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                                                                   EXHIBIT 10.10

                                      2002
                      EXECUTIVE INCENTIVE COMPENSATION PLAN

INTRODUCTION AND PURPOSE

The purpose of this document is to identify the terms and conditions of the
Company's Executive Incentive Plan (the "Plan"). The Plan is effective January
1, 2002 through December 31, 2002, or until superseded by written notice from
Capstone. This Plan does not constitute a contract for employment of a fixed
duration of any length.

The Plan is designed to reward named executives and managers ("Participants") of
Capstone upon meeting or exceeding both financial and non-financial goals and
objectives that are established for 2002.

The Plan is based on the concept that Participants should expect to achieve
incentive awards based on overall Company and individual performance, determined
primarily by performance against annual objectives. In this regard, an incentive
award pool will be established based on a percentage of each Participants base
compensation.

ELIGIBILITY AND PARTICIPATION

The Compensation Committee will designate the Participants. Each Participant's
percentage of participation is based upon the individual's position and base
compensation rate during the Plan year. Participants are not eligible to
participate in any other commission or bonus plan.

All Participants may receive incentive awards based on Company performance
objectives and their individual performance against objectives. Despite the
other terms of this Plan, Capstone expressly reserves the right to adjust,
modify or reduce the amounts described in this Plan based upon business
considerations, as determined by the Company's Compensation Committee of the
Board.

AWARD OPPORTUNITIES

2002 PERFORMANCE MEASUREMENT AND OBJECTIVES

For the year, a bonus pool is created based on each Participant's eligible
compensation and target bonus rate. This potential is then allocated between the
financial and non-financial objectives. If the financial objectives are met, the
payout potential allocated to the financial objectives is added to the
non-financial objectives, and the payout is made based on achievement of the
non-financial objectives. If the financial objectives are not met, this portion
of the bonus potential is lost and the payout is based only on the portion
allocated to the non-financial objectives and the achievement of those
objectives. For the CEO, two-thirds (2/3) of bonus potential is allocated to the
financial objective and the remaining one-third (1/3) to the non-financial
objectives. For all other Participants, one-third (1/3) of the total bonus
potential is allocated to the financial objective and two-thirds (2/3) to the
non-financial objectives.

The financial objective is achieving the Company's internally established
earnings per share ("EPS") goal for 2002. The EPS goal is as stated in the
Company's 2002 budget. The Compensation Committee of the Board of Directors
reserves the right to make adjustment to actual EPS performance as reported in
the Company's year-end financial statement (which reflect appropriate accruals
for the expected bonus payout), or not to make such adjustments, which in its
discretion are necessary to reflect the Company's achievement of the intended
financial performance results.

Each of the Participants can earn fifty percent (50%) of their FY 2002 Bonus by
fulfilling the individual objectives set in conjunction with their direct
supervisor. However, the Compensation Committee believes it is important to have
all Participants working towards a mutual goal. As product quality and
reliability are critical to the Company's success, the Compensation Committee
has established that one half of each executive's FY2002 Bonus payout be tied to
the Company achieving at least a fifty percent (50%) improvement in the quality
and reliability of the Company's products. Therefore, individual objectives and
product quality and reliability are the non-financial targets for this plan.

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AWARD DETERMINATION AND FORM OF PAYMENT

Individual incentive awards will be determined by the methods and criteria
described above based on Company performance and individual performance against
objectives. Each Participant's supervisor will assess personal performance
against objectives at year-end. The CEO, along with the Compensation Committee,
will review all objective assessments. The Compensation Committee, in its sole
discretion, may alter the individual performance assessment and hence, the
resultant payout or lack thereof.

Awards will be cash. Awards will be payable within a reasonable period following
the completion of the audit of the Company's full year financial results and
completion of the review by the Compensation Committee.

ADJUSTMENTS FOR UNUSUAL EVENTS

In the event of unusual circumstances that would tend to unfairly penalize
and/or reward a particular group of executives the Compensation Committee may
authorize a subjective re-allocation of incentive funds. It should be
emphasized, however, that generally poor business conditions do not excuse
employees from putting forth best `stretch' efforts.

A participant will receive a pro-rata award based on the time spent in the
position during the year, if, and only if, he terminated employment with
Capstone as a result of death, disability, or retirement. An individual who
terminates employment for any other reason is not eligible for an award unless
he worked through the end of the Plan year (December 31).<PAGE>
                                                                   EXHIBIT 10.11

                          CAPSTONE TURBINE CORPORATION

                        CHANGE OF CONTROL SEVERANCE PLAN

         Capstone Turbine Company (the "Company") believes that the key to its
success is the retention of its team of Executives (as defined below). In order
to retain those Executives, and to assure them of adequate severance pay in the
event of a Change of Control, as defined below, the Company adopts the following
plan, effective as of April 24, 2002.

EXECUTIVE OFFICERS TO WHICH THE POLICY IS APPLICABLE

         This Plan is applicable to each executive(1). ("Executive(s)")
designated by the Board from time to time. Executives may be added or deleted
based on Board approval; provided that, only such Board approvals which have
been received prior to the consummation of the applicable Change of Control
shall be effective as to the addition or deletion of Executives.

SEVERANCE BENEFITS

         In the event that an Executive is Involuntarily Terminated within
twelve (12) months of a Change of Control (as defined below), such Executive
shall be entitled to receive from the Company an amount equal to such
Executive's annual base salary plus the cash incentive compensation paid for the
year in which the effective date for the Change in Control occurs (such amount,
the "Salary"). The Salary shall be paid in one lump sum on the date such
Executive was Involuntarily Terminated (the "Termination Date"). Pursuant to
COBRA, the Company shall continue such Executive Officer's health care coverage
as it currently exists under the Company's medical and dental plans. The Company
will pay for such coverage until twelve (12) months after the Termination Date.
Thereafter, such Executive shall be eligible to continue such coverage at his or
her own expense for the remainder of his or her applicable COBRA continuation
period. As used herein, the term "Involuntarily Terminated" shall mean the
termination of an Executive's service by reason of:

a.       involuntary dismissal or discharge by the Company for reasons other
         than Misconduct (as defined below), or

b.       such individual's voluntary resignation following (A) a change in
         position with the Company which reduces his or her level of
         responsibility, (B) any reduction in his or her level of compensation
         (including base salary, fringe benefits, participation in any plans and
         target bonuses under any corporate-performance based bonus or incentive
         programs) or (C) a relocation of such individual's place of employment
         by more than fifty (50) miles, provided and only if such change,
         reduction or relocation is effected without the individual's consent.

As used herein, "Misconduct" shall mean the commission of any act of fraud,
embezzlement, theft or dishonesty by such individual, any unauthorized use or
disclosure by such individual of confidential information or trade secrets of
the Company (or any parent or subsidiary thereof), or any other intentional
misconduct by such individual adversely affecting the business or affairs of the
Company (or any parent or subsidiary) in a material manner. The foregoing
definition shall not be deemed to be inclusive of all the acts or omissions
which the Company (or any parent or subsidiary) may consider as grounds for the
dismissal or discharge of any Executive.

CHANGE OF CONTROL

      For the purposes of this severance plan, the term "Change in Control"
means any one or more of the following:

      (i)         the successful acquisition by a person or related group of
                  persons, (other than the Company or a person that directly or
                  indirectly controls, is controlled by or is under common
                  control with, the Company) of beneficial ownership (within the
                  meaning of Rule 13d-3 of the Securities Exchange Act of 1934,
                  as amended) of securities possessing more than fifty percent
                  (50%) of the total combined voting power of the Company's
                  outstanding securities pursuant to a transaction or series of
                  related transactions which the Board does not at any time
                  recommend the Company's stockholders to accept or approve;

      (ii)        the first date within any period of twelve (12) consecutive
                  months or less on which there is effected a change in the
                  composition of the Company's Board such that a majority of the
                  Board ceases, by reason of one or more contested

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1. Ake Almgren is designated under this Plan but he is approved to receive two
times his cash compensation upon a change of control and his involuntary
termination.

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                  elections for Board membership, to be comprised of individuals
                  who either (i) have been members of the Company's Board
                  continuously since the beginning of such period or (ii) have
                  been elected or nominated for election as Board members during
                  such period by at least a majority of the Board members
                  described in clause (i) who were still in office at the time
                  such election or nomination was approved by the Board;

      (iii)       a merger or consolidation in which the Company is not the
                  surviving entity, except for a transaction the principal
                  purpose of which is to change the state in which the Company
                  is incorporated;

      (iv)        the sale, transfer or other disposition of all or
                  substantially all of the assets of the Company in complete
                  liquidation or dissolution of the Company;

      (v)         any reverse merger in which the Company is the surviving
                  entity but in which securities possessing more than fifty
                  percent (50%) of the total combined voting power of the
                  Company's outstanding securities are transferred to a person
                  or persons different from the persons holding those securities
                  immediately prior to such merger; or

      (vi)        the issuance by the Company to a single person or related
                  group of persons (other than the Company or a person that
                  directly or indirectly controls, is controlled by or is under
                  common control with, the Company) of securities possessing
                  more than fifty percent (50%) of the total combined voting
                  power of the Company's outstanding securities (determined
                  after such issuance) in a single transaction or a series of
                  related transactions.

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