<PAGE>
 
                                                                    EXHIBIT 10.8

                            CalComp Technology, Inc.
                            ------------------------

                     MANAGEMENT INCENTIVE COMPENSATION PLAN
                     --------------------------------------

                            Approved July 23, 1996

                                   ARTICLE I
                                   ---------

                              PURPOSE OF THE PLAN
                              -------------------

This plan is established to provide a further incentive to selected employees to
promote the success of CalComp Technology, Inc. by providing an opportunity to
receive additional compensation for above average performance measured against
individual and business unit goals.  The Plan is intended to achieve the
following:

        1.      Improved cost effectiveness.

        2.      Stimulate employees to work individually and as teams to meet
                objectives and goals consistent with enhancing shareholders
                values.

        3.      Facilitate the Company's ability to retain qualified employees
                and to attract top executive talent.

                                   ARTICLE II
                                   ----------

                STANDARD OF CONDUCT AND PERFORMANCE EXPECTATION
                -----------------------------------------------

        1.      It is expected that the business and individual goals and
                objectives established for this Plan will be accomplished in
                accordance with the Company's policy on ethical conduct in
                business with the Government and all other customers.  It is a
                prerequisite before any award can be considered that a
                participant will have acted in accordance with the CalComp
                Technology, Inc. Code of Ethics and Business Conduct and
                fostered an atmosphere to encourage all employees acting under
                the participants' supervision to perform their duties in
                accordance with the highest ethical standards.  Ethical behavior
                is imperative.  Thus, in achieving one's goals, their individual
                commitment and adherence to the Company's ethical standards will
                be considered paramount in determining awards under this Plan.

        2.      Plan participants whose individual performance is determined to
                be less than acceptable are not eligible to receive incentive
                awards.

                                       1
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                                  ARTICLE III
                                  -----------

                                  DEFINITIONS
                                  -----------

        1.      ANNUAL SALARY -- The regular base salary of a Participant during
                a fiscal year of the Company, determined by multiplying by 52
                the Participant's weekly base salary rate effective during the
                first full pay period in December preceding the year of payment,
                but excluding any incentive compensation, commissions, over-time
                payments, payments under work-week plan, indirect payments,
                retroactive payments not affecting the base salary or applicable
                to the current year, and any other payments of compensation of
                any kind.

        2.      BOARD OF DIRECTORS -- The Board of Directors of the Company.

        3.      COMMITTEE -- The Compensation Committee of the Board of
                Directors as from time to time appointed or constituted by the
                Board of Directors.

        4.      COMPANY -- CalComp Technology, Inc. and its Subsidiaries.

        5.      EMPLOYEE -- Any person who is employed by the Company and who is
                paid a salary as distinguished from an hourly wage.  The term
                shall be deemed to include any person who was employed by the
                Company during all or any part of the year with respect to which
                an appropriation is made to the Plan by the Board of Directors
                but shall not include any employee who, during any part of such
                year, was represented by a collective bargaining agent.

        6.      PARTICIPANT -- Any Employee selected to participate in the Plan
                in accordance with its terms.

        7.      PLAN -- This CalComp Technology, Inc. Management Incentive
                Compensation Plan (MICP).


                                   ARTICLE IV
                                   ----------

                         ELIGIBILITY FOR PARTICIPATION
                         -----------------------------

Those Employees who through their efforts are able to contribute significantly
to the success of the Company in any given calendar year will be considered
eligible for selection for participation in the Plan with respect to that year.
Participants are selected each plan year based on recommendations by the Company
President or Company function head.  Those eligible shall include all Employees
considered by the Committee to be key Employees of the Company.  No member of
the Committee shall be eligible for participation in the plan.

                                       2
<PAGE>
 
                                   ARTICLE V
                                   ---------

                        INCENTIVE COMPENSATION PAYMENTS
                        -------------------------------

        1.      CALCULATION OF PAYMENTS -- Incentive compensation payments to
                Participants shall be calculated in accordance with the formula
                and procedures set forth in Exhibit A hereto.  All such
                payments shall be in cash.

        2.      INDIVIDUAL PERFORMANCE FACTORS - The Individual Performance
                Factors of Participants, as provided in Exhibit A shall be
                determined by the Company President or Company function head.
                The performance factors of the President of CalComp Technology,
                Inc. shall be determined by the Committee and the Committee
                shall review the Individual Performance Ratings of other
                Participants who are elected officers of the Company.  The
                Committee may at the request of any member of the Committee
                review the performance ratings of any other Participant or
                groups of Participants.  The Committee may make adjustments in
                any such performance factors as it considers appropriate.

        3.      COMPANY FACTORS - The company factors as provided for in Exhibit
                A, shall be determined by the Board of Directors and shall
                thereafter be reviewed with and be subject to the approval of
                the Committee.  The Committee may make adjustments in any such
                factor as it considers appropriate.  The Board of Directors
                shall, as soon as feasible in each year, review with the
                Committee the company objectives which may relate to the
                determination of such company factors.

        4.      RECOMMENDATION BY THE COMMITTEE.

                A.      As early as feasible after the end of each year in
                        respect of which incentive compensation payments are to
                        be made, the Committee shall establish an incentive fund
                        which shall be equal to a percentage, to be determined
                        by the Committee at that time, to the Company's pretax
                        earnings for the year in which incentive compensation
                        payments are to be made.  For purposes of the Plan,
                        pretax earnings shall (i) consist of pretax earnings
                        from operations; (ii) shall not include any earnings
                        attributable to extraordinary items as determined by
                        generally accepted accounting principles; and (iii)
                        shall be computed prior to the deduction of incentive
                        compensation payments to be paid under the Plan.

                                       3
<PAGE>
 
                B.      To the extent that the aggregate of all proposed
                        payments of incentive compensation to all Participants
                        as determined by the application of the formula set
                        forth in Exhibit A (subject to any adjustments made by
                        the Committee under Paragraph 2 or 3 above) exceeds the
                        amount of the incentive fund as determined under
                        Paragraph 4.A. above, all proposed payments of incentive
                        compensation to Participants shall be reduced on a
                        prorata basis.

                C.      If the Company's pretax earnings, as defined in
                        Paragraph 4A, are less than the aggregate of all
                        proposed payments of incentive compensation (as
                        determined by the application of the formula set forth
                        in Exhibit A subject to 2 or 3 above), the Committee
                        may, in its discretion, establish an incentive fund
                        without regard to the pretax earnings guideline of
                        Paragraph 4A.  If the Committee does so, Paragraph 4B
                        shall not apply and the Committee's recommendation to
                        the Board of Directors shall both state that the pretax
                        earnings would be exceeded and set forth the reasons the
                        Committee believes that the proposed incentive
                        compensation payments should nevertheless be made.

                D.      The Committee will recommend to the Board of Directors
                        the authorization of an appropriation to the Plan by the
                        Company for distribution to Participants in an amount
                        equal to the incentive fund as computed pursuant to the
                        provisions of this Paragraph 4.

        5.      APPROPRIATIONS TO THE PLAN - The Board of Directors may,
                notwithstanding any provision of the Plan, make adjustments in
                proposed incentive compensation payment under the Plan, and
                subject to any such adjustments, the Board of Directors will
                appropriate to the Plan the amount as recommended by the
                Committee for distribution to the Participants; provided that,
                the Board of Directors may appropriate an amount which is less
                than the amount recommended by the Committee in which event all
                proposed payments of incentive compensation to Participants
                shall be reduced on a prorata basis.

        6.      METHOD OF PAYMENT - The amount so determined for each
                Participant with respect to each calendar year shall be paid to
                such Participant in full or on a deferred basis as determined by
                the Committee.  Such determination as to deferred payments shall
                be governed by the Committee's judgement as to the time of
                payment best serving the interests of the Company.  Deferred
                payments shall be made pursuant to such terms and conditions, as
                may be determined or provided for the by the Committee, only to
                Participants who continue in the employ of the Company or are
                retired under a retirement plan approved by the Board of
                Directors, or to the estates of, or beneficiaries designated by,
                Participants who shall have died while in such employ or after
                such retirement.  In the event of termination of employment by a
                Participant for any reason other than such retirement or death,
                then such participant 

                                       4
<PAGE>
 
                or his estate or his beneficiary or beneficiaries, shall after
                such termination receive a distribution or distributions of any
                amounts deferred by the Committee, if any, the amount (not in
                excess of the unpaid deferred payments) and time of which shall
                be determined or provided for by the Committee. Participants may
                also elect to defer payments to the extent provided in the
                CalComp Technology, Inc. Deferred Management Incentive Plan.

        7.      RIGHTS OF PARTICIPANTS - All payments are subject to the
                discretion of the Board of Directors.  No Participant shall have
                any right to require the Board of Directors to make any
                appropriation to the Plan for any calendar year, nor shall any
                Participant have any vested interest or property right in any
                share in any amounts which may be appropriated to the Plan.
                Payments made under the Plan and distributed to Participants
                shall not be recoverable from the Participant by the Company.


                                   ARTICLE VI
                                   ----------

                                 ADMINISTRATION
                                 --------------

The Plan shall be administered under the direction of the Committee.  The
Committee shall have the right to construe the Plan, to interpret any provision
thereof, to make rules and regulations relating to the Plan, and to determine
any factual question arising in connection with the Plan's operation after such
investigation or hearing as the Committee may deem appropriate.  Any decision
made by the Committee under the provisions of the Article shall be conclusive
and binding on all parties concerned.  The Committee may delegate to the
officers or employees of the Company the authority to execute and deliver those
instruments and documents, to do all acts and things, and to take all other
steps deemed necessary, advisable or convenient for the effective administration
of this MICP Plan in accordance with its terms and purpose.


                                  ARTICLE VII
                                  -----------

                        AMENDMENT OR TERMINATION OF PLAN
                        --------------------------------

The Board of Directors shall have the right to terminate or amend this Plan at
any time and to discontinue further appropriations thereto.

                                       5
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                                  ARTICLE VIII
                                  ------------
                                 EFFECTIVE DATE
                                 --------------

The Plan shall be effective with respect to the operations of the Company for
the year 1996 and the years subsequent thereto.  A participant who receives an
award from this Plan is no longer eligible for any incentive compensation
payment from any similar plan which may have been administered by the Lockheed
Corporation, Martin Marietta Corporation, or the Lockheed Martin Corporation.

                                       6
<PAGE>
 
                                   EXHIBIT A

           CALCULATION OF MANAGEMENT INCENTIVE COMPENSATION PAYMENTS

A.      AWARD FORMULA
        -------------

        1.      Incentive compensation payments will be calculated by
                multiplying the Participant's Annual Salary by the applicable
                "target" of the Participant's position (as defined in B), and
                that result will then be multiplied by the Individual
                Performance Factor (as defined in C).  The resulting award will
                be increased or decreased proportionately based on the
                appropriate Company Factor (as defined in D).

        2.      Partial awards for Participants who terminate employment during
                a Plan Year may be recommended for consideration based on the
                following at the discretion of the Company President and
                subsequent approval of the Board of Directors.

        Termination Method      MICP Award

        Voluntary               May be considered for an award if on active
                                status January 2 of the following Plan Year with
                                a minimum of six (6) full months as an active
                                Plan Participant during the Plan Year.


        Lay Off                 May be pro-rated based on the conditions of the
                                case with a minimum of six (6) full months as an
                                active Plan Participant during the Plan Year.


        Retirement              May be considered for a pro-rated award with a
                                minimum of six (6) full months as an active
                                Participant during the Plan Year and the
                                Participant goes directly into retirement status
                                upon termination.

        3.      The aggregate of all Participant's Incentive Awards determined
                under items C and D below will be recommended to the Committee
                for its consideration.


        4.      Any calculation of incentive awards under this exhibit shall be
                subject to the provisions of the Plan and in the event of any
                conflict between the terms or application of this Exhibit A and
                the Plan, the Plan shall prevail.

                                       7
<PAGE>
 
B.      TARGET LEVELS
        -------------


        Target levels are based on the level of importance and
        responsibility of the position in the organization as determined
        by the Company President or the Board of Directors, as
        appropriate.

<TABLE>
<CAPTION>
                Position                                Target
                --------                                ------
                <S>                                     <C>
                President                               45%
                Designated Officers                     40%
                Other Eligible Positions                30%
                                                        20%
</TABLE>

                * Requires Board of Directors' approval

C.      INDIVIDUAL PERFORMANCE FACTORS
        ------------------------------

        Individual performance factors are normally in increments of 0.10 and
        will have the following definitions:

<TABLE>
<CAPTION>
                Factor                          Definition
                ------                          ----------
              <S>               <C>
              1.30 - 1.40       Performance vastly superior to expectations and
                                peers within the organization.

              1.10 - 1.20       Consistently exceeds expected performance.

                1.00            Consistently meets all requirements and
                                expectations.

              0.80 - 0.90       Performance meets most, but not all job
                                requirements and expectations.

              0.60 - 0.70       Performance meets some objectives, but overall
                                performance below expected levels.

                0.00            Performance fails to meet job requirements.
</TABLE>

D.      COMPANY PERFORMANCE FACTORS
        ---------------------------

        1.      Specific objectives will be established by the Board of
                Directors and the rating will depend on the assessment of the
                quality of performance by the Company in accomplishing the
                objectives based on the following schedule:

                1.30    On balance, far exceeded high performance expectations.

                                       8
<PAGE>
 
         1.10 - 1.20    Consistently exceeds high performance expectations.

                1.00    Achieved all objectives or on balance met high
                        performance expectations.

                0.75    Met most objectives.  Overall performance was good, but
                        not as high as possible or expected.

                0.50    Met few objectives, but overall performance not as good
                        as possible or expected.

                0.00    Did not achieve sufficient overall performance level.


        2.      Intermediate company factors as deemed appropriate by the Board
                of Directors for results achieved, may be assigned in increments
                of 0.05.

                                       9
<PAGE>
 
               CALCOMP TECHNOLOGY INC. 1996 MANAGEMENT INCENTIVE
                               COMPENSATION PLAN

 .Plan requires Board approval

 .Key features of Plan:

       -- Participants recommended by Company President


       -- Awards based upon annualized December salary and approved in first
          quarter of following year


       -- Participant's assigned MICP Target Percent based upon position

                . President                     45%
                . Elected Officers              40%
                . Other Vice Presidents         30%
                . Directors                     20%


       -- Performance Factors

                .       Each employee receives an Individual Performance Factor
                        (IPF) between 0.0 and 1.40

                .       Board will approve a Company Performance Factor
                        (CPF) between 0.0 and 1.30

       -- Award Formula

                .       Base Salary times Target times IPF times CPF equals
                        recommended MICP award

                .       MICP = $100,000 x 0.40 x 1.10 x 0.90 = $39,600

                        MICP =  Base Salary - $100,000
                                Target - 0.40
                                Individual Performance Factor - 1.10
                                Company Performance Factor - 0.90

                . Individual award amounts may be adjusted up or down at the
                  discretion of the Board