Document:

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                                  EXHIBIT 10.2

             SUPPLEMENTAL RETIREMENT PLAN FOR CERTAIN MEMBERS OF THE

               ERIE INSURANCE GROUP RETIREMENT PLAN FOR EMPLOYEES

                 (Amended and Restated as of December 31, 1995)

      The following are the provisions of the SUPPLEMENTAL RETIREMENT PLAN FOR
CERTAIN MEMBERS OF THE ERIE INSURANCE GROUP RETIREMENT PLAN FOR EMPLOYEES
(hereinafter referred to as the "Supplemental Plan") which was established
effective as of December 31, 1986 by the ERIE INDEMNITY COMPANY (hereinafter
referred to as the "Company") to provide for the payment of certain pension and
pension-related benefits to certain employees of the Company and affiliated
companies who are Participants under the ERIE INSURANCE GROUP RETIREMENT PLAN
FOR EMPLOYEES (hereinafter referred to as the "Basic Plan"). The Company intends
and desires by its adoption of the original Supplemental Plan and by its
adoption of the amendments reflected herein, to recognize the value to the
Company and affiliated companies of the past and present services of employees
covered by the Supplemental Plan, to encourage their continued service to the
Company and affiliated companies and to be able to attract and retain superior
management personnel by making more adequate provision for their future
retirement security than the Basic Plan provides.

      This document is intended to constitute a complete restatement of the
Supplemental Plan and is effective December 31. 1995.

                SECTION 1 - INCORPORATION OF THE QUALIFIED PLAN

1.1   The Basic Plan with any amendments thereto in effect as of December 31,
      1995, shall be attached hereto as Exhibit I and is hereby incorporated by
      reference into and shall be a part of this Supplemental Plan as fully as
      if set forth herein verbatim. Any amendment

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      made to the Basic Plan shall also be incorporated by reference into, and
      form a part of this Supplemental Plan effective as of the effective date
      of such amendment. The Basic Plan, whenever referred to in this
      Supplemental Plan, shall mean the Basic Plan existing as of the date the
      relevant determination is being made under this Supplemental Plan. To the
      extent the provisions of the Basic Plan, as applicable to the Supplemental
      Plan Benefits of Participants hereunder and all persons claiming by or
      through such Participants, are inconsistent with the provisions of this
      Supplemental Plan, the provisions of this Supplemental Plan shall govern.
      Notwithstanding any provision of this Supplemental Plan to the contrary,
      in no event shall the Supplemental Plan Benefits accrued and payable
      hereunder be paid from the Trust Fund under the Basic Plan or have any
      effect whatsoever upon the Basic Plan or the payment of benefits from the
      Trust Fund under the Basic Plan. Words and phrases with initial capital
      letters which are used in the Basic Plan and in this Supplemental Plan
      shall have the meanings assigned to them under the provisions of the Basic
      Plan unless otherwise specified herein or as otherwise qualified by the
      context in which the term is used in this Supplemental Plan.

1.2   Without limiting the generality of Section 1.1, the following terms shall
      be given the meanings described in this Section 1.2:

      (a)   "Actuarial Equivalent" shall mean a benefit of equivalent value to
            the benefit otherwise described as determined on the basis of the
            actuarial assumptions specified under the Basic Plan as of the date
            of determination.

      (b)   "Administrator" shall mean the Pension Administrator named by the
            Board of Directors of the Company under the Basic Plan.

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      (c)   "Basic Plan" shall mean the Erie Insurance Group Retirement Plan for
            Employees, as in effect as of the date the relevant determination is
            being made under this Supplemental Plan.

      (d)   "Executive Service" shall mean employment with an Employer as both a
            Covered Employee and a Senior Vice President or higher-ranking
            executive.

      (e)   "Participant" shall mean a Covered Employee who has become a
            Participant in accordance with Section 3. Participant shall also
            include a former Covered Employee who had met the foregoing criteria
            as an Employee and who is, at the time of determination, receiving a
            benefit (or entitled to receive a benefit) payable from the Company
            pursuant to the terms of this Supplemental Plan.

      (f)   "Restoration Benefit" shall mean the benefit provided under Section
            42.

      (g)   "Supplemental Plan" shall mean this Supplemental Retirement Plan for
            Certain Members of the Erie Insurance Group Retirement Plan for
            Employees, including any amendments hereto.

      (h)   "Supplemental Plan Benefits" shall mean, to the extend applicable to
            any given Participant, the Restoration Benefit and the Supplemental
            Retirement Income Benefit.

      (i)   "Supplemental Retirement Income Benefit" shall mean the benefit
            provided under Section 4 I.

      (j)   "Years of Executive Service" shall mean each consecutive
            twelve-month period during which a Covered Employee has been
            employed in Executive Service, including leaves of absence.

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1.3   Any terms used in this Supplemental Plan in the masculine shall be read
      and construed in the feminine where they would so apply, and any terms
      used in the singular shall be read and construed in the plural if so
      applicable.

                           SECTION 2 - ADMINISTRATION

2.1   The Administrator shall be charged with the administration of the
      Supplemental Plan. The Administrator shall have all such powers as may be
      necessary to discharge its duties relative to the administration of the
      Supplemental Plan, including by way of illustration and not limitation,
      discretionary authority to interpret and construe the Supplemental Plan,
      to determine and decide all questions of fact, and all disputes arising
      under the Supplemental Plan including, but not limited to, the eligibility
      of any employee to participate hereunder, the validity of any election as
      may be necessary or appropriate hereunder and the right of any
      Participant, surviving spouse or Beneficiary to benefits payable
      hereunder. The Administrator shall have all power necessary to adopt,
      alter and repeal such administrative rules, regulations and practices
      governing the operation of the Supplemental Plan as it, in its sole
      discretion, may from time to time deem advisable. The Administrator shall
      not be liable to any person for any action taken or omitted in connection
      with the interpretation and administration of the Supplemental Plan unless
      attributable to willful misconduct. The Administrator shall be entitled to
      conclusively rely upon all tables, valuations, certificates, opinions and
      reports furnished by any actuary, accountant, controller, counsel or other
      person employed or engaged by the Company with respect to the Supplemental
      Plan. Any individual serving as Administrator shall not participate in any
      action or determination regarding solely his own benefits payable
      hereunder. Except as provided in Section 2.3, decisions of the
      Administrator made in good faith shall be final, conclusive and binding
      upon all parties.

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2.2   Whenever the Administrator denies, in whole or in part, a claim for
      benefits filed by any person (hereinafter referred to as a "Claimant"),
      the Administrator shall transmit a written notice setting forth (i) the
      specific reasons for the denial of the claim, (ii) references to the
      specific provisions of the Supplemental Plan on which the denial is based,
      (iii) a description of any additional needed material or information and
      why such material or information is necessary, and (iv) further steps
      which the Claimant can take in order to have his claim reviewed (including
      a statement that the Claimant or his duly authorized representative may
      review the Supplemental Plan document and submit issues and comments
      regarding the claim to the Administrator). In addition, the written notice
      shall contain the date on which the notice was sent and a statement
      advising the Claimant that within ninety (90) days of the date on which
      such notice is received, he may request a review of the Administrator's
      decision.

2.3   Within ninety (90) days of the date on which the notice of denial of claim
      is received by the Claimant, the Claimant or his authorized representative
      may request that the claim denial be reviewed by filing with the
      Administrator a written request therefor, which request shall contain the
      following information:

      (a)   the date on which the notice of denial of claim was received by the
            Claimant;

      (b)   the date on which the Claimant's request was filed with the
            Administrator; provided, however, that the date on which the
            Claimant's request for review was fact filed with the Administrator
            shall control in the event that the date of the actual filing is
            later than the date stated by the Claimant pursuant to this clause
            b);

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      (c)   the specific portions of the denial of his claim which the Claimant
            requests the Administrator to review;

      (d)   a statement by the Claimant setting forth the basis upon which he
            believes the Administrator should reverse its previous denial of his
            claim for benefits and accept his claim as made;

      (e)   whether the Claimant desires a hearing on the claim; and

      (f)   any written material (included as exhibits) which the Claimant
            desires the Administrator to examine in its consideration of his
            position as stated pursuant to clause (d).

      If the Claimant has requested a hearing on the claim, such hearing shall
be held within thirty (30) days after the date determined pursuant to clause (b)
hereof. Within sixty (60) days of the date determined pursuant to clause (b)
hereof (or, if special circumstances or the request for a hearing require an
extension of time, within ninety (90) days of such date), the Administrator
shall conduct a full and fair review of the decision denying the Claimant's
claim for benefits and shall deliver its decision to the Claimant in writing.
Such written decision shall set forth the specific reasons for the decision,
including references to the specific provisions of this Supplemental Plan which
were relied upon. The decision will be final and binding on all persons
concerned.

                   SECTION 3 - ELIGIBILITY AND PARTICIPATION

3.1   A Covered Employee may participate in the Supplemental Plan only as
      provided under Sections 3.2 and 3.3 and only if such Covered Employee may
      be considered management or highly compensated.

3.2   Any Covered Employee who was considered an eligible Employee under the
      Supplemental Plan as of December 30, 1995 and any former Covered Employee
      who is

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      receiving a benefit (or entitled to receive a benefit) from the
      Supplemental Plan shall be considered Participants as of December 31,
      1995. Effective on and after December 31, 1995, any Covered Employee who
      enters Executive Service shall become a Participant in this Supplemental
      Plan (if not already a Participant under Section 3.3) as of the January 1
      of the calendar year next following the calendar year in which the
      Employee enters Executive Service. A Covered Employee who satisfies the
      foregoing criteria of this Section 3.2 shall participate in the
      Supplemental Retirement Income Benefit provisions of this Supplemental
      Plan. The Administrator shall be responsible for identifying those Covered
      Employees who satisfy the criteria of this Section 3.2 and the time at
      which such criteria are satisfied. Notwithstanding the foregoing, a
      Participant (or his surviving spouse or Beneficiary) may become eligible
      for a Supplemental Retirement Income Benefit only in the event that:

      (a)   such Participant is vested under the Basic Plan:

      (b)   such Participant (or his surviving spouse or Beneficiary) is
            entitled to receive a benefit under the Basic Plan.

      (c)   prior to his termination of employment with all Employers. such
            Participant has become vested in the Supplemental Retirement Income
            Benefit pursuant to the following schedule:

<TABLE>
<CAPTION>
      Years of Executive Service                        Vested Percentage
      --------------------------                        -----------------
<S>                                                     <C>
               Less than 1                                        0%
               1 but less than 2                                 20%
               2 but less than 3                                 40%
               3 but less than 4                                 60%
               4 but less than 5                                 80%
               5 or more                                        100%
</TABLE>

            provided, however, that in the event a Participant has satisfied,
            prior to January 1,

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            1996, all criteria for a normal retirement pension, early retirement
            pension or disability retirement pension under the terms of the
            Basic Plan, such Participant shall be treated as being 100 % vested
            under the above schedule; and

      (d)   such Participant's termination of employment with all Employers is
            either:

            (i)   also a termination from Executive Service; or

            (ii)  a termination occurring within twelve months after the
                  Participant transfers from, or otherwise leaves, Executive
                  Service.

3.3   Effective for periods on and after January 1, 1996, any Covered Employee
      whose benefit under the Basic Plan is limited on account of restrictions
      imposed for any year by Sections 401(a)(17) and/or 415 of the Code shall
      become a Participant in this Supplemental Plan (if not already a
      Participant under Section 3.2) as of the later of the December 31 of the
      Plan Year in which his Basic Plan benefit is first so limited or January
      1, 1996. Notwithstanding his status as a Participant or non-Participant
      under Section 3.2, a Covered Employee who satisfies the foregoing criteria
      of this Section 3.3 shall participate in the Restoration Benefit
      provisions of this Supplemental Plan. The Administrator shall be
      responsible for identifying those Covered Employees whose Basic Plan
      benefits are limited in accordance with the foregoing, the time at which
      such limitations may first apply to said Employees and the extent to which
      such limitations do apply. Notwithstanding the foregoing. a Participant
      (or his surviving spouse or Beneficiary) may become eligible for a
      Restoration Benefit only in the event that:

      (a)   such Participant (or his surviving spouse or Beneficiary) is
            entitled to receive a benefit under the Basic Plan;

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      (b)   payment of such Basic Plan benefit is restricted by the application
            of Section 401 (a)(l7) and/or Section 415 of the Code; and

      (c)   such individual is not entitled to a Supplemental Retirement Income
            Benefit hereunder.

                SECTION 4 - AMOUNT OF SUPPLEMENTAL PLAN BENEFITS

4.1   The monthly Supplemental Retirement Income Benefit determined with respect
      to a Participant who satisfies the provisions of Section 3.2 hereof, and
      which is paid in accordance with Section 5, shall be the Actuarial
      Equivalent of the product of (i) the excess, if any, of (a) over (b)
      below, and (ii) the percentage determined under (c) below, where:

      (a)   equals the monthly benefit which would have been payable to such
            Participant, or on his behalf, to his surviving spouse or other
            Beneficiary or Beneficiaries under the Basic Plan assuming for this
            purpose that the following modifications were a part of the Basic
            Plan:

            (i)   "Compensation" shall be as defined in the Basic Plan provided
                  that

                  (A)   all otherwise current compensation which is deferred at
                        the Participant's election under any qualified or
                        nonqualified deferred compensation plan or annuity
                        arrangement shall be includable in "Compensation"; and

                  (B)   "Compensation" (as defined in accordance with the
                        foregoing) shall be determined without regard to the
                        annual limitation on compensation set forth in action
                        401(a)( 17) of the Code;

            (ii)  "Final Average Earnings" shall be equal to 1/24th of the
                  aggregate compensation received by the Participant during the
                  twenty-four

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                  consecutive calendar months as a Covered Employee which
                  produces the greatest aggregate Compensation out of the one
                  hundred twenty calendar month period ending on the earlier of
                  the date on which the Participant retires or terminates
                  employment with all Employers or the date on which the
                  Participant is no longer considered a Covered Employee;

            (iii) the monthly benefit under the Basic Plan shall be equal to 60
                  % of Final Average Earnings, reduced proportionately if the
                  Participant's years of Credited Service are less than 30 years
                  or 25 years, whichever limitation applied to the Participant
                  under the provisions of Section 6.1 of the Basic Plan as in
                  effect on December 30, 1989; and

            (iv)  the monthly benefit under the Basic Plan is accrued in the
                  normal form of ten-year certain and life thereafter annuity.

      (b)   equals the aggregate of monthly benefits payable to such
            Participant, or on his behalf, to his surviving spouse or other
            Beneficiary or Beneficiaries under the Basic Plan and under any
            other qualified or nonqualified (funded or unfunded) defined benefit
            retirement plan sponsored by an Employer; provided, however, that
            for purposes of this offset, such monthly benefits which are payable
            in a form other than that of a ten-year certain and life thereafter
            annuity shall be converted to a monthly benefit which is the
            Actuarial Equivalent of a ten-year certain and life thereafter
            annuity.

      (c)   equals the Participant's vested percentage determined in accordance
            with Section 3.2(c) hereof.

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4.2   The monthly Restoration Benefit determined with respect to a Participant
      who satisfies the provisions of Section 3.3 hereof, and which is paid in
      accordance with Section 5, shall be the Actuarial Equivalent of the
      excess, if any, of (a) over (b), where:

      (a)   equals the monthly benefit which would have been payable under the
            form of a single life annuity to such Participant, or on his behalf,
            to his surviving spouse or other Beneficiary or Beneficiaries under
            the Basic Plan, if the provisions of the Basic Plan were
            administered without regard to the annual limitation on compensation
            set forth in Section 401(a)(17) of the Code and without regard to
            the limitations on benefits set forth in Sections 4l5(b) and (e) of
            the Code; and

      (b)   equals the monthly benefit which is payable under the form of a
            single life annuity to such Participant, or on his behalf, to his
            surviving spouse or other beneficiary or Beneficiaries under the
            Basic Plan.

      The Restoration Benefits payable under the Supplemental Plan to, or on
      behalf of, Participant shall be computed in accordance with the foregoing
      and with the objective that the Participant, his surviving spouse or other
      Beneficiary or Beneficiaries, should receive under the Supplemental Plan
      and the Basic Plan, the total amount which would otherwise have been
      payable to that recipient solely under the Basic Plan, as of the date
      payment is made, had the provisions of Section 401(a)(17) and Section 415
      of the Code not been applicable thereto:

4.3   Notwithstanding any provision of this Supplemental Plan to the contrary,
      the Supplemental Plan Benefits provided under Sections 4.1 and 4.2 shall
      be determined and coordinated by the Administrator so as to prevent any
      duplication of Supplemental Plan Benefits or duplication of benefits
      provided by any other plan or program sponsored by

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      an Employer which is intended to supplement the Basic Plan or any
      individual agreement between the Participant and an Employer providing for
      retirement benefits. For purposes of this Section 4.3, any benefits
      provided under individual deferred compensation contracts and annuities or
      the Erie Insurance Group Supplemental 401(k) Plan are not intended to
      supplement the Basic Plan.

4.4   Unless otherwise specifically provided in this Supplemental Plan, a
      Participant who retired or terminated employment under the provisions of
      the Supplemental Plan as in effect prior to December 31, 1995, and who is
      not thereafter rehired, shall continue to receive, or be eligible to
      receive, benefits under this Supplemental Plan in accordance with the
      provisions of the Supplemental Plan document as in effect prior to
      December 31, 1995.

                      SECTION 5 - COMMENCEMENT AND FORM OF

                           SUPPLEMENTAL PLAN BENEFITS

      Subject to the following provisions of this Section 5, the Supplemental
      Plan benefits hereunder shall become payable to a Participant, surviving
      spouse or Beneficiary as of the date upon which such Participant, spouse
      or Beneficiary first begins to receive retirement (or survivor) benefit
      payments under the Basic Plan and shall be subject to the same eligibility
      conditions and reductions for early commencement as are applied to the
      corresponding benefits under the Basic Plan. Such Supplemental Plan
      Benefits shall be payable in the form of payment under which Basic Plan
      benefits are made to such Participant, spouse or Beneficiary; provided
      however, that in the event a surviving spouse or Beneficiary is entitled
      to receive Supplemental Plan Benefits as a result of the death of a
      Participant, the Administrator may, in its discretion, pay such benefit in
      the form of a lump sum.

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      Each form of payment provided hereunder shall be the Actuarial Equivalent
      of the Participant's Supplemental Plan Benefits determined under the
      normal form of a ten-year certain and life thereafter annuity
      (Supplemental Retirement Income benefit) or a single life annuity
      (Restoration Benefit).

                    SECTION 6 - AMENDMENT AND DISCONTINUANCE

      The Company expects to continue the Supplemental Plan indefinitely, but
      reserves the right to amend or discontinue the Supplemental Plan at any
      time, if, in its sole judgment, such amendment or discontinuance is
      necessary or desirable. Any such amendment or discontinuance shall be made
      pursuant to a resolution of the Board of Directors of the Company and
      shall be effective as of the date specified in such resolution. No
      amendment or discontinuance of the Supplemental Plan shall directly or
      indirectly deprive any Participant, surviving spouse or Beneficiary of all
      or any portion of the Supplemental Plan Benefits earned by the Participant
      as of the date of amendment or discontinuance (based upon the
      Participant's age, compensation and service as of the date of such
      amendment or discontinuance). In the event of a discontinuance of the
      Supplemental Plan, the Company (or any transferee, or successor entity of
      the Company) shall be obligated to pay benefits to Participants, surviving
      spouses and Beneficiaries at such time or times and in such forms as
      provided under the terms of the Supplemental Plan.

                           SECTION 7 - MISCELLANEOUS

7.1   No Effect on Employment Rights. Nothing contained herein shall be
      construed as creating any contract of employment between any Employer or
      Affiliate and any Participant nor shall any provision hereof confer upon
      any Participant the right to be

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      retained in the service of any Employer or Affiliate nor limit the right
      of any Employer or Affiliate to discharge or otherwise deal with
      Participants without regard to the existence of the Supplemental Plan.

7.2   Plan Unfunded. Notwithstanding any provision herein to the contrary, this
      Supplemental Plan is intended to constitute an unfunded plan described in
      Section 201(2) of ERISA and the benefits offered hereunder shall
      constitute nothing more than an unfunded, unsecured promise by the Company
      to pay benefits determined hereunder which are accrued by Participants
      while such Participants are employed by the Company or other Employers
      Prior to commencement of Supplemental Plan Benefits to a Participant,
      surviving spouse or Beneficiary in accordance with the terms hereof, no
      provision shall be made with respect to segregating any assets of an
      Employer for payment of any benefits hereunder. To the extent any benefits
      provided under this Supplemental Plan are actually paid from a source
      other than the Company, neither the Company nor any other Employer shall
      have any further obligation therefor, but to the extent not so paid, such
      benefits shall remain the obligations of, and shall be paid by, the
      Company. No Participant, surviving spouse, Beneficiary or any other person
      shall have any interest in any particular assets of the Company or an
      Affiliate by reason of the right to receive a benefit under the
      Supplemental Plan and any such Participant, surviving spouse, Beneficiary
      or other person shall have only the rights of a general unsecured creditor
      of the Company with respect to any rights under the Supplemental Plan.
      Nothing contained in the Supplemental Plan shall constitute a guaranty by
      the Company, any Affiliate, or any other entity or person that the assets
      of the Company will be sufficient to pay any benefit

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      hereunder. All expenses and fees incurred in the administration of the
      Supplemental Plan shall be paid by the Employers.

7.3   Binding on Company, Participants and their Successors. The Supplemental
      Plan shall be binding upon and inure to the benefit of the Employers,
      their successors and assigns and Participants and their heirs, executors,
      administrators and legal representatives. In the event of the merger or
      consolidation of the Company with or into any other corporation, or in the
      event substantially all of the assets of the Company shall be transferred
      to another corporation, the successor corporation resulting from the
      merger or consolidation, or the transferee of such assets, as the case may
      be, shall, as a condition to the consummation of the merger, consolidation
      or transfer, assume the obligations of the Company hereunder and shall be
      substituted for the Company hereunder.

7.4   Spendthrift Provisions. The interest of a Participant or his Surviving
      spouse or Beneficiary under the Supplemental Plan shall not be subject in
      any manner to anticipation, alienation, sale, transfer, assignment,
      pledge, encumbrance, or charge, either voluntarily or involuntarily, prior
      to actual receipt thereof by the payee; any attempt so to anticipate,
      alienate, sell, transfer, assign, pledge, encumber or charge any such
      interest herein prior to such receipt shall be void. Supplemental Plan
      Benefits shall not be subject to garnishment, attachment or other legal or
      equitable process nor shall they be an asset in bankruptcy; provided,
      however, that no amount shall be payable from this Supplemental Plan to a
      Participant, or any person claiming by or through a Participant, unless
      and until any and all amounts representing debts or other obligations owed
      to any Employer by the Participant have been fully paid and satisfied.
      Neither the Company nor any Employer or

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      Affiliate shall be liable in any manner for or subject to the debts,
      contracts, liabilities, torts or engagements of any person entitled to any
      benefit under the Supplemental Plan.

7.5   Disclosure. Each Participant, upon his written request, shall receive a
      copy of the Supplemental Plan and the Administrator will make available
      for inspection by any Participant a copy of any written rules and
      regulations used by the Administrator in administering the Supplemental
      Plan.

7.6   State Law. The Supplemental Plan is established under and will be
      construed according to the laws of the Commonwealth of Pennsylvania to the
      extent that such laws are not preempted by the Employee Retirement Income
      Security Act of 1974, as amended, and regulations promulgated thereunder.

7.7   Incapacity of Recipient. In the event a Participant, surviving spouse or
      Beneficiary is declared incompetent and a guardian, conservator or other
      person legally charged with the care of his person or of his estate is
      appointed, any benefits under the Supplemental Plan to which such
      Participant, spouse or Beneficiary is entitled shall be paid to such
      guardian, conservator or other person legally charged with the care of his
      person or his estate. Except as provided hereinabove, when the
      Administrator, in its sole discretion, determines that a Participant,
      surviving spouse or Beneficiary is unable to manage his financial affairs,
      the Administrator may direct the Company to make distribution(s) to any
      one or more of the spouse, lineal ascendants or descendants or other
      closest living relatives of such Participant, spouse or Beneficiary who
      demonstrates to the satisfaction of the Administrator the propriety of
      making such distribution(s). Any payment so made shall be in complete
      discharge of any liability under the Supplemental Plan for such

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      payment. The Administrator shall not be required to see to the application
      of any such distribution made as provided above.

7.8   Unclaimed Benefit. Each Participant shall keep the Administrator informed
      of his current address. The Administrator shall not be obligated to search
      for the whereabouts of any person. If the location of a Participant is not
      made known to the Administrator within three years after the date on which
      any payment of the Participant's benefit hereunder may be made, payment
      may be made as though the Participant had died at the end of the
      three-year period. If, within one additional year after such three-year
      period has elapsed, or, within three years after the actual death of a
      Participant, whichever occurs first, the Administrator is unable to locate
      the spouse or any Beneficiary of the Participant, any Supplemental Plan
      Benefits held for a Participant, surviving spouse or Beneficiary shall be
      forfeited.

7.9   Elections, Applications, Notices. Every direction, revocation or notice
      authorized or required hereunder shall he deemed delivered to the Company
      or the Administrator as the case may be: (a) on the date it is personally
      delivered to the Administrator at the Company's executive offices at 100
      Erie Insurance Place, Erie, Pennsylvania 16530 or (b) three business days
      after it is sent by registered or certified mail, postage prepaid,
      addressed to the Administrator at the offices indicated above, and shall
      be deemed delivered to a Participant, surviving spouse or Beneficiary: (a)
      on the date it is personally delivered to such individual, or (b) three
      business days after it is sent by registered or certified mail, postage
      prepaid, addressed to such individual at the last address shown for him on
      the Company's records. Any notice required hereunder may be waived by the
      person entitled thereto.

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7.10  Counterparts. This Supplemental Plan may be executed in any number of
      counterparts, each of which shall be considered as an original, and no
      other counterparts need be produced.

7.11  Severability. In the event any provision of this Supplemental Plan shall
      be held illegal or invalid for any reason, such illegality or invalidity
      shall not affect the remaining provisions of the Supplemental Plan. This
      Supplemental Plan shall be construed and enforced as if such illegal or
      invalid provision had never been contained herein.

7.12  Headings. The headings of Sections of this Supplemental Plan are for
      convenience of reference only and shall have no substantive effect on the
      provisions of this Supplemental Plan.

Executed at Erie, Pennsylvania this 20th day, of December, 1995, effective
December 31, 1995.

                                   ERIE INDEMNITY COMPANY
                                   By: /s/ John M. Petersen
                                      ----------------------------------------
                                      John M. Petersen

                                   Title:  President and Chief Executive Officer

ATTEST:

/s/ J. R. Van Gorder
-------------------------------
J. R. Van Gorder
Executive Vice President,
  Secretary and General Counsel

                                       18<PAGE>
                  EXHIBIT 10.3 - REINSURANCE POOLING AGREEMENT

This Agreement is effective as of 12:01 a.m. on the 1st day of January, 1995,
among the Erie Insurance Exchange, a Pennsylvania reciprocal interinsurance
exchange (hereinafter referred to as the "Exchange"), the Erie Insurance
Company, a Pennsylvania stock insurance company (hereinafter referred to as the
"Company"), and Erie Insurance Company of New York, a New York stock insurance
company (hereinafter referred to as "ERIE-New York"). This Agreement supersedes
the Reinsurance Pooling Agreement between the Exchange and the Company, which
was in effect from January 1, 1992 until the effective date of this Agreement.

                              ARTICLE I - PREAMBLE

The purpose of this Agreement is to pool, or share proportionately among the
parties, the results of property and casualty insurance underwriting operations
through reinsurance; to reduce administrative and executive expenses; and to
produce for each party a broader distribution of risk by line of insurance. The
Exchange, the Company, and ERIE-New York are affiliated and are under the same
executive management. This Agreement is made to recognize that each company is a
member of the same holding company system and a member of the Erie Insurance
Group (hereinafter referred to as "The ERIE Group"), subject to group decisions
and strategies designed primarily to promote the stability and success of The
ERIE Group and that each company will accordingly share proportionately in the
combined property and casualty insurance underwriting operations of The ERIE
Group.

                             ARTICLE II - AGREEMENT

In consideration of the agreements and mutual promises contained herein, the
parties hereto make the following Agreement effective as of 12:01 a.m., Eastern
Standard Time, January 1, 1995. Such Agreement shall remain in effect until
cancelled as provided in Article XI.

                           ARTICLE III - DEFINITIONS

For the purposes of this Agreement, the following terms shall have the meanings
indicated below:

      (a) "Net Policy Liabilities" shall mean the gross direct liabilities with
respect to insurance policies and reinsurance assumed less reinsurance ceded to
reinsurers other than the parties to this Agreement.

      (b) "Respective Percentage Share" shall mean the participation percentage
set forth next to the name of each company in Exhibit A, attached hereto and
made a part hereof.

      (c) "Underwriting Expenses" shall mean all expenses incurred individually
or collectively by the Exchange, Company, and ERIE-New York in the acquisition
of insurance and reinsurance business, the issuance of insurance policies and
contracts, and the rendering of services under the contracts, including premium
taxes, licenses and fees, and such other underwriting expenses relating to
insurance operations as may be mutually agreeable to the parties excluding
federal and foreign income taxes, investment expenses and any other expenses not
related to underwriting operations.

                                       1
<PAGE>
      (d) "Dividends" to policyholders shall be treated as Underwriting
Expenses.

      (e) "Net", as used herein shall mean net after giving effect to ceded
reinsurance transactions with other insurers or reinsurers, if any, which inure
to the benefit of the parties to this Agreement.

      (f) "Insurance Policies" shall include all insurance or reinsurance
agreements, contracts, policies, certificates, binders, endorsements, or
agreements of insurance or reinsurance issued or renewed by the Exchange,
Company, or ERIE-New York for which they may become obligated.

      (g) "Loss Adjustment Expense" shall include both allocated loss adjustment
expense and unallocated loss adjustment expense.

      (h) "Accounting Period" shall mean calendar quarter (i.e. March 31, June
30, September 30, and December 31 of each year).

                   ARTICLE IV - LIABILITIES - BUSINESS CEDED

The Company and ERIE-New York each individually agrees to cede and transfer to
the Exchange and the Exchange agrees to assume and reinsure:

      (a) 100% of all Net Policy Liabilities under all Insurance Policies of the
Company and ERIE-New York respectively, outstanding and in force at 12:01 a.m.,
Eastern Standard Time, January 1, 1995.

      (b) 100% of the Net Policy Liabilities, automatically from inception,
under all Insurance Policies issued or assumed by the Company and ERIE-New York
respectively, with effective dates on and after January 1, 1995, during the
continuation of this Agreement.

      (c) 100% of the Net liability of the Company and ERIE-New York
respectively, for unpaid losses (including both reported and unreported losses),
unpaid loss adjustment expenses, underwriting expenses due and unpaid prior to
January 1, 1995, and unpaid dividends to policyholders.

               ARTICLE V - PREMIUMS AND RESERVES - BUSINESS CEDED

The Company and ERIE-New York each individually agrees to pay to the Exchange
the following:

      (a) 100% of the unearned premium reserves of the Company and ERIE-New York
respectively, carried for the Net Policy Liabilities assumed and reinsured by
the Exchange under Article IV(a) hereof as shown on the records of the Company
and ERIE-New York respectively, as of 12:01 a.m., Eastern Standard Time, January
1, 1995.

      (b) 100% of the premiums received by the Company and ERIE-New York
respectively, for business ceded and transferred to the Exchange under Article
IV(b) hereof less the costs of any reinsurance placed with reinsurers other than
the Exchange.

                                       2
<PAGE>
      (c) 100% of the reserves carried by the Company and ERIE-New York
respectively, for losses (including both reported and unreported losses), loss
adjustment expense, underwriting expenses (including dividends to policyholders)
as shown on the records of the Company and ERIE-New York respectively, as of
12:01 a.m., Eastern Standard Time, January 1, 1995.

                      ARTICLE VI - LIABILITIES RETROCEDED

Following the assumption and reinsurance of the liabilities of the Company and
ERIE-New York respectively, as set forth in Article IV hereof, the Exchange
shall retrocede and transfer to the Company and ERIE-New York each company's
individual Respective Percentage Share of the following:

      (a) 100% of all New Policy Liabilities under all Insurance Policies of the
Exchange outstanding and in force at 12:01 a.m., Eastern Standard Time, January
1, 1995.

      (b) 100% of the Net Policy Liabilities, automatically from inception,
under all Insurance Policies issued or assumed by the Exchange with effective
dates on and after January 1, 1995, during the continuation of this Agreement.

      (c) 100% of the Net Policy Liability of the Exchange for unpaid losses
(including both reported and unreported losses), unpaid loss adjustment
expenses, underwriting expenses due and unpaid prior to January 1, 1995, and
unpaid dividends to policyholders.

           ARTICLE VII - PREMIUMS AND RESERVES - BUSINESS RETROCEDED

Following the payment of the premiums and reserves of the Company and ERIE-New
York respectively, as set forth in Article V hereof, the Exchange shall
retrocede and transfer to the Company and ERIE-New York each company's
individual Respective Percentage Share of the following:

      (a) 100% of the Exchange's unearned premium reserves carried for its Net
Policy Liabilities under all Insurance Policies of the Exchange outstanding and
in force as of 12:01 a.m., Eastern Standard Time, January 1, 1995.

      (b) The Exchange's premiums received by the Exchange for its own account
and all premiums received by the Exchange pursuant to Article V(b) hereof for
business assumed from the Company and ERIE-New York respectively, under Article
IV(b) hereof, less all Underwriting Expenses incurred by the Exchange in
relation to such business and less all reinsurance placed with insurers and
reinsurers other than the parties to this Agreement by the Exchange for its own
account or for the joint account of the Exchange, Company and ERIE-New York.

      (c) 100% for the reserves carried by the Exchange for losses (including
both reported and unreported losses), loss adjustment expense, underwriting
expenses (including dividends to policyholders) as shown on the records of the
Exchange as of 12:01 a.m., Eastern Standard Time, January 1, 1995.

                                       3
<PAGE>
              ARTICLE VIII - AGENTS' BALANCES/OUTSTANDING ACCOUNTS

The Company and ERIE-New York hereby agree to sell, transfer, assign and the
Exchange hereby agrees to purchase all rights, title and interest of the Company
and ERIE-New York in their agents' balances, uncollected premiums and all other
accounts relating to underwriting operations, including underwriting pools and
associations as they exist at 12:01 a.m., Eastern Standard Time, January 1,
1995, at statutory book value. The Exchange hereby agrees to sell, transfer and
assign and the Company and ERIE-New York hereby agree to purchaser their
Respective Percentage Shares of the total agents' balances, uncollected premiums
and all other accounts relating to underwriting operations at statutory book
value immediately after and including the transfers effected by the first
sentence of this paragraph.

Underwriting assets and related liabilities of the Exchange, the Company, and
ERIE-New York arising after 12:01 a.m., Eastern Standard Time, January 1, 1995,
shall be pro-rated according to the Respective Percentage Share of the
companies.

Notwithstanding anything to the contrary herein contained, the Company and
ERIE-New York hereby agree for purposes of statutory financial statements, to
assume their Respective Percentage Share of any amounts disallowed the Exchange
on account of reinsurance effected with so-called unauthorized reinsurers and
any amounts disallowed the Exchange for non-admitted agents' balances and
uncollected premiums.

                            ARTICLE IX - OBLIGATIONS

The Exchange agrees to act on behalf of the Company and ERIE-New York to fulfill
all the respective obligations of the Company and ERIE-New York under the
Insurance Policies reinsured hereby and to adjust and pay all claims thereunder
and to pay all Underwriting Expenses (including dividends to policyholders) on
behalf of the Company and ERIE-New York, and the Company and ERIE-New York
hereby agree to the Exchange acting on their behalf with respect to such
matters. The adjustment of claims and claim payments for policies written by
ERIE-New York will be made in accordance with guidelines established by the
Board of Directors of ERIE-New York. It is the purpose and intent of this
Agreement that all reinsurance hereunder shall be subject in all respects to the
same rates, terms, conditions, interpretations, waivers, the exact proportion of
premiums paid without deduction for brokerage, and to the same modifications,
alterations and cancellations as the respective insurances of the companies to
which such reinsurance relates, the true intent of this Agreement being that the
reinsurer shall in every case to which this Agreement applies and in the
Respective Percentage Share set forth herein follow the fortunes of the
reinsured. This Agreement is solely between and for the benefit of the parties
hereto and the acceptance of reinsurance hereunder shall not create any right or
legal relation whatsoever between the primary insured and any party to this
Agreement other than the company issuing the original insurance contract to such
insured.

                      ARTICLE X - ACCOUNTS AND SETTLEMENTS

The Exchange, the Company, and ERIE-New York shall keep sufficient records for
the express purpose of recording therein the amounts and other particulars of
the reinsurance ceded and assumed between the parties hereto. Each party to this
Agreement shall have the right to examine,

                                       4
<PAGE>
at the offices of the other parties at all reasonable times, all books and
records of the other parties relating to any business which is the subject of
this Agreement. This right shall survive termination of this Agreement and shall
continue so long as any party has any rights or obligations under this
Agreement.

Copies of all Insurance Policies thereto which come within the scope of this
Agreement shall be available to all companies which are parties to this
Agreement. Each company which is a party hereto will make its financial data
available to every company for the purpose of recording those inter-company
transactions necessitated by this Agreement and shall provide such financial
information in sufficient detail and in mutually acceptable form to prepare
monthly financial and quarterly and annual filings with all applicable insurance
departments and other regulatory authorities.

The Exchange shall render to the Company and to ERIE-New York at such periods as
are mutually agreed upon (but not less frequently than quarterly), a statement
showing net premiums received, Underwriting Expenses (including dividends paid
to policyholders), net losses and loss adjustment expenses paid during the
accounting period. Reasonable approximations may be substituted when necessary,
for interim accounting, but there shall be an annual adjustment to the exact
amounts. The companies shall settle accounts between them by payment of such
amounts as may be owing within 30 days after the end of the accounting period.

Each quarter the Exchange shall render to the Company and to ERIE-New York a
report of all accruals required to adjust cash transactions to the accounting
basis required for accounting in accordance with generally accepted practices
for preparation of the NAIC form of annual statement, and to adjust the expense
allowance to the accrual basis.

To the extent that transfers of non-cash assets may be required to effectuate
the settlements herein provided, such transfers shall be made at fair market
values as of the date such transfers are made.

                            ARTICLE XI - TERMINATION

This Agreement may be terminated by mutual agreement stating the terms and
conditions therefore or by any party giving to the other parties not less than
90 days advance written notice stating when, as of the end of any calendar year
such termination shall be effective. The Net Policy Liabilities previously ceded
and transferred by the company and assumed and reinsured by the Exchange and
that subsequently assumed and reinsured by the Company and by ERIE-New York
under the Respective Percentage Share participation shall cease with respect to
losses resulting from accidents or occurrences after the termination date of
this Agreement. Upon termination of this Agreement, reinsurance and reserve
settlement among the parties shall be made upon the same formula and conditions
as those governing the inception of this Agreement, restoring to each party its
Insurance Policies, related assets and reserves.

                        ARTICLE XII - INSOLVENCY CLAUSE

Each party hereby agrees that in the event of the insolvency of any party, this
Agreement shall be so construed that the reinsurance due hereunder shall be
payable directly to the insolvent party or its liquidator, receiver, or
statutory successor by the reinsurer on the basis of the liability of the
insolvent party under the contract or contracts reinsured without diminution
because of the

                                       5

<PAGE>
insolvency. It is further agreed that the liquidator, the receiver, or the
statutory successor of the insolvent party shall give written notice to the
reinsurer of the pendency of a claim against the insolvent party on the policy
reinsured within a reasonable time after such claim is filed in the solvency
proceedings; that during the pendency of such claim the reinsurer may
investigate such claim and interpose at their own expense in the proceeding
where such claim is to be adjudicated any defense or defenses which they may
deem available to the insolvent party or its liquidator, receiver, or statutory
successor; that the expenses thus incurred by the reinsurer shall be chargeable
subject to court approval against the insolvent party as part of the expense of
liquidation to the extent of the proportionate benefit which may accrue to the
insolvent party solely as a result of the defense undertaken by the reinsurer.

It is further agreed and understood that as to all reinsurance made, ceded,
renewed or otherwise becoming effective hereunder, the reinsurance shall be
payable by the insurer directly to the insolvent party or to its liquidator,
receiver or statutory successor.

                           ARTICLE XIII - ARBITRATION

As a condition precedent to any right of action hereunder, in the event of any
difference of opinion hereafter arising with respect to this Agreement, it is
hereby mutually agreed that such dispute or difference of opinion shall be
submitted to arbitration before a panel of three arbitrators, all of whom shall
be active or retired disinterested officers of property and casualty insurance
companies, reinsurance companies or underwriters at Lloyd's, London. One
arbitrator shall be chosen by each party to the dispute, and the third, an
umpire, to be chosen by the other two arbitrators before they enter upon
arbitration. In the event of any party refusing or neglecting to appoint an
arbitrator within 90 days after the other party requests it to do so, or if the
arbitrators fail to appoint an umpire within 60 days after they have accepted
their appointments, such arbitrator or umpire, as the case may be, shall, upon
the application of any party, be appointed by the American Arbitration
Association and the arbitrators and the umpire shall thereupon proceed. The
arbitrators shall consider this Agreement as an honorable engagement rather than
merely as a legal obligation and they are relieved of all judicial formalities
and may abstain from following the strict rules of law. The decision of the
majority of the arbitrators shall be final and binding on all parties. Each
party shall bear the expense of its own arbitrator and shall jointly and equally
bear the other expenses of the umpire and of the arbitration. Any such
arbitration shall take place in Erie, Pennsylvania, or such other place as may
be mutually agreed.

                       ARTICLE XIV - ERRORS AND OMISSIONS

The parties to this Agreement will use due diligence in promptly and accurately
reporting all transactions under this Agreement. It is agreed, however, that any
errors or omissions occurring through clerical error, accident or oversight, of
any party to this Agreement shall not invalidate any of the provisions of this
Agreement; and the party making such error agrees to correct it immediately upon
discovery.

                            ARTICLE XV - AMENDMENTS

This Agreement may be altered or amended in any respect at any time and from
time to time by mutual consent of the parties either by an endorsement or
addendum executed by the parties hereto or by correspondence signed by a
responsible officer of each party, and such endorsement or

                                       6
<PAGE>
addendum or correspondence shall be binding on the parties and be deemed to be
an integral part of this Agreement.

                         ARTICLE XVI - OTHER PROVISIONS

1.     This Agreement shall not apply to the investment operations, liabilities
for Federal and foreign income tax, or other operations unrelated to the
insurance underwriting of the parties hereto.

2.     In the event that the Company is not licensed in New York and/or the
Exchange is not an accredited reinsurer in New York, the Exchange agrees to post
a letter of credit collateralizing the business ceced to it by ERIE-New York.

IN WITNESS WHEREOF, the parties hereto have affixed their signatures.

                                     ERIE INSURANCE EXCHANGE
                                     by Erie Indemnity Company
                                     Attorney-in-Fact

                                     By:      /s/ J. M. Petersen
                                        ----------------------------------------
                                              J. M. Petersen
                                              President and
                                              Chief Executive Officer

                                     ERIE INSURANCE COMPANY

                                     By:      /s/ J. R. Van Gorder
                                        ----------------------------------------
                                              J. R. Van Gorder
                                              Executive Vice President,
                                              Secretary and General Counsel

                                     ERIE-NEW YORK

                                     By:      /s/ T. M. Sider
                                        ----------------------------------------
                                              T. M. Sider
                                              Executive Vice President and
                                              Chief Financial Officer

                                       7
<PAGE>
                              ERIE INSURANCE GROUP

                          REINSURANCE POOLING AGREEMENT

                            EFFECTIVE January 1, 1995

                                    EXHIBIT A

<TABLE>
<CAPTION>
Participating Insurer                       Respective Percentage Share
---------------------                       ---------------------------
<S>                                         <C>
Erie Insurance Exchange                          94.5%
Erie Insurance Company                            5.0%
ERIE-New York                                     0.5%
</TABLE>

                                       8

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