Document:

<PAGE>
                                                                    EXHIBIT 10.1

                            SPHERIS HOLDING III, INC.
                              STOCK INCENTIVE PLAN

          1. PURPOSE.

     The purpose of the Plan is to assist the Company in attracting, retaining,
motivating and rewarding Eligible Persons, and to promote the creation of
long-term value for stockholders by closely aligning the interests of
Participants with those of stockholders. The Plan authorizes the award of
Options and Restricted Stock to Participants, to encourage such persons to
expend their maximum efforts in the creation of stockholder value. The Plan is
also intended to qualify certain compensation awarded under the Plan for tax
deductibility under Section 162(m) of the Code to the extent deemed appropriate
by the Committee which administers the Plan.

          2. DEFINITIONS.

     For purposes of the Plan, the following terms shall be defined as set forth
below:

          (a) "Affiliate" means, with respect to any entity, any other entity
that, directly or indirectly through one or more intermediaries, controls, is
controlled by or is under common control with such entity.

          (b) "Award" means any award of an Option or Restricted Stock granted
under the Plan.

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

          (d) "Cause" means, in the absence of any such employment, consulting
or other agreement between a Participant and the Employer otherwise defining
Cause, (i) fraud, personal dishonesty, or acts of gross negligence or willful
misconduct on the part of Participant in the course of his or her employment or
services, (ii) a Participant's engagement in conduct that is materially
injurious to the Company or an Affiliate, (iii) misappropriation by Employee of
the assets or business opportunities of the Company or its affiliates; (iv)
embezzlement or other financial fraud committed by Employee, at his direction,
or with his personal knowledge; (v) a Participant's conviction by a court of
competent jurisdiction of, or pleading "guilty" or "no contest" to, (x) a
felony, or (y) any other criminal charge (other than minor traffic violations)
which could reasonably be expected to have a material adverse impact on the
Company's or an Affiliate's reputation or business; or (v) failure by a
Participant to follow the lawful directions of a superior officer or the Board.
In the event there is an employment, consulting or other agreement between a
Participant and the Employer defining Cause, "Cause" shall have the meaning
provided in such agreement.

          (e) "Change in Control" shall mean any transactions or series of
related transactions pursuant to which any person(s) or entity(ies) (other than
the shareholders of the Designated Person and their respective affiliates
immediately following the Closing Date), in the aggregate, directly or
indirectly, acquires beneficially or of record, (i) Voting Equity of a
Designated Person (whether by merger, consolidation, reorganization,
combination, sale or transfer of equity, stockholder or voting agreement, proxy,
power of attorney or otherwise); provided, however, that if immediately
following such transaction or series of transactions, the

<PAGE>

shareholders of the Designated Person and their respective affiliates
immediately following the Closing Date, hold, in the aggregate, equity
securities holding voting power in excess of any other single holder (together
with any affiliates of such single holder), such transaction or series of
transactions shall not constitute a Change in Control hereunder; or (ii) all or
substantially all of a Designated Person's assets.

          (f) "Closing Date" shall have the meaning set forth in the Securities
Purchase Agreement.

          (g) "Code" means the Internal Revenue Code of 1986, as amended from
time to time, including regulations thereunder and successor provisions and
regulations thereto.

          (h) "Committee" means a committee of two or more directors designated
by the Board to administer the Plan; provided, however, that directors appointed
as members of the Committee shall not be employees of the Company or any
subsidiary. In appointing members of the Committee, the Board will consider
whether a member is or will be a Qualified Member, but such members are not
required to be Qualified Members at the time of appointment or during their term
of service on the Committee, and no action of the Committee shall be void or
invalid due to the participation of a member who is not a Qualified Member.

          (i) "Company" means Spheris Holding III, Inc., a Delaware corporation.

          (j) "Company Sale" shall have the meaning ascribed to it in the
Stockholders Agreement.

          (k) "Designated Person" shall mean Spheris, Inc., Spheris Holding II,
Inc., Spheris Operations, Inc. or the Company.

          (l) "Disability" means the permanent and total disability of a person
within the meaning of Section 22(e)(3) of the Code.

          (m) "Drag-along Right" shall have the meaning ascribed to it in the
Stockholders Agreement.

          (n) "Eligible Person" means each employee of the Company or of any
Affiliate, each non-employee director of the Company or an Affiliate, each other
person who provides substantial services to the Company and/or its Affiliates
and who is designated as eligible by the Committee, and any person who has been
offered employment by the Company or an Affiliate, provided that such
prospective employee may not receive any payment or exercise any right relating
to an Award until such person has commenced employment with the Company or a
subsidiary or an Affiliate. An employee on an approved leave of absence may be
considered as still in the employ of the Company or an Affiliate for purposes of
eligibility for participation in the Plan.

          (o) "Employer" means either the Company or an Affiliate that the
Participant (determined without regard to any transfer of an Award) is employed
by or provides services to, as applicable.

                                       2

<PAGE>

          (p) "Exchange Act" means the Securities Exchange Act of 1934, as
amended from time to time, including rules thereunder and successor provisions
and rules thereto.

          (q) "Expiration Date" means the date upon which the term of an Option,
as determined under 6(b) hereof, expires.

          (r) "Fair Market Value" means (i) prior to an IPO, the fair market
value per share of Stock, as determined by the Board in good faith, (ii) at the
time of an IPO, the per share price to the public in such IPO, and (iii) after
an IPO, on any date (A) if the Stock is listed on a national securities
exchange, the mean between the highest and lowest sale prices reported as having
occurred on the primary exchange with which the Stock is listed and traded on
the date prior to such date, or, if there is no such sale on that date, then on
the last preceding date on which such a sale was reported, or (B) if the Stock
is not listed on any national securities exchange but is quoted in the National
Market System of the National Association of Securities Dealers Automated
Quotation System ("NASDAQ-NMS") on a last sale basis, the average between the
high bid price and low ask price reported on the date prior to such date, or, if
there is no such sale on that date then on the last preceding date on which such
a sale was reported. If, after an IPO, the Stock is not quoted on NASDAQ-NMS or
listed on an exchange, or representative quotes are not otherwise available, the
Fair Market Value shall mean the amount determined by the Board in good faith to
be the fair market value per share of Stock, on a fully diluted basis.

          (s) "IPO" means a "Qualified Public Offering," as such term is defined
in the Company's Amended and Restated Certificate of Incorporation.

          (t) "IPO Date" means the effective date of the registration statement
for the IPO.

          (u) "Lock-Up Period" shall have the meaning set forth in Section 9(a)
below.

          (v) "Mandatory Conversion" shall have the meaning ascribed to it in
the Stockholders Agreement.

          (w) "Option" means a conditional right, granted to a Participant under
Section 6 hereof, to purchase Stock at a specified price during specified time
periods. Options under the Plan are not intended to qualify as incentive stock
options meeting the requirements of Section 422 of the Code.

          (x) "Participant" means an Eligible Person who has been granted an
Award under the Plan which remains outstanding, or if applicable, such other
person or entity who holds an outstanding Award.

          (y) "Plan" means this Spheris Holdings III, Inc. Stock Incentive Plan.

          (z) "Qualified Member" means a member of the Committee who is a
"Non-Employee Director" within the meaning of Rule 16b-3 and an "outside
director" within the meaning of Regulation 1.162-27(c) under Code Section
162(m).

                                       3

<PAGE>

          (aa) "Restricted Stock" means Stock granted to a Participant under
Section 7 hereof, that is subject to certain restrictions and to a risk of
forfeiture.

          (bb) "Restricted Stock Agreement" means a written agreement between
the Company and a Participant evidencing the terms and conditions of an
individual Restricted Stock grant.

          (cc) "Rule 16b-3" means Rule 16b-3, as from time to time in effect and
applicable to the Plan and Participants, promulgated by the Securities and
Exchange Commission under Section 16 of the Exchange Act.

          (dd) "Securities Act" means the Securities Act of 1933, as amended
from time to time, including rules thereunder and successor provisions and rules
thereto.

          (ee) "Securities Purchase Agreement" shall mean that certain
Securities Purchase Agreement, dated October 12, 2004, by and among Spheris
Holdings LLC and Spheris Holding Inc.

          (ff) "Stock" means the Company's Common Stock, $.01 par value, and
such other securities as may be substituted for Stock pursuant to Section 8
hereof.

          (gg) "Soros Offer" shall have the meaning ascribed to it in the
Stockholders Agreement.

          (hh) "Stockholders Agreement" means the Stockholders Agreement, dated
November 5, 2004, by and among the Company and certain of its investors.

          (ii) "Voting Equity" shall mean the equity securities of a Designated
Person possessing the voting power to elect the Designated Person's governing
body.

          (jj) "Warburg Investors" shall have the meaning ascribed to it in the
Stockholders Agreement.

          3. ADMINISTRATION.

          (a) Authority of the Committee. Except as otherwise provided below,
the Plan shall be administered by the Committee. The Committee shall have full
and final authority, in each case subject to and consistent with the provisions
of the Plan, to (i) select Eligible Persons to become Participants; (ii) grant
Awards; (iii) determine the type, number, and other terms and conditions of, and
all other matters relating to, Awards; (iv) prescribe Award agreements (which
need not be identical for each Participant) and rules and regulations for the
administration of the Plan; (v) construe and interpret the Plan and Award
agreements and correct defects, supply omissions, or reconcile inconsistencies
therein; and (vi) make all other decisions and determinations as the Committee
may deem necessary or advisable for the administration of the Plan. The
foregoing notwithstanding, the Board shall perform the functions of the
Committee for purposes of granting Awards under the Plan to non-employee
directors. In any case in which the Board is performing a function of the
Committee under the Plan, each reference to the Committee herein shall be deemed
to refer to the Board, except where the

                                       4

<PAGE>

context otherwise requires. Any action of the Committee shall be final,
conclusive and binding on all persons, including, without limitation, the
Company, its subsidiaries, Eligible Persons, Participants and beneficiaries of
Participants.

          (b) Manner of Exercise of Committee Authority. At any time that a
member of the Committee is not a Qualified Member, (i) any action of the
Committee relating to an Award intended by the Committee to qualify as
"performance-based compensation" within the meaning of Section 162(m) of the
Code and regulations thereunder may be taken by a subcommittee, designated by
the Committee or the Board, composed solely of two or more Qualified Members;
and (ii) any action relating to an Award granted or to be granted to a
Participant who is then subject to Section 16 of the Exchange Act in respect of
the Company may be taken either by such a subcommittee or by the Committee but
with each such member who is not a Qualified Member abstaining or recusing
himself or herself from such action, provided that, upon such abstention or
recusal, the Committee remains composed of two or more Qualified Members. Such
action, authorized by such a subcommittee or by the Committee upon the
abstention or recusal of such non-Qualified Member(s), shall be the action of
the Committee for purposes of the Plan. The express grant of any specific power
to the Committee, and the taking of any action by the Committee, shall not be
construed as limiting any power or authority of the Committee.

          (c) Delegation. The Committee may delegate to officers or employees of
the Company or any Affiliate, or committees thereof, the authority, subject to
such terms as the Committee shall determine, to perform such functions,
including but not limited to administrative functions, as the Committee may
determine appropriate. The Committee may appoint agents to assist it in
administering the Plan. Notwithstanding the foregoing or any other provision of
the Plan to the contrary, any Award granted under the Plan to any person or
entity who is not an employee of the Company or any of its Affiliates shall be
expressly approved by the Committee.

          4. SHARES AVAILABLE UNDER THE PLAN.

          (a) Number of Shares Available for Delivery. Subject to adjustment as
provided in Section 8 hereof, the total number of shares of Stock reserved and
available for delivery in connection with Awards under the Plan shall be
14,607,143. Shares of Stock delivered under the Plan shall consist of authorized
and unissued shares or previously issued shares of Stock reacquired by the
Company on the open market or by private purchase.

          (b) Share Counting Rules. The Committee may adopt reasonable counting
procedures to ensure appropriate counting, avoid double counting (as, for
example, in the case of tandem or substitute awards) and make adjustments if the
number of shares of Stock actually delivered differs from the number of shares
previously counted in connection with an Award. To the extent that an Award
expires or is canceled, forfeited, settled in cash or otherwise terminated or
concluded without a delivery to the Participant of the full number of shares to
which the Award related, the undelivered shares will again be available for
Awards. Shares withheld in payment of the exercise price or taxes relating to an
Award and shares equal to the number surrendered in payment of any exercise
price or taxes relating to an Award shall be deemed to constitute shares not
delivered to the Participant and shall be deemed to again be available for

                                       5

<PAGE>

Awards under the Plan; provided, however, that, where shares are withheld or
surrendered more than ten years after the date of the most recent shareholder
approval of the Plan or any other transaction occurs that would result in shares
becoming available under this Section 4(b), such shares shall not become
available if and to the extent that it would constitute a material revision of
the Plan subject to shareholder approval under then applicable rules of the
principle stock exchange or automated quotation system on which the shares are
then listed or designated for trading.

          5. ELIGIBILITY; LIMITATIONS ON AWARDS.

          (a) Grants to Eligible Persons. Awards may be granted under the Plan
only to Eligible Persons.

          (b) 162(m) Limitation. Subject to Section 8 relating to adjustments,
no Employee shall be eligible to be granted Options covering more than 5,000,000
shares of Stock during any calendar year. This subsection (b) shall not apply
prior to the IPO Date and, following the IPO Date, this subsection (b) shall not
apply until (i) the earliest of: (1) the first material modification of the Plan
(including any increase in the number of shares of Stock reserved for issuance
under the Plan other than in accordance with Section 8 hereof); (2) the issuance
of all of the shares of Stock reserved for issuance under the Plan; (3) the
expiration of the Plan; or (4) the first meeting of stockholders at which
directors are to be elected that occurs after the close of the third calendar
year following the calendar year in which occurred the first registration of an
equity security under Section 12 of the Exchange Act; or (ii) such other date
required by Section 162(m) of the Code and the rules and regulations promulgated
thereunder.

          6. OPTIONS.

          (a) General. Options granted hereunder shall be in such form and shall
contain such terms and conditions as the Committee shall deem appropriate. The
provisions of separate Options shall be set forth in an Option Agreement, which
agreements need not be identical.

          (b) Term. The term of each Option shall be set by the Committee at the
time of grant; provided, however, that no Option granted hereunder shall be
exercisable after the expiration of ten (10) years from the date it was granted.

          (c) Exercise Price. The exercise price per share of Stock for each
Option shall be set by the Committee at the time of grant but shall not be less
than the par value of a share of Stock.

          (d) Payment for Stock. Payment for shares of Stock acquired pursuant
to Options granted hereunder shall be made in full, upon exercise of the Options
(i) in immediately available funds in United States dollars, by certified or
bank cashier' s check or by wire transfer; (ii) by surrender to the Company of
shares of Stock held for at least six months; (iii) by a combination of (i) and
(ii); or (iv) by any other means approved by the Committee. Anything herein to
the contrary notwithstanding, the Company shall not directly or indirectly
extend or maintain credit, or arrange for the extension of credit, in the form
of a personal loan to or for any director or executive officer of the Company
through the Plan in violation of Section 402 of the

                                       6

<PAGE>

Sarbanes-Oxley Act of 2002 ("Section 402 of SOX"), and to the extent that any
form of payment would, in the opinion of the Company's counsel, result in a
violation of Section 402 of SOX, such form of payment shall not be available.

          (e) Vesting. Options shall vest and become exercisable in such manner
and on such date or dates set forth in the Option Agreement, as may be
determined by the Committee; provided, however, that notwithstanding any vesting
dates contained herein or otherwise set by the Committee, the Committee may in
its sole discretion accelerate the vesting of any Option, which acceleration
shall not affect the terms and conditions of any such Option other than with
respect to vesting. Unless otherwise specifically determined by the Committee,
the vesting of an Option shall occur only while the Participant is employed or
rendering services to the Company or an Affiliate and all vesting shall cease
upon a Participant's termination of employment or services for any reason. If an
Option is exercisable in installments, such installments or portions thereof
which become exercisable shall remain exercisable until the Option expires.

          (f) Transferability of Options. An Option shall not be transferable
except by will or by the laws of descent and distribution and shall be
exercisable during the lifetime of the Participant only by the Participant.
Notwithstanding the foregoing, Options shall be transferable to the extent
provided in the Option Agreement or otherwise determined by the Committee.

          (g) Termination of Employment or Service. Except as may otherwise be
provided by the Committee in the Option Agreement:

               (i) If prior to the Expiration Date, a Participant's employment
     or service, as applicable, with the Employer terminates for any reason
     other than (A) by the Employer for Cause, or (B) by reason of the
     Participant's death or Disability, (1) all vesting with respect to the
     Options shall cease, (2) any unvested Options shall expire as of the date
     of such termination, and (3) any vested Options shall remain exercisable
     until the earlier of the Expiration Date or the date that is ninety (90)
     days after the date of such termination.

               (ii) If prior to the Expiration Date, a Participant's employment
     or service, as applicable, with the Employer terminates by reason of such
     Participant's death or Disability, (A) all vesting with respect to the
     Options shall cease, (B) any unvested Options shall expire as of the date
     of such termination, and (C) any vested Options shall expire on the earlier
     of the Expiration Date or the date that is twelve (12) months after the
     date of such termination due to death or Disability of the Holder. In the
     event of a Participant's death, the Options shall remain exercisable by the
     person or persons to whom a Participant's rights under the Options pass by
     will or the applicable laws of descent and distribution until its
     expiration, but only to the extent the Options were vested by such
     Participant at the time of such termination due to death.

               (iii) If prior to the Expiration Date, a Participant's employment
     or service, as applicable, with the Employer is terminated by the Employer
     for Cause, all Options (whether or not vested) shall immediately expire as
     of the date of such

                                       7

<PAGE>

     termination.

          7. RESTRICTED STOCK.

          (a) General. Restricted Stock granted hereunder shall be in such form
and shall contain such terms and conditions as the Committee shall deem
appropriate. The terms and conditions of each Restricted Stock grant shall be
evidenced by a Restricted Stock Agreement, which agreements need not be
identical. Subject to the restrictions set forth in Section 7(b), except as
otherwise set forth in the applicable Restricted Stock Agreement, the
Participant shall generally have the rights and privileges of a stockholder as
to such Restricted Stock, including the right to vote such Restricted Stock. At
the discretion of the Committee, cash dividends and stock dividends, if any,
with respect to the Restricted Stock may be either currently paid to the
Participant or withheld by the Company for the Participant's account. A
Participant's Restricted Stock Agreement may provide that cash dividends or
stock dividends so withheld shall be subject to forfeiture to the same degree as
the shares of Restricted Stock to which they relate. Except as otherwise
determined by the Committee, no interest will accrue or be paid on the amount of
any cash dividends withheld.

          (b) Restrictions on Transfer. In addition to any other restrictions
set forth in a Participant's Restricted Stock Agreement, until such time that
the Restricted Stock has vested pursuant to the terms of the Restricted Stock
Agreement, which vesting the Committee may in its sole discretion accelerate at
any time, the Participant shall not be permitted to sell, transfer, pledge, or
otherwise encumber the Restricted Stock. Notwithstanding anything contained
herein to the contrary, the Committee shall have the authority to remove any or
all of the restrictions on the Restricted Stock whenever it may determine that,
by reason of changes in applicable laws or other changes in circumstances
arising after the date of the Restricted Stock Award, such action is
appropriate.

          (c) Certificates. Restricted Stock granted under the Plan may be
evidenced in such manner as the Committee shall determine. If certificates
representing Restricted Stock are registered in the name of the Participant, the
Committee may require that such certificates bear an appropriate legend
referring to the terms, conditions and restrictions applicable to such
Restricted Stock, that the Company retain physical possession of the
certificates, and that the Participant deliver a stock power to the Company,
endorsed in blank, relating to the Restricted Stock. Notwithstanding the
foregoing, the Committee may determine, in its sole discretion, that the
Restricted Stock shall be held in book entry form rather than delivered to the
Participant pending the release of the applicable restrictions.

          (d) Termination of Employment or Service. Except as may otherwise be
provided by the Committee in the Restricted Stock Agreement, if, prior to the
time that the Restricted Stock has vested, a Participant's employment or
service, as applicable, terminates for any reason, (i) all vesting with respect
to the Restricted Stock shall cease, and (ii) at any time following such
termination, and upon written notice to the Participant, the Company shall have
the right to repurchase from the Participant any unvested shares of Restricted
Stock at a purchase

                                       8

<PAGE>

price equal to the original purchase price paid for the Restricted Stock, or if
the original purchase price is $0, such unvested shares of Restricted Stock
shall be forfeited by the Participant for no consideration.

          8. ADJUSTMENT FOR RECAPITALIZATION, MERGER, ETC.

          (a) Capitalization Adjustments. The aggregate number of shares of
Stock which may be granted or purchased pursuant to Awards granted hereunder,
the number of shares of Stock covered by each outstanding Award, the maximum
number of shares of Stock with respect to which any one person may be granted
Options in any calendar year, and the price per share thereof in each such Award
shall be equitably and proportionally adjusted or substituted, as determined by
the Committee in good faith and in its sole discretion, as to the number, price
or kind of a share of Stock or other consideration subject to such Awards or as
otherwise determined by the Committee in good faith to be fair and equitable (i)
in the event of changes in the outstanding Stock or in the capital structure of
the Company by reason of stock dividends, stock splits, reverse stock splits,
recapitalizations, reorganizations, mergers, consolidations, combinations,
exchanges, or other relevant changes in capitalization occurring after the date
of grant of any such Award, (ii) in the event of any change in applicable laws
or any change in circumstances which results in or would result in any
substantial dilution or enlargement of the rights granted to, or available for,
Participants in the Plan, or (iii) for any other reason which the Committee
determines, in its sole discretion and acting in good faith, to otherwise
warrant equitable adjustment.

          (b) Corporate Events. Notwithstanding the foregoing, except as may
otherwise be provided in an Award agreement, in the event of (i) a merger or
consolidation involving the Company in which the Company is not the surviving
corporation, (ii) a merger or consolidation involving the Company in which the
Company is the surviving corporation but the holders of shares of Stock receive
securities of another corporation and/or other property, including cash, (iii)
the sale of all or substantially all of the assets of the Company, (iv) the
reorganization or liquidation of the Company, or (v) a Change in Control (each,
a "Corporate Event"), in lieu of providing the adjustment set forth in
subsection (a) above, the Committee may, in its discretion, provide that all
outstanding Awards shall terminate as of the consummation of such Corporate
Event, and provide that holders of Awards will receive a payment in respect of
cancellation of their Awards based on the amount of the per share consideration
being paid for the Stock in connection with such Corporate Event, and in the
case of Options, less the applicable exercise price. Payments to holders
pursuant to the preceding sentence shall be made in cash, or, in the sole
discretion of the Committee, in such other consideration necessary for a holder
of an Award to receive property, cash or securities as such holder would have
been entitled to receive upon the occurrence of the transaction if the holder
had been, immediately prior to such transaction, the holder of the number of
shares of Stock covered by the Award at such time; provided, that if such
consideration received in the transaction is not solely equity securities of the
successor entity, the Committee may, with the consent of the successor entity,
provide for the consideration to be received in respect of the Award to be
solely equity securities of the successor entity equal to the Fair Market Value
of the per share consideration received by holders of Stock in the Corporate
Event.

                                       9

<PAGE>

          (c) Fractional Shares. Any such adjustment may provide for the
elimination of any fractional share which might otherwise become subject to an
Award.

          9. STOCK TRANSFERS

          (a) Prohibition on Transfers. Except as otherwise approved by the
Committee, Restricted Stock and shares of Stock acquired by a Participant
pursuant to any Award granted hereunder may not be sold, transferred or
otherwise disposed of prior to the one hundred eightieth (180th) day following
the IPO Date (the "Lock-Up Period"). If requested by the underwriters managing
any public offering of the Stock, the Participant shall execute a separate
agreement to the foregoing effect. The Company may impose stop-transfer
instructions with respect to the Stock (or securities) subject to the foregoing
restriction until the end of such period.

          (b) Company Sale.

               (i) Upon exercise of the Drag-along Right or acceptance of the
     Soros Offer, the Warburg Investors or Company shall give each Participant a
     written notice containing (i) the name and address of the proposed
     transferee(s) and (ii) the proposed purchase price, terms of payment and
     any other material terms and conditions of the Company Sale. Each
     Participant shall thereafter be obligated to sell all shares of Stock
     acquired pursuant to any Award granted hereunder to the proposed
     transferee, or, in the case of a merger or sale of assets or other
     transaction that requires the vote of the Company's stockholders, to vote
     such shares of Stock in favor of, and waive any dissenter or appraisal
     right it may have in respect of, such Company Sale and shall otherwise take
     all steps necessary (including delivery of certificates or other
     instruments evidencing the shares to be conveyed, duly endorsed and in
     negotiable form with all the requisite documentary stamps affixed thereto)
     to enable him, her or it to facilitate such Company Sale and to comply with
     the provisions of this Section 9(b).

               (ii) Each Participant required to sell all its shares of Stock
     under this Section 9(b) shall be entitled to receive in exchange therefor
     an amount per share equal to the purchase price received per share of Stock
     "owned" by the Warburg Investors in connection with the Company Sale (it
     being understood that, solely for purposes of Section 9(b)(iv), "owned"
     shall mean beneficial ownership, assuming Mandatory Conversion (whether or
     not then convertible) of all outstanding Preferred Stock pursuant to
     Section 5(a)(i) of the Amended and Restated Certificate of Incorporation of
     the Company (giving full effect to Section 5 of the Restated Certificate)).
     Such Participants shall otherwise participate in such Company Sale on other
     terms and conditions not less favorable to such Participants than those
     applicable to the Warburg Investors and, subject to subsection (v) below,
     shall receive the same type of consideration received by the Warburg
     Investors in such Company Sale.

               (iii) Notwithstanding anything contained in this Section 9(b) to
     the contrary, in the event that all or a portion of the purchase price for
     the shares being

                                       10

<PAGE>

     purchased consists of securities and the sale of such securities to a
     Participant entitled to participate therein would, by virtue of the fact
     that such Participant is not an "accredited investor" (within the meaning
     of Rule 501(a) under the Securities Act), require either a registration
     under the Securities Act or the preparation of a disclosure document
     pursuant to Regulation D under the Securities Act (or any successor
     regulation) or a similar provision of any state securities law, then, at
     the option of the Warburg Investors, any one or more of such Participant
     may receive, in lieu of such securities, the fair market value of such
     securities in cash, as determined in good faith by the Board.

          10. REPURCHASE RIGHTS UPON TERMINATION OF EMPLOYMENT.

     If, prior to the IPO Date, a Participant's employment or service with the
Employer terminates for any reason, at any time thereafter, in addition to any
repurchase right of the Company with respect to unvested shares of Restricted
Stock, as provided in Section 7 above, the Company shall have the right to
repurchase the shares of Stock received pursuant to Awards granted hereunder
(the "Repurchase Right"). The Repurchase Right shall be exercisable upon written
notice to a Participant indicating the number of shares of Stock to be
repurchased and the date on which the repurchase is to be effected, such date to
be not more than thirty (30) days after the date of such notice. The
certificates representing the shares of Stock to be repurchased shall be
delivered to the Company prior to the close of business on the date specified
for the repurchase. Repurchase under this Section 10 shall be at a price equal
to the Fair Market Value of the Stock as of the date of such repurchase.

          11. USE OF PROCEEDS.

     The proceeds received from the sale of Stock pursuant to the Plan shall be
used for general corporate purposes.

          12. RIGHTS AND PRIVILEGES AS A STOCKHOLDER.

     Except as otherwise specifically provided in the Plan, no person shall be
entitled to the rights and privileges of stock ownership in respect of shares of
Stock which are subject to Awards hereunder until such shares have been issued
to that person.

          13. EMPLOYMENT OR SERVICE RIGHTS.

     No individual shall have any claim or right to be granted an Award under
the Plan or, having been selected for the grant of an Award, to be selected for
a grant of any other Award. Neither the Plan nor any action taken hereunder
shall be construed as giving any individual any right to be retained in the
employ or service of the Company or an Affiliate.

          14. COMPLIANCE WITH LAWS.

     The obligation of the Company to make payment of Awards in Stock or
otherwise shall be subject to all applicable laws, rules, and regulations, and
to such approvals by governmental agencies as may be required. Notwithstanding
any terms or conditions of any Award to the contrary, the Company shall be under
no obligation to offer to sell or to sell and shall be

                                       11

<PAGE>

prohibited from offering to sell or selling any shares of Stock pursuant to an
Award unless such shares have been properly registered for sale pursuant to the
Securities Act with the Securities and Exchange Commission or unless the Company
has received an opinion of counsel, satisfactory to the Company, that such
shares may be offered or sold without such registration pursuant to an available
exemption therefrom and the terms and conditions of such exemption have been
fully complied with. The Company shall be under no obligation to register for
sale or resale under the Securities Act any of the shares of Stock to be offered
or sold under the Plan or any shares of Stock issued upon exercise or settlement
of Awards. If the shares of Stock offered for sale or sold under the Plan are
offered or sold pursuant to an exemption from registration under the Securities
Act, the Company may restrict the transfer of such shares and may legend the
Stock certificates representing such shares in such manner as it deems advisable
to ensure the availability of any such exemption.

          15. WITHHOLDING OBLIGATIONS.

     As a condition to the exercise or vesting, as applicable, of any Award, the
Committee may require that a Participant satisfy, through deduction or
withholding from any payment of any kind otherwise due to the Participant, or
through such other arrangements as are satisfactory to the Committee, the
minimum amount of all Federal, state and local income and other taxes of any
kind required or permitted to be withheld in connection with such vesting or
exercise. The Committee, in its discretion, may permit shares of Stock to be
used to satisfy tax withholding requirements and such shares shall be valued at
their Fair Market Value as of the settlement date of the Award; provided,
however, that following the IPO Date, the aggregate Fair Market Value of the
number of shares of Stock that may be used to satisfy tax withholding
requirements may not exceed the minimum statutory required withholding amount
with respect to the exercise of such Option.

          16. AMENDMENT OF THE PLAN OR AWARDS.

          (a) Amendment of Plan. The Board at any time, and from time to time,
may amend the Plan; provided, however, that without further stockholder approval
the Board shall not make any amendment to the Plan which would increase the
maximum number of shares of Stock which may be issued pursuant to Awards under
the Plan, except as contemplated by Section 8 hereof, or, following the IPO
Date, which would otherwise violate the shareholder approval requirements of the
national securities exchange on which the Stock is listed or Nasdaq, as
applicable.

          (b) No Impairment of Rights. Rights under any Award granted before
amendment of the Plan shall not be impaired by any amendment of the Plan unless
the Participant consents in writing.

          (c) Amendment of Stock Awards. The Committee, at any time, and from
time to time, may amend the terms of any one or more Awards; provided, however,
that the rights under any Award shall not be impaired by any such amendment
unless the Participant consents in writing.

                                       12

<PAGE>

          17. TERMINATION OR SUSPENSION OF THE PLAN.

     The Board may suspend or terminate the Plan at any time. Unless sooner
terminated, the Plan shall terminate on the day before the tenth (10th)
anniversary of the date the Plan is adopted by the Board. No Awards may be
granted under the Plan while the Plan is suspended or after it is terminated.

          18. EFFECTIVE DATE OF THE PLAN.

     The Plan is effective as of November 5, 2004, the date upon which the Board
adopted the Plan.

          19. MISCELLANEOUS.

          (a) Awards to Participants Outside of the United States. The Committee
may modify the terms of any Award under the Plan made to or held by a
Participant who is then resident or primarily employed outside of the United
States in any manner deemed by the Committee to be necessary or appropriate in
order that such Award shall conform to laws, regulations and customs of the
country in which the Participant is then resident or primarily employed, or so
that the value and other benefits of the Award to the Participant, as affected
by foreign tax laws and other restrictions applicable as a result of the
Participant's residence or employment abroad, shall be comparable to the value
of such Award to a Participant who is resident or primarily employed in the
United States. An Award may be modified under this Section 19(a) in a manner
that is inconsistent with the express terms of the Plan, so long as such
modifications will not contravene any applicable law or regulation or result in
actual liability under Section 16(b) of the Exchange Act for the Participant
whose Award is modified.

          (b) No Liability of Committee Members. No member of the Committee
shall be personally liable by reason of any contract or other instrument
executed by such member or on his behalf in his capacity as a member of the
Committee nor for any mistake of judgment made in good faith, and the Company
shall indemnify and hold harmless each member of the Committee and each other
employee, officer or director of the Company to whom any duty or power relating
to the administration or interpretation of the Plan may be allocated or
delegated, against any cost or expense (including counsel fees) or liability
(including any sum paid in settlement of a claim) arising out of any act or
omission to act in connection with the Plan unless arising out of such person's
own fraud or willful bad faith; provided, however, that approval of the Board
shall be required for the payment of any amount in settlement of a claim against
any such person. The foregoing right of indemnification shall not be exclusive
of any other rights of indemnification to which such persons may be entitled
under the Company's Articles of Incorporation or By-Laws, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold them
harmless.

          (c) Payments Following Accidents or Illness. If the Committee shall
find that any person to whom any amount is payable under the Plan is unable to
care for his affairs because of illness or accident, or is a minor, or has died,
then any payment due to such person or his estate (unless a prior claim therefor
has been made by a duly appointed legal representative) may, if the Committee so
directs the Company, be paid to his spouse, child, relative, an

                                       13

<PAGE>

institution maintaining or having custody of such person, or any other person
deemed by the Committee to be a proper recipient on behalf of such person
otherwise entitled to payment. Any such payment shall be a complete discharge of
the liability of the Committee and the Company therefor.

          (d) Designation and Change of Beneficiary. Each Participant may file
with the Company a written designation of one or more persons as the beneficiary
who shall be entitled to receive the rights or amounts payable with respect to
an Award due under the Plan upon his death. A Participant may, from time to
time, revoke or change his beneficiary designation without the consent of any
prior beneficiary by filing a new designation with the Committee. The last such
designation received by the Company shall be controlling; provided, however,
that no designation, or change or revocation thereof, shall be effective unless
received by the Company prior to the Participant's death, and in no event shall
it be effective as of a date prior to such receipt. If no beneficiary
designation is filed by the Participant, the beneficiary shall be deemed to be
his or her spouse or, if the Participant is unmarried at the time of death, his
or her estate. Any beneficiary of the Participant receiving an Award hereunder
shall remain subject to the terms of the Plan and the applicable Award
agreement.

          (e) Governing Law. The Plan shall be governed by and construed in
accordance with the internal laws of the State of Delaware without reference to
the principles of conflicts of laws thereof.

          (f) Funding. No provision of the Plan shall require the Company, for
the purpose of satisfying any obligations under the Plan, to purchase assets or
place any assets in a trust or other entity to which contributions are made or
otherwise to segregate any assets, nor shall the Company maintain separate bank
accounts, books, records or other evidence of the existence of a segregated or
separately maintained or administered fund for such purposes. Participants shall
have no rights under the Plan other than as unsecured general creditors of the
Company, except that insofar as they may have become entitled to payment of
additional compensation by performance of services, they shall have the same
rights as other employees under general law.

          (g) Reliance on Reports. Each member of the Committee and each member
of the Board shall be fully justified in relying, acting or failing to act, and
shall not be liable for having so relied, acted or failed to act in good faith,
upon any report made by the independent public accountant of the Company and its
Affiliates and upon any other information furnished in connection with the Plan
by any person or persons other than himself.

          (h) Titles and Headings. The titles and headings of the sections in
the Plan are for convenience of reference only, and in the event of any
conflict, the text of the Plan, rather than such titles or headings shall
control.

                                       14<PAGE>
                                                                    EXHIBIT 10.2

                                                                  EXECUTION COPY

================================================================================

                            SPHERIS HOLDING III, INC.

                             STOCKHOLDERS' AGREEMENT

                          Dated as of November 5, 2004

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
1.  Additional Offerings.................................................     1
       1.1.   Additional Offerings; Generally............................     1
       1.2.   Exercise of Purchase Rights................................     2
       1.3.   Sale of Unpurchased Securities.............................     2
       1.4.   Future Additional Offerings................................     2

2.  Restrictions on Transfers and Sales to Third Parties.................     3
       2.1.   General....................................................     3
       2.2.   Tag-Along Rights...........................................     3
       2.3.   Company Sale...............................................     3

3.  Election of Directors; Committees....................................     5
       3.1.   Board Make-up..............................................     5
       3.2.   Replacement Directors......................................     6
       3.3.   Committees.................................................     6
       3.4.   Directors of Subsidiaries..................................     7

4.  Legends..............................................................     7

5.  Covenants, Representations and Warranties............................     8
       5.1.   Actions by the Board.......................................     8
       5.2.   Transactions With Investors................................     9
       5.3.   Information Rights.........................................     9
       5.4.   Healthscribe Acquisition...................................    10

6.  Amendment, Modification, Supplement and Waiver.......................    10

7.  Termination of Rights and Obligations Under Certain Sections.........    10

8.  Parties..............................................................    10
       8.1.   Assignment Generally.......................................    10
       8.2.   Termination................................................    11
       8.3.   Agreements to Be Bound.....................................    11

9.  Recapitalizations, Exchanges, etc. Affecting the Shares..............    11

10. Further Assurances...................................................    11

11. Governing Law........................................................    11

12. Invalidity of Provision..............................................    11
</TABLE>

<PAGE>

<TABLE>
<S>                                                                         <C>
13. Notices..............................................................    12

14. Headings; Execution in Counterparts..................................    13

15. Entire Agreement.....................................................    14

16. Injunctive Relief....................................................    14

17. Defined Terms........................................................    14
       17.1.  Affiliate..................................................    14
       17.2.  Closing Date...............................................    14
       17.3.  Common Stock...............................................    14
       17.4.  Company Sale...............................................    14
       17.5.  Convertible Securities.....................................    14
       17.6.  Equity Securities..........................................    15
       17.7.  Exchange Act...............................................    15
       17.8.  Healthscribe Acquisition...................................    15
       17.9.  Healthscribe Acquisition Agreement.........................    15
       17.10. Investors..................................................    15
       17.11. Mandatory Conversion.......................................    15
       17.12. Majority Soros Investors...................................    15
       17.13. Majority Warburg Investors.................................    15
       17.14. Owns, Own or Owned.........................................    15
       17.15. Permitted Assignee.........................................    15
       17.16. Person.....................................................    16
       17.17. Qualified Public Offering..................................    16
       17.18. Restricted Stock Plan......................................    16
       17.19. Securities Act.............................................    16
       17.20. Shares.....................................................    16
       17.21. Soros Investors............................................    16
       17.22. Spheris Investment.........................................    16
       17.23. Spheris Investment LLC Agreement...........................    16
       17.24. Transfer...................................................    16
       17.25. Warburg Investors..........................................    16
       17.26. Warburg Pincus.............................................    16
</TABLE>

                                       ii

<PAGE>

                             STOCKHOLDERS' AGREEMENT

     This STOCKHOLDERS' AGREEMENT (this "Agreement") is dated as of November 5,
2004 and is entered into by and among Spheris Holding III, Inc., a Delaware
corporation (the "Company") and the Warburg Investors, the Soros Investors and
Spheris Investment. Capitalized terms used herein without definition elsewhere
in this Agreement are defined in Section 17 hereof.

                                    RECITALS

     WHEREAS, on October 12, 2004, Spheris Holding, Inc., a Delaware corporation
and, as of the date hereof, an indirect wholly owned subsidiary of the Company
("Spheris Holding"), entered into a Securities Purchase Agreement (the "Purchase
Agreement") with Spheris Holdings LLC, a Delaware limited liability company,
pursuant to which Spheris Holding shall purchase all of the outstanding stock of
Spheris Inc., a wholly owned subsidiary of Spheris Holdings LLC ("Spheris"); and

     WHEREAS, in connection with the consummation of the transactions
contemplated by the Purchase Agreement, the Investors have entered into a
Securities Purchase Agreement with the Company (the "Securities Purchase
Agreement"), pursuant to which the Company has issued and sold to each Investor
and each Investor has purchased from the Company shares of Series A Convertible
Preferred Stock of the Company (the "Preferred Stock"); and

     WHEREAS, the powers, rights and preferences, restrictions and other matters
relating to the Common Stock and Preferred Stock are set forth in the Amended
and Restated Certificate of Incorporation of the Company (the "Restated
Certificate"); and

     WHEREAS, the Investors and the Company desire to promote their mutual
interests by agreeing to certain matters relating to the operations of the
Company, the disposition and voting of the capital stock of the Company and
certain other matters set forth herein.

     NOW, THEREFORE, in consideration of the mutual covenants and obligations
set forth in this Agreement, and to implement the foregoing, the parties hereto
agree as follows:

1.   Additional Offerings.

     1.1. Additional Offerings; Generally. If at any time after the date hereof,
the Company or any direct or indirect subsidiary of the Company (each a
"Subsidiary") proposes to issue any Equity Securities (other than the issuance
of any Equity Securities (i) pursuant to the public in a firm commitment
underwriting pursuant to a registration statement filed under the Securities
Act, (ii) pursuant to the acquisition of another Person by the Company or any
Subsidiary (as consideration for the acquisition and not for the purpose of
financing an acquisition), whether by purchase of stock, merger, consolidation,
purchase of all or substantially all of the assets of such Person or otherwise,
(iii) pursuant to an employee stock option plan, stock bonus plan, stock
purchase plan or other management equity program, including without limitation
the Restricted Stock Plan, approved by a majority of the members of the Board
(iv) by a Subsidiary to the Company or any other Subsidiary of the Company or
(v) in the form of warrants to purchase Common Stock issued to lessors of
property and/or equipment or to

<PAGE>

financial institutions or related entities in connection with commercial credit
or debt financing or other similar arrangements which are approved by a majority
of the members of the Board), then, as to each Investor who Owns at least 5% of
the Common Stock (each such Person is hereinafter referred to, for purposes of
this Section 1, as a "Participating Investor" and collectively, such Persons are
referred to in this Section 1 as the "Participating Investors"), the Company
shall:

          (a) give written notice (the "Subscription Right Notice") setting
     forth in reasonable detail (i) the designation and all of the terms and
     provisions of the Equity Securities proposed to be issued (the "Proposed
     Securities"), including, where applicable, the voting powers, preferences
     and relative participating, optional or other special rights, and the
     qualification, limitations or restrictions thereof and interest rate and
     maturity; (ii) the price and other terms of the proposed sale of such
     Proposed Securities; and (iii) the amount of such Proposed Securities
     proposed to be issued; and

          (b) offer to issue to each Participating Investor that number of
     Proposed Securities equal to the number of Proposed Securities multiplied
     by such Participating Investor's Percentage Interest. For purposes hereof,
     "Percentage Interest" shall mean, in respect of any Participating Investor,
     the percentage determined by dividing (x) the number of shares of Common
     Stock Owned by such Participating Investor, by (y) the total number of
     shares of Common Stock Owned by the Investors.

     1.2. Exercise of Purchase Rights. Each Participating Investor may exercise
its purchase rights hereunder within twenty (20) business days after receipt of
the Subscription Right Notice. If all of the Proposed Securities offered to the
Participating Investors are not fully subscribed by such Participating
Investors, the remaining Proposed Securities will be reoffered to the
Participating Investors upon the terms set forth in this Section 1, until all
such Proposed Securities are fully subscribed for or until all such
Participating Investors have subscribed for all such Proposed Securities which
they desire to purchase, except that such Participating Investors must exercise
their purchase rights within ten (10) business days after receipt of all such
reoffers. To the extent that the Company or its Subsidiary, as the case may be,
offers two or more securities in units, the Participating Investors must
purchase such units as a whole and will not be given the opportunity to purchase
only one of the securities making up such unit.

     1.3. Sale of Unpurchased Securities. Upon the expiration of the offering
periods described above, the Company or its Subsidiary, as the case may be, will
be free to sell such Proposed Securities that the Participating Investors have
not elected to purchase during the ninety (90) calendar day period immediately
following such expiration on terms and conditions no more favorable to the
purchasers thereof than those offered to the Participating Investors. Any
Proposed Securities offered or sold by the Company or its Subsidiary, as the
case may be, after such ninety (90) calendar day period must be reoffered to the
Participating Investors pursuant to this Section 1.

     1.4. Future Additional Offerings. The election by a Participating Investor
not to exercise its subscription rights under this Section 1 in any one instance
shall not affect its right (other than in respect of a reduction in its
percentage holdings) as to any subsequent proposed issuance.

                                       2

<PAGE>

2.   Restrictions on Transfers and Sales to Third Parties.

     2.1. General. No Shares owned by any Investor nor any interest therein nor
any rights related thereto may be Transferred by such Investor unless such
Investor complies with the provisions of this Section 2 and Section 8.3 hereof.

     2.2. Tag-Along Rights.

          (a) Subject to the other terms of this Section 2.2, and except as
required by Section 5.4, no Investor shall be permitted to Transfer any Shares
to one or more third parties unless each other Investor is offered a right to
participate in such Transfer for a purchase price per Share equal to the
purchase price to be received by such Investor then proposing to sell the Shares
(the "Selling Investor") and on other terms and conditions not less favorable to
such other Investor than those applicable to the Selling Investor. Any Investor
who, in accordance with the terms of Section 2.2(b) below, notifies the Selling
Investor that it desires to participate in any sale of Shares shall have the
right to include in such sale an amount of Shares equal to the amount of Shares
the third party actually proposes to purchase multiplied by the percentage
obtained by dividing the number of Shares owned by such participating Investor
by the aggregate number of Shares owned by the Selling Investor and each other
Investor exercising its right to participate in such sale pursuant hereto. For
the purposes of this Section 2.2(a), a sale to a "third party" shall not include
a sale to any Permitted Assignee or a sale pursuant to a Qualified Public
Offering. Notwithstanding the foregoing, in the event the Selling Investor is
selling only shares of Preferred Stock, holders of Common Stock shall not have
the right to sell shares of Common Stock pursuant to this Section 2.2(a).

          (b) In the event a Selling Investor is proposing to sell any Shares
and, pursuant to this Section 2.2, the Investors are entitled to participate in
such sale, such Selling Investor shall notify each Investor entitled to
participate therein in writing of such proposed sale and its terms and
conditions (and shall provide any other information regarding the proposed
transfer that such other Investor may reasonably request). Within fifteen (15)
business days of the date of such notice, each Investor entitled to participate
therein shall notify such Selling Investor if it elects to participate in such
sale. Any Investor that fails to notify the Selling Investor within such fifteen
(15) business day period shall be deemed to have waived its rights hereunder
with respect to such sale. Notwithstanding anything contained in this Section
2.2 to the contrary, in the event that all or a portion of the purchase price
for the Shares being purchased consists of securities and the sale of such
securities to any Investor entitled to participate therein would, by virtue of
the fact that such Investor is not an "accredited investor" (within the meaning
of Rule 501(a) under the Securities Act), require either a registration under
the Securities Act or the preparation of a disclosure document pursuant to
Regulation D under the Securities Act (or any successor regulation) or a similar
provision of any state securities law, then, at the option of the Selling
Investor, any one or more of such Investors may receive, in lieu of such
securities, the fair market value of such securities in cash, as determined in
good faith by the Board.

     2.3. Company Sale.

                                       3

<PAGE>

          (a) In the event that the Warburg Investors are proposing to
consummate a Company Sale to any Person or Persons that are not Affiliates of
any of the Warburg Investors, the Warburg Investors shall have the right (the
"Drag-along Right"), but not the obligation, to require each other Investor to
sell all Shares owned by such Investor in accordance with the terms of such
Company Sale, or in the case of a merger, consolidation or sale of assets, to
vote all shares of capital stock owned by such Investor in favor of, and waive
any dissenter or appraisal right it may have in respect of, such Company Sale;
provided, however, that, in the event that the Soros Investors Own at least 5%
of the Common Stock at the time of such proposal, the Warburg Investors shall
not be permitted to exercise the Drag-along Right unless the Warburg Investors
first comply with Section 2.3(b) below.

          (b) The Warburg Investors shall, as a condition precedent to
exercising any Drag-along Right, deliver to the Soros Investors an offer notice
(the "Notice of Offer") that shall include (A) an offer (the "Soros Offer") to
effect such Company Sale with the Soros Investors and (B) the terms of such
proposed Company Sale, including the purchase price in respect thereof, terms of
payment and any other material terms and conditions for such sale. Within ten
(10) business days after receipt of the Soros Offer (the "Soros Offer Period"),
the Soros Investors may, at their option, accept the Soros Offer. The Soros
Investors shall give written notice to the Warburg Investors of their
acceptance, or their rejection, of the Soros Offer within the Soros Offer
Period. Failure by the Soros Investors to give notice of their acceptance of the
Soros Offer hereunder within the Soros Offer Period shall be deemed rejection of
the Soros Offer. If the Soros Investors accept the Soros Offer, such notice
shall specify the date for the closing of the Company Sale which shall not be
more than forty-five (45) days after such notice and each Investor shall take
such action as may be necessary to consummate the Company Sale as required by
this Section 2.3. The closing of any such Company Sale to the Soros Investors
shall take place at such location as shall be mutually agreeable between the
Warburg Investors and the Soros Investors and the purchase price, to the extent
comprised of cash, shall be paid at the closing, and cash equivalents and
documents evidencing any deferred payments of cash permitted shall be delivered
at the closing.

          (c) If the Soros Investors reject (or are deemed to reject) the Soros
Offer, the Warburg Investors may exercise the Drag-along Right on terms no less
favorable to the Warburg Investor than the terms set forth in the applicable
Soros Offer; provided, however, that if the Warburg Investors fail to consummate
such Company Sale within one-hundred and eighty (180) days after the expiration
or termination of the Soros Offer Period, the Drag-along Right shall again be
subject to the restrictions of this Section 2.3. To exercise the Drag-along
Right, the Warburg Investors shall give each other Investor a written notice
containing (i) the name and address of the proposed transferee(s) and (ii) the
proposed purchase price, terms of payment and any other material terms and
conditions of the Company Sale.

          (d) Upon exercise of the Drag-along Right or acceptance of the Soros
Offer (if such Soros Offer is required hereby), each Investor shall be obligated
to sell all Shares owned by it to the proposed transferee, or, in the case of a
merger or sale of assets or other transaction that requires the vote of the
Company's stockholders, to vote all Shares owned by such Investor in favor of,
and waive any dissenter or appraisal right it may have in respect of, such
Company Sale and shall otherwise take all steps necessary (including delivery of
certificates or other instruments evidencing the shares to be conveyed, duly
endorsed and in negotiable form with all

                                       4

<PAGE>

the requisite documentary stamps affixed thereto) to enable him, her or it to
facilitate such Company Sale and to comply with the provisions of this Section
2.3.

          (e) Each Investor required to sell all its Shares pursuant to a
Company Sale shall be entitled to receive in exchange therefor an amount per
share equal to the purchase price received per share of Common Stock Owned by
the Warburg Investors in connection with such Company Sale (it being understood
that, solely for purposes of this Section 2.3, "Owned" shall mean beneficial
ownership, assuming Mandatory Conversion of all outstanding Preferred Stock
(whether or not then convertible) pursuant to Section 5(a)(i) of the Restated
Certificate (giving full effect to, Section 5 of the Restated Certificate)).
Such Investors shall otherwise participate in such Company Sale on other terms
and conditions not less favorable to such Investors than those applicable to the
Warburg Investors and, subject to Section 2.3(f) below, shall receive the same
type of consideration received by the Warburg Investors in such Company Sale.

          (f) Notwithstanding anything contained in this Section 2.3 to the
contrary, in the event that all or a portion of the purchase price for the
shares being purchased consists of securities and the sale of such securities to
an Investor entitled to participate therein would, by virtue of the fact that
such Investor is not an "accredited investor" (within the meaning of Rule 501(a)
under the Securities Act), require either a registration under the Securities
Act or the preparation of a disclosure document pursuant to Regulation D under
the Securities Act (or any successor regulation) or a similar provision of any
state securities law, then, at the option of the Warburg Investors, any one or
more of such Investors may receive, in lieu of such securities, the fair market
value of such securities in cash, as determined in good faith by the Board.

3.   Election of Directors; Committees.

     3.1. Board Make-up. As of the date hereof (after giving effect to the
transactions contemplated by the Purchase Agreement), the Board of Directors of
the Company (the "Board") shall consist of Joel Ackerman, Jonathan Bilzin, Wayne
Harris, Neal Moszkowski, Steven Simpson and David Wenstrup. From and after the
date hereof, the Investors and the Company shall take all action within their
respective power, including but not limited to, the voting of all Shares Owned
by them, required to cause the Board to consist of up to six (6) members, and,
if the Healthscribe Acquisition has occurred, at the request of the Majority
Warburg Investors and the Majority Soros Investors, to consist of up to seven
(7) members, and at all times throughout the term of this Agreement, to include:

          (a) for as long as the Warburg Investors Own at least twenty percent
     (20%) of the Common Stock Owned by Investors, two (2) members designated by
     Warburg Pincus and, for as long as the Warburg Investors Own at least five
     percent (5%) but less than twenty percent (20%) of the Common Stock Owned
     by Investors, one (1) member designated by Warburg Pincus (such members
     referred to herein as "Warburg Directors" and each a "Warburg Director");

          (b) for as long as the Soros Investors Own at least twenty percent
     (20%) of the Common Stock Owned by Investors, two (2) members designated by
     the Soros Investors and, for as long as the Soros Investors Own at least
     five percent (5%) but less than twenty percent (20%) of the Common Stock
     Owned by Investors, one (1) member designated by

                                       5

<PAGE>

     the Soros Directors (such members referred to herein as "Soros Directors"
     and each a "Soros Director");

          (c) one member of management who shall be the Chief Executive Officer
     of the Company then in office (the "Management Director");

          (d) one independent member reasonably acceptable to the Majority Soros
     Investors and the Majority Warburg Investors (the "Independent Director");
     and

In addition, if the Healthscribe Acquisition shall have been consummated, at the
request of the Majority Warbug Investors and the Majority Soros Investors, the
Investors and the Company shall take all action within their power, including
but not limited to the voting of all Shares Owned by them, to cause the Board to
consist of one (1) additional member, in addition to those designated pursuant
to (a) through (d) above, reasonably acceptable to the Warburg Investors and the
Soros Investors (the "Additional Director").

     The parties hereto acknowledge that the four representatives to be
designated by the Warburg Investors and Soros Investors are initially the
directors that the holders of Preferred Stock are entitled to elect under the
Restated Certificate. The parties hereto further acknowledge that the initial
Warburg Directors shall be Joel Ackerman and David Wenstrup, the initial Soros
Directors shall be Jonathan Bilzin and Neal Moszkowski, the initial Management
Director shall be Steven Simpson, the initial Independent Director shall be
Wayne Harris, and, if the Healthscribe Acquisition shall have been consummated
and the Majority Warburg Investors and the Majority Soros Investors shall have
requested an Additional Director, the Additional Director shall be Michael King,
or such other person reasonably acceptable to the Warburg Investors and the
Soros Investors. In addition, subject to the ownership requirements set forth in
paragraphs (a) and (b) of this Section 3.1, the Warburg Investors, on the one
hand and the Soros Investors, on the other hand shall be entitled to designate
an equal number of directors.

     3.2. Replacement Directors. In the event that any Soros Director or any
Warburg Director (each, a "Withdrawing Director") designated in the manner set
forth in Section 3.1 hereof is unable to serve, or once having commenced to
serve, is removed or withdraws from the Board, such Withdrawing Director's
replacement (the "Substitute Director") will be designated by the Investors of
the Company that have the right to designate such director in accordance with
Section 3.1 above. The Investors and the Company agree to take all action within
their respective power, including, but not limited to, the voting of all Shares
Owned by them (i) to cause the election of such Substitute Director promptly
following his or her nomination pursuant to this Section 3.2 and (ii) upon the
written request of the Investors that have the right to designate such director
to the Board in accordance with Section 3.1 above, to remove, with or without
cause, any of the the Warburg Directors or the Soros Directors, as the case may
be.

     3.3. Committees. Subject to applicable law and any rules or regulations of
any stock exchange or automated dealer quotation system on which the Common
Stock is listed, in the event the Board shall at any time create a committee of
the Board, any such committee shall have at least one Warburg Director so long
as the Warburg Investors are entitled to elect at least one member of the Board
and at least one Soros Director so long as the Soros Investors are entitled to
elect at least one member of the Board; provided, however, that in respect of
any such Investor,

                                       6

<PAGE>

the foregoing shall not apply to any committee formed to consider a transaction
between the Company and such Investor or its Affiliates.

     3.4. Directors of Subsidiaries.

          (a) For so long as the Soros Investors are entitled to elect at least
     one member of the Board, the Soros Investors shall be entitled to designate
     one director (which director shall be one of the Soros Directors) to the
     board of directors of each Subsidiary. In the event that the Soros
     Investors exercise their right pursuant to this Section 3.4, the Company
     shall take all action within its power to cause such designee to be
     appointed to such boards.

          (b) For so long as Warburg Pincus is entitled to elect at least one
     member of the Board, Warburg Pincus shall be entitled to designate one
     director (which director shall be one of the Warburg Directors) to the
     board of directors of each Subsidiary. In the event that Warburg Pincus
     exercises its right pursuant to this Section 3.4, the Company shall take
     all action within its power to cause such designee to be appointed to such
     boards.

4. Legends. A copy of this Agreement shall be filed with the Secretary of the
Company and kept with the records of the Company. Each certificate or other
instrument representing Shares owned by any Investor shall bear upon its face
the following legends, as appropriate:

          (i) THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE BEEN ACQUIRED
     FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
     1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAW AND MAY NOT BE
     OFFERED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF
     UNLESS AND UNTIL REGISTERED UNDER THE ACT AND ANY APPLICABLE STATE
     SECURITIES LAWS UNLESS, IN THE OPINION OF COUNSEL TO THE HOLDER OF SUCH
     SECURITIES, WHICH COUNSEL MUST BE, AND THE FORM AND SUBSTANCE OF WHICH
     OPINION ARE, REASONABLY SATISFACTORY TO SPHERIS HOLDING III, INC. (THE
     "COMPANY"), SUCH OFFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION, TRANSFER
     OR OTHER DISPOSITION IS EXEMPT FROM REGISTRATION OR IS OTHERWISE IN
     COMPLIANCE WITH THE ACT, SUCH LAWS AND THE STOCKHOLDERS' AGREEMENT DATED AS
     OF NOVEMBER 5, 2004, BY AND AMONG THE COMPANY, WARBURG PINCUS PRIVATE
     EQUITY VIII, L.P., SOROS PRIVATE EQUITY INVESTORS LP AND THOSE OTHER
     PARTIES NAMED THEREIN (THE "STOCKHOLDERS' AGREEMENT").

          (ii) THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
     RESTRICTIONS ON TRANSFER AND OTHER CONDITIONS, AS SPECIFIED IN THE
     STOCKHOLDERS' AGREEMENT, COPIES OF WHICH ARE ON FILE AT THE OFFICE OF THE
     COMPANY AND WILL BE FURNISHED WITHOUT CHARGE TO THE HOLDER OF SUCH
     SECURITIES UPON WRITTEN REQUEST.

                                       7

<PAGE>

In addition, certificates representing Shares shall bear any legends required by
the applicable laws of any states.

5.   Covenants, Representations and Warranties.

     5.1. Actions by the Board; Actions Requiring the Approval of the Majority
Soros Investors.

          (a) Without the approval of the Board, which approval must include the
     affirmative vote of at least one Warburg Director, the Company will not,
     and will not permit any Subsidiary to:

          (i) sell, lease, or dispose of assets in excess of $5,000,000 outside
     of the ordinary course of business;

          (ii) incur indebtedness for borrowed money in excess of $2,000,000 in
     any fiscal year;

          (iii) make capital expenditures in any fiscal year in excess of an
     amount equal to 110% of the capital expenditures described in the operating
     plan of the Company approved by the Board (the "Operating Plan") for such
     fiscal year;

          (iv) engage in any material business or activity other than that
     described in the Operating Plan;

          (v) materially change its accounting methods or policies or change its
     auditors;

          (vi) increase the compensation of its senior executives other than as
     described in the Operating Plan;

          (vii) approve the Operating Plan; or

          (viii) take, agree to take or resolve to take any actions in
     furtherance of any of the foregoing.

          (b) Without the written approval of the Majority Soros Investors, the
     Company will not:

          (i) amend, alter or repeal the preferences, special rights or other
     powers of the Preferred Stock in a manner that (a) would adversely affect
     the rights of one holder of Preferred Stock, in its capacity as a holder of
     Preferred Stock, without similarly affecting the rights of all other
     holders of Preferred Stock or (b) changes the economic terms of the
     Preferred Stock other than the issuance of Equity Securities of which the
     Soros Investors have or had been granted purchase rights pursuant to
     Section 1 hereof;

          (ii) authorize or effect any merger or consolidation or other
     reorganization of the Company with or into another corporation or other
     entity other than in connection

                                       8

<PAGE>

     with a Company Sale to any Person or Persons that are not Affiliates of any
     of the Warburg Investors; or

          (iii) amend, alter or repeal the Restated Certificate or bylaws of the
     Company in a manner that (a) would adversely affect the rights of one
     holder of Preferred Stock, in its capacity as a holder of Preferred Stock,
     without similarly affecting the rights of all other holders of Preferred
     Stock or (b) changes the economic terms of the Preferred Stock other than
     the issuance of Equity Securities of which the Soros Investors have or had
     been granted purchase rights pursuant to Section 1 hereof.

     5.2. Transactions With Investors. So long as Soros Private Equity Investors
LP Owns at least 5% of the Common Stock Owned by Investors, the Company will not
enter, and will cause its subsidiaries not to enter, into any Warburg Affiliated
Transaction without the approval of the Investors that Own a majority of the
Common Stock Owned by Investors other than the Warburg Investors and, for so
long as Spheris Investment is an Affiliate of Warburg Pincus, Spheris
Investment. For the purposes hereof, "Warburg Affiliated Transaction" shall
mean, at any time that Warburg Pincus and Affiliates of Warburg Pincus Own
twenty percent (20%) or more of the aggregate Common Stock Owned by Investors,
any transaction outside the ordinary course of business of the Company and its
Subsidiaries (other than the issuance of Equity Securities of which the Soros
Investors have or had been granted purchase rights pursuant to Section 1 hereof)
with Warburg Pincus or any Affiliate of Warburg Pincus.

     5.3. Information Rights. At any time that the Company is not required to
file periodic reports pursuant to the Exchange Act, or, if required and the
Company fails to file such required periodic reports with the Securities and
Exchange Commission (the "SEC") for any reason whatsoever, the Company shall
provide to each Investor, by electronic means or otherwise, essentially the same
financial statements that would be contained in Annual Reports on Form 10-K and
in Quarterly Reports on Form 10-Q, if the Company were required to file, or did
not fail to file, such periodic reports, it being understood and agreed that
such information shall (a) be provided to the Investors no later than the date
on which the Company would have been required to file such report with the SEC
and (b) include, without limitation, annual audited financial statements and
unaudited quarterly financial statements, each prepared in accordance with
generally accepted accounting principles. Notwithstanding the foregoing, for the
financial periods ending before December 31, 2005, the Company may provide each
Investor, in lieu of the information required pursuant to this Section 5.3, the
equivalent information that one or more of the Company's Subsidiaries is
required to provide to the Lenders (as defined in the Credit Agreement) pursuant
to Section 5.4 of the Credit Agreement. Without limiting the foregoing, from and
after the date hereof, on reasonable prior written notice, the Company and its
subsidiaries shall make their respective representatives reasonably available to
each Investor that Owns at least 10% of the Common Stock Owned by all Investors
to discuss the business, results of operations and other matters pertaining to
the Company and its subsidiaries. Any and all information provided to any
Investor pursuant to the terms of this Agreement (other than any information
that is generally available to the public through no breach of the terms of this
Agreement) shall be treated as confidential information by such Investor and
such Investor shall use its reasonable best efforts to ensure that such
information is not disclosed or otherwise divulged to any third party (other
than such Investor's counsel, accountants and other professional advisors in
connection with services being performed by any such professional for

                                       9

<PAGE>

such Investor and to the members, partners and limited partners of the Warburg
Investors and the Soros Investors).

     5.4. Healthscribe Acquisition. In the event that the Healthscribe
Acquisition shall have not been consummated on or prior to the Termination Date
(as defined in the Healthscribe Acquisition Agreement), the Soros Investors
shall sell to the Warburg Investors, and the Warburg Investors shall purchase
from the Soros Investors (such sale and purchase, the "Soros Sale"), an
aggregate of 12,865,465 shares (the "Soros Sale Shares") of Preferred Stock (as
such shares are constituted as of the date hereof) as set forth in this Section
5.4. The price per Soros Sale Share shall be in cash and shall be equal to the
price per share of Preferred Stock paid by the Soros Investors pursuant to the
Securities Purchase Agreement, and each such Soros Sale Share shall be sold to
the Warburg Investors free and clear of any mortgage, pledge, lien, security
interest, restriction on transfer (other than pursuant to applicable securities
laws), option, charge or other encumbrance. The closing of the Soros Sale shall
take place no later than 5 business days after the Termination Date at such
location and at such time as shall be mutually agreeble between the Warburg
Investors and the Soros Investors. At the closing, the purchase price for the
Soros Sale Shares shall be paid by the Warburg Investors by wire transfer of
immediately available funds against delivery of the certificates evidencing the
Soros Sale Shares, duly endorsed and in negotiable form with all requisite
documentary stamps affixed thereto. The parties hereto acknowledge and agree
that the intent of any Soros Sale is that the shares of Preferred Sock owned by
the Warburg Investors (it being understood that, for purposes of this 5.4,
shares of Preferred Stock owned by the Warburg Investors shall include shares of
Preferred Stock equal to the product of the number of shares of Preferred Stock
owned by Spheris Investment and the percentage of outstanding membership units
of Spheris Investment owned by the Warburg Investors) and the Soros Investors as
of the date hereof (collectively, the "Initial Warburg and Soros Preferred
Shares") will be reallotted so that, as a result of the Soros Sale, the Warburg
Investors will own 80% and the Soros Investors will own 20%, in each case, of
the Initial Warburg and Soros Preferred Shares.

6. Amendment, Modification, Supplement and Waiver. This Agreement may be
amended, modified or supplemented, and the enforcement of any provision hereof
may be waived, with, and only with, the prior written consent of the Company,
the Majority Warburg Investors and the Majority Soros Investors.

7. Termination of Rights and Obligations Under Certain Sections. All rights and
obligations pursuant to Sections 1, 2, 5, 8, 9, and 10 of this Agreement shall
terminate upon the closing of a Qualified Public Offering. Without limiting the
foregoing, this Agreement or any portion hereof shall terminate upon the written
consent of the Majority Warburg Investors and the Majority Soros Investors.

8.   Parties.

     8.1. Assignment Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
heirs, legal representatives, successors and assigns; provided, that no Investor
shall be permitted to assign any of his, her or its obligations pursuant to this
Agreement without the prior written consent of the Company, the Majority Warburg
Investors and the Majority Soros Investors, unless such assignment is in

                                       10

<PAGE>

connection with a Transfer explicitly permitted by this Agreement and, prior to
such assignment, such assignee complies with the requirements of Section 8.3;
provided, further, that the parties hereto acknowledge and agree that, subject
to compliance with Section 8.3 hereof, Spheris Investment shall be permitted to
assign its rights and obligations under this Agreement from time to time in
accordance with the terms of Section 13 of the Spheris Investment LLC Agreement.
Notwithstanding the foregoing, the rights and obligations set forth in Section
2.3 and Section 3, and Sections 5.2 and 5.4 may not be assigned.

     8.2. Termination. Any party to, or Person who is subject to, this Agreement
that ceases to Own any Shares shall cease to be a party to, or Person who is
subject to, this Agreement and thereafter shall have no rights or obligations
hereunder; provided, however, that a Transfer of Shares not explicitly permitted
under this Agreement shall not relieve any Investor of any of his, her or its
obligations hereunder.

     8.3. Agreements to Be Bound. Notwithstanding anything to the contrary
contained in this Agreement, as a condition precedent to the effectiveness of
any Transfer of Shares the transferee thereof shall be required to agree in
writing to be bound by the terms and conditions of this Agreement pursuant to an
instrument of assumption reasonably satisfactory in substance and form to the
Company (a "Joinder").

9. Recapitalizations, Exchanges, etc. Affecting the Shares. Except as otherwise
provided herein, the provisions of this Agreement shall apply to the fullest
extent set forth herein with respect to (a) the Shares and (b) any and all
Equity Securities of the Company or any successor or assign of the Company
(whether by merger, consolidation, sale of assets or otherwise) which may be
issued in respect of, in exchange for, or in substitution for the Shares, by
reason of any stock dividend, split, reverse split, combination,
recapitalization, reclassification, merger, consolidation or otherwise. Except
as otherwise expressly provided herein, this Agreement is not intended to
confer, and does not confer, upon any Person, except for the parties hereto, any
rights or remedies hereunder.

10. Further Assurances. Each party hereto or Person subject hereto shall do and
perform or cause to be done and performed all such further acts and things and
shall execute and deliver all such other agreements, certificates, instruments
and documents as any other party hereto or Person subject hereto may reasonably
request in order to carry out the intent and accomplish the purposes of this
Agreement and the consummation of the transactions contemplated hereby.

11. Governing Law. This Agreement and the rights and obligations of the parties
hereunder and the Persons subject hereto shall be governed by, and construed and
interpreted in accordance with, the laws of the State of Delaware, without
giving effect to the choice of law principles thereof.

12. Invalidity of Provision. The invalidity or unenforceability of any provision
of this Agreement in any jurisdiction shall not affect the validity or
enforceability of the remainder of this Agreement in that jurisdiction or the
validity or enforceability of this Agreement, including that provision, in any
other jurisdiction.

                                       11

<PAGE>

13. Notices. All notices, requests, demands, waivers and other communications
required or permitted to be given under this Agreement shall be in writing and
shall be deemed to have been duly given if (a) delivered personally, (b) mailed,
certified or registered mail with postage prepaid, (c) sent by next-day or
overnight mail or delivery or (d) sent by telecopy (including facsimile) or
telegram, as follows:

          (i)   If to the Company, to it at:

                c/o Warburg Pincus LLC
                466 Lexington Avenue
                New York, New York 10017
                Facsimile No.: (212) 878-9100
                Attention: Joel Ackerman
                           David Wenstrup

                with a copy to:

                Warburg Pincus Private Equity VIII, L.P.
                c/o Warburg Pincus LLC
                466 Lexington Avenue
                New York, New York 10017
                Facsimile No.: (212) 878-9100
                Attention: Joel Ackerman
                           David Wenstrup

          (ii)  If to Warburg Pincus, to it at:

                Warburg Pincus Private Equity VIII, L.P.
                c/o Warburg Pincus LLC
                466 Lexington Avenue
                New York, New York 10017
                Facsimile No.: (212) 878-9100
                Attention: Joel Ackerman
                           David Wenstrup

                with a copy to:

                Willkie Farr & Gallagher
                787 Seventh Avenue
                New York, New York 10019
                Facsimile No.: (212) 728-8111
                Attention: Steven J. Gartner, Esq.

          (iii) If to Soros, to it at:

                Soros Private Equity Investors LP
                888 Seventh Avenue
                New York, NY 10106

                                       12

<PAGE>

                Facsimile No.: (917) 206-0757 and (917) 206-0645
                Attention: General Counsel and Jonathan Bilzin

                with a copy to:

                Kirkland & Ellis LLP
                153 East 53rd Street
                New York, NY 10022-4675
                Facsimile No.: (212) 446-4900
                Attention: W. Brian Raftery, Esq.

          (iv)  If to Spheris Investment LLC, to it at

                c/o Warburg Pincus LLC
                466 Lexington Avenue
                New York, New York 10017
                Facsimile No.: (212) 878-9100
                Attention: Joel Ackerman
                           David Wenstrup

                with a copy to:

                Spheris Inc.
                720 Cool Springs Blvd
                Suite 200
                Franklin, TN 37067
                Facsimile No.: (615) 261-1792
                Attn:Gregory T. Stevens, Esq.

          (v) If to any other Investor, to such Investor at the address or
     facsimile number listed on the signature page hereto or the Joinder
     Agreement executed by such Investor or as such Investor shall designate to
     the Company in writing in accordance with the terms hereof, with a copy to
     the Company and Investors at their respective addresses indicated herein;

     or, in each case, to such other Person or address as any party shall
specify by notice in writing to the Company and Investors. Any notice so
addressed shall be deemed to be given: if delivered personally or by telecopy
(including facsimile) or telegram, on the date of such delivery, if a business
day, otherwise on the first business day thereafter; if mailed by certified or
registered mail with postage prepaid, on the third business day after the date
of such mailing; and if sent by next-day or overnight mail or delivery, on the
first business day following the date of such mailing or delivery.

14. Headings; Execution in Counterparts. The headings and captions contained
herein are for convenience only and shall not control or affect the meaning or
construction of any provision hereof. This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original and
which together shall constitute one and the same instrument.

                                       13

<PAGE>

15. Entire Agreement. This Agreement, together with Registration Rights
Agreement and the other agreements and documents referenced herein, including in
the recitals hereto (collectively, the "Other Agreements"), embodies the entire
agreement and understanding of the parties hereto in respect of the subject
matter contained herein. There are no restrictions, promises, representations,
warranties, covenants or undertakings relating to the Shares, other than those
expressly set forth or referred to herein and other than those set forth in the
Other Agreements. This Agreement and the Other Agreements supersede all prior
agreements and understandings among the parties with respect to such subject
matter, and it is the understanding of all parties hereto that any such prior
agreement is hereby terminated, null and void as of the Closing Date.

16. Injunctive Relief. The Shares cannot readily be purchased or sold in the
open market, and for that reason, among others, the Company and the Investors
will be irreparably damaged in the event this Agreement is not specifically
enforced. Each of the parties therefore agrees that in the event of a breach of
any provision of this Agreement, the aggrieved party may elect to institute and
prosecute proceedings in any court of competent jurisdiction to enforce specific
performance or to enjoin the continuing breach of this Agreement. Such remedies
shall, however, be cumulative and not exclusive, and shall be in addition to any
other remedy which the Company or the Investors may have. Each party hereto
hereby irrevocably submits to the non-exclusive jurisdiction of the state and
federal courts in New York, New York for the purposes of any suit, action or
other proceeding arising out of or based upon this Agreement or the subject
matter hereof. Each party hereto hereby consents to service of process by mail
made in accordance with Section 13 hereof.

17. Defined Terms. As used in this Agreement, the following terms shall have the
meanings ascribed to them below:

     17.1. Affiliate. "Affiliate" shall mean, with respect to any Person, a
Person directly or indirectly, through one or more intermediaries, controlling,
controlled by, or under common control with, such Person.

     17.2. Closing Date. The "Closing Date" shall mean the date on which the
transactions contemplated by the Purchase Agreement close.

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

     17.4. Company Sale. "Company Sale" shall mean any sale (including by merger
or consolidation) of all of the Shares owned by the Warburg Investors or any
sale of all or substantially all of the assets of the Company and its
Subsidiaries, on a consolidated basis, in either case, to any Person.

     17.5. Convertible Securities. "Convertible Securities" shall mean any
warrants, options or other rights to acquire, and any equity and debt securities
convertible into, capital stock of the Company or any Subsidiary.

                                       14

<PAGE>

     17.6. Credit Agreement. "Credit Agreement" shall mean that certain Credti
Agreement, dated as of the date hereof, by and among Spheris Holding II, Inc.
and Spheris Inc., as Borrower, the several Lenders from time to time party
thereto, UBS Securities LLC, as Syndication Agent, and JPMorgan Chase Bank, as
Administrative Agent.

     17.7. Equity Securities. "Equity Securities" shall mean any equity
securities of any kind of the Company or any Subsidiary, including any
Convertible Securities.

     17.8. Exchange Act. "Exchange Act" shall mean the Securities Exchange Act
of 1934, as amended.

     17.9. Healthscribe Acquisition. "Healthscribe Acquisition" shall mean the
Merger (as such term is defined in the Healthscribe Acquisition Agreement).

     17.10. Healthscribe Acquisition Agreement. "Healthscribe Acquisition
Agreement" shall mean the Agreement and Plan of Merger, dated as of September
20, 2004, by and among Healthscribe, Inc., MTS Group Holdings, Inc. and HSI
Merger Sub, Inc.

     17.11. Investors. "Investors" shall mean the Warburg Investors, the Soros
Investors, Spheris Investment and their respectice transferees and assigns that
become parties to this Agreement pursuant to Section 8.3 hereof.

     17.12. Mandatory Conversion. "Mandatory Conversion" shall have the meaning
ascribed to such term in the Restated Certificate.

     17.13. Majority Soros Investors. "Majority Soros Investors" shall mean the
Soros Investors that Own the majority of the aggregate Common Stock Owned by the
Soros Investors.

     17.14. Majority Warburg Investors. "Majority Warburg Investors" shall mean
the Warburg Investors that Own the majority of the aggregate Common Stock Owned
by the Warburg Investors.

     17.15. Owns, Own or Owned. "Owns," "Own," or "Owned" shall mean beneficial
ownership within the meaning of Rule 13d-3 under the Exchange Act, assuming the
conversion (whether or not then convertible) of all outstanding Preferred Stock
(which for purposes hereof shall mean assuming the conversion (whether or not
then convertible) of all outstanding Preferred Stock into the number of shares
of Common Stock into which such Preferred Stock is convertible at the then
applicable Conversion Rate in accordance with, and as adjusted from time to time
by, the Restated Certificate without giving effect to subclauses 5(a)(x) and
5(a)(z) of the Restated Certificate).

     17.16. Permitted Assignee. A "Permitted Assignee" shall mean, with respect
to each Investor, any Affiliate of such Investor and any member, general partner
or limited partner of such Investor (or any Person holding an equity interest in
any such member, general partner or limited partner); provided, that in each
instance, any such transferee agrees to be bound by the provisions of this
Agreement in accordance with the terms of Section 8.3 hereof.

                                       15

<PAGE>

     17.17. Person. "Person" shall mean an individual, partnership, corporation,
limited liability company, business trust, joint stock company, trust,
unincorporated association, joint venture, governmental authority or other
entity of whatever nature.

     17.18. Qualified Public Offering. "Qualified Public Offering" shall have
the meaning ascribed to such term in the Restated Certificate.

     17.19. Registration Rights Agreement. "Registration Rights Agreement" shall
mean that certain Registration Rights Agreement, dated as of the date hereof, by
and among the Company and the investors ascribed thereto.

     17.20. Restricted Stock Plan. "Restricted Stock Plan" shall mean the
Spheris Holding III, Inc. Stock Incentive Plan.

     17.21. Securities Act. "Securities Act" shall mean the Securities Act of
1933, as amended.

     17.22. Shares. "Shares" shall mean shares of Common Stock and Convertible
Securities (including Preferred Stock) convertible into Common Stock.

     17.23. Soros Investors. "Soros Investors" shall mean Soros Private Equity
Investors LP.

     17.24. Spheris Investment. "Spheris Investment" shall mean Spheris
Investment LLC and its transferees and assigns.

     17.25. Spheris Investment LLC Agreement. "Spheris Investment LLC Agreement"
shall mean the Amended and Restated Limited Liability Company Agreement of
Spheris Investment LLC.

     17.26. Transfer. "Transfer" (or any variation thereof used herein) shall
mean any direct or indirect sale, assignment, mortgage, transfer, pledge,
hypothecation or other disposal.

     17.27. Warburg Investors. "Warburg Investors" shall mean Warburg Pincus,
Warburg Pincus Netherlands Private Equity VIII C.V. I, Warburg Pincus
Netherlands Private Equity VIII C.V. II and Warburg Pincus Germany Private
Equity VIII KG.

     17.28. Warburg Pincus. "Warburg Pincus" shall mean Warburg Pincus Private
Equity VIII, L.P.

                            [signature pages follow]

                                       16

<PAGE>

     IN WITNESS WHEREOF, the undersigned has executed this Stockholders'
Agreement as of the date first above written.

                                        SPHERIS HOLDING III, INC.

                                        By: /s/ Tenno Tsai
                                            ------------------------------------
                                        Name: Tenno Tsai
                                              ----------------------------------
                                        Title: President
                                               ---------------------------------

                     [Stockholders Agreement Signature Page]

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Stockholders'
Agreement as of the date first above written.

                                        WARBURG PINCUS PRIVATE EQUITY VIII, L.P.

                                        By: Warburg Pincus & Co.,
                                            its General Partner

                                        By: /s/ David J. Wenstrup
                                            ------------------------------------
                                        Name: David J. Wenstrup
                                              ----------------------------------
                                        Title: General Partner
                                               ---------------------------------

                                        WARBURG PINCUS NETHERLANDS
                                        PRIVATE EQUITY VIII C.V. I

                                        By: Warburg Pincus & Co.,
                                            its General Partner

                                        By: /s/ David J. Wenstrup
                                            ------------------------------------
                                        Name: David J. Wenstrup
                                              ----------------------------------
                                        Title: General Partner
                                               ---------------------------------

                                        WARBURG PINCUS NETHERLANDS
                                        PRIVATE EQUITY VIII C.V. II

                                        By: Warburg Pincus & Co.,
                                            its General Partner

                                        By: /s/ David J. Wenstrup
                                            ------------------------------------
                                        Name: David J. Wenstrup
                                              ----------------------------------
                                        Title: General Partner
                                               ---------------------------------

                                        WARBURG PINCUS GERMANY PRIVATE
                                        EQUITY VIII KG

                                        By: Warburg Pincus & Co.,
                                            its General Partner

                                        By: /s/ David J. Wenstrup
                                            ------------------------------------
                                        Name: David J. Wenstrup
                                              ----------------------------------
                                        Title: General Partner
                                               ---------------------------------

                     [Stockholders Agreement Signature Page]

<PAGE>

     IN WITNESS WHEREOF, the undersigned has executed this Stockholders'
Agreement as of the date first set forth above.

                                        SOROS PRIVATE EQUITY INVESTORS LP

                                        By: /s/ Jennifer Glassman
                                            ------------------------------------
                                        Name: Jennifer Glassman
                                              ----------------------------------
                                        Title: CFO
                                               ---------------------------------

                     [Stockholders Agreement Signature Page]

<PAGE>

     IN WITNESS WHEREOF, the undersigned has executed this Stockholders'
Agreement as of the date first above written.

                                        SPHERIS INVESTMENT LLC

                                        By: Warburg Pincus Private Equity VIII,
                                            L.P., Warburg Pincus Netherlands
                                            Private Equity VIII C.V. I, Warburg
                                            Pincus Netherlands Private Equity
                                            VIII C.V. II and Warburg Pincus
                                            Germany Private Equity VIII KG,
                                            together, its Managing Members

                                        By: Warburg Pincus & Co.,
                                            their General Partner

                                        By: /s/ David J. Wenstrup
                                            ------------------------------------
                                        Name: David J. Wenstrup
                                              ----------------------------------
                                        Title: General Partner
                                               ---------------------------------

                     [Stockholders Agreement Signature Page]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]