Document:

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                                                                   EXHIBIT 10.24

                               THIRD AMENDMENT TO
                      ORTHODONTIC CENTERS OF AMERICA, INC.
                              STOCK POOL II PROGRAM

                                    PREAMBLE

         WHEREAS, on November 9, 2001, a wholly-owned subsidiary of Orthodontic
Centers of America, Inc., a Delaware corporation ("OCA"), merged with and into
OrthAlliance, Inc., a Delaware corporation ("OrthAlliance"), and OrthAlliance
thereby became a wholly-owned subsidiary of OCA (the "Merger");

         WHEREAS, OCA established the Orthodontic Centers of America, Inc. Stock
Pool II Program (the "Program") through which OCA may grant shares of its common
stock, $.01 par value per share ("OCA Common Stock"), to certain eligible
individuals (each such eligible individual, a "Participant") who are
OrthAlliance Affiliated Practitioners and who timely executed and delivered
either an Amendment to OrthAlliance Service/Consulting Agreement and Amendment
to Employment Agreement or an OCA Business Services Agreement, subject to the
terms described therein;

         WHEREAS, all capitalized terms not defined herein shall have the
meaning ascribed to such terms in the Program;

         WHEREAS, on July 11, 2002, OCA amended the terms of the Program to
extend the deadline for executing and delivering the required documents and to
modify how the principal amount of the Promissory Note is calculated (the "First
Amendment");

         WHEREAS, on August 15, 2002, OCA amended the terms of the Program to
extend the deadline for executing and delivering the required documents and to
modify how the principal amount of the Promissory Note is calculated (the
"Second Amendment"); and

         WHEREAS, OCA desires to further amend the terms of the Program as set
forth herein (the "Amendment").

         NOW, THEREFORE, OCA hereby amends the Program as follows:

         1. Amendment to Timing and Conditions of Grants. Section 2.2 of the
Program as amended by the First Amendment and the Second Amendment is deleted in
its entirety and the following text substituted in lieu thereof:

         "2.2 Timing and Conditions of Grants. Shares of OCA Common Stock
         awarded under the Program shall be issuable to Participants in four
         annual installments (subject to Section 2.3 and the other terms and
         conditions of the Program), as follows:

                  (a) For each Participant, 25% of the total number of shares of
         OCA Common Stock (rounded to the nearest whole number) to be awarded to
         such Participant under the Program will be issued to such Participant
         following each of the first, second, third and fourth anniversaries
         (each such anniversary date, a "Vesting Date") of the Applicable Date
         (as defined below) with respect to such Participant, if, and only if,
         subject to all of the other conditions set forth in the Program, the
         amount of Service Fees paid to OCA, OrthAlliance or their subsidiaries
         by the Participant and/or the PC owned by and employing such
         Participant during and with respect to the 12 calendar months
         immediately preceding that particular Vesting Date is at least 90% (the
         "90% Minimum Target") of the amount of the Applicable Participant's
         Service Fees During the 12 Months Ended October 31, 2001.

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                  For purposes of the Program, "Applicable Date" means: (A)
         November 9, 2001 (the effective date of the Merger) for each
         Participant who executes and delivers to OCA his or her Amendments or
         Business Services Agreement, a Participation Agreement and an Investor
         Suitability Questionnaire as provided in Sections 1.2, 1.4 and 1.5
         hereof by no later than 5:00 p.m. (Central Time) on October 1, 2002;
         and (B) for each of the other Participants, the last day of the month
         during which the Participant executes and delivers to OCA his or her
         Amendments or Business Services Agreement, a Participation Agreement
         and an Investor Suitability Questionnaire as provided in Sections 1.2,
         1.4 and 1.5 hereof.

                  (b) However, if the 90% Minimum Target is not achieved in the
         12 calendar month period immediately preceding the first, second or
         third such Vesting Date (each, an "Earlier Period"), but is achieved
         during the 12 calendar month period immediately preceding a subsequent
         Vesting Date (each, a "Later Period"), then, subject to all of the
         other conditions set forth in the Program, the installment of shares of
         OCA Common Stock issuable with respect to such Earlier Period will be
         issued following such Later Period. By way of illustration, if such
         target were not achieved during the periods preceding the second or
         third Vesting Dates, but was achieved during the period preceding the
         fourth Vesting Date, then the installment of shares for the second and
         third vesting periods would be issued after the fourth Vesting Date."

         2. Amendment to Calculation of Original Principal Amount of Promissory
Note in Lieu of Shares. Section 2.3 of the Program as amended by the First
Amendment and the Second Amendment is deleted in its entirety and the following
text substituted in lieu thereof:

         "2.3 Participant May Elect to Receive Promissory Note In Lieu of
Shares.

                  (a) Promissory Note. During the 30 calendar days ending on and
         including the first Vesting Date, a Participant may make a one-time,
         permanent election (as provided below) as to all shares of OCA Common
         Stock that the Participant may be issued under the Program, to receive,
         in lieu and full substitution of any and all shares of OCA Common Stock
         that would otherwise be issued to such Participant pursuant to Sections
         2.1 and 2.2 of the Program, a non-transferable, non-negotiable
         promissory note from OCA or a subsidiary thereof selected by OCA
         substantially in the form and substance of the form of Promissory Note
         attached as Exhibit E hereto ("Promissory Note"), in an original
         principal amount equal to the product of:

                     (x)    the Applicable Stock Price (as defined below),

                     TIMES

                     (y)    the total, maximum number of shares of OCA Common
                            Stock that would otherwise be issued to such
                            Participant pursuant to Section 2.1 of the Program
                            (notwithstanding the vesting conditions set forth in
                            Section 2.2).

         For purposes of the Program:

                  o  "Applicable Stock Price" means: (A) the sum of (x) $1.00,
                     plus (y) the greater of $26.00 or the 10-Day Average
                     Closing Price, for each Participant who executes and
                     delivers to OCA his or her Amendments or Business Services
                     Agreement, a Participation Agreement and an Investor
                     Suitability Questionnaire as provided in Sections 1.2, 1.4
                     and 1.5 hereof by no later than 5:00 p.m. (Central Time) on
                     October 1, 2002, and (B) the greater of $26.00 or the
                     10-Day Average Closing Price, for each of the other
                     Participants.

                  o  "10-Day Average Closing Price" means the average closing
                     price per share of OCA Common Stock reported on the New
                     York Stock Exchange during the 10 trading day period
                     immediately following the date on which the Participant
                     executes and delivers to OCA his or her Amendments or
                     Business Services Agreement, and Participation Agreement
                     and Investor Suitability Questionnaire as provided in
                     Sections 1.2, 1.4 and 1.5 hereof.

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                  (b) Other Terms of Promissory Note. Principal amounts owing
         under the Promissory Note will bear interest from the first Vesting
         Date (except as provided in subsection 2.3(d) hereof) at a rate equal
         to the prime rate on the first Vesting Date (as reported in the Wall
         Street Journal or comparable reporting service selected by OCA) plus
         1.5% per annum. OCA may prepay all or part of the amounts owing under
         the Promissory Note at any time in its discretion without penalty. The
         Promissory Note will be non-transferable and non-negotiable.

                  (c) Election. A Participant may make such election to receive
         a Promissory Note in lieu of all shares of OCA Common Stock to be
         issued to such Participant under the Program only by giving written
         notice of such election to the Chief Executive Officer of OCA during
         the 30 calendar days ending on and including the first Vesting Date.
         Once such an election has been made, it may not be withdrawn, and such
         an election may not be made before or following such 30-day period, and
         may not be made during the 30 days ending on any other Vesting Date. If
         such Participant makes such an election, in accordance with such notice
         and timing requirements, such Participant will be issued a Promissory
         Note in an original principal amount computed as provided above, in
         complete substitution and replacement of all shares of OCA Common Stock
         to be issued to such Participant pursuant to Sections 2.1 and 2.2 of
         the Program, and such shares will not be issued to such Participant.

                  (d) Manner of Payment. Principal and accrued interest payable
         under such Promissory Note will be payable in up to four installments,
         as follows:

                           (i) the first installment will consist of principal
                  only (with respect to which no interest shall accrue), in an
                  amount equal to 25% of the original principal amount of the
                  Promissory Note, and will be payable, subject to all of the
                  other conditions set forth in the Program, within 15 business
                  days following the first Vesting Date (subject to the
                  conditions described in this paragraph below); and

                           (ii) the second, third and fourth installments will
                  each consist of principal and accrued interest, in an amount
                  equal to 25% of the original principal amount of the
                  Promissory Note and interest accrued on that payment of 25% of
                  the original principal amount since the first Vesting Date,
                  and will be payable, subject to all of the other conditions
                  set forth in the Program, within 15 business days following
                  the second, third and fourth Vesting Dates, respectively
                  (subject to the conditions described in this paragraph below).

         Each such installment will be payable if, and only if, the amount of
         Service Fees paid to OCA, OrthAlliance or their subsidiaries by the
         Participant and/or the PC owned by and employing such Participant
         during and with respect to the 12 calendar months immediately preceding
         the particular Vesting Date relating to that installment is at least
         equal to the 90% Minimum Target. However, if the 90% Minimum Target is
         not achieved in an Earlier Period (in which case the installment of
         principal and accrued interest relating to that Earlier Period shall
         cease to accrue interest as of the Vesting Date relating to such
         Earlier Period), but is achieved during a Later Period, then, subject
         to all of the other conditions set forth in the Program, the
         installment payable with respect to such Earlier Period will be paid
         following such Later Period in the same amount of principal and accrued
         interest that would have been paid following the Earlier Period (with
         no interest accruing thereon from the Vesting Date relating to such
         Earlier Period)."

         3. No Other Changes. Except as set forth in this Amendment, the terms
and conditions of the Program shall remain in place and shall not be altered or
amended, except by any further amendment to the Program made in accordance with
the terms of Program.

         4. Rules of Construction. Headings are given to the sections of this
Amendment solely as a convenience to facilitate reference. The masculine gender
when used herein refers to both masculine and feminine. The reference to any
statute, regulation or other provision of law shall be construed to refer to any
amendment to or successor of such provision of law.

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         5. Governing Law. The internal laws of the State of Louisiana (without
regard to the choice of law provisions of Louisiana) shall apply to all matters
arising under this Amendment, to the extent that federal law does not apply.

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         IN WITNESS WHEREOF, the undersigned officer has executed this document
effective as of September 10, 2002.

                               ORTHODONTIC CENTERS OF AMERICA, INC.

                               By:   /s/ Bartholomew F. Palmisano, Sr.
                                   --------------------------------------------
                                         Bartholomew F. Palmisano, Sr.
                                         Chairman of the Board, President and
                                         Chief Executive Officer

                                       5<PAGE>
                                                                   EXHIBIT 10.25

                      ORTHODONTIC CENTERS OF AMERICA, INC.

                             TARGET STOCK II PROGRAM

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                      ORTHODONTIC CENTERS OF AMERICA, INC.
                             TARGET STOCK II PROGRAM

                                    PREAMBLE

         WHEREAS, on November 9, 2001, a subsidiary of Orthodontic Centers of
America, Inc., a Delaware corporation ("OCA"), merged with and into
OrthAlliance, Inc., a Delaware corporation ("OrthAlliance"), and OrthAlliance
thereby became a wholly-owned subsidiary of OCA (the "Merger"); and

         WHEREAS, OCA desires to establish a program through which OCA may,
subject to the terms, conditions and restrictions described herein, grant shares
of its common stock, $.01 par value per share ("OCA Common Stock"), to certain
eligible individuals (each such eligible individual, a "Participant") who are,
among other things, Affiliated Practitioners (as defined below), who timely
execute and deliver their respective Amendments or Business Services Agreements
(each as defined below) and are not participants in OCA's existing Target Stock
Program;

         NOW, THEREFORE, OCA hereby establishes the Orthodontic Centers of
America, Inc. Target Stock II Program (the "Program").

                             ARTICLE I. ELIGIBILITY

         In order for any person to be eligible to be a Participant in the
Program, or to be granted shares of OCA Common Stock under the Program or any
Participation Agreement (as defined below), he or she must meet and comply with
each of the following:

1.1 Must Be An Affiliated Practitioner. In order to be a Participant in the
Program and to be issued any shares of OCA Common Stock under or pursuant to the
Program or any Participation Agreement, a person must be an Affiliated
Practitioner.

         For purposes of the Program, "Affiliated Practitioner" means a licensed
orthodontist or pediatric dentist who both (A) owns, beneficially and of record,
shares of capital stock of, or other equity ownership interests in, a
professional corporation or other professional entity (each, a "PC") that is a
party to a written long-term service, management service, consulting or similar
long-term agreement with OrthAlliance and/or a subsidiary thereof pursuant to
which OrthAlliance and/or its subsidiary is providing business management or
consulting services for such Participant's orthodontic or pediatric dental
practice in exchange for a consulting or service fee (each a "Service/Consulting
Agreement"), and (B) provides orthodontic or pediatric dental services in such
practice as a full-time orthodontist or pediatric dentist employee of his or her
respective PC, pursuant to a written employment agreement (each, an "Employment
Agreement") between such orthodontist or pediatric dentist and his or her
respective PC.

1.2 Must Amend Service/Consulting Agreement and Employment Agreement or Enter
Into New Business Services Agreement. In order to be a Participant in the
Program and to be issued any shares of OCA Common Stock under or pursuant to the
Program or any Participation Agreement, an Affiliated Practitioner must also,
along with his or her respective PC, execute and deliver his or her respective
Amendments or Business Services Agreement to OCA.

         If the Participant's respective PC is partially owned by one or more
other Affiliated Practitioners, then each of such other Affiliated Practitioners
must also execute and deliver to OCA his or her respective Amendments or
Business Services Agreement, as applicable, in order for the Participant to be
eligible for the Program, subject to the other terms of the Program.

<PAGE>

         For purposes of the Program:

         o    "Amendments" means an Amendment to Employment Agreement (as
              defined below) and Amendment to Service/Consulting Agreement (as
              defined below).

         o    "Amendment to Employment Agreement" shall mean a written amendment
              to the Affiliated Practitioner's respective Employment Agreement,
              in form and substance satisfactory to OCA and its counsel, which
              amendment shall be in full force and effect and in substantially
              the form and substance of the form of Amendment to Employment
              Agreement attached hereto as Exhibit A, as such Exhibit may be
              amended from time to time by OCA in its discretion.

         o    "Amendment to Service/Consulting Agreement" means a written
              amendment to the applicable Service/Consulting Agreement in form
              and substance satisfactory to OCA and its counsel, which amendment
              shall be in full force and effect and in substantially the form
              and substance of the form of Amendment to Service/Consulting
              Agreement attached hereto as Exhibit B, as such Exhibit may be
              amended from time to time by OCA in its discretion.

         o    "Business Services Agreement" means a written long-term business
              services agreement among the Affiliated Practitioner, his or her
              respective PC and OrthAlliance (or other subsidiary of OCA), in
              form and substance satisfactory to OCA and its counsel and based
              on OCA's form of such agreement (including, without limitation,
              the service fee, restrictive covenant and termination provisions
              thereof), which agreement shall be in full force and effect, and
              pursuant to which OCA, OrthAlliance or other subsidiary of OCA
              would provide business management or consulting services for such
              Affiliated Practitioner's and PC's orthodontic or pediatric dental
              practice in exchange for a monthly consulting or service fee.

1.3 No Litigation, Notice of Termination or Non-Compliance. An Affiliated
Practitioner may not be a Participant in the Program, and will not be issued any
shares of OCA Common Stock under or pursuant to the Program or any Participation
Agreement, if:

         (a) Such Affiliated Practitioner and/or his or her PC is a party to or
has threatened any litigation or other legal or arbitration proceedings against
or involving OrthAlliance, OCA or their subsidiaries, affiliates, officers,
directors, agents or employees; if any such litigation or proceedings has been
commenced or threatened, such Affiliated Practitioner may become a Participant
and may be issued any shares of OCA Common Stock under or pursuant to the
Program or any Participation Agreement, subject to the other terms and
conditions hereof, only if the same has been dismissed with prejudice or fully
withdrawn in a manner acceptable to OCA;

         (b) Such Affiliated Practitioner and/or his or her PC has threatened or
given notice of termination or intention to terminate their respective
Service/Consulting Agreement or Employment Agreement or amendments thereto; if
any such notice has been threatened or given, such Affiliated Practitioner may
become a Participant and may be issued any shares of OCA Common Stock under or
pursuant to the Program or any Participation Agreement, subject to the other
terms and conditions hereof, only if the same has been fully withdrawn in a
manner acceptable to OCA;

         (c) Such Affiliated Practitioner and/or his or her PC is in default or
breach of, or is not in compliance with, their obligations under the applicable
Service/Consulting Agreement or Employment Agreement or amendments thereto,
including, without limitation, their obligation to pay service or consulting
fees to OrthAlliance, OCA or their subsidiaries; and/or

         (d) Such Affiliated Practitioner and/or his or her PC is a party with
OrthAlliance or a subsidiary thereof to any practice improvement performance
guarantee agreement or comparable agreement, pursuant to which service or
consulting fees payable under a Service/Consulting Agreement may be abated or
deferred based upon profitability of the applicable practice and the value of
consideration paid to such Affiliated Professional and/or his or her PC upon
OrthAlliance's or its subsidiary's acquisition of stock or assets therefrom, or
entering into of a Service/Consulting Agreement therewith.

                                       2
<PAGE>

1.4 Must Execute and Deliver Participation Agreement. In order to be a
Participant in the Program and to be issued shares of OCA Common Stock under or
pursuant to the Program or any Participation Agreement, an Affiliated
Practitioner must also execute and deliver a written Participation Agreement
(each, a "Participation Agreement") to OCA, and OCA must have accepted such
Participation Agreement in its sole discretion, which Participation Agreement
shall be in form and substance satisfactory to OCA and its counsel and in full
force and effect, shall address such Affiliated Practitioner's participation in
the Program subject to each of the terms and conditions set forth herein and in
such Participation Agreement, include certain representations and warranties
relating to applicable securities laws, and be in substantially the form and
substance of the form of Participation Agreement attached as Exhibit C hereto,
as such Exhibit may be amended from time to time by OCA in its discretion.

1.5 Must Complete and Deliver Investor Suitability Questionnaire. In order to be
a Participant in the Program and to be issued shares of OCA Common Stock under
or pursuant to the Program or any Participation Agreement, an Affiliated
Practitioner must also complete, execute and deliver to OCA a written Investor
Suitability Questionnaire (each, an "Investor Suitability Questionnaire"), which
Investor Suitability Questionnaire shall be in form and substance satisfactory
to OCA and its counsel and in full force and effect, address such Affiliated
Practitioner's suitability to participate in the Program in light of applicable
securities laws, and be in substantially the form and substance of the form of
Investor Suitability Questionnaire attached as Exhibit D hereto, as such Exhibit
may be amended from time to time by OCA in its discretion.

1.6 May Not Be a Participant In Existing Target Stock Program. In 2001, OCA
established the Orthodontic Centers of America, Inc. Target Stock Program (the
"Original Target Stock Program"), which was made available to certain Affiliated
Practitioners in connection with the Merger and in which various Affiliated
Practitioners are participating (each, an "Option 2 Doctor"). If an Affiliated
Practitioner is or was an Option 2 Doctor or participant in the Original Target
Stock Program, he or she (and his or her PC) are not eligible to participate in
the Program, or to receive any shares of OCA Common Stock or other award under
the Program.

1.7 Provision of Requested Information. In order to be a Participant in the
Program and to be issued shares of OCA Common Stock under or pursuant to the
Program or any Participation Agreement, an Affiliated Practitioner must provide
OCA with any financial information that OCA reasonably requests in order to
determine the number of shares of OCA Common Stock, if any, to be granted to the
Affiliated Practitioner under the Program.

                               ARTICLE II. AWARDS

         Eligible Participants in the Program will be awarded shares of OCA
Common Stock under the Program (subject to the terms and conditions of the
Program) in an amount determined under either Section 2.1 or 2.2 below, as
applicable (subject to OCA's election to substitute a Promissory Note pursuant
to Section 2.4 below):

2.1 Awards for Entering into Amendments. An eligible Participant who, along with
his or her respective PC, executes and delivers to OCA his or her respective
Amendments will be granted (subject to Sections 2.3 and 2.4 and the other terms
and conditions of the Program) a number of shares of OCA Common Stock (rounded
down to the nearest whole number) calculated under the following terms:

         (a) 70% Increase in Service Fees. If, during the 12 calendar months
immediately preceding the third anniversary of the effective date of the Merger,
the Participant achieves a 70% Increase In Year 3 Service Fees (as defined
below), then the number of shares of OCA Common Stock granted under this Section
2.1 shall be equal to the result (rounded to the nearest whole number) of the
following:

              (x)    the product of

                     (A)    3,

                     TIMES

                     (B)    70% of the amount of the Prior 12 Months Service
                            Fees (as defined below), with respect to such
                            Participant,

                                        3

<PAGE>
              DIVIDED BY

              (y)    The average closing price per share of OCA Common Stock as
                     reported on the New York Stock Exchange (or other stock
                     exchange or market on which shares of OCA Common Stock are
                     then principally traded) during the 10 trading days
                     immediately preceding the third anniversary of the
                     effective date of the Merger.

For purposes of the Program:

         "70% Increase in Year 3 Service Fees" means that the amount of Year 3
Service Fees (as defined below) is at least 70% greater than the amount of the
Prior 12 Months Service Fees, with respect to the applicable Participant.

         "Prior 12 Months Service Fees" means the amount of service or
consulting fees (excluding any amounts reimbursed, paid, earned or accrued with
respect to center expenses, operating and non-operating expenses incurred in the
operation of the applicable Practice or other expenses) paid to OrthAlliance or
its subsidiary by the Affiliated Practitioner or his or her PC under the
applicable Service/Consulting Agreement during and with respect to the 12
calendar months immediately preceding the effective date of the Merger.

         "Year 3 Service Fees" means the service or consulting fees (excluding
any amounts reimbursed, paid, earned or accrued with respect to center expenses,
operating and non-operating expenses incurred in the operation of the applicable
Practice or other expenses) paid to OCA or its subsidiary by the applicable
Affiliated Practitioner or his or her PC under the applicable Service/Consulting
Agreement during and with respect to the 12 calendar months immediately
preceding the third anniversary of the effective date of the Merger.

         (b) Pro Rata Amount. However, if a Participant does not achieve the 70%
Increase In Year 3 Service Fees, but the amount of such Participant's Year 3
Service Fees is at least equal to the amount of such Participant's Prior 12
Months Service Fees, then the number of shares of OCA Common Stock awarded under
this Section 2.1 (subject to Sections 2.3 and 2.4 and the other terms and
conditions of the Program) shall be a pro rata amount (rounded down to the
nearest whole number) calculated by multiplying the number of shares of OCA
Common Stock that would have been awarded under subsection (a) of this Section
2.1, times a fraction, the numerator of which is the percentage by which such
Year 3 Service Fees exceed such Prior 12 Months Service Fees, and the
denominator of which is 70%.

2.2 Awards for Entering into New OCA Business Services Agreement. An eligible
Participant who, along with his or her respective PC, executes and delivers to
OCA a Business Services Agreement will be granted (subject to Sections 2.3 and
2.4 and the other terms and conditions of the Program) a number of shares of OCA
Common Stock calculated under the following terms:

         (a) 70% Increase in Service Fees. If, during the 12 calendar months
immediately preceding the third anniversary of the effective date of the Merger,
the Participant achieves a 70% Increase In Year 3 Service Fees Under New BSA (as
defined below), then the number of shares of OCA Common Stock granted under this
Section 2.2 shall be equal to the result (rounded to the nearest whole number)
of the following:

              (x)    the product of:

                     (A)    3,

                     TIMES

                     (B)    70% of the amount of the Prior 12 Months Assumed
                            Service Fees (as defined below), with respect to
                            such Participant,

              DIVIDED BY

              (y)    The average closing price per share of OCA Common Stock as
                     reported on the New York Stock Exchange (or other stock
                     exchange or market on which shares of OCA Common Stock are
                     then principally traded) during the 10 trading days
                     immediately preceding the third anniversary of the
                     effective date of the Merger.

                                       4
<PAGE>

For purposes of the Program:

         "70% Increase in Year 3 Service Fees Under New BSA" means that the
amount of Year 3 Service Fees Under New BSA (as defined below) is at least 70%
greater than the amount of the Prior 12 Months Assumed Service Fees, with
respect to the applicable Participant.

         "Prior 12 Months Assumed Service Fees" means the amount of service or
consulting fees (excluding any amounts reimbursed, paid, earned or accrued with
respect to center expenses, operating and non-operating expenses incurred in the
operation of the applicable practice or other expenses) that would have been
payable to OCA, its subsidiary or OrthAlliance, as applicable, by the Affiliated
Practitioner or his or her PC under the Business Services Agreement during and
with respect to the 12 calendar months immediately preceding the effective date
of the Merger (assuming that the Business Services Agreement had been in effect
during that period and also assuming that the operating margin of the applicable
practice during that period was 5% higher than the actual operating margin for
that period).

         "Year 3 Service Fees Under New BSA" means the service or consulting
fees (excluding any amounts reimbursed, paid, earned or accrued with respect to
center expenses, operating and non-operating expenses incurred in the operation
of the applicable practice or other expenses) paid to OCA or its subsidiary by
the applicable Affiliated Practitioner or his or her PC under the applicable
Business Services Agreement during and with respect to the 12 calendar months
immediately preceding the third anniversary of the effective date of the Merger.

         (b) Pro Rata Amount. However, if a Participant does not achieve the 70%
Increase In Year 3 Service Fees Under New BSA, but the amount of such
Participant's Year 3 Service Fees Under New BSA is at least equal to the amount
of such Participant's Prior 12 Months Assumed Service Fees, then the number of
shares of OCA Common Stock awarded under this Section 2.2 (subject to Sections
2.3 and 2.4 and the other terms and conditions of the Program) shall be a pro
rata amount (rounded down to the nearest whole number) calculated by multiplying
the number of shares of OCA Common Stock that would have been awarded under
subsection (a) of this Section 2.2, times a fraction, the numerator of which is
the percentage by which such Year 3 Service Fees Under New BSA exceed such Prior
12 Months Assumed Service Fees, and the denominator of which is 70%.

         (c) Not Eligible Under Both Sections. If a Participant enters into the
Amendments, and also or subsequently enters into a Business Services Agreement,
he or she would only be eligible for awards under this Section 2.2 (and not
Section 2.1).

2.3 Timing and Conditions of Grants. Shares of OCA Common Stock awarded under
the Program shall be issuable to Participants in four annual installments
(subject to Section 2.4 and the other terms and conditions of the Program), as
follows:

         (a) For each Participant, one-fourth of the total number of shares of
OCA Common Stock (rounded to the nearest whole number) to be issued to such
Participant under the Program will be issued to such Participant following each
of the fourth, fifth, sixth and seventh anniversaries of the effective date of
the Merger (each such anniversary date, a "Vesting Date") if, and only if, the
amount of service or consulting fees (excluding any amounts reimbursed, paid,
earned or accrued with respect to center expenses, operating and non-operating
expenses incurred in the operation of the applicable Practice or other expenses)
paid to OCA or its subsidiary by the Participant and/or his or her PC during and
with respect to the 12 calendar months immediately preceding that particular
Vesting Date pursuant to the applicable Business Services Agreement or Service
Agreement ("Service Fees") is at least 90% (the "90% Minimum Target") of the
amount of Service Fees such Participant and/or PC paid to OrthAlliance or its
subsidiary during and with respect to the 12 calendar months immediately
preceding the Merger.

         (b) However, if the 90% Minimum Target is not achieved in the 12
calendar month period immediately preceding the fourth, fifth or sixth
anniversary of the effective date of the Merger (each, an "Earlier

                                       5
<PAGE>

Period), but is achieved during the 12 calendar month period immediately
preceding the fifth, sixth or seventh, as applicable, anniversary of the
effective date of the Merger (each, a "Later Period"), then the installment of
shares of OCA Common Stock issuable with respect to such Earlier Period will be
issued following such Later Period. By way of illustration, if such target were
not achieved during the periods preceding the fifth or sixth Vesting Dates, but
was achieved during the period preceding the seventh Vesting Date, then the
installment of shares for the fifth and sixth vesting periods would be issued
after the seventh Vesting Date.

2.4 Substitution of Promissory Note.

         (a) OCA May Elect to Deliver Promissory Note. Notwithstanding any
provision herein regarding the issuance of OCA Common Stock, OCA may, in its
sole discretion, elect to issue the eligible Participant a non-transferable,
non-negotiable promissory note substantially in the form and substance of the
form of Promissory Note attached as Exhibit E hereto (each, a "Promissory Note")
in lieu of all or part, in OCA's discretion, of the shares of OCA Common Stock
that would otherwise be awarded pursuant to Section 2.1 or 2.2 and Section 2.3
hereof. The original principal amount of such Promissory Note shall equal all or
a portion, in OCA's discretion, of the amount, as applicable, of the product
computed in subparagraph (x) of Section 2.1(a) or 2.2(a), as applicable, or the
pro rata amount thereof pursuant to Section 2.1(b) or 2.2.(b), as applicable.

         (b) Other Terms of Promissory Note. Principal amounts owing under the
Promissory Note will bear interest from the first Vesting Date (except as
provided in subsection 2.3(c) hereof) at a rate equal to the prime rate on the
first Vesting Date (as reported in the Wall Street Journal or comparable
reporting service selected by OCA) plus 1.5% per annum. OCA may prepay all or
part of the amounts owing under the Promissory Note at any time in its
discretion without penalty. The Promissory Note will be non-transferable and
non-negotiable.

       (c) Manner of Payment. Principal and accrued interest payable under such
Promissory Note will be payable in up to four installments, as follows:

                  (i) the first installment will consist of principal only (with
         respect to which no interest shall accrue), in an amount equal to 25%
         of the original principal amount of the Promissory Note, and will be
         payable within 15 business days following the first Vesting Date
         (subject to the conditions described in this paragraph below); and

                  (ii) the second, third and fourth installments will each
         consist of principal and accrued interest, in an amount equal to 25% of
         the original principal amount of the Promissory Note and interest
         accrued on that payment amount of 25% of the original principal amount
         since the first Vesting Date, and will be payable within 15 business
         days following the second, third and fourth Vesting Dates, respectively
         (subject to the conditions described in this paragraph below). Each
         such installment will be payable if, and only if, the amount of Service
         Fees paid to OCA, OrthAlliance or their subsidiaries by the Participant
         and/or the PC owned by and employing such Participant during and with
         respect to the 12 calendar months immediately preceding the particular
         Vesting Date relating to that installment is at least equal to the 90%
         Minimum Target. However, if the 90% Minimum Target is not achieved in
         an Earlier Period (in which case the installment of principal and
         accrued interest relating to that Earlier Period shall cease to accrue
         interest as of the Vesting Date relating to such Earlier Period), but
         is achieved during a Later Period, then the installment payable with
         respect to such Earlier Period will be paid following such Later Period
         in the same amount of principal and accrued interest that would have
         been paid following the Earlier Period (with no interest accruing
         thereon from the Vesting Date relating to such Earlier Period).

2.5 Pro Rata Basis for Practices with Multiple Owners. If a Participant's PC is
partially owned by one or more other Affiliated Practitioners, then the award
granted pursuant to Section 2.1 or 2.2 and Section 2.3 hereof (or Promissory
Note issued pursuant to Section 2.4 hereof) for such Participant shall be
calculated by multiplying the total amount of the award that would otherwise be
granted to such person pursuant to such Section 2.1 or 2.2 and Section 2.3 (or
Promissory Note pursuant to Section 2.4 hereof) by his or her percentage of
equity ownership of such PC.

                                       6
<PAGE>

2.6 Only Whole Shares. Only whole shares of OCA Common Stock will be issued or
awarded under the Program; no fractional shares shall be issued and the
fractional share component of any computation hereunder shall be ignored.

             ARTICLE III. ADJUSTMENT UPON CERTAIN CORPORATE CHANGES

3.1 Adjustments to Shares. The number of shares of OCA Common Stock subject to
an outstanding award of shares of OCA Common Stock granted to a Participant
under and pursuant to the Program shall be adjusted as the Committee (as defined
below) determines (in its sole discretion) to be appropriate, in the event that
(a) OCA effects one or more stock dividends, stock splits, reverse stock splits,
subdivisions, consolidations, recapitalizations or other similar events; (b) OCA
engages in a transaction to which Section 424 of the U.S. Internal Revenue Code
of 1986, as amended (the "Code") applies; or (c) there occurs any other event
which in the judgment of the Committee necessitates such action.

3.2 No Adjustment upon Certain Transactions. The issuance by OCA of shares of
stock of any class, or securities convertible into shares of stock of any class,
for cash or property, or for labor or services rendered, either upon direct sale
or upon the exercise of rights or warrants to subscribe therefor, or upon
conversion of shares or obligations of OCA convertible into such shares or other
securities, shall not affect, and no adjustment by reason thereof shall be made
with respect to, outstanding awards.

                     ARTICLE IV. LEGAL COMPLIANCE CONDITIONS

4.1 General. No OCA Common Stock or Promissory Note shall be issued under the
Program except in compliance with all federal or state laws and regulations
(including, without limitation, withholding tax requirements), federal and state
securities laws and regulations and the rules of all securities exchanges or
self-regulatory organizations on which shares of OCA Common Stock may be listed.
OCA shall have the right to rely on the advice of its counsel as to such
compliance. Any certificate issued to evidence shares of OCA Common Stock or any
Promissory Note granted under the Program may bear such legends and statements
as OCA upon advice of counsel may deem advisable to assure compliance with
federal or state laws and regulations. No OCA Common Stock or Promissory Note
shall be issued and no certificate for shares shall be delivered until OCA has
obtained such consent or approval as OCA may deem advisable from any regulatory
bodies having jurisdiction over such matters.

4.2 Representations by Participants. As a condition to the issuance of OCA
Common Stock or Promissory Note under the Program or any Participation
Agreement, OCA may require a Participant to represent and warrant that the
Participant does not have a present intention to sell or distribute such shares
and is obtaining such shares for investment and not with a view to distribution.
At the option of OCA, a stop transfer order against any shares of stock may be
placed on the official stock books and records of OCA, and a legend indicating
that the stock may not be pledged, sold or otherwise transferred unless an
opinion of counsel was provided (concurred in by counsel for OCA) and stating
that such transfer is not in violation of any applicable law or regulation may
be stamped on the stock certificate in order to assure exemption from
registration. The Committee may also require such other action or agreement by
the Participants as may from time to time be necessary to comply with federal or
state securities laws. This provision shall not obligate OCA or any affiliate
thereof to undertake registration of stock hereunder.

                     ARTICLE V. ADMINISTRATION AND AMENDMENT

5.1 Administrative Committee. The Program shall be administered by a committee
composed of the chief executive officer and chief financial officer of OCA
and/or any other officer or officers of OCA appointed to such committee by the
chief executive officer of OCA (the "Committee"). The express grant in the
Program of any specific power to the Committee shall not be construed as
limiting any power or authority of the Committee. Any decision made or action
taken by the Committee to administer the Program shall be final and conclusive.
No member of the Committee shall be liable for any act done in good faith with
respect to the Program or any Participation Agreement. In addition to all other
authority vested with the Committee under the Program, the Committee shall have
complete authority to: (a) interpret all provisions of the Program; (b)
prescribe the form of any Participation Agreement; (c) make amendments to all
Participation Agreements; (d) adopt, amend, and rescind rules

                                       7
<PAGE>

for Program administration; and (e) make all determinations it deems advisable
for the administration of the Program.

5.2 Determination of Financial Performance. The authorities of the Committee
described in Section 5.1 include the full discretionary authority to make all
determinations regarding financial performance and related matters referenced in
the Program. Such matters include, but are not limited to, whether or not
Participants have achieved the criteria and standards of performance required to
participate in the Program and receive awards of OCA Common Stock. The Committee
shall make such determinations by reference to any data and information that it
deems appropriate and, to the extent that such information that is provided by a
Participant is not otherwise subject to disclosure, shall employ reasonable
measures that are designed to keep such information confidential.

5.3 Amendment and Termination of Program. OCA may amend, supplement, cancel
and/or terminate the Program and the Exhibits hereto at any time, with or
without notice to Participants or prospective Participants; provided, however,
an amendment that would have a material adverse effect on the rights of a
Participant under an outstanding award of shares of OCA Common Stock (or
Promissory Note, as applicable) under the Program is not valid as to that
Participant without the Participant's consent. If the Program is not earlier
terminated as provided herein, no additional Participants may participate in the
Program or be eligible for the Program following December 31, 2002, unless
further extended in a written amendment to the Program by OCA in its discretion;
provided, however, that any awards of shares of OCA Common Stock, or Promissory
Note in lieu of shares of OCA Common Stock, to Participants under the Program
shall continue in accordance with the terms and conditions of the Program and
shall continue to be governed by and subject to such terms and conditions. The
terms and conditions of the Program may not be waived, except in writing signed
by an authorized officer of OCA. The waiver of any of the terms and conditions
of the Program shall not be construed as a waiver of any other terms and
conditions hereof.

                         ARTICLE VI. GENERAL PROVISIONS

6.1 Unfunded Program. The Program shall be unfunded, and OCA shall not be
required to segregate any assets that may at any time be represented by grants
under the Program. Any liability of OCA to any person with respect to any grant
under the Program shall be based solely upon contractual obligations that may be
created hereunder. No such obligation of OCA shall be deemed to be secured by
any pledge of, or other encumbrance on, any property of OCA.

6.2 Rules of Construction. Headings are given to the articles and sections of
the Program solely as a convenience to facilitate reference. The masculine
gender when used herein refers to both masculine and feminine. The reference to
any statute, regulation or other provision of law shall be construed to refer to
any amendment to or successor of such provision of law.

6.3 Governing. The internal laws of the State of Louisiana (without regard to
the choice of law provisions of Louisiana) shall apply to all matters arising
under the Program, to the extent that federal law does not apply.

6.4 Federal Withholding Tax Requirements. To the extent that withholding is
required by law, at the time that any OCA Common Stock or Promissory Note is
granted or issued pursuant to the Program, the Participant shall, upon
notification of the amount due, pay to OCA amounts necessary to satisfy
applicable federal, state and local withholding tax requirements or shall
otherwise make arrangements satisfactory to OCA for such requirements.

                                       8

<PAGE>

         IN WITNESS WHEREOF, the undersigned officer has executed this document
effective as of June 5, 2002.

                                 ORTHODONTIC CENTERS OF AMERICA, INC.

                                 By:    /s/  Bartholomew F. Palmisano, Sr.
                                      -----------------------------------------
                                             Bartholomew F. Palmisano, Sr.
                                             Chairman of the Board, President
                                             and Chief Executive Officer

                                       9

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