**FIRST AMENDMENT TO LEASE**

          THIS FIRST AMENDMENT TO LEASE ("Amendment")is made as of March 5, 2002, between OTR, an Ohio general partnership("Landlord") acting as the duly authorized nominee of the BOARD OFTHE STATE TEACHERS RETIREMENT SYSTEM OF OHIO, and BMC Industries, Inc., aMinnesota corporation ("Tenant").

          RECITALS:
| A. |   | Landlord and Tenant entered into a Lease - Meridian Crossings  I dated October 29, 1997 (the "Lease"), for approximately 11,124  square feet of office space (the "Original Premises") on the eighth  floor of the building located at One Meridian Crossings in Richfield,  Minnesota (the "Building"). |
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| B. |   | Tenant wishes to expand the Original Premises and Landlord is  willing to accommodate the same on the terms contained herein                                                                                                                                                                                                           |

AGREEMENT:

For good and valuable consideration, the receipt andsufficiency of which is acknowledged by the parties hereto, Landlord and Tenantagree as follows:
| 1. |   | Capitalized  Terms.  Capitalized terms not  defined herein will have the meanings given to the same in the Lease.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| 2. |   | Premises  Expansion.  On or prior to April  1, 2002 (the "Commencement Date"), (A) approximately 2,689 rentable  square feet of space on the eighth floor of the Building immediately adjacent  to the Original Premises as depicted on Exhibit A attached hereto (the  "New Premises"), will be added to the Original Premises, and (B)  from and after the Commencement Date, the term "Premises" as used  in the Lease will include the Original Premises and the New Premises and will  consist of approximately 13,813 rentable square feet of office space.  If Landlord cannot deliver possession of  the New Premises to Tenant on or before April 1, 2002, for any reason,  Landlord will not be subject to any liability for failure to give possession.  Under such circumstances, Rent for the New  Premises reserved and covenanted to be paid as stated herein will not  commence until the New Premises is available for occupancy, and no such  failure to give possession on or before such date will affect the validity of  the Lease or the obligations of Tenant thereunder, nor shall the same be  construed to extend the Term.   Notwithstanding the foregoing, if Landlord is unable to deliver the  New Premises to Tenant prior to June 1, 2002, Tenant may terminate this  Amendment by giving written notice of the same to Landlord on or prior to  June 3, 2002, and, upon such notification, this Amendment will automatically  terminate. |
| 3. |   | Term.  The Term is hereby extended to run through  and including March 31, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4. |   | Base Rent.  Commencing on the date that the New  Premises is delivered to Tenant by Landlord, Base Rent for the Premises will  be as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **LEASE MONTH** | **MONTHLY  BASE**

**RENT** | **BASE  RENT PER SQ. FT.**

**OF RENTABLE AREA** |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|-----------------------------|--------------------------------------------------|
|  
Delivery of New Premises to Tenant - 3/31/04

$17,266.25

$15.00

 
4/1/04 - 3/31/05

$18,705.10

$16.25

 
4/1/05 - 3/31/06

$19,280.65

$16.75

 

5.
   
Building.  The number of rentable square feet in the  Building as stated in Section (b) of the Data Sheet of the Lease is amended  to be 186,307. 

6.
   
Tenant's Percentage.  The term "Tenant's Percentage"  as defined in Section (j) of the Data Sheet of the Lease is amended to be  7.414%.

7.
   
Improvements.  Landlord will, at Landlord's sole expense  and prior to delivery of the New Premises to Tenant, construct (A) a demising  wall separating the New Premises from the space currently leased and occupied  by Solonis, Inc., and (B) an exit corridor extension for the New Premises,  each of which will include all taping, sanding and painting by Landlord.  The parties hereto acknowledge that  Landlord will employ MP Johnson to perform the foregoing work and that Tenant  will also use MP Johnson to perform additional tenant improvements  simultaneously with the performance of Landlord's work in the New  Premises.  In addition to the  foregoing, upon delivery of the New Premises to Tenant by Landlord, Landlord  will provide Tenant with the sum of $27,626 (the "Allowance") to be  used by Tenant toward the cost of installing improvements in the Premises  (the "Improvements").  All  Improvements will be constructed, installed and completed in accordance with  Article VIII of the Lease.  If the  actual cost of the Improvements is less than the Allowance, Landlord will  have no claim to the unused portion of the Allowance.   

8.
   
Signage.  Tenant may, at Tenant's sole expense, install  Tenant's name and logo on the monument sign for the Building.   The design and size of such sign must be  approved in writing by Landlord prior to installation of the same, which  approval will not be unreasonably withheld. 

9.
   
Notice Address.  The notice address for Landlord in Section  (l) of the Data Sheet of the Lease is changed to the following:

                

 

 

Escom Properties, Inc.

 

 

10200 73rd Avenue North

 

 

Suite 102

 

 

Maple Grove, Minnesota 55369

 

 

Attention:  Ernest  E. Swanson 

 

 

 

With a copy to:

 

c/o OTR

 

 

275 East Broad Street

 

 

Columbus, Ohio 43215

 

 

Attention: Real Estate Manager

 

 

 

                

10.
   
Deleted Provisions.  Articles XXV (Termination Option), XXVI (Tenant Improvement  Allowance and Tenant Work), XXIX (Initial Expansion Right), and XXI (Additional  Space), each in the Rider to the Lease, are hereby deleted. 

11.
   
Expansion Option.  Tenant is granted the right to expand its  Premises by leasing up to 3,000 contiguous, rentable square feet of space on  the eighth floor of the Building (the "Expansion Space") currently  leased and occupied by  Solonis,  Inc.  upon vacation of said space by  Solonis, Inc.  Any portion of the Expansion  Space desired by Tenant must be contiguous and adjacent to the Premises.  To exercise this expansion right, Tenant  must give Landlord written notice of its desire to occupy all or any portion  of the Expansion Space by November 1, 2002.   Tenant's lease of the Expansion Space will be on the same terms,  covenants and conditions provided in the Lease except that Base Rent for the  space added by Tenant will be equal to 95% of the monthly base rent which  would then be charged by Landlord for the expansion space considering the  condition of such space and based on rates then being charged by Landlord for  comparable space in the Building.  No  provisions of this Lease relating to free rent, leasehold improvements,  allowances, or other incentives or concessions, if any, will apply to the  expansion space unless hereafter agreed upon between the parties in  writing.  If Tenant timely exercises  its right to expand pursuant to this section, Landlord will deliver to Tenant  an amendment to this Lease adding the additional space to the Premises.  If   Tenant fails to timely exercise its expansion right hereunder, or if  Tenant fails to execute and deliver the lease amendment to Landlord within 5  business days after delivery to Tenant of the same (reflecting the terms  agreed upon herein), then Landlord may lease all or any portion of the  Expansion Space to one or more third parties and the expansion option granted  hereby will terminate.

12.
   
Brokers.   Tenant represents that Tenant has directly dealt with and only with CB  Richard Ellis, who represented Landlord (whose commission, if any, shall be  paid by Landlord pursuant to separate agreement), and the Keewaydin Group,  Inc., who represented Tenant (whose commission, if any, will be paid by CB  Richard Ellis via separate agreement), as the brokers in connection with this  Amendment and Tenant will indemnify and hold Landlord harmless from all damages,  liability and expense (including reasonable attorneys' fees) arising from any  claims or demands of any other broker or brokers or finders for any  commission alleged to be due such broker or brokers or finders in connection  with its participating in the negotiation with Tenant of this Amendment.

13.
   
Contingency.  The terms of this Amendment are contingent  upon Landlord entering into a lease   amendment with Solonis, Inc. whereby said tenant will surrender the  New Premises to Landlord.  If such an  amendment cannot be obtained on or prior to March 8, 2002 (the  "Contingency Date"), then either party hereto may terminate this  Amendment by written notice given to the other party within 2 business days  after the Contingency Date.

14.
   
Ratification.  Except as specifically amended hereby, the  Lease remains in full force and effect.   If any conflict arises between the terms of the Lease and this  Amendment, the terms of this Amendment shall control.

        EXECUTION:

 

**LANDLORD:**

 

OTR, an Ohio general  partnership, acting as the duly authorized nominee of the BOARD OF THE STATE  TEACHERS RETIREMENT SYSTEM OF OHIO

 

 

 

 

 

By:        /s/Alan E.  Muench               

 

Its:   Director, Midwestern  Region         

 

 

 

**TENANT:**

 

BMC INDUSTRIES, INC.

 

By:  /s/Bradley D. Carlson           

                                                                                                

Its:   Treasurer

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**EXHIBIT A**

Depiction of NewPremises

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