Document:

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Revised 2/7/00                                                      EXHIBIT 10.3

                              BMC INDUSTRIES, INC.
                         2000 MANAGEMENT INCENTIVE PLAN

                                    CORPORATE

1.       OBJECTIVE

         To focus management attention on division annual profit performance and
         balance sheet management.

2.       GLOSSARY OF TERMS

         "CONSOLIDATED EARNINGS PER SHARE"
                  Consolidated Earnings Per Share as reported publicly.

         "MAXIMUM PERFORMANCE"
                  The level of operating earnings justifying a "maximum"
                  incentive award.

         "PAR PERFORMANCE"
                  The level of operating earnings justifying a "target"
                  incentive award.

         "CUT-IN PERFORMANCE"
                  The level of operating earnings justifying a "minimum"
                  incentive award.

         "TARGET INCENTIVE"
                  The percent (%) of base pay when a 100% incentive award is
                  earned.

         "MINIMUM INCENTIVE"
                  The percent (%) of base pay when a 10% incentive award is
                  earned.

         "MAXIMUM INCENTIVE"
                  The percent (%) of base pay when a 150% incentive award is
                  earned.

         "BMC EARNINGS THRESHOLD"
                  The minimum level of total company net earnings before a
                  division participant in the Plan will be eligible for an
                  incentive award.

         "AVERAGE WORKING CAPITAL TARGET"
                  The monthly level of net receivables, inventories and
                  payables, expressed as a percentage of sales, above which an
                  interest charge will be incurred by the Division and below
                  which the Division will earn interest for purposes of
                  operating earnings.

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         "CAPITAL SPENDING IN EXCESS OF BUDGET"

                  The amount by which actual capital spending for the year
                  exceeds capital spending budgeted for the year. The amount of
                  capital spending budgeted for the year may be increased at the
                  discretion of the Corporate office.

III.     ELIGIBLE PARTICIPANTS

         Key management employees.

IV.      2000 PERFORMANCE STANDARDS

         Operating earnings targets are expressed as adjusted DCE and are
         subject to change by management based on events that were not
         contemplated in the 2000 budget, including investments made for an
         acquisition, new facility or significant expansion.

V.       AWARD LEVELS

         Target incentive awards are a percent (%) of base salary, depending on
         the employee's level of responsibility.

VI.      ORGANIZATIONAL WEIGHTING

         There is no organizational weighting. For example, Corporate
         participants earn awards based on Corporate performance and Division
         participants earn awards based on Division performance.

VII.     INCENTIVE OPPORTUNITY

         Individual incentive awards will be prorated and calculated based on
         the following, once the applicable thresholds have been exceeded:

                  -        150% of target incentive is earned when reported
                           operating earnings, as defined earlier, equal or
                           exceed "maximum."

                  -        100% of target incentive is earned when reported
                           operating earnings, as defined earlier, equal or
                           exceed "par."

                  -        10% of target incentive is earned when reported
                           operating earnings, as defined earlier, equal
                           "cut-in."

                  -        No incentive will be paid when reported operating
                           earnings, as defined earlier, fall below "cut-in."

VIII.    PAYMENT FORM

         Cash.<PAGE>

                                                                   EXHIBIT 10.26

                               AMENDMENT OF LEASE

         This Amendment of Lease ("Amendment") is made as of this 1st day of
August, 1998, by and between GMT Corporation, a Minnesota corporation, whose
address is 245 East Sixth Street, Saint Paul, Minnesota 55101 ("Landlord") and
BMC Industries, Inc., a Minnesota corporation, whose address is 278 East Seventh
Street, Saint Paul, Minnesota 55101 ("Tenant").

                                    RECITALS:

         WHEREAS, Landlord and Tenant are parties to that certain Lease
Agreement originally between Control Data Corporation and Buckbee-Mears Company
dated November 20, 1978, as amended by various amendments and agreements
(collectively "Lease"); and

         WHEREAS, Landlord and Tenant desire to amend the Lease as it related to
the "PS-3 Space" upon the terms and conditions set forth below.

         NOW, THEREFORE, In consideration of the foregoing and other good and
value consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

         1.       Tenant shall have the option to renew the term of the Lease
                  for the PS-3 Space for the period from March 1, 1999, through
                  February 29, 2000, by written notice to Landlord on or before
                  January 31, 1999.

         2.       Tenant shall have the option on 30 days prior notice to renew
                  the term of the Lease as it relates to the PS-3 Space for four
                  (4) additional, consecutive one (1) year periods. For each
                  option period there shall be an adjustment ("Adjustment') in
                  the basic Rental and Tenant's annual share of "CAM Charges" as
                  defined in Section 5 of the Amendment of Lease dated April 6,
                  1994, as said Adjustment is defined in Section 6 of said
                  Amendment of Lease dated April 6, 1994; provided the "Base
                  Price Index" shall be the Price Index last published prior to
                  the term then in effect.

         3.       For the PS-3 Space Tenant shall pay an annual rate of $9.93
                  per square foot for Basic Rent and CAM Charges as defined in
                  Section 5 of the Amendment of Lease dated April 5, 1994. Real
                  estate taxes shall be billed on a prorate basis.

         4.       Except as specifically provided herein, the terms and
                  conditions of the Lease as it relates to the PS-3 Space shall
                  continue in full force and effect. In the event of any
                  inconsistency between the terms of this Amendment
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                  and any other terms of the Lease, the provisions of this
                  Amendment shall control.

         IN WITNESS WHEREOF, This Amendment has been executed as of the date set
forth above.

LANDLORD:  GMT CORPORATION                      TENANT:  BMC INDUSTRIES, INC.

By:  /s/Henry Zaidan                           By:    /s/Benjamin A. Teno
    ---------------------------                     ---------------------------

Its:    President                              Its:   VP/GM
     --------------------------                     ---------------------------<PAGE>

                                                                   EXHIBIT 10.27
                               AMENDMENT OF LEASE

         This Amendment of Lease ("Amendment") is made as of this 1st day of
August, 1998, by and between GMT Corporation, a Minnesota corporation, whose
address is 245 East Sixth Street, Saint Paul, Minnesota 55101 ("Landlord") and
BMC Industries, Inc., a Minnesota corporation, whose address is 278 East Seventh
Street, Saint Paul, Minnesota 55101 ("Tenant").

                                    RECITALS:

         WHEREAS, Landlord and Tenant are parties to that certain Lease
Agreement originally between Control Data Corporation and Buckbee-Mears Company
dated November 20, 1978, as amended by various amendments and agreements
(collectively "Lease"); and

         WHEREAS, Landlord and Tenant desire to amend the Lease upon the terms
and conditions set forth below.

         NOW, THEREFORE, In consideration of the foregoing and other good and
value consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

         1.       TERM. The term of the Lease for the entire Demised Premises
                  (except for the "PS-3 Space" covered by the Amendment of Lease
                  dated September 25, 1997) is hereby extended for 5 years
                  through February 29, 2004. The parties agree that the PS-3
                  Space shall be governed by the Amendment of Lease dated
                  September 25, 1997, and any amendment thereto.

         2.       OPTION TO EXTEND. Provided Tenant is not in default under the
                  Lease, Tenant shall have two (2) additional, consecutive five
                  (5) year options to extend the term of the Lease for the
                  Demised Premises. In order to exercise said options, tenant
                  shall notify Landlord in writing of Tenant's intent to so
                  extend the term of the Lease at least one hundred eight (180)
                  days prior to the expiration of the then current term of the
                  Lease. For each option period there shall be an adjustment
                  ("Adjustment") in the Basic Rental and the Tenant's annual
                  share of "CAM Charges" as defined in Section 5 of the
                  Amendment of Lease dated April 6, 1994, as said Adjustment is
                  defined in Section 6 of said Amendment of Lease dated April 6,
                  1994; provided the "Base Price Index" shall be the Price Index
                  last published prior to the end of the term then in effect.

         3.       RENT. Basic Rental and Tenant's share of CAM Charges shall be
                  as follows:
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<TABLE>
<CAPTION>
         SPACE             SQ. FT.       ANNUAL RENT/SQ. FT.        ANNUAL CAM/SQ. FT.
         -----             -------       -------------------        ------------------
         <S>               <C>           <C>                        <C>
         PS-B               17,377            $2.22                      $1.68
         FB                  9,640             2.83                       1.68
         R-5                29,115             3.88                        .31
         R-6                29,115             3.88                        .31
         PS-1                7,170             3.88                       1.68
         PS-2                2,664             3.88                       1.68
         S-228               1,782             3.88                       1.68
         S-500               8,752             3.88                       1.68
         PS-5B               1,078             2.22                       1.68
         PS-6                3,013             3.88                       1.68
         PS-601              2,586             3.88                       1.68
</TABLE>

         4.       Tenant shall have the right, with a 150-day notice to
                  Landlord, to reduce the Demised premises in the Park Square
                  Building as follows: on the 5th floor, by any or all of the
                  9,830 square feet; on the 6th floor, by any or all of the
                  5,599 square feet; and on the 2nd floor, by any or all of the
                  4,446 square feet. The reductions must occur in different
                  calendar years, unless Landlord has already released the
                  previously reduced premises. Each notice to reduce shall cover
                  premises only on a single floor.

         5.       Tenant shall have the right to lease additional space in the
                  Building, if available, at the current rate Tenant is paying
                  for similar space.

         6.       Except as specifically provided herein, the terms and
                  conditions of the Lease shall continue in full force and
                  effect. In the event of any inconsistency between the terms of
                  this Amendment and any other terms of the Lease, the
                  provisions of this Amendment shall control.

         IN WITNESS WHEREOF, This Amendment has been executed as of the date set
forth above.

LANDLORD:  GMT CORPORATION                      TENANT: BMC INDUSTRIES, INC.

By:  /s/ Henry Zaidan                           By:  /s/Benjamin A. Teno
    ---------------------------                     ---------------------------

Its:  President                                 Its: VP/GM
    ---------------------------                     ---------------------------

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