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                                                                   EXHIBIT 10.41

                                                      EFFECTIVE DATE:  01/06/04

                  EXECUTIVE INCENTIVE COMPENSATION PLAN POLICY

The Superconductor Technologies Inc. Executive Incentive Compensation Plan
("Plan") is established to provide additional incentive for executive personnel
who influence the profitability of the Company.

ADMINISTRATION

The Plan is administered by the CEO/President, on behalf of the Compensation
Committee of the Board of Directors.

The Plan, in its entirety, and each individual award, is approved by the Board
of Directors, following the recommendations of the Compensation Committee on an
annual basis.

WHO IS ELIGIBLE

The Plan establishes a participating group of employees ("Executive Group")
comprised of senior managers of the Company. The Compensation Committee, in its
sole discretion, shall determine each year the identity of employees assigned to
the Executive Group. The Committee may add additional persons to, and remove
persons from, the Executive Group during each calendar year. The calendar/fiscal
year must be completed by any employee in order to be eligible for the incentive
payment. An employee who voluntarily resigns in the first quarter of the
following year will receive their incentive payment. Participants who work only
a partial year due to being hired after January 1, will have their incentive
payments pro-rated. A person who joins the Company after September 30 will not
be eligible to participate in the Plan until the following year. A person whose
employment by the Company is terminated for any reason other than death shall
not participate in the Plan for the calendar year of termination.

DETERMINATION OF INCENTIVE PAYMENTS

The Plan is predicated on awarding an incentive payment based on achievement of
individual objectives/goals as agreed upon for the applicable calendar/fiscal
year of the Company. For the Plan to apply at all, the Company must achieve a
minimum performance, as determined by the Board of Directors.

Each plan participant will be assigned a "target incentive" as a percentage of
his/her base salary. Actual awards will be within the range of 0 to 200 percent
of target, based on the Company's performance and the individual's performance.
For 2003, 75% of the Target


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Incentive Opportunity will be based on the achievement of business plan
achievement and 25% on the achievement of personal objectives.

The Compensation Committee and the Board in their sole discretion will determine
the actual level of performance of the Company and the individual, and decide on
the awards for all participants.

At the beginning of the year, those employees who are included as plan
participants in the Executive Group will receive a copy of the Plan, along with
Attachment I. Their goals for that year will be mutually agreed upon with their
manager. Their signature on one copy, to be placed in their personnel file,
indicates acceptance of their goals and knowledge of the Plan for the
calendar/fiscal year.

Distribution of incentive payments normally shall be made as soon after the end
of the calendar/fiscal year of the Company as practicable, not to exceed Q1 of
the following year.

CONTINUITY OF THE PLAN

Although it is the present intention of the Company to continue the Plan in
effect for an indefinite period of time, the Company reserves the right to
terminate the Plan in its entirety as of the end of any calendar/fiscal year of
the Company to modify the Plan as it exists from time to time, provided that no
such action shall adversely affect any incentive payments previously awarded
under the Plan.

NOTICES

Any notice required or permitted to be given by the Company or the Compensation
Committee(s) pursuant to the Plan shall be deemed given when personally
delivered or deposited in the United States mail, registered or certified,
postage prepaid, addressed to the participant, his or her heirs, executors,
administrators, successors, assigns or transferees, at the last address shown
for the participant on the records of the Company or subsequently provided in
writing to the Company.

MISCELLANEOUS PROVISIONS

1. No incentive payable under the Plan shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or
charge prior to actual receipt thereof by the payee; and any attempt to so
anticipate, alienate, sell, transfer, assign, pledge, encumber or charge prior
to such receipt shall be void; and the Company shall not be liable in any manner
for or subject to the debts, contracts, liabilities, engagements or torts of any
person entitled to any incentive payment under the Plan.


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2. Nothing contained herein will confer upon any participant the right to be
retained in the service of the Company nor limit the right of the Company to
discharge or otherwise deal with any participant without regard to the existence
of the Plan.

3. The Plan shall at all times be entirely unfunded and no provision shall at
any time be made with respect to segregating assets of the Company for payment
of any incentives hereunder. No participant or any other person shall have any
interest in any particular assets of the Company by reason of the right to
receive an incentive under the Plan and any such participant or any other person
shall have only the rights of a general unsecured creditor of the Company with
respect to any rights under the Plan.


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                                  ATTACHMENT 1

<TABLE>
<CAPTION>
                             ANNUAL INCENTIVE            POTENTIAL INCENTIVE
POSITION                       OPPORTUNITY                   OPPORTUNITY
--------                     ----------------            -------------------
<S>                          <C>                         <C>

President & CEO                    50%                         0-200%

Sr. Vice President                 40%                         0-200%

Vice Presidents                    30%                         0-200%

Directors                          20%                         0-200%
</TABLE>