (the "Company"), (ii)
GTCR Fund VIII, L.P., a Delaware limited partnership ("Fund VIII"), GTCR Fund
VIII/B, L.P., a Delaware limited partnership ("Fund VIII/B"), GTCR Co-Invest II,
L.P., a Delaware limited partnership ("GTCR Co-Invest"), and certain other
Stockholders. Capitalized terms used but not otherwise defined herein are
defined in Section 5 hereof.

         WHEREAS, Section 17 of the Stockholders Agreement dated March 1, 2005
by and among the above mentioned parties to this Agreement and the other Persons
listed on the Schedule of Stockholders thereto (the "Original Agreement")
provides that the Original Agreement may be amended by the Company, the Investor
Majority, and the holders of a majority of the Common Stock held by the
Executives and the Other Stockholders, collectively;

         WHEREAS, in connection with the proposed initial Public Offering of
Common Stock of the Company (the "IPO"), the Company and the parties hereto
desire to amend and restate the Original Agreement and enter into this
Agreement, subject to and effective upon the consummation of the IPO (the
"Effective Time");

         WHEREAS, this Agreement has been executed by the Company, the Investor
Majority, and the holders of a majority of the Common Stock held by the
Executives and the Other Stockholders, collectively; and

         WHEREAS, this Agreement is therefore, upon the Effective Time, intended
to be binding upon the parties hereto, and the Persons listed on the attached
Schedule of Stockholders.

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties to this Agreement hereby amend and
restate the Original Agreement in its entirety, subject to and effective upon
the consummation of the IPO as of the Effective Time, as follows:

         1. Board of Directors; Approval of Equity Awards.

            (a) Investor Directors. From and after the Effective Time and until
the provisions of this Section 1 cease to be effective, each holder of
Stockholder Shares shall vote all of his, her or its Stockholder Shares which
are voting shares and any other voting securities of the Company over which such
holder has voting control, and shall take all other necessary or desirable
actions within his, her or its control as a stockholder (including, without
limitation, attendance at meetings in person or by proxy for purposes of
obtaining a quorum and execution of written consents in lieu of meetings), and
the Company shall take all necessary and desirable actions within its control
(including, without limitation, calling special board and stockholder meetings),
so that the following persons shall be elected to the Board of Directors of the
Company (the "Board"):

                           (i) for such time as the Investors collectively
                  beneficially own at least 10% of the outstanding shares of
                  Common Stock of the Company, one representative designated by
                  Fund VIII, who shall initially be Joseph P. Nolan (the "Fund
                  VIII Director"); and

                           (ii) for such time as the Investors collectively
                  beneficially own at least 15% of the outstanding shares of
                  Common Stock of the Company, one representative designated by
                  Fund VIII/B, who shall initially be Daniel L. Timm (the "Fund
                  VIII/B Director" and, collectively with the Fund VIII
                  Director, the "Investor Directors").
<PAGE>

            (b) The removal from the Board of any Fund VIII Director shall be
upon (and only upon) the written request of Fund VIII, and the removal from the
Board of any Fund VIII/B Director shall be upon (and only upon) the written
request of Fund VIII/B, such removal being effective, in each case, as of the
date specified in such written request and without any further action required
by the Board or the Stockholders; and

            (c) Mr. Nolan shall initially be designated as a Class I director of
the Company and Mr. Timm shall initially be designated as a Class II director of
the Company. The Company agrees to cause the nomination of the aforementioned
designees (and each successor or replacement designated by Fund VIII or Fund
VIII/B, as applicable) for election by the stockholders of the Company at each
applicable meeting called for the purposes of electing such designees to the
Board upon the expiration of their then-current term. In the event a vacancy is
created on the Board by the retirement, resignation or other removal of an
Investor Director, the Company agrees to cause the Board to elect a successor
designated by Fund VIII or Fund VIII/B, as applicable, to fill such vacancy and
to serve the remainder of such initial director's then-current term.

            (d) Board Committees. For such time as the Investors collectively
beneficially own at least 15% of the outstanding shares of Common Stock of the
Company:

                  (i) Fund VIII will have the right to designate, and the
         Company agrees to cause the Board to elect, one of the Investor
         Directors to serve on each of the Audit Committee, the Compensation
         Committee, the Nominating and Corporate Governance Committee, and each
         of the other committees of the Board, except to the extent prohibited
         by applicable law or the rules of the New York Stock Exchange or
         another applicable self-regulatory body;

                  (ii) the removal from any such committee (except as may be
         required to comply with applicable law or the rules of the New York
         Stock Exchange or other applicable self-regulatory body) of any
         Investor Director shall be upon (and only upon)

                                      -2-
<PAGE>

         the written request of Fund VIII and such Director shall be removed
         effective as of the date specified in such written request and without
         any further action required by the Board or the Stockholders;

                  (iii) in the event a vacancy is created on any such committee
         by the retirement, resignation or other removal of an Investor
         Director, the Company agrees to cause such committee to elect a
         successor designated by Fund VIII to fill such vacancy and to serve the
         remainder of such initial director's then-current term (except as may
         be required to comply with applicable law or the rules of the New York
         Stock Exchange or other applicable self-regulatory body).

            (e) Fund VIII Consent to Equity Issuances. For such time as the
Investors collectively beneficially own at least 15% of the outstanding shares
of Common Stock of the Company, the consent of Fund VIII will be required prior
to the issuance of any equity or equity-based awards to any of the Company's
Section 16 Officers; provided, that such consent shall be deemed to have been
given if such award has been approved by any Investor Director who is also a
member of the Compensation Committee of the Board unless Fund VIII delivers
notice to the Company that its consent is withheld prior to the end of the
meeting at which such issuance is being considered.

            (f) Automatic Termination. The provisions of this Section 1 shall
terminate automatically and be of no further force and effect upon the
consummation of a sale of the Company.

                                      -3-

<PAGE>

         2. Restrictions on Transfer.

            (a) Transfer of Stockholder Shares. No holder of Stockholder Shares
other than an Investor shall Transfer any interest in Stockholder Shares prior
to March 1, 2010, without the prior written consent of the Investor Majority,
except Transfers to a Permitted Transferee in accordance with Section 2(b) or
pursuant to a Public Sale or a Sale of the Company approved by the Board (an
"Approved Sale") in accordance with this Agreement.

            (b) Permitted Transfers. The restrictions set forth in Section 2(a)
shall not apply to (i) any Transfer of Stockholder Shares by any Stockholder to
or among its Affiliates or Family Group, (ii) a Public Sale by any of the
Executives or any of their Permitted Transferees after the Executives
Restriction Termination Date, (iii) a Public Sale by any of the Other
Stockholders or any of their Permitted Transferees after the Other Stockholders
Restriction Termination Date, or (iv) an Approved Sale; provided that the
restrictions contained in this Agreement will continue to be applicable to the
Stockholder Shares after any Transfer pursuant to clause (i) above and the
transferee of such Stockholder Shares shall agree in writing to be bound by the
provisions of this Agreement. Upon the Transfer of Stockholder Shares pursuant
to clause (i) of the previous sentence, the transferees will deliver a written
notice to the Company, which notice will disclose in reasonable detail the
identity of such transferee. A transferee permitted pursuant to this Section
2(b) who receives a transfer of Stockholder Shares in accordance with this
Agreement shall be referred to herein as a "Permitted Transferee."
Notwithstanding the foregoing, no party hereto shall avoid the provisions of
this Agreement by (i) making one or more transfers to one or more Permitted
Transferees and then disposing of all or any portion of such party's interest in
any such Permitted Transferee or (ii) by Transferring the securities of any
entity holding (directly or indirectly) Stockholder Shares.

            (c) Termination of Restrictions. The restrictions on the Transfer of
Stockholder Shares set forth in this Section 2 shall continue with respect to
each Stockholder Share until the earlier of: (i) with respect to an Executive,
the Executives Restriction Termination Date, or, with respect to an Other
Stockholder, the Other Stockholders Restriction Termination Date, and (ii) the
date on which such Stockholder Share has been transferred in a Public Sale or
pursuant to an Approved Sale.

         3. Holdback Agreement. To the extent not inconsistent with applicable
law, each holder of Stockholder Shares shall not effect any public sale or
distribution (including sales pursuant to Rule 144) of equity securities of the
Company, or any securities, options or rights convertible into or exchangeable
or exercisable for such securities, during the seven days prior to and the
180-day period beginning on the effective date of the IPO or any underwritten
Demand Registration or any underwritten Piggyback Registration in which
Registrable Securities are included (except as part of such underwritten
registration or pursuant to registrations on Form S-4 or Form S-8 or any
successor form), except to the extent the underwriters managing the registered
public offering otherwise agree with respect to all Stockholders.
Notwithstanding any provision to the contrary in this Agreement, (i) none of the
Other Stockholders shall effect any public sale or distribution (including sales
pursuant to Rule 144) of equity securities of the Company, or any securities,
options or rights convertible into or exchangeable or exercisable for such
securities until the Other Stockholders Restriction Termination Date, and (ii)
none of the Executives shall effect any public sale or distribution (including
sales pursuant to Rule 144) of

                                      -4-
<PAGE>

equity securities of the Company, or any securities, options or rights
convertible into or exchangeable or exercisable for such securities until the
Executives Restriction Termination Date.

         4. Legend. Each certificate evidencing Stockholder Shares and each
certificate issued in exchange for or upon the transfer of any Stockholder
Shares (if such securities remain Stockholder Shares as defined herein after
such transfer) shall be stamped or otherwise imprinted with a legend in
substantially the following form:

         "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES
         REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN TRANSFER AND
         VOTING AND OTHER RESTRICTIONS PURSUANT TO AN AMENDED AND RESTATED
         STOCKHOLDERS AGREEMENT DATED AS OF ____________, 2005 AMONG THE ISSUER
         OF SUCH SECURITIES (THE "COMPANY") AND CERTAIN OF THE COMPANY'S
         STOCKHOLDERS. A COPY OF SUCH STOCKHOLDERS AGREEMENT WILL BE FURNISHED
         WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN
         REQUEST."

The Company shall imprint such legend on certificates evidencing Stockholder
Shares outstanding prior to the date hereof. The legend set forth above shall be
removed from the certificates evidencing any securities which cease to be
Stockholder Shares.

         5. Definitions.

         "Affiliate" means, (i) with respect to any Person, any Person that
controls, is controlled by or is under common control with such Person or an
Affiliate of such Person, and (ii) with respect to any Investor, any general or
limited partner of such Investor, any employee or owner of any such partner, or
any other Person controlling, controlled by or under common control with such
Investor. For purposes of this definition, "control" (including the terms
"controlling," "controlled by" and "under common control with") means the
possession, direct or indirect, of the power to direct or cause the direction of
the management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise, and such "control" will be presumed if any
Person owns 20% or more of the voting capital stock or other ownership
interests, directly or indirectly, of any other Person.

         "Common Stock" means the common stock of the Company, $0.01 par value
per share.

         "Demand Registration" has the meaning given to such term in the
Registration Agreement.

         "Executives" means the Persons listed on the attached Schedule of
Stockholders under the heading "Executives" and each of the other executives or
employees of the Company or its Subsidiaries or persons who were executives or
employees of the Company or its Subsidiaries at any time subsequent to July 1,
2004 who, at any time, acquires Stockholder Shares of the

                                      -5-
<PAGE>

Company and executes a counterpart of this Agreement or otherwise agrees to be
bound by this Agreement.

         "Executives Restriction Termination Date" means the earlier of (a) the
second anniversary of the IPO and (b) the receipt of proceeds by the Investors
from the sale of Stockholder Shares held by the Investors in an aggregate amount
of at least $134,068,683.

         "Family Group" means a Person's spouse and descendants (whether natural
or adopted), and any trust, family limited partnership, limited liability
company or other entity wholly owned, directly or indirectly, by such Person or
such Person's spouse and/or descendants that is and remains solely for the
benefit of such Person and/or such Person's spouse and/or descendants and any
retirement plan for such Person, or a not-for-profit entity or organization for
estate planning purposes.

         "GTCR" means GTCR Golder Rauner II, L.L.C., a Delaware limited
liability company.

         "Investor" means each of Fund VIII, Fund VIII/B and GTCR Co-Invest, and
any investment fund managed by GTCR, GTCR Golder Rauner, L.L.C., or any of their
respective Affiliates, that at any time executes a counterpart of this Agreement
or otherwise agrees to be bound by this Agreement.

         "Investor Majority" means the holders of a majority of the Common Stock
held by the Investors.

         "Other Stockholders" means the Persons listed on the attached Schedule
of Stockholders under the heading "Other Stockholders" and each of the other
Persons set forth from time to time on the attached Schedule of Stockholders
under the heading "Other Stockholders" who, at any time, acquires Stockholder
Shares of the Company and executes a counterpart of this Agreement or otherwise
agrees to be bound by this Agreement.

         "Other Stockholders Restriction Termination Date" means the earlier of
(a) the first anniversary of the IPO and (b) the receipt of proceeds by the
Investors from the sale of Stockholder Shares held by the Investors in an
aggregate amount of at least $134,068,683.

         "Person" means an individual, a partnership, a limited liability
company, a corporation, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization, an investment fund, any other business
entity and a governmental entity or any department, agency or political
subdivision thereof.

         "Piggyback Registration" has the meaning given to such term in the
Registration Agreement.

         "Preferred Stock" means the preferred stock of the Company, $0.01 par
value per share.

         "Public Offering" means the sale in an underwritten public offering
registered under the Securities Act of the equity securities of the Company (or
any successor thereto) approved by the Board.

                                      -6-
<PAGE>

         "Public Sale" means any sale of Stockholder Shares (i) to the public
pursuant to an offering registered under the Securities Act or (ii) to the
public through a broker, dealer or market maker pursuant to the provisions of
Rule 144 (other than Rule 144(k) prior to a Public Offering) adopted under the
Securities Act.

         "Registrable Securities" has the meaning given to such term in the
Registration Agreement.

         "Registration Agreement" means that certain Registration Rights
Agreement, dated as of the date hereof, by and among the Company, the Investors
and the other parties thereto, as amended from time to time pursuant to its
terms.

         "Sale of the Company" means any transaction or series of transactions
pursuant to which any Person or group of related Persons (other than the
Investors and their Affiliates) in the aggregate acquire(s) (i) 50% or more of
the Common Stock outstanding at the time of such transaction or series of
transactions or (ii) all or substantially all of the Company's assets determined
on a consolidated basis; provided that a Public Offering shall not constitute a
Sale of the Company.

         "Section 16 Officers" means the officers of the Company designated by
the Board as "officers" for purposes of Section 16 of the Securities Exchange
Act of 1934, as amended.

         "Securities Act" means the Securities Act of 1933, as amended from time
to time.

         "Stockholders" means, collectively, the Investors, the Executives, the
Other Stockholders and the other Persons listed on the Schedule of Stockholders
(each such Person individually being a "Stockholder").

         "Stockholder Shares" means (i) any shares of the Company's Preferred
Stock or Common Stock purchased or otherwise acquired by any Stockholder, (ii)
any equity securities issued or issuable directly or indirectly with respect to
the Stockholder Shares referred to in clause (i) above by way of a stock
dividend or stock split or in connection with a combination of stock,
recapitalization, merger, consolidation or other reorganization, and (iii) any
other shares of any class or series of equity securities of the Company held by
a Stockholder. For purposes of this Agreement, each Stockholder who holds
options or warrants to acquire Stockholder Shares shall be deemed to be the
holder of all Stockholder Shares issuable (at the time of such determination)
upon the exercise of such options or warrants. As to any particular equity
securities constituting Stockholder Shares, such Stockholder Shares will cease
to be Stockholder Shares when they have been (x) effectively registered under
the Securities Act and disposed of in accordance with the registration statement
covering them or (y) sold to the public through a broker, dealer or market maker
pursuant to Rule 144 (or any similar provision then in force) under the
Securities Act.

         "Subsidiary" means, with respect to any Person, any corporation,
limited liability company, partnership, association, or business entity of which
(i) if a corporation, a majority of the total voting power of shares of stock
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers, or trustees thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other

                                      -7-

<PAGE>

Subsidiaries of that Person or a combination thereof, or (ii) if a limited
liability company, partnership, association or other business entity (other than
a corporation), a majority of partnership or other similar ownership interest
thereof is at the time owned or controlled, directly or indirectly, by that
Person or one or more Subsidiaries of that Person or a combination thereof. For
purposes hereof, a Person or Persons shall be deemed to have a majority
ownership interest in a limited liability company, partnership, association, or
other business entity (other than a corporation) if such Person or Persons shall
be allocated a majority of limited liability company, partnership, association
or other business entity gains or losses or shall be or control any managing
director or general partner of such limited liability company, partnership,
association, or other business entity. For purposes hereof, references to a
"Subsidiary" of any Person shall be given effect only at such times that such
Person has one or more Subsidiaries, and, unless otherwise indicated, the term
"Subsidiary" refers to a Subsidiary of the Company.

         "Transfer" means to sell, transfer, assign, pledge or otherwise dispose
of (whether with or without consideration and whether voluntarily or
involuntarily or by operation of law), but explicitly excluding exchanges of one
class of Stockholder Shares to or for another class of Stockholder Shares.

         6. Transfers; Transfers in Violation of Agreement. Prior to
Transferring any Stockholder Shares to any person or entity (except pursuant to
a Public Sale), the Transferring Stockholder shall cause the prospective
transferee to execute and deliver to the Company, on behalf of the Company, the
Investors, the Executives and the Other Stockholders, a counterpart of this
Agreement. Any Transfer or attempted Transfer of any Stockholder Shares in
violation of any provision of this Agreement shall be void, and the Company
shall not record such Transfer on its books or treat any purported transferee of
such Stockholder Shares as the owner of such securities for any purpose.

         7. Additional Stockholders. In connection with the issuance of any
additional equity securities of the Company to any Person, the Company may
permit such Person to become a party to this Agreement and succeed to all of the
rights and obligations of a "Stockholder" under this Agreement by obtaining an
executed joinder to this Agreement, a form of which is attached hereto as
Exhibit A and, upon such execution, such Person shall for all purposes be a
"Stockholder" party to this Agreement.

         8. Representations and Warranties. Each Stockholder represents and
warrants that (i) this Agreement has been duly authorized, executed and
delivered by such Stockholder and constitutes the valid and binding obligation
of such Stockholder, enforceable in accordance with its terms, and (ii) such
Stockholder has not granted and is not a party to any proxy, voting trust or
other agreement that is inconsistent with, conflicts with or violates any
provision of this Agreement. No holder of Stockholder Shares shall grant any
proxy or become a party to any voting trust or other agreement that is
inconsistent with, conflicts with or violates any provision of this Agreement.
The Company hereby represents and warrants that based upon its books and
records, this Agreement has been executed by the holders of a majority of the
Common Stock held by the Executives and the Other Stockholders, collectively.

         9. Amendment and Waiver. Except as otherwise provided herein, no
modification, amendment or waiver of any provision of this Agreement shall be
effective against the Company

                                      -8-
<PAGE>

or the Stockholders unless such modification, amendment or waiver is approved in
writing by the Company, the Investor Majority, and the holders of a majority of
the Common Stock held by the Executives and the Other Stockholders,
collectively; provided that no such amendment or modification that would
adversely affect one class or group of holders of Stockholder Shares in a manner
adversely different than any other class or group of holders of Stockholder
Shares shall be effective against such class or group of holders of Stockholder
Shares without the prior written consent of at least a majority of such class or
group adversely affected thereby. The failure of any party to enforce any of the
provisions of this Agreement shall in no way be construed as a waiver of such
provisions and shall not affect the right of such party thereafter to enforce
each and every provision of this Agreement in accordance with its terms.

         10. Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision or any other jurisdiction, but this Agreement shall be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

         11. Entire Agreement. This Agreement, those documents expressly
referred to herein and other documents of even date herewith embody the complete
agreement and understanding among the parties hereto with respect to the subject
matter hereof and supersede and preempt any prior understandings, agreements or
representations by or among the parties, written or oral, which may have related
to the subject matter hereof in any way.

         12. Successors and Assigns. Except as otherwise provided herein, this
Agreement shall bind and inure to the benefit of and be enforceable by the
Company and its successors and assigns and the Stockholders and any subsequent
holders of Stockholder Shares and the respective successors and assigns of each
of them, so long as they hold Stockholder Shares. The rights and obligations of
each Investor under this Agreement may be assigned by each such Investor at any
time, in whole or in part, to another Investor or any investment fund managed by
GTCR, GTCR Golder Rauner, L.L.C. or any successor thereto.

         13. Counterparts. This Agreement may be executed in separate
counterparts (including by means of telecopied signature pages) each of which
shall be an original and all of which taken together shall constitute one and
the same agreement.

         14. Remedies. The Company and each Stockholder shall be entitled to
enforce their rights under this Agreement specifically to recover damages by
reason of any breach of any provision of this Agreement and to exercise all
other rights existing in their favor. The parties hereto agree and acknowledge
that money damages may not be an adequate remedy for any breach of the
provisions of this Agreement and that the Company and each Stockholder may in
its sole discretion apply to any court of law or equity of competent
jurisdiction for specific performance and/or injunctive relief (without posting
a bond or other security) in order to enforce or prevent any violation of the
provisions of this Agreement.

                                      -9-
<PAGE>

         15. Notices. All notices, demands or other communications to be given
or delivered under or by reason of the provisions of this Agreement shall be in
writing and shall be deemed to have been given when (i) delivered personally to
the recipient, (ii) sent to the recipient by reputable express courier service
(charges prepaid), (iii) mailed to the recipient by certified or registered
mail, return receipt requested and postage prepaid, or (iv) telecopied to the
recipient (with hard copy sent to the recipient by reputable overnight courier
service (charges prepaid) that same day) if telecopied before 5:00 p.m.
Nashville, Tennessee time on a business day, and otherwise on the next business
day. Such notices, demands and other communications shall be sent to the to the
Company at the addresses indicated below and to any other recipient at the
address indicated on the schedules hereto and to any subsequent holder of
Stockholder Shares subject to this Agreement at such address as indicated by the
Company's records, or at such address or to the attention of such other Person
as the recipient party has specified by prior written notice to the sending
party:

         If to the Company:

         HealthSpring, Inc.
         44 Vantage Way, Suite 300
         Nashville, TN  37228
         Attention: Corporate Secretary
         Telephone: (615) 291-7000
         Telecopy: (615) 291-7011

         with copies (which shall not constitute notice) to:

         GTCR Fund VIII, L.P., GTCR Fund VIII/B, L.P. and GTCR
         Co-Invest II, L.P.
         c/o  GTCR Golder Rauner II, L.L.C.
         6100 Sears Tower
         Chicago, IL 60606-6402
         Attention: Joseph P. Nolan
                    Daniel L. Timm
         Telephone: (312) 382-2200
         Facsimile: (312) 382-2201

         16. Governing Law. All issues and questions concerning the
construction, validity, interpretation and enforceability of this Agreement and
the exhibits and schedules hereto shall be governed by, and construed in
accordance with, the laws of the State of Delaware, without giving effect to any
choice of law or conflict of law rules or provisions (whether of the State of
Delaware or any other jurisdiction) that would cause the application of the laws
of any jurisdiction other than the State of Delaware.

         17. MUTUAL WAIVER OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION
WITH COMPLEX TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN
EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL
LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR
DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO
ACHIEVE THE BEST

                                      -10-
<PAGE>

COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH
PARTY TO THIS AGREEMENT HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION,
SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY OF THE
PARTIES HERETO, WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT OF,
CONNECTED WITH, RELATED OR INCIDENTAL TO THIS AGREEMENT AND/OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

         18. Descriptive Headings; Interpretation. The descriptive headings of
this Agreement are inserted for convenience only and do not constitute a
substantive part of this Agreement. Whenever required by the context, any
pronoun used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns, pronouns and verbs
shall include the plural and vice versa. The use of the word "including" in this
Agreement shall be, in each case, by way of example and without limitation. The
use of the words "or," "either" and "any" shall not be exclusive. Reference to
any agreement, document or instrument means such agreement, document, or
instrument as amended or otherwise modified from time to time in accordance with
the terms thereof, and, if applicable, hereof.

         19. No Strict Construction. The parties hereto have participated
jointly in the negotiation and drafting of this Agreement. In the event an
ambiguity or question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by the parties hereto, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any of the provisions of this Agreement.

         20. Delivery by Facsimile. This Agreement, the agreements referred to
herein, and each other agreement or instrument entered into in connection
herewith or therewith or contemplated hereby or thereby, and any amendments
hereto or thereto, to the extent signed and delivered by means of a facsimile
machine, shall be treated in all manner and respects as an original agreement or
instrument and shall be considered to have the same binding legal effect as if
it were the original signed version thereof delivered in person. At the request
of any party hereto or to any such agreement or instrument, each other party
hereto or thereto shall reexecute original forms thereof and deliver them to all
other parties. No party hereto or to any such agreement or instrument shall
raise the use of a facsimile machine to deliver a signature or the fact that any
signature or agreement or instrument was transmitted or communicated through the
use of a facsimile machine as a defense to the formation or enforceability of a
contract and each such party forever waives any such defense.

                                      -11-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Amended and
Restated Stockholders Agreement on the day and year first above written.

                                       HEALTHSPRING, INC.

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

                                       GTCR FUND VIII, L.P.

                                       By:      GTCR Partners VIII, L.P.
                                       Its:     General Partner

                                       By:      GTCR Golder Rauner II, L.L.C.
                                       Its:     General Partner

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

                                       GTCR FUND VIII/B, L.P.

                                       By:      GTCR Partners VIII, L.P.
                                       Its:     General Partner

                                       By:      GTCR Golder Rauner II, L.L.C.
                                       Its:     General Partner

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

                                       GTCR CO-INVEST II, L.P.

                                       By:      GTCR Golder Rauner II, L.L.C.
                                       Its:     General Partner

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

        SIGNATURE PAGE TO THE AMENDED AND RESTATED STOCKHOLDERS AGREEMENT

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