This Executive Annual Incentive Plan ("Incentive Plan"), effective as of January
1, 2005 and first  applying with respect to the fiscal year ending  December 31,
2005, subject to shareholder approval at the 2005 Annual Meeting of Shareholders
as  described  below,  is  between  Superior  Industries   International,   Inc.
("Superior", or the "Company") and Steven J. Borick ("Employee"). This Incentive
Plan and the performance  hereunder  shall be interpreted  under the substantive
laws of the State of California.
1. Plan Purpose
The purpose of this  Incentive  Plan is to promote the success of the Company by
providing to the Employee a performance-based bonus opportunity.  This Incentive
Plan operates in conjunction with, and does not supercede or amend, that certain
"Executive  Employment Agreement" between the Company and Employee dated January
1, 2005 (the "Executive  Employment  Agreement").  However,  this Incentive Plan
supersedes all previous  incentive plan  agreements  between the Company and the
2. Term
This Incentive  Plan shall continue in place until the fifth  anniversary of the
effective  date,  unless  earlier  terminated  by the Board of  Directors of the
Company as  provided in Section 12 (such  period  being the  "Term").  No awards
shall be paid  under the  Incentive  Plan  unless and until the  material  terms
(within the meaning of Section  162(m)(4)(C)  of the  Internal  Revenue  Code of
1986,  as  amended   (including   proposed,   temporary  and  final  regulations
promulgated  thereunder from time to time, the "Code") of the Incentive Plan are
disclosed to the Company's  shareholders and are approved by the shareholders by
a majority of votes cast in person or by proxy.
3. Compensation
Employee's total compensation consists of base salary, variable compensation (as
further defined in this Incentive Plan, and medical and other benefits generally
provided to similarly situated  employees of the Company.  Any compensation paid
to Employee shall be pursuant to the Company's policies and practices for exempt
employees and shall be subject to all applicable laws and requirements regarding
the withholding of federal, state, and/or local taxes. Except as provided in the
Employment  Agreement,  compensation  provided  in this  Incentive  Plan is full
payment for the services of Employee and Employee  shall  receive no  additional
compensation for extraordinary  services unless otherwise  authorized in writing
by the  Compensation  Committee  of the Board of  Directors  of the Company (the
"Compensation Committee").
Base Salary
Pursuant to the  Employment  Agreement,  Superior  has agreed to pay Employee an
annual base salary of seven  hundred fifty  thousand  dollars  ($750,000),  less
applicable  withholdings,  payable in equal installments no less frequently than
Variable Compensation
Employee  shall be eligible for  variable  compensation,  subject to  applicable
withholdings and subject to the terms and conditions of this Incentive Plan.
4. Executive Annual Incentive Plan Description
Commencing on January 1, 2005 and  continuing  each 12 months  thereafter  (each
such anniversary  date is referred to as the "Annual Bonus Period"),  during the
Term,  Employee  shall be eligible to receive an annual bonus (the  "Performance
Bonus") of up to One Million Six Hundred  Eighty  Seven  Thousand  Five  Hundred
Dollars ($1,687,500),  less applicable  withholdings.  The Performance Bonus (if
any) will be based  upon  annual  Company  Pre-Tax  Net  Income  achievement  in
comparison to a planned level of Pre-Tax Net Income. Payments of the Performance
Bonus  (if any)  shall be made net of all  applicable  withholdings  and  within
seventy-five  (75)  calendar days  following the end of the plan year  (December
31).  The  determination  of the  planned  level of Pre-Tax  Net Income for each
Annual  Bonus  Period  shall be made by the  Compensation  Committee in its sole
discretion. The determination of whether the planned level of Pre-Tax Net Income
for each Annual Bonus Period has been achieved shall be made by the Compensation
Committee, in its sole discretion.
5. Eligibility
Participation  for this  Incentive  Plan is  limited  to the  President  and CEO
position.  Employee must be actively employed with Superior  Industries  through
the end of the plan year to qualify for that year's payout.  The last day worked
is the last day  Employee  is  considered  active.  For each  fiscal year of the
Company, the participant entitled to share in the benefits of the Incentive Plan
is a person  who is an  "executive  officer"  of the  Company,  as such  term is
defined in Rule 3b-7 under the  Securities  Exchange Act of 1934, as amended (or
any successor rule or regulation), or who is a "covered employee" of the Company
under Section  162(m)(3) of the Code. An executive  whose  employment or service
relationship  with the Company is terminated  for any reason prior to the end of
any fiscal  year of the  Company  will not be  entitled  to  participate  in the
Incentive  Plan or receive any  benefits  with respect to any later fiscal year,
unless he or she again  becomes  eligible to  participate  in the Plan under the
first sentence of this Section 5.
6. Right to Receive Award
Employee must, in addition to the eligibility requirements of Section 5, receive
an  overall  performance  evaluation  equivalent  to  Superior's  Level 3 (Fully
Competent)  - or better to be  eligible  for an award.  This plan shall not be a
guarantee of  employment;  employment may be terminated by either the Company or
Employee at any time and for any reason,  subject to the terms and conditions of
the Employment Agreement. If Employee is terminated prior to the end of the plan
period for a reason  other than death,  disability  or  retirement  (as noted in
Section 11), Employee shall not be entitled to any payment for that period.
7. Plan Metrics
The amount of Pre-Tax Net Income  achieved in  comparison  to the planned  level
shall determine all Performance Bonuses, if any. For illustrative  purposes, the
following  example  is based  upon a Plan  Target  for  Pre-Tax  Net  Income  of
$57,500,000  for  the  Annual  Bonus  Period.  The  Performance  Bonus  will  be
calculated as a percentage of the Employee's  base salary as noted in Exhibit 1.
For each  subsequent  Annual Bonus Period,  the Pre-Tax Net Income  achievements
shall be  proportionately
adjusted  based on the planned  level of Pre-Tax Net Income for each such Annual
Bonus Period.  For purposes of plan calculation,  the base salary effective date
will be January 1 of the Annual Bonus Period.
        Exhibit 1 - Example of Incentive Plan Payout Levels
        Pre-Tax Net Income                                   Incentive Target                                Incentive Range
<S>                                   <C>                                                                 <C>
      Pre-Tax Net Income below                There will be no incentive payout at this level                      $0
                                       Multiplier will be related to Pre-Tax Net Income achievement
     Pre-Tax Net Income between       against budget by a factor of 1:1 (e.g., 90% achievement = 90%
    $38,000,000 and $57,499,999              of target). Range is 66.087% to 99.99% of target.             $371,739 - $562,499
 2005 Pre-Tax Net Income Target =                  Target Incentive = 75% of Base Salary                        $562,500
                                       Multiplier will be related to Pre-Tax Net Income achievement
      Pre-Tax Net Income above            against budget by a factor of 2.0:1, e.g., 110% budget
            $57,500,000               achievement = 120% of target. Incentive caps at 300% of target
                                                 for Pre-Tax Net Income at 200% of budget.                $562,501 - $1,687,500
o     No bonus will be earned if Pre-Tax Net Income is less than $38,000,000.
The  target  incentive  is set  at  75%  of  base  salary  ($562,500)  for  100%
achievement of the Pre-Tax Net Income budget.  For  performance  between 66.087%
and  99.99% of the  planned  target,  the  incentive  will be  interpolated  (or
proportionately  adjusted for different targets in later years) between $371,739
and $562,499 on a 1:1 performance  ratio. For performance  between 101% and 200%
of the planned target,  the incentive will be interpolated  (or  proportionately
adjusted for different  targets in later years) between  $562,501 and $1,687,500
on a 2.0:1  performance  ratio.  The  Maximum  incentive  payable at 200% of the
planned  target  is  equal  to  300%  of  the  target  incentive  opportunity  =
8. Discretion
The  Compensation  Committee  has  discretion to exclude from Pre-Tax Net Income
extraordinary,   non-recurring   gains  and  losses  in  the   judgment  of  the
Compensation  Committee,  such as gains or losses caused by a labor strike, loss
of business due to Force Majeure, or other factors. In addition, the Pre-Tax Net
Income calculation shall include the following adjustments:
      >>    Executive  Officer (as listed in the Company's Annual Report on Form
            10-K)   bonuses  will  be  excluded  from  the  Pre-Tax  Net  Income
9. Bonus Provision
The Employee may receive a  Performance  Bonus only if the required  Pre-Tax Net
Income level is attained in the applicable Annual Bonus Period. No bonus payment
shall be made under this  Incentive Plan unless the  Compensation  Committee has
certified, by resolution or other appropriate action in writing, that the amount
to be paid  has  been  accurately  determined  in  accordance  with  the  terms,
conditions,   and  limits  of  this  Incentive  Plan.  However,   under  special
circumstances,  on recommendation of the Compensation Committee the Board may at
any time,  at its sole  discretion,  award an annual bonus  outside of the terms
specified in this document and the Executive  Employment Agreement dated January
1, 2005.
10. Annual Review of Plan
The Incentive  Plan will be reviewed on an annual basis  allowing for updates or
revisions to be considered.
11. Death, Disability, and Retirement
If  Employee  is  terminated  prior to the end of the Term  period due to death,
disability or  retirement as determined by the Board of Directors,  the Employee
or the  beneficiary's  estate shall,  after  determination of Pre-Tax Net Income
achieved for the applicable  Annual Bonus Period, be entitled to receive payment
of a prorated portion of the award for the year.
12. Discontinuance, Suspension, or Amendment of the Plan
The  Company  may  discontinue  the  Incentive  Plan at any  time,  suspend  the
Incentive  Plan at any time or for any interim,  or amend the Incentive  Plan in
any respect. In particular, but without limitation, the Board of Directors shall
have the  authority to amend or modify the  Incentive  Plan from time to time in
order to reflect  amendments to or regulations  promulgated under Section 162(m)
of the Code.
Notwithstanding  the  foregoing,  in the  event  that  any  amendment  or  other
modification  of or to the Plan would require  stockholder  approval in order to
continue the  compliance of the  Incentive  Plan as a  "performance-based"  plan
under  Section  162(m) of the Code,  such  amendment  or  modification  shall be
contingent on the receipt of stockholder approval. However, no such action may:
      >>    Cause  Employee to be deprived of any bonus  previously  awarded but
            not paid;
      >>    Be effective in the fiscal year in which such action is taken unless
            it is taken within the first three months of the fiscal year; or
      >>    Increase any award determined in accordance with the Incentive Plan.
13. Administration of the Incentive Plan
The Incentive Plan shall be  administered by the  Compensation  Committee of the
Board of Directors.  Actions of the  Compensation  Committee with respect to the
administration of this Incentive Plan shall be taken pursuant to a majority vote
or by written consent of a majority of its members.  The Compensation  Committee
shall have the sole  authority to construe and interpret this Incentive Plan and
any agreements  defining the rights and  obligations of the Company and Employee
under this Incentive Plan,  further define the terms used in his Incentive Plan,
and,  subject  to  Section 12 hereof,  prescribe,  amend and  rescind  rules and
regulations relating to the administration of this Incentive Plan.
This  Incentive  Plan is  intended to qualify as a  "performance-based"  plan as
described  in Section  162(m)(4)(C)  of the Code,  and  thereby  secure the full
deductibility  for federal  income tax  purposes of bonus  compensation  paid to
persons  who are  "executive  officers"  of the  Company,  or who  are  "covered
employees" of the Company or its  subsidiary or  affiliated  corporations  under
Section 162(m)(3) of the Code.
The Incentive Plan will be  administered  by the  Compensation  Committee of the
Company's  Board of Directors  consisting  entirely of three or more persons who
are "outside  Directors"  within the meaning of Section  162(m) of the Code. The
Compensation  Committee  is hereby  vested with full  powers of  administration,
subject only to the  provisions  set forth herein.  The  Compensation  Committee
shall report all actions taken by it to the Board of Directors.
14. Nonassignment
The  interest of  Employee in the  Incentive  Plan is not  assignable  either by
voluntary or  involuntary  assignment  or operation of law (except  that, in the
event of  death,  earned  and  unpaid  amounts  shall be  payable  to the  legal
successor of an Employee).
15. Indemnification
No  employee,  member of the  Compensation  Committee or Director of the Company
will  have any  liability  for any  decision  or  action if made or done in good
faith, nor for any error or  miscalculation  unless such error or miscalculation
is the result of his or her fraud or deliberate  disregard of any  provisions of
the Incentive  Plan. The Company will  indemnify  each  Director,  member of the
Committee and any employee  acting in good faith pursuant to this Incentive Plan
against any loss or expense arising therefrom.
16. Limitations; Participation in Other Plans
This  Incentive  Plan is not to be  construed  as  constituting  a  contract  of
employment or for services.  Nothing  contained herein will affect or impair the
Company's  right to terminate the  employment or other  contract for services of
Employee  hereunder,  or entitle  Employee  to receive any  particular  level of
compensation.   The  Company's   obligation  hereunder  to  make  awards  merely
constitutes  the  unsecured  promise of the Company to make such awards from its
general assets,  and Employee will have no interest in, or a lien or prior claim
upon,  any  property of the Company.  Nothing  herein nor the  participation  by
Employee  shall  limit the  ability  of  Employee  to  participate  in any other
compensatory plan or arrangement of the Company,  or to receive a bonus from the
Company other than under this Plan.
The parties execute this Executive  Annual  Incentive Plan as of the date stated
By:                                      By:
         -----------------------------      ----------------------------------
Name:    Steven J. Borick                     Louis L. Borick
Title    President and CEO                    Chairman of the Board
                                              Bond Evans
                                              Chairman, Compensation Committee
Superior Industries International, Inc.
7800 Woodley Avenue
Van Nuys CA 91406