Document:

<PAGE>
                                                                    EXHIBIT 10.5

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT ("Agreement"), is made and entered into as of
October 9, 2002 (the "Effective Date"), between THOMAS J. SANDEMAN, a resident
of the State of Louisiana (the "Employee"), and ORTHODONTIC CENTERS OF AMERICA,
INC., a Delaware corporation (the "Company").

                                   WITNESSETH:

         WHEREAS, the Employee desires to be employed by the Company, and the
Company desires to employ the Employee, on the terms, covenants and conditions
hereinafter set forth in this Agreement.

                                   AGREEMENT:

         NOW, THEREFORE, for the reasons set forth above, and in consideration
of the mutual promises and agreements herein set forth, the Company and the
Employee agree as follows:

1. Employment. Subject to the terms and conditions set forth in this Agreement,
the Company hereby employs and engages the Employee to hold the titles of Chief
Financial Officer, Treasurer and Assistant Secretary of the Company and perform
the duties of such positions as set forth in the Company's Bylaws and as
designated by the board of directors of the Company (the "Board of Directors")
and to perform such other duties and responsibilities and to hold such other
titles or positions with the Company and/or its subsidiaries as may be assigned
to him from time to time by the Board of Directors or the Chief Executive
Officer of the Company. The Employee hereby accepts such employment and agrees
to serve the Company as an officer and employee for the term of this Agreement.

2. Term of Employment. The term of this Agreement shall be for a period of three
(3) years commencing as of the date hereof, unless earlier terminated as
provided in Section 5 of this Agreement or extended upon such terms as may be
mutually agreed upon by the Company and the Employee and documented in a written
amendment hereto.

3. Devotion to Duties. The Employee agrees that during the period that he is
employed hereunder he shall devote his full business time and attention to the
business and affairs of the Company and shall use his best efforts to promote
the interests of the Company.

4. Compensation of Employee.

         4.1. Base Salary. During the term of this Agreement, the Company shall
pay to the Employee as compensation for the services to be performed by the
Employee a base salary of One Hundred Eighty Thousand Dollars ($180,000) per
year (the "Base Salary"). The Base Salary shall be payable in installments in
accordance with the Company's normal payroll practice, as such may exist from
time to time. The Base Salary may be reviewed and increased from time to time in
the discretion of the Compensation Committee of the Board of Directors.

         4.2.     Benefits.

         (a) Employee Benefit Plans. During the term he is employed hereunder,
the Employee shall be entitled to participate, on the same basis as other
members of senior management of the Company, in all regular employee benefit and
deferred compensation plans established by the Company and generally made
available from time to time to members of senior management of the Company,
including, without limitation, 401(k) and retirement plans, employee stock
purchase plans, savings and profit sharing plans, bonus plans, company
automobile or automobile allowance plans, health insurance plans and life
insurance plans, subject, in each case, to the applicable plan documents and
provisions, waiting periods, eligibility requirements and other qualifications
for participation.

<PAGE>

         (b) Transition To Company's Health Insurance. During the applicable
waiting period, if any, during the term hereof before the Employee is eligible
to participate in the Company's current health care insurance plan, the Company
will reimburse or pay the premiums for coverage of the Employee under his
existing health care insurance coverage.

         (c) Vacation. The Employee shall be entitled, during the period that he
is employed hereunder, to three weeks of paid vacation annually.

         (d) Disability Insurance. During the term of the Employee's employment
hereunder, the Company shall reimburse or pay the premiums (up to a maximum of
$2,000 per year) for a disability insurance policy covering the Employee. The
Employee and the Company will cooperate in seeking to obtain such policy as soon
as reasonably practicable. If, prior to the date on which such disability
insurance coverage becomes effective, the Employee's employment hereunder is
terminated for reason of illness or physical or mental incapacity pursuant to
Section 5.3 hereof, then, notwithstanding the provisions of Section 5.3, the
Employee shall continue to be paid his Base Salary (at the rate payable at the
time of such termination) through the then remaining term of this Agreement in
accordance with Section 4.1, in exchange for execution and delivery by the
Employee of a written general release of all of the Employee's claims against
the Company, its subsidiaries and affiliates; provided, however, that if the
Employee is employed by a subsequent company during such period, the severance
compensation payable to the Employee during such period shall be reduced by the
amount of compensation that the Employee is receiving from the subsequent
company.

         (e) Professional Associations and Development. During the term of the
Employee's employment hereunder, the Company shall reimburse or pay the annual
dues for the Employee's membership in Financial Executives International and the
Association for Treasury Professionals, and the reasonable cost and expense of
continuing professional development for the Employee that is reasonably related
to the Employee's positions with the Company and is pre-approved by the Chief
Executive Officer of the Company.

         4.3. Stock Options. On each of the initial date of grant and, provided
that the Employee is employed by the Company hereunder as of such date, the
first and second anniversaries of the Effective Date, the Company shall grant to
the Employee under and subject to the terms and provisions of the Company's 1994
Incentive Stock Plan or a successor thereto (the "Plan") non-transferable
options to purchase 18,692 shares of the Company's common stock at an exercise
price per share equal to the closing price per share of the Company's common
stock reported on the New York Stock Exchange (or other applicable exchange or
market on which the Company's common stock is then primarily listed, quoted or
traded, or, if such common stock is not then listed, quoted or traded on any
exchange or market, such price per share as is determined by the Board of
Directors, in its discretion, to be the then fair market value of such common
stock), all as appropriately adjusted to reflect any intervening stock splits,
stock dividends, reverse stock splits or other recapitalizations of the
Company's common stock. Subject to the provisions of the Plan and the Employee's
continued employment with the Company as of such date, the options may be
exercised as to 25% of the total number of shares of common stock covered by
such options beginning on the second anniversary of the date of grant of such
options, and as to an additional 25% of such total number of shares of common
stock beginning on each of the third, fourth and fifth anniversaries of such
date of grant.

         4.4. Reimbursement of Expenses. During the term of the Employee's
employment hereunder, the Company shall reimburse the reasonable and necessary
expenses incurred by the Employee in connection with the performance of his
duties under this Agreement in accordance with the Company's expense
reimbursement policy, as such may change from time to time, and subject to
proper documentation of such expenses.

5. Termination of Employment.

         5.1. Termination for Cause. "Termination For Cause," as hereinafter
defined, may be effected by the Company at any time during the term of this
Agreement by written notification to the Employee, specifying the reason
therefor. Upon a Termination For Cause, the Company shall promptly pay to the
Employee all accrued salary, vested deferred compensation (other than pension,
retirement or profit sharing plan benefits, which will be paid in accordance
with the applicable plan), any benefits under any plans of the Company in which
the Employee is a participant to the full extent of the Employee's rights under
such plans, and reimbursement of any appropriate business expenses incurred by

                                        2
<PAGE>

the Employee in connection with his duties hereunder in accordance with Section
4.4 hereof, all as earned through the date of such termination, but the Employee
shall not be paid any other compensation or reimbursement of any kind,
including, without limitation, severance compensation.

         "Termination For Cause" shall mean termination by the Company of the
Employee's employment hereunder and the term hereof by reason of the Employee's
(i) conviction of, or indictment or its procedural equivalent for, or a plea of
guilty or no contest with respect to, any felony or other crime for which
imprisonment is a possible punishment, (ii) willful dishonesty towards, fraud
upon, or deliberate injury or attempted injury to the Company or its
subsidiaries, or misappropriation or attempted misappropriation of any funds,
property or opportunities of the Company or its subsidiaries, or (iii) willful
material breach of this Agreement.

         5.2. Termination Other Than for Cause. Notwithstanding any other
provisions of this Agreement, the Company may effect a "Termination Other Than
For Cause," as hereinafter defined, at any time upon giving written notice to
the Employee of such termination. Upon any Termination Other Than for Cause, the
Employee shall promptly be paid all accrued salary, vested deferred compensation
(other than pension, retirement or profit sharing plan benefits, which will be
paid in accordance with the applicable plan), any benefits under any plans of
the Company in which the Employee is a participant to the full extent of the
Employee's rights under such plans, and reimbursement of any appropriate
business expenses incurred by the Employee in connection with his duties
hereunder in accordance with Section 4.4 hereof, all as earned through the date
of such termination, plus the severance compensation provided in the following
paragraph, but no other compensation or reimbursement of any kind.

         In the event that the Employee's employment is terminated in a
Termination Other Than for Cause, the Employee shall be paid as severance
compensation, in exchange for execution and delivery by the Employee of a
written general release of all of the Employee's claims against the Company, its
subsidiaries and affiliates, his Base Salary, at the rate payable at the time of
such termination, for a period of six (6) months following the date of such
termination in accordance with Section 4.1; provided, however, that if the
Employee is employed by a subsequent company during such period, the severance
compensation payable to the Employee during such period shall be reduced by the
amount of compensation that the Employee is receiving from the subsequent
company.

         "Termination Other Than for Cause" shall mean termination by the
Company of the Employee's employment hereunder and the term hereof other than a
Termination For Cause.

         5.3. Termination by Reason of Disability. If, during the term of this
Agreement, the Employee, in the reasonable judgment of the Board of Directors or
the Chief Executive Officer of the Company, has failed to perform his duties
under this Agreement on account of illness or physical or mental incapacity, and
such illness or incapacity continues for a period of more than six (6)
consecutive months, the Company shall have the right to terminate the Employee's
employment hereunder and the term hereof by written notification to the
Employee. Upon such termination the Employee shall promptly be paid all accrued
salary, vested deferred compensation (other than pension, retirement or profit
sharing plan benefits, which will be paid in accordance with applicable plan),
any benefits under any plans of the Company in which the Employee is a
participant to the full extent of the Employee's rights under such plans and
reimbursement of any appropriate business expenses incurred by the Employee in
connection with his duties hereunder in accordance with Section 4.4 hereof, all
through the date of such termination, but the Employee shall not be paid any
other compensation or reimbursement of any kind, including, without limitation,
severance compensation (except as provided in Section 4.2(d) prior to the
effective date of the disability insurance coverage referenced therein).

         5.4. Death. In the event of the Employee's death during the term of
this Agreement, the Employee's employment hereunder and the term hereof shall be
deemed to have terminated immediately thereon and the Company shall pay to his
estate or such beneficiaries as the Employee may from time to time designate all
accrued salary, vested deferred compensation (other than pension, retirement or
profit sharing plan benefits, which will be paid in accordance with the
applicable plan), any benefits under any plans of the Company in which the
Employee is a participant to the full extent of Employee's rights under such
plans and reimbursement of any appropriate business expenses incurred by the
Employee in connection with his duties hereunder in accordance with Section 4.4
hereof, all through the date of such termination, and the Company shall continue
to provide health insurance coverage to the Employee's then spouse for a period
of two years following Employee's death on a basis comparable to that provided
to such spouse as of the date

                                        3
<PAGE>

of the Employee's death, or remit or reimburse such spouse for COBRA or other
premium payments to maintain such health insurance coverage (or comparable
health insurance coverage) during such two year period. The Employee's estate
shall not be paid any other compensation or reimbursement of any kind,
including, without limitation, severance compensation.

         5.5. Voluntary Termination. The Employee may terminate his employment
hereunder and the term hereof at any time by giving the Company written notice
of such termination at least ninety (90) days in advance thereof. In the event
of such termination, the Company shall promptly pay all accrued salary, vested
deferred compensation (other than pension, retirement or profit sharing plan
benefits, which will be paid in accordance with the applicable plan), any
benefits under any plans of the Company in which the Employee is a participant
to the full extent of the Employee's rights under such plans and reimbursement
of any appropriate business expenses incurred by the Employee in connection with
his duties hereunder in accordance with Section 4.4 hereof, all through the date
of such termination, but no other compensation or reimbursement of any kind,
including, without limitation, severance compensation.

6. Obligations Contingent on Performance. The obligations of the Company under
this Agreement, including its obligation to pay the compensation provided for
herein, shall be contingent upon the Employee's performance of his obligations
under this Agreement.

7. Confidentiality. The Employee agrees to hold in strict confidence all
information concerning any matters affecting or relating to the Company and its
subsidiaries and their respective businesses and affiliated practices and
practitioners, including, without limiting the generality of the foregoing,
their manner of operation, plans, protocols, processes, computer programs,
client and customer lists, financial and marketing information and analyses, or
other data, without regard to whether all of the foregoing matters are or will
be deemed confidential or material. The Employee agrees that he will not,
directly or indirectly, use any such information other than for the benefit of
the Company and its subsidiaries in connection with his employment hereunder or
disclose or communicate any of such information in any manner whatsoever other
than to the directors, officers, employees, agents and representatives of the
Company and its subsidiaries who need to know such information, who shall be
informed by the Employee of the confidential nature of such information and
directed by the Employee to treat such information confidentially. Upon the
Company's request, the Employee shall return all information and documentation
furnished to or obtained by him related to the Company and its subsidiaries and
their respective businesses and affiliated practices and practitioners.

         The above limitations on use and disclosure shall not apply to
information which the Employee can demonstrate: (a) was known to the Employee
before receipt thereof from the Company; (b) is learned by the Employee from a
third party entitled to disclose it; or (c) becomes generally known to the
public other than through or because of the Employee. The parties hereto
stipulate that all such information is material and confidential and gravely
affects the effective and successful conduct of the business of the Company and
the Company's goodwill, and that any breach of the terms of this Section 7 shall
be a material breach of this Agreement. The terms of this Section 7 shall remain
in effect during and following the term of this Agreement.

8. Use of Proprietary Information. The Employee recognizes that the Company
possesses a proprietary interest in all of the information described in Section
7 and has the exclusive right and privilege to use, protect by copyright, patent
or trademark, manufacture or otherwise exploit the processes, ideas and concepts
described therein to the exclusion of the Employee, except as otherwise agreed
between the Company and the Employee in writing. The Employee expressly agrees
that any products, inventions, discoveries or improvements made by the Employee,
his agents or affiliates, during the term of this Agreement, based on or arising
out of the information described in Section 7 shall be the property of and inure
to the exclusive benefit of the Company. The Employee further agrees that any
and all products, inventions, discoveries or improvements developed by the
Employee (whether or not able to be protected by copyright, patent or trademark)
during the course of his employment, or involving the use of the Company's time,
materials or other resources, shall be promptly disclosed to the Company and
shall become the exclusive property of the Company. The terms of this Section 8
shall remain in effect during and following the term of this Agreement.

                                        4
<PAGE>

9. Non-Competition Agreement.

         9.1. Non-Competition. The Employee agrees that, during the term of this
Agreement and for a period of two (2) years thereafter, he shall not, directly
or indirectly, own, manage, operate, control, be connected with as an officer,
employee, partner, consultant or otherwise, or otherwise engage or participate
in, except as an employee of the Company or its subsidiaries, any business,
enterprise or entity engaged in any activity connected with the orthodontic or
pediatric dental industries or any other activity or line of business
competitive with those in which the Company and/or its subsidiaries engage,
where such competing business, enterprise or entity is located or operating in,
or servicing in any way practices, clients or customers located in, those
parishes and counties in which the Company or any of its subsidiaries operate
during the term hereof. Notwithstanding the foregoing, the ownership by the
Employee of less than two percent (2%) of any class of the outstanding capital
stock of any corporation conducting a business competitive with the Company
which is regularly traded on a national securities exchange or in the
over-the-counter market shall not be a violation of the foregoing covenant. The
Employee hereby acknowledges and agrees that the provisions set forth in this
Subsection 9.1 constitute a reasonable restriction on his ability to compete
with the Company.

         9.2. Non-Solicitation. During the term of this Agreement and for a
period of two (2) years thereafter, the Employee shall not contact (except in
furtherance of his duties and responsibilities hereunder) or solicit, directly
or indirectly, any customer, client or affiliated practitioner or practice whose
identity the Employee obtained through association with the Company or its
subsidiaries, regardless of the geographical location of such customer, client,
affiliated practitioner or practice, nor shall the Employee, directly or
indirectly, entice or induce, or attempt to entice or induce, any employee of
the Company or its subsidiaries to leave such employment, nor shall the Employee
employ any such person in any business similar to or in competition with that of
the Company and its subsidiaries during the term of this Agreement and for a
period of two (2) years thereafter. The Employee hereby acknowledges and agrees
that the provisions set forth in this Subsection 9.2 constitute a reasonable
restriction on his ability to compete with the Company.

         9.3. Saving Provision. The parties hereto agree that, in the event a
court of competent jurisdiction shall determine that the geographical or
durational elements of these covenants are unenforceable, such determination
shall not render the entire covenant unenforceable. Rather, the excessive
aspects of the covenant shall be reduced to the threshold which is enforceable,
and the remaining aspects shall not be affected thereby. The parties hereto
stipulate that and that any breach of the terms of this Section 9 shall be a
material breach of this Agreement. The terms of this Section 9 shall remain in
effect during and following the term of this Agreement.

10. Equitable Relief. The Employee acknowledges that the extent of damages to
the Company from a breach of Sections 7, 8 and 9 of this Agreement would not be
readily quantifiable or ascertainable, that monetary damages would be inadequate
to make the Company whole in case of such a breach, and that there is not and
would not be an adequate remedy at law for such a breach. Therefore, the
Employee specifically agrees that the Company is entitled to injunctive or other
equitable relief from a breach of Sections 7, 8 and 9 of this Agreement, waives
any requirement on the part of the Company of proving actual damages in
connection with obtaining any such injunctive or other equitable relief, waives
any requirement for securing or posting any bond in connection with obtaining
such injunctive or other equitable relief, without limiting the Company's rights
to any other remedies available in law or in equity, and hereby waives and
covenants not to assert against a prayer for such relief that there exists an
adequate remedy at law, in monetary damages or otherwise.

11.      Indemnification.

         11.1. Scope of Indemnification. The Company shall indemnify, and upon
request shall advance expenses to, in the manner and to the fullest extent
permitted by law, the Employee (or the estate of the Employee) if he was or is a
party to, or is threatened to be made a party to, any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative,
investigative or otherwise, by reason of the fact that the Employee is or was a
director or officer of the Company, or is or was serving at the request of the
Company as a director, officer, partner, trustee, employee or agent of another
corporation, partnership, joint venture, trust, other enterprise or employee
benefit plan, against any liability which may be asserted against the Employee
during the term of the Employee's employment hereunder or during the five years
immediately following the termination or expiration of the term of this
Agreement. To

                                        5
<PAGE>

the fullest extent permitted by law, the indemnification and advances provided
for herein shall include expenses (including reasonable attorneys' fees),
judgments, penalties, fines and amounts paid in settlement. The indemnification
provided herein shall not be deemed to limit the right of the Company to
indemnify the Employee for any such expenses (including reasonable attorneys'
fees), judgments, fines and amounts paid in settlement to the fullest extent
permitted by law, both as to action in his official capacity and as to action in
another capacity while holding such office.

         Notwithstanding the foregoing, the Company shall not indemnify the
Employee as to any threatened, pending or completed action or suit by or in the
right of the Company to secure a judgment in its favor against the Employee with
respect to any claim, issue or matter as to which the Employee shall have been
adjudged to be liable to the Company, unless and only to the extent that, a
Delaware Court of Chancery or the court in which such action or suit was brought
shall determine upon application that, despite the adjudication of liability but
in view of all the circumstances of the case, the Employee is fairly and
reasonably entitled to indemnity for such expenses which the Court of Chancery
or such other court shall deem proper.

         11.2. Right of Claimant to Enforce Rights. Any indemnification or
advancement of expenses required under this Section 11 shall be made promptly,
and in any event within thirty (30) days following the written request of the
Employee therefor. If a determination by the Company that the Employee is
entitled to indemnification pursuant to this Section 11 is required, and the
Company fails to respond within thirty (30) days following the giving of a
written request to the Company by the Employee for indemnity hereunder, the
Company shall be deemed to have approved such request. If the Company denies a
written request for indemnity or advancement of expenses, in whole or in part,
or if payment in full pursuant to such request is not made within thirty (30)
days as provided above, the right to indemnification and advancement of expenses
as granted by this Section 11 shall be enforceable by the Employee in any court
of competent jurisdiction. The Employee's costs and expenses incurred in
connection with successfully establishing the Employee's right to
indemnification, in whole or in part, in any such action or proceeding shall
also be indemnified by the Company. Neither the failure of the Company
(including the Board of Directors, independent legal counsel or the stockholders
of the Company) to have made a determination prior to the commencement of such
action that indemnification of the Employee is proper in the circumstances
because the Employee has met the applicable standard of conduct set forth in the
General Corporation Law of the State of Delaware, nor the fact that there has
been an actual determination by the Company (including the Board of Directors,
independent legal counsel or the stockholders of the Company) that the Employee
has not met such applicable standard of conduct, shall be a defense to the
action or create a presumption that the Employee has not met the applicable
standard of conduct.

         11.3. Non-Exclusivity of Rights. The indemnification and advancement of
expenses provided by, or granted pursuant to, this Section 11 shall not be
deemed exclusive of any other rights to which the Employee may be entitled by
law, the Company's Restated Certificate of Incorporation or Bylaws, an agreement
with the Company, or a resolution of the Board of Directors or of the Company's
stockholders. Any repeal or modification of the provisions of this Section 11
shall be prospective only and shall not adversely affect any right or protection
set forth herein in favor of the Employee at the time of such repeal or
modification.

         11.4. Insurance. The Company may, in its discretion to the fullest
extent permitted by law, purchase and maintain insurance, at its expense, to
protect itself and the Employee against any liability asserted against the
Employee and incurred by Employee in any such capacity, or arising out of the
Employee's duties hereunder, whether or not the Company would have the power to
indemnify the Employee against such liability under the provisions of this
Section 11, the General Corporation Law of the State of Delaware or otherwise.

         11.5. Saving Provision. If this Section 11 or any portion thereof shall
be invalidated on any ground by any court of competent jurisdiction, then the
Company shall nevertheless indemnify the Employee as to expenses (including
reasonable attorneys' fees), judgments, fines, penalties and amounts paid in
settlement with respect to any actual or threatened action, suit or proceeding,
whether civil, criminal, administrative, investigative or otherwise, to the
fullest extent permitted by any applicable portion of this Section 11 which
shall not have been invalidated, by the General Corporation Law of the State of
Delaware or by any other applicable law. This Section 11 shall survive the
termination or expiration of the term of this Agreement.

                                        6
<PAGE>

12. Entire Agreement. This Agreement contains the complete agreement concerning
the employment arrangement between the parties and shall supersede all other
agreements or arrangements between the parties with regard to the subject matter
hereof.

13. Binding Agreement; Assignment. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs, legal
representatives, successors and permitted assigns. The obligations of the
Company under this Agreement shall not be terminated by reason of any
liquidation, dissolution, bankruptcy, cessation of business or similar event
relating to the Company. This Agreement shall not be terminated by reason of any
merger, consolidation or reorganization of the Company, but shall be binding
upon and inure to the benefit of the surviving or resulting entity. The rights,
benefits, duties and obligations of the Employee under this Agreement are
personal to him and may not be assigned.

14. Modification. No waiver or modification of this Agreement or of any
covenant, condition, or limitation herein contained shall be valid unless in
writing and duly executed by the party to be charged therewith and no evidence
of any waiver or modification shall be offered or received in evidence of any
proceeding, arbitration, or litigation between the parties hereto arising out of
or affecting this Agreement, or the rights or obligations of the parties
thereunder, unless such waiver or modification is in writing, duly executed as
aforesaid.

15. Severability. All agreements and covenants contained herein are severable,
and in the event any of them shall be held to be invalid or unenforceable by any
court of competent jurisdiction, this Agreement shall be interpreted as if such
invalid agreements or covenants were not contained herein.

16. Manner of Giving Notice. All notices, requests and demands to or upon the
respective parties hereto shall be sent by hand, certified mail, overnight
courier service, or facsimile (if within a reasonable time a permanent copy is
given by any of the other methods described above), in each case with all
applicable charges paid or otherwise provided for, addressed as follows, or to
such other address as may hereafter be designated in writing by the respective
parties hereto. If to the Company: Orthodontic Centers of America, Inc., 3850 N.
Causeway Boulevard, Suite 800, Metairie, Louisiana 70002, Facsimile: (504)
833-8832, Attention: Bartholomew F. Palmisano, Sr. If to the Employee: Thomas J.
Sandeman, 5041 Tartan Drive, Metairie, Louisiana 70003, Facsimile: (504)
779-0917. Such notices, requests and demands shall be deemed to have been given
or made on the date of delivery if delivered by hand or by facsimile and on the
next following date if sent by mail or by overnight courier service.

17. Remedies. In the event of a breach of this Agreement, the non-breaching
party shall be entitled to such legal and equitable relief as may be provided by
law, and shall further be entitled to recover all costs and expenses, including
reasonable attorneys' fees, incurred in enforcing the non-breaching party's
rights hereunder.

18. Headings. The headings have been inserted for convenience only and shall not
be deemed to limit or otherwise affect any of the provisions of this Agreement.

19. Choice of Law. It is the intention of the parties hereto that this Agreement
and the performance hereunder be construed in accordance with, under and
pursuant to the laws of the State of Louisiana without regard to the
jurisdiction in which any action or special proceeding may be instituted.

20. Counterparts. This Agreement may be executed in two counterparts, each of
which shall be deemed an original, and both of which together shall constitute
one and the same instrument.

21. Interpretation. The language in all parts of this Agreement shall be
construed, in all cases, according to its plain meaning, except where the
context of this Agreement expressly indicates otherwise, and the parties
acknowledge that each party has carefully reviewed this Agreement and that the
normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation
of this Agreement.

                            [SIGNATURE PAGE FOLLOWS.]

                                        7
<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first stated above.

                                  COMPANY:

                                  ORTHODONTIC CENTERS OF AMERICA, INC.

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

                                  EMPLOYEE:

                                  /s/  Thomas J. Sandeman
                                  ----------------------------------------------
                                  Thomas J. Sandeman

                                        8<PAGE>
                                                                    EXHIBIT 10.6

                      ORTHODONTIC CENTERS OF AMERICA, INC.
                            1994 INCENTIVE STOCK PLAN

                              AMENDED AND RESTATED
                            EFFECTIVE APRIL 10, 2002

<PAGE>

                      ORTHODONTIC CENTERS OF AMERICA, INC.
                            1994 INCENTIVE STOCK PLAN

                                TABLE OF CONTENTS
<Table>
<Caption>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
ARTICLE I. DEFINITIONS.......................................................1
         1.1     Affiliate...................................................1
         1.2     Agreement...................................................1
         1.3     Award.......................................................1
         1.4     Board.......................................................1
         1.5     Code........................................................1
         1.6     Committee...................................................1
         1.7     Company.....................................................1
         1.8     Date of Exercise............................................2
         1.9     Exchange Act................................................2
         1.10    Fair Market Value...........................................2
         1.11    Incentive Option............................................2
         1.12    Nonqualified Option.........................................2
         1.13    Option......................................................2
         1.14    Participant.................................................2
         1.15    Plan........................................................2
         1.16    Restricted Stock............................................2
         1.17    Stock.......................................................2
         1.18    Ten Percent Shareholder.....................................2

ARTICLE II.  PURPOSE.........................................................2

ARTICLE III. ADMINISTRATION..................................................3
         3.1    Administration of Plan.......................................3
         3.2    Authority to Grant Awards....................................3
         3.3    Persons Subject to Section 16(b).............................3

ARTICLE IV.  AWARD ELIGIBILITY AND LIMITATIONS...............................3
         4.1    Participation................................................3
         4.2    Grant of Awards..............................................3
         4.3    Limitations on Incentive Options.............................3
         4.4    Restricted Stock.............................................4
         4.5    Limitations on Awards........................................4

ARTICLE V.  STOCK SUBJECT TO PLAN............................................4
         5.1    Source of Shares.............................................4
         5.2    Maximum Number of Shares.....................................4
         5.3    Forfeitures..................................................4

ARTICLE VI. EXERCISE OF AWARDS...............................................4
         6.1    Exercise Price...............................................4
         6.2    Right to Exercise............................................4
         6.3    Maximum Exercise Period......................................4
         6.4    Transferability..............................................5
         6.5    Shareholder Rights...........................................5
         6.6    Employee Status..............................................5
</Table>

                                        i

<PAGE>

<Table>
<Caption>
                                                                            Page
                                                                            ----
<S>                                                                         <C>

ARTICLE VII. METHOD OF EXERCISE..............................................5
         7.1    Exercise.....................................................5
         7.2    Payment......................................................5
         7.3    Withholding Tax Requirements.................................5
         7.4    Issuance and Delivery of Shares..............................5

ARTICLE VIII.  ADJUSTMENT UPON CORPORATE CHANGES.............................6
         8.1    Adjustments to Shares........................................6
         8.2    Substitution of Awards on Merger or Acquisition..............6
         8.3    Effect of Certain Transactions...............................6
         8.4    No Adjustment Upon Certain Transactions......................7
         8.5    Fractional Shares............................................7

ARTICLE IX.  LEGAL COMPLIANCE CONDITIONS.....................................8
         9.1    General......................................................8
         9.2    Representations by Participants..............................8
         9.3    Shareholders Agreement.......................................8

ARTICLE X.  GENERAL PROVISIONS...............................................8
        10.1    Effect on Employment.........................................8
        10.2    Unfunded Plan................................................8
        10.3    Rules of Construction........................................8
        10.4    Governing Law................................................8
        10.5    Compliance With Section 16 of the Exchange Act...............8
        10.6    Duration and Amendment of Plan...............................9
        10.7    Duration of Incentive Options................................9
        10.8    Effective Date of Plan.......................................9
</Table>

                                       ii

<PAGE>

                      ORTHODONTIC CENTERS OF AMERICA, INC.
                            1994 INCENTIVE STOCK PLAN

                                    PREAMBLE

         WHEREAS, on October 10, 1994, Orthodontic Centers of America, Inc. (the
"Company") established the Orthodontic Centers of America, Inc. 1994 Incentive
Stock Plan (the "Plan") through which the Company may award options to purchase
shares of the Common Stock of the Company, and restricted shares of Common
Stock, to directors, officers, employees and consultants of the Company and its
affiliates;

         WHEREAS, the Company intends that the Plan provide for the granting of
options that qualify as "incentive stock options" within the meaning of section
422 of the Code, as well as options that are not so qualified;

         WHEREAS, the Company intends that the Plan provide for the grant of
Stock that is subject to certain restrictions on transfer and/or a risk of
forfeiture;

         WHEREAS, the Company intends that this Plan and Awards granted
hereunder (i) qualify as "performance-based compensation" described in section
162(m)(4)(C) of the Code, and (ii) conform to the requirements for exemption set
forth under Securities and Exchange Commission Rule 16b-3; and

         WHEREAS, the Company wishes to amend and restate the Plan to, among
other things, (i) limit Awards for Participants during any one year period, (ii)
limit the types of Plan amendments that require shareholder approval, (iii)
limit vesting upon a Change in Control in situations where such vesting would
result in an excise tax under section 4999 of the Code, and (iv) eliminate the
automatic termination of the Plan after the passage of a certain amount of time.

         NOW, THEREFORE, the Company hereby amends and restates in its entirety
the Orthodontic Centers of America, Inc. 1994 Incentive Stock Plan effective on
the date described in Section 10.8 herein.

                             ARTICLE I. DEFINITIONS

         The following terms shall have the following meanings ascribed thereto
for purposes of the Plan:

         1.1 Affiliate. A corporate parent, corporate subsidiary, limited
liability company, partnership or other business entity that is wholly-owned or
controlled by the Company.

         1.2 Agreement. A written agreement (including any amendment or
supplement thereto) between the Company or Affiliate and a Participant
specifying the terms and conditions of an Award granted to such Participant.

         1.3 Award. A right that is granted under the Plan to a Participant by
the Company, which may be in the form of Options or Restricted Stock.

         1.4 Board. The Board of Directors of the Company.

         1.5 Code. The Internal Revenue Code of 1986, as amended.

         1.6 Committee. The Board or any committee of Board members that is
designated by the Board to serve as the administrator of the Plan. The Committee
shall be composed of at least two individuals (or such number that satisfies
section 162(m)(4)(C) of the Code and Rule 16b-3 of the Exchange Act) who are
members of the Board and are not employees of the Company or an Affiliate, and
who are designated by the Board as the "compensation committee" or are otherwise
designated to administer the Plan. In the absence of a designation of a
Committee by the Board, the Board shall be the Committee.

         1.7 Company. Orthodontic Centers of America, Inc. and its successors.

<PAGE>

         1.8 Date of Exercise. The date that the Company accepts tender of the
exercise price of an Option.

         1.9 Exchange Act. The Securities Exchange Act of 1934, as amended.

         1.10 Fair Market Value. On any given date, Fair Market Value shall be
the applicable description below:

         (a)      If the Stock is traded on a trading exchange (e.g., the New
                  York Stock Exchange) or is reported on the Nasdaq National
                  Market System or another Nasdaq automated quotation system, or
                  the OTC Bulletin Board System, Fair Market Value shall be
                  determined by reference to the price of the Stock on such
                  exchange or system with respect to the date for which Fair
                  Market Value is being determined, unless the Committee
                  determines in good faith the fair market value to be
                  otherwise.

         (b)      If the Stock is not traded on a recognized exchange or
                  automated trading system, Fair Market Value shall be the value
                  determined in good faith by the Committee or the Board.

         1.11 Incentive Option. An Option that qualifies and is treated as an
"incentive stock option" under section 422 of the Code. An Incentive Option, or
a portion thereof, shall not be invalid for failure to qualify under section 422
of the Code, but shall be treated as a Nonqualified Option.

         1.12 Nonqualified Option. An Option that is not an Incentive Option.

         1.13 Option. The right that is granted hereunder to a Participant to
purchase from the Company a stated number of shares of Stock at the price set
forth in an Agreement. As used herein, an Option includes both Incentive Options
and Nonqualified Options.

         1.14 Participant. A director, officer, employee, consultant or advisor
of the Company or of an Affiliate who satisfies the requirements of Article IV
and is selected by the Committee to receive an Award.

         1.15 Plan. The Orthodontic Centers of America, Inc. 1994 Incentive
Stock Plan, as amended.

         1.16 Restricted Stock. A grant of Stock that is subject to restrictions
on transfer and/or a risk of forfeiture by and to the Participant, as described
in Section 4.4. Restricted Stock is awarded to a Participant shall cease to be
Restricted Stock at the time that such restrictions and risks of forfeiture
lapse in accordance with the terms of the Agreement or Plan.

         1.17 Stock. The Common Stock of the Company.

         1.18 Ten Percent Shareholder. An individual who owns more than 10% of
the total combined voting power of all classes of stock of the Company or an
Affiliate at the time he is granted an Incentive Option. For the purpose of
determining if an individual is a Ten Percent Shareholder, he shall be deemed to
own any voting stock owned (directly or indirectly) by or for his brothers and
sisters (whether by whole or half blood), spouse, ancestors or lineal
descendants and shall be considered to own proportionately any voting stock
owned (directly or indirectly) by or for a corporation, partnership, estate or
trust of which such individual is a shareholder, partner or beneficiary.

                               ARTICLE II. PURPOSE

         The purpose of this Plan is to encourage ownership of Stock of the
Company by directors, officers, employees, consultants and advisors of the
Company and any current or future Affiliate. This Plan is intended to provide an
incentive and bonus for maximum effort in the successful operation of the
Company and is expected to benefit the shareholders by associating the interests
of the Company's employees with those of its shareholders and by enabling the
Company to attract and retain personnel of the best available talent through the
opportunity to share, by the proprietary interests created by this Plan, in the
increased value of the Company's Stock to which such personnel have contributed.
The benefits of this Plan are not a substitute for compensation otherwise
payable to

                                        2
<PAGE>

Company employees pursuant to the terms of their employment. Proceeds from the
purchase of Stock pursuant to this Plan shall be used for the general business
purposes of the Company.

                           ARTICLE III. ADMINISTRATION

         3.1 Administration of Plan. The Plan shall be administered by the
Committee. The express grant in the Plan 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 Plan shall be
final and conclusive. No member of the Committee shall be liable for any act
done in good faith with respect to this Plan or any Agreement or Award. The
Company shall bear all expenses of Plan administration. In addition to all other
authority vested with the Committee under the Plan, the Committee shall have
complete authority to:

         (a)      Interpret all provisions of this Plan;

         (b)      Prescribe the form of any Agreement and notice and manner for
                  executing or giving the same;

         (c)      Make amendments to all Agreements;

         (d)      Adopt, amend and rescind rules for Plan administration; and

         (e)      Make all determinations it deems advisable for the
                  administration of this Plan.

         3.2 Authority to Grant Awards. The Committee shall have authority to
grant Awards upon such terms the Committee deems appropriate and that are not
inconsistent with the provisions of this Plan. Such terms may include conditions
on the exercise of all or any part of an Option.

         3.3 Persons Subject to Section 16(b). Notwithstanding anything in the
Plan to the contrary, the Committee, in its absolute discretion, may bifurcate
the Plan so as to restrict, limit or condition the use of any provision of the
Plan to participants who are officers and directors subject to section 16(b) of
the Exchange Act, without so restricting, limiting or conditioning the Plan with
respect to other Participants.

                  ARTICLE IV. AWARD ELIGIBILITY AND LIMITATIONS

         4.1 Participation. The Committee may from time to time designate
directors, officers, employees, consultants and advisors to whom Awards are to
be granted and who are eligible to become Participants. All Awards granted under
this Plan shall be evidenced by Agreements that shall be subject to applicable
provisions of this Plan or such other provisions as the Committee may adopt that
are not inconsistent with the Plan.

         4.2 Grant of Awards. An Award shall be deemed to be granted to a
Participant at the time that the Committee designates in a writing that is
adopted by the Committee as the grant of an Award, and that makes reference to
the name or identity of the Participant and the number of shares of Stock that
are subject to the Award, the term of the Award and the exercise price thereof
(if any). Accordingly, an Award may be deemed to be granted prior to the time
that an Agreement is executed by the Participant and the Company. The Agreement
shall incorporate the terms specified in the grant by the Committee.

         4.3 Limitations on Incentive Options.

         (a)      To receive Incentive Options, an individual must be (i) an
                  employee of the Company, (ii) an employee of an Affiliate that
                  is a "parent corporation" of the Company, as defined in
                  section 424(e) of the Code, or "subsidiary corporation" of the
                  Company, as defined in section 424(f) of the Code, or (iii)
                  deemed to be an employee of an entity described in clause (i)
                  or (ii) because such individual's employer is an Affiliate
                  that is disregarded pursuant to Treasury Regulation Section
                  301.7701-2(a).

                                        3
<PAGE>

         (b)      To the extent that the aggregate Fair Market Value of Stock
                  with respect to which Incentive Options are exercisable for
                  the first time by a Participant during any calendar year
                  (under all stock incentive plans of the Company and its
                  Affiliates) exceeds $100,000 (or the amount specified in
                  section 422 of the Code), determined as of the date an
                  Incentive Option is granted, such Options shall (without
                  further action) be treated as Nonqualified Options. This
                  provision shall be applied by taking Incentive Options into
                  account in the order in which they were granted.

         (c)      Awards of Incentive Options are subject to further limitations
                  on the price for exercise, described in Section 6.1, and the
                  maximum period for exercise, described in Section 6.3.
                  Incentive Options are not transferable, except as described in
                  Section 6.4.

         4.4 Restricted Stock. An award of Restricted Stock to a Participant is
a grant of Stock that is subject to forfeiture and/or restrictions on transfer
that are identified in an Agreement or a shareholders agreement described in
Section 9.3 that is executed by such Participant as a condition to such grant.
The Committee may grant Restricted Stock to a Participant as part of a "deposit
share," "performance award" or any other arrangement established by the
Committee and specified in an Agreement. A Participant who receives Restricted
Stock shall be treated as a shareholder of the Company for all purposes, except
that the rights of the Participant may be limited under the terms of the
Agreement. Unless otherwise specified in an Agreement, Participants shall be
entitled to receive dividends on and exercise voting rights with respect to
shares of Restricted Stock.

         4.5 Overall Limitation on Awards. No person may receive an Award with
respect to more than 500,000 shares of Stock (subject to increase and
adjustments as provided in Article VIII) in any one calendar year period.

                        ARTICLE V. STOCK SUBJECT TO PLAN

         5.1 Source of Shares. Upon the exercise of an Option or the grant of
Restricted Stock, the Company shall deliver to the Participant authorized but
previously unissued Stock or Stock that is held by the Company as treasury stock
or acquired by the Company.

         5.2 Maximum Number of Shares. The maximum aggregate number of shares of
Stock that may be issued pursuant to the Plan is 3,400,000, subject to increases
and adjustments as provided in Article VIII. However, no more than 500,000 of
those shares may be used for purposes of issuing Restricted Stock or made
subject to Options with an exercise price lower than Fair Market Value on the
Date of Grant.

         5.3 Forfeitures. If any Option granted hereunder expires or terminates
for any reason without having been exercised in full, or Restricted Stock is
forfeited, the shares of Stock subject thereto shall again be available for
issuance of an Award under this Plan.

               ARTICLE VI. OPTION EXERCISE AND SHAREHOLDER RIGHTS

         6.1 Exercise Price. The exercise price of an Incentive Option shall not
be less than 100% of the Fair Market Value of a share of Stock on the date the
Incentive Option is granted. In the case of a Ten Percent Shareholder, however,
the exercise price of an Incentive Option shall not be less than 110% of the
Fair Market Value of a share of Stock on the date the Incentive Option is
granted. The exercise price of a Nonqualified Option shall be the price
determined by the Committee at the time that such Award is granted.

         6.2 Right to Exercise. An Option shall be exercisable on the date of
grant or on any other date established by the Committee or provided for in an
Agreement; provided, however, that Options granted to officers or directors
subject to section 16 of the Exchange Act shall not be exercisable or
transferable, and restrictions on Restricted Stock shall not lapse, until at
least six months after the Award is granted.

         6.3 Maximum Exercise Period. The maximum period in which an Option may
be exercised shall be 10 years (five years in the case of Incentive Options
granted to a Ten Percent Shareholder) from the date such Option

                                        4
<PAGE>

was granted; provided, however, that, the Committee may specify a shorter or
longer period with respect to a Nonqualified Option and may specify a shorter
period with respect to an Incentive Option. A Participant must exercise an
Incentive Option while he is an employee of the Company or an Affiliate, or
within three months after termination of employment with the Company and its
Affiliates (one year in the case of termination due to disability or death).

         6.4 Transferability. Any Award granted under this Plan 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; provided, however, that a Nonqualified Option or Restricted Stock
grant may be transferable to the extent provided in the Agreement or approved by
the Committee, in its sole discretion, and an Incentive Option may be
transferred to the extent approved by the Committee, in its sole discretion, if
the Committee and the applicable Participant intend that such Incentive Option
shall not retain its status as an Incentive Option. No right or interest of a
Participant in any Award shall be liable for, or subject to, any lien,
obligation or liability of such Participant.

         6.5 Shareholder Rights. No Participant shall have any rights as a
shareholder with respect to shares subject to Options prior to the Date of
Exercise of such Option; and, if requested, has given the representation
described in Section 9.2 and/or executed a shareholders agreement described in
Section 9.3. A Participant's rights as a shareholder with respect to Restricted
Stock shall be determined as provided in Section 4.4.

         6.6 Employee Status. The Committee shall determine the extent to which
a leave of absence for military or government service, illness, temporary
disability, or other reasons shall be treated as a termination or interruption
of employment for purposes of determining questions of forfeiture and exercise
of an Award after termination of employment. With respect to an Incentive
Option, such period of unemployment that is longer than three months following
termination may be treated as employment if consistent with section 422 of the
Code pursuant to a federal statute, Treasury Regulation, or a published ruling
of the Internal Revenue Service that has general application.

                         ARTICLE VII. METHOD OF EXERCISE

         7.1 Exercise. Subject to the provisions of Articles VI and IX, an
Option may be exercised in whole or in part at such times and in compliance with
such requirements as the Committee shall determine. Unless it is clear from the
context, a Participant must specify the particular Option and the portion of an
Option that he wishes to exercise in a written notice of exercise. An Option
granted hereunder shall be deemed to have been exercised on the Date of
Exercise.

         7.2 Payment. Except as otherwise provided by the Agreement, payment of
the Option price shall be made in cash (including an exercise involving the
pledge of shares and a loan through a broker described in Securities and
Exchange Commission Regulation T), actual or constructive delivery of Stock that
was acquired at least six months prior to the exercise of the Option, other
consideration acceptable to the Committee, or a combination thereof; provided,
however, that a form of payment other than cash is only acceptable to the extent
that the same is expressly approved by the Committee. Payment of the exercise
price shall include amounts required for tax withholdings, as described in
Section 7.3, in cash, unless the Committee consents to alternate arrangements
for withholdings.

         7.3 Withholding Tax Requirements. For a Participant who is an employee
of the Company or an Affiliate, upon the exercise of a Nonqualified Option or
the lapse of restrictions on Restricted Stock, the Participant shall, upon
notification of the amount due, pay to the Company amounts necessary to satisfy
applicable federal, state and local withholding tax requirements or shall
otherwise make arrangements satisfactory to the Company for such requirements.
Such withholding requirements shall not apply to the exercise of an Incentive
Option, or to a disqualifying disposition of Stock that is acquired with an
Incentive Option, unless the Company or the Committee gives the Participant
notice that withholding described in this Section is required.

         7.4 Issuance and Delivery of Shares. Shares of Stock issued pursuant to
the exercise of Options hereunder shall be delivered to Participants by the
Company (or its transfer agent) as soon as administratively

                                        5
<PAGE>

feasible after a Participant exercises an Option hereunder, or is granted
Restricted Stock, and executes any applicable shareholders agreement described
in Section 9.3 or any agreement described in Section 9.2 that the Company
requires at the time of exercise.

                 ARTICLE VIII. ADJUSTMENT UPON CORPORATE CHANGES

         8.1 Adjustments to Shares. The number and kind of shares of Stock with
respect to which Awards hereunder may be granted (both overall and individual
limitations) and which are the subject of outstanding Awards, and the maximum
number and exercise price thereof, shall be adjusted as the Committee determines
(in its sole discretion) to be appropriate, in the event that:

         (a)      the Company or an Affiliate effects one or more Stock
                  dividends, Stock splits, reverse Stock splits, subdivisions,
                  consolidations or other similar events;

         (b)      the Company or an Affiliate engages in a transaction to which
                  section 424 of the Code applies; or

         (c)      there occurs any other event that in the judgment of the
                  Committee necessitates such action;

provided, however, that if an event described in paragraph (a) or (b) occurs,
the Committee shall make adjustments to the limits on Awards specified in
Sections 4.5 and 5.2 that are proportionate to the modifications of the Stock
that are on account of such corporate changes. If any capital reorganization or
reclassification of the capital stock of the Company or any consolidation or
merger of the Company with another person, or the sale of all or substantially
all the Company's assets to another person, shall be effected such that holders
of Stock shall be entitled to receive stock, securities or other property
(including, without limitation, cash) with respect to or in exchange for Stock,
then each holder of an Option shall thereafter have the right to purchase, upon
the exercise of the Option in accordance with the terms and conditions specified
herein and in the Agreement governing such Option and in lieu of the shares of
Stock immediately theretofore receivable upon the exercise of such Option, such
shares of stock, securities or other property (including, without limitation,
cash) as would be issuable or payable in such reorganization, reclassification,
consolidation, merger or sale with respect to or in exchange for a number of
outstanding shares of Stock equal to the number of shares of Stock that would
have been immediately theretofore so receivable with respect to such Option had
such reorganization, reclassification, consolidation, merger or sale not taken
place, subject to such adjustments as the Committee, in its sole discretion,
shall determine to be appropriate.

         8.2 Substitution of Awards on Merger or Acquisition. The Committee may
grant Awards in substitution for stock awards, stock options, stock appreciation
rights or similar awards held by an individual who becomes an employee of the
Company or an Affiliate in connection with a transaction to which section 424(a)
of the Code applies. The terms of such substituted Options shall be determined
by the Committee in its sole discretion, subject only to the limitations of
Article V.

         8.3 Effect of Certain Transactions. The provisions of this Section
shall apply to the extent that an Agreement does not otherwise expressly address
the matters contained herein. If the Company experiences an event which results
in a "Change in Control," as defined in Section 8.3(a), then, whether or not the
vesting requirements set forth in any Agreement have been satisfied, (i) all
shares of Restricted Stock that are outstanding at the time of such Change in
Control shall become fully vested and all restrictions shall lapse upon the
Change in Control, and (ii) all Options that are outstanding at the time of such
Change in Control shall become fully vested and exercisable immediately prior to
the Change in Control.

         (a)      For purposes hereof, a "Change in Control" shall be deemed to
                  have occurred upon the occurrence of any of the following
                  events:

                  (i)      Any merger, acquisition, consolidation,
                           reorganization, liquidation or similar transaction in
                           which the Company is not the survivor of the
                           transaction, survives only as a subsidiary or is
                           otherwise under the control of an acquiring person or
                           entity;

                                        6
<PAGE>

                  (ii)     An acquisition (other than directly from the Company)
                           of beneficial ownership, within the meaning of Rule
                           13d-3 promulgated under the Exchange Act ("Beneficial
                           Ownership"), of voting securities of the Company (the
                           "Voting Securities") by any person, individual,
                           entity or group, within the meaning of Section
                           13(d)(3) or 14(d)(2) of the Exchange Act (each, a
                           "Person"), immediately following which such Person
                           has Beneficial Ownership of 50% or more of the
                           combined voting power of the then outstanding Voting
                           Securities; provided, however, that in determining
                           whether a Change in Control has occurred, the
                           acquisition of Beneficial Ownership of Voting
                           Securities in a Non-Control Acquisition (as
                           hereinafter defined) shall not constitute an
                           acquisition which would cause a Change in Control. A
                           "Non-Control Acquisition" shall mean an acquisition
                           by (i) an employee benefit plan (or a trust forming a
                           part thereof) maintained by (A) the Company or (B)
                           any corporation or other Person of which a majority
                           of the voting power or the equity securities or
                           equity interests is owned directly or indirectly by
                           the Company (a "Control Subsidiary"), or (ii) the
                           Company or any Control Subsidiary;

                  (iii)    At any time during a period of two consecutive years
                           or less, individuals who, at the beginning of such
                           period, constitute the members of the Board, and any
                           new directors of the Company whose election to such
                           positions by the Board or whose nomination for
                           election by the stockholders of the Company to such
                           positions was approved by a vote of at least
                           two-thirds of the directors then still in office who
                           either were directors of the Company at the beginning
                           of such period or whose election or nomination for
                           election to such positions was previously so
                           approved, cease for any reason (other than death,
                           disability or voluntary resignation) to constitute a
                           majority of the Board;

                  (iv)     the sale or disposition of all or substantially all
                           of the assets of the Company and its subsidiaries; or

                  (v)      the approval by the stockholders of the Company of a
                           dissolution of the Company.

         (b)      Notwithstanding the foregoing, a portion of the acceleration
                  of vesting described in this Section shall not occur with
                  respect to an Award to the extent such acceleration of vesting
                  would cause the Participant or holder of such Award to realize
                  less income, net of taxes, after deducting the amount of
                  excise taxes that would be imposed pursuant to section 4999 of
                  the Code, than if accelerated vesting of that portion of the
                  Award did not occur. This limitation shall not apply (i) to
                  the extent that the Company, an Affiliate or the acquirer are
                  obligated to indemnify the Participant or holder for such
                  excise tax liability under an enforceable "golden parachute"
                  indemnification agreement, or (ii) the shareholder approval
                  described in Q&A-7 of Prop. Treas. Reg. Section 1.280G-1
                  issued under section 280G of the Code is obtained to permit
                  the acceleration of vesting described in this Section (applied
                  as if the shareholder approval date was the date of the Change
                  in Control).

         (c)      Notwithstanding anything to the contrary contained herein, a
                  change in ownership that occurs as a result of a public
                  offering of the Company's equity securities that is approved
                  by the Board shall not alone constitute a Change in Control.

         8.4 No Adjustment upon Certain Transactions. The issuance by the
Company 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 the Company convertible
into such shares or other securities, shall not affect, and no adjustment by
reason thereof shall be made with respect to, outstanding Awards.

         8.5 Fractional Shares. Only whole shares of Stock may be acquired
through the exercise of an Option. Any amounts tendered in the exercise of an
Option remaining after the maximum number of whole shares have been purchased
will be returned to the Participant.

                                        7
<PAGE>

                     ARTICLE IX. LEGAL COMPLIANCE CONDITIONS

         9.1 General. No Award shall be exercisable, no Stock or Restricted
Stock shall be issued, no certificates for shares of Stock shall be delivered,
and no payment shall be made under this Plan 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 the Company's Stock may be listed. The Company shall have the right to
rely on an opinion of its counsel as to such compliance. Any certificate issued
to evidence shares of Stock issued pursuant to this Plan may bear such legends
and statements as the Committee upon advice of counsel may deem advisable to
assure compliance with federal or state laws and regulations. No Award shall be
exercisable, no Stock or Restricted Stock shall be issued, no certificate for
shares shall be delivered and no payment shall be made under this Plan until the
Company has obtained such consent or approval as the Committee may deem
advisable from any regulatory bodies having jurisdiction over such matters.

         9.2 Representations by Participants. As a condition to the exercise of
an Award, the Company may require a Participant to represent and warrant at the
time of any such exercise that the shares of Stock are being purchased only for
investment and without any present intention to sell or distribute such shares.
At the option of the Company, a stop transfer order against any shares of Stock
may be placed on the official Stock books and records of the Company, 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 the Company) 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
the Company or any Affiliate to undertake registration of options or stock
hereunder.

         9.3 Shareholders Agreement. At the time of grant of an Award or the
exercise of an Option, the Company may require the Participant, as a condition
of such grant or exercise, to execute a shareholders agreement containing terms
and conditions generally applicable to some or all shareholders of the Company.

                          ARTICLE X. GENERAL PROVISIONS

         10.1 Effect on Employment. Neither the adoption of this Plan, its
operation, nor any documents describing or referring to this Plan (or any part
thereof) shall confer upon any employee any right to continue in the employ of
the Company or an Affiliate or in any way affect any right and power of the
Company or an Affiliate to terminate the employment of any employee at any time
with or without assigning a reason therefor.

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

         10.3 Rules of Construction. Headings are given to the articles and
sections of this Plan 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.

         10.4 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 Plan, to the extent that federal law does not apply.

         10.5 Compliance with Section 16 of the Exchange Act. If any common
class of equity securities of the Company is subject to registration under
section 12 of the Exchange Act, transactions under this Plan are intended to
comply with all applicable conditions of Rule 16b-3 or its successors under the
Exchange Act. To the extent any

                                        8
<PAGE>

provision of this Plan or action by Committee fails to so comply, it shall be
deemed null and void to the extent permitted by law and deemed advisable by the
Committee.

         10.6 Duration and Amendment of Plan. The Plan shall continue in effect
until terminated by the Board. The Board may amend or terminate this Plan at any
time; provided, however, an amendment that would have a material adverse effect
on the rights of a Participant under an outstanding Award is not valid with
respect to such Award without the Participant's consent, except as necessary for
Incentive Options to maintain qualification under the Code; and provided,
further, that the shareholders of the Company must approve the following:

         (a)      12 months before or after the date of adoption, any amendment
                  that changes the employees or class of employees eligible to
                  receive Incentive Options.

         (b)      before the effective date thereof, any amendment that
                  increases the period during which Incentive Options may be
                  granted or exercised; and

         (c)      before the effective date thereof, any amendment that changes
                  the maximum number of shares with respect to which Options may
                  be granted during a specified period to any Participant.

         10.7 Duration of Incentive Options. Incentive Option Awards shall not
be made with respect to the shares of Stock specified in Section 5.2 more than
ten years after the earlier of the date that the Plan is adopted by the Board or
the date that the Plan is approved by shareholders. If the number of shares
specified in Section 5.2 is increased by an amendment to this Plan, Incentive
Options may be awarded with respect to such increased shares for a period of ten
years after the earlier of the date that the amendment to the Plan is adopted by
the Board or the date that the amendment is approved by shareholders in a manner
that satisfies Treasury Regulation section 1.422-5. Incentive Options granted
before such dates shall remain valid in accordance with their terms.

         10.8 Effective Date of Plan. This Plan was adopted by the Board and
became effective on October 10, 1994, and was subsequently approved by the
shareholders of the Company. The effective date of this amendment and
restatement of the Plan is April 10, 2002, the date of Board approval. All
Options hereunder shall be governed by the terms of this amended and restated
Plan; provided, however, that the terms of the Plan prior to this amendment and
restatement shall apply to the extent that the terms of this amendment and
restatement would have a material adverse effect on the right of a Participant
under an Option outstanding prior to such amendment and restatement, unless the
Participant has given consent to the change.

                                        9
<PAGE>

                                    EXECUTION

         IN WITNESS WHEREOF, the undersigned officer has executed this Plan on
this the 10th day of April, 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

                                       10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}]]