Document:

Exhibit 10.70

 

Exhibit 10.75

ADDENDUM TO EMPLOYMENT AGREEMENT

     This Addendum (the “Addendum”) is made effective as of the 12th day of
December, 2003 and is intended to amend a certain Employment Agreement (the
“Agreement”) by and between Erie Indemnity Company and Douglas F. Ziegler
effective as of December 15, 1999.

     WHEREAS, the Company has determined that it is in the best interest of the
Company and its Shareholders to secure the continued employment of the
Executive in accordance with the terms of the Agreement; and

     WHEREAS, the Board of Directors of the Company at its meeting of December
9, 2003 has again agreed to extend the term of the Agreement for a period of
one (1) additional year as contained herein; and

     WHEREAS, the Executive is agreeable to the extension of the Agreement.

     NOW, THEREFORE, intending to be legally bound hereby, the parties agree as
follows:

     1.     Paragraph 1 of the Agreement with respect to the Term is hereby amended
by extending the Term to expire on December 15, 2005.

     2.     All other terms and conditions of the Agreement remain in full force
and effect.

	 	 	 	 	 	 	 	 	 
	 	 	ATTEST:
	 	ERIE INDEMNITY COMPANY
	 	 	 	 	 	 	 	 	 
	 	 	
/s/
	 	Jan R. Van Gorder
	 	By:  
	/s/  	F. William Hirt
	 	 	

	 	 	

	 	 	 	 	Jan R. Van Gorder
	 	 	 	F. William Hirt
	 	 	 	 	Secretary
	 	 	 	Chairman of the Board
	 	 	 	 	 	 	 	 	 
	 	 	WITNESS:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	/s/	 	Cori Coccarelli
	 	 
	/s/
	Douglas F. Ziegler
	 	 	

	 	 	

	 	 	 	 	Cori Coccarelli
	 	 	 	Douglas F. Ziegler
	 	 	 	 	Executive Secretary
	 	 	 	378 Ridgeview Drive
	 	 	 	 	 	 	 	 	Erie, PA 16505

47Exhibit 10.76

 

Exhibit 10.76

INSURANCE BONUS AGREEMENT

This Agreement (“Agreement”) made this 23rd day of December, 2003 by and
between Erie Indemnity Company, a Pennsylvania business corporation (the
“Employer”), and
Jeffrey A. Ludrof (the “Executive”).

WHEREAS, The Company and the Executive had previously entered into a Split
Dollar Insurance Agreement, a copy of which is attached to this Agreement; and

WHEREAS, under the terms of the Split Dollar Insurance Agreement, the parties
may mutually agree to terminate such contract; and

WHEREAS, the Employer and the Executive believe it is in their mutual interests
to terminate the Split Dollar Agreement because of specific but separate
provisions of the Sarbanes-Oxley Act of 2002 with respect to the prohibition of
loans to officers or directors of a public company, and U. S. Department of
Treasury regulations (published September 17, 2003) with respect to the
taxation of split dollar arrangements; and

WHEREAS, based on consideration of the Sarbanes-Oxley Act and Department of
Treasury regulations, it was the recommendation of the Executive Compensation
and Development Committee of Erie Indemnity Company’s Board of Directors to
terminate the Split Dollar Agreement and replace it with this Insurance Bonus
Agreement, which recommendation was accepted and approved by the Board of
Directors of Erie Indemnity Company at its meeting of December 9, 2003; and

NOW, THEREFORE, intending to be legally bound hereby, the Employer and the
Executive agree as follows:

	 	1.	 	The Split Dollar Agreement as attached to this policy is hereby
mutually agreed to be terminated effective upon the execution of this
Agreement. The life insurance policy issued with respect to the Split
Dollar Agreement shall remain in full force and effect, and the
Executive shall remain the owner of such policy. Any premium loans due
and owing to the Employer by the Executive shall be paid in full from
the accumulated cash value in the policy as soon as practicable after
the execution of this Agreement by the parties.

48

 

	 	2.	 	The Employer agrees to pay all premiums on life insurance Policy
No. 15-145-189 insuring Executive’s life issued by the Northwestern Mutual
Life Insurance Company of Milwaukee, Wisconsin necessary to pay up the
policy such that no further premium would be required under current
dividend assumptions which contemplate that the policy would be paid
up fifteen (15) years after its issuance date; provided, that in the
event the Employee remains continuously employed with the Employer for
at least fifteen (15) years from the date of the policy issuance,
dividends at that point in time should be sufficient to pay all future
premiums; and no further premium payments would be required by the
Employer. In the event that dividends are not sufficient to pay
future premium at the end of the fifteen (15) year period, then the
Employer shall continue making such premium payments as are necessary
to continue the policy in force so long as Employee remains employed
with Employer. No contributions toward the payment of premiums by the
Executive are required.
	 
	 	3.	 	The Executive will execute an endorsement on the policy restricting
the Executive’s right to (a) surrender the policy for its cash value,
(b) obtain a policy loan from the insurance company, (c) assign the
policy as collateral, (d) change the ownership of the policy by
endorsement or assignment, except for a change in ownership to a trust
or similar entity for estate tax planning purposes for the benefit of
Executive, his heirs or assigns, or (e) change insured. Such
endorsement shall remain in effect for the benefit of the Employer so
long as the Executive remains continuously employed with Employer for
fifteen (15) years from the date of policy issuance at which time the
Company shall execute a release of such endorsement. If employment is
terminated, the Executive shall have all rights under the policy
without restriction and the Company shall execute a release of such
endorsement.
	 
	 	4.	 	The Employer shall not be entitled to receive any benefits under
the policy.
	 
	 	5.	 	The Executive shall recognize the premium paid hereunder as
additional compensation for federal income tax purposes.
	 
	 	6.	 	The Employer shall, in addition to the premium payment, annually
increase the Executive’s normal compensation by an amount determined by
the following formula: P/1-X where P equals premium paid by the
Employer on the policy pursuant to this Agreement and X equals the
Executive’s marginal Federal income tax bracket for such year plus the
tax rate for any of the following that may be applicable:
	 

	 	i.	 	Pennsylvania income tax;
	 
	 	ii.	 	Employee portion of Pennsylvania unemployment tax;
	 
	 	iii.	 	Local income tax;
	 
	 	iv.	 	Employee portion of FICA OASDI; and
	 
	 	v.	 	Employee portion of FICA Medicare.

49

 

	 	7.	 	This Agreement is being delivered and is intended to be performed
in Pennsylvania and shall be construed and enforced in accordance with
the laws of Pennsylvania.
	 
	 	8.	 	This Agreement is the entire understanding among the parties and
may be altered, amended or revoked only by subsequent written
instrument executed by all parties.

WITNESS WHEREOF the parties have executed this Agreement this 23rd day of
December, 2003.

	 	 	 	 	 
	 	 	
By:
	 	/s/ Philip A. Garcia
	 	 	 	 	

	(Corporate Seal)	 	 	 	Philip A. Garcia, Executive Vice President
	 	 	 	 	 
	 	 	
Attest:
	 	/s/ Jan R. Van Gorder
	 	 	 	 	

	 	 	 	 	Jan R. Van Gorder, Secretary
	 	 	 	 	 
	 	 	 	 	/s/ Jeffrey A. Ludrof
	 	 	 	 	

	 	 	 	 	Employee

50Exhibit 10.77

 

Exhibit 10.77

INSURANCE BONUS AGREEMENT

This Agreement (“Agreement”) made this 23rd day of December, 2003 by and
between Erie Indemnity Company, a Pennsylvania business corporation (the
“Employer”), and
Jeffrey A. Ludrof (the “Executive”).

WHEREAS, The Company and the Executive had previously entered into a Split
Dollar Insurance Agreement, a copy of which is attached to this Agreement; and

WHEREAS, under the terms of the Split Dollar Insurance Agreement, the parties
may mutually agree to terminate such contract; and

WHEREAS, the Employer and the Executive believe it is in their mutual interests
to terminate the Split Dollar Agreement because of specific but separate
provisions of the Sarbanes-Oxley Act of 2002 with respect to the prohibition of
loans to officers or directors of a public company, and U. S. Department of
Treasury regulations (published September 17, 2003) with respect to the
taxation of split dollar arrangements; and

WHEREAS, based on consideration of the Sarbanes-Oxley Act and Department of
Treasury regulations, it was the recommendation of the Executive Compensation
and Development Committee of Erie Indemnity Company’s Board of Directors to
terminate the Split Dollar Agreement and replace it with this Insurance Bonus
Agreement, which recommendation was accepted and approved by the Board of
Directors of Erie Indemnity Company at its meeting of December 9, 2003; and

NOW, THEREFORE, intending to be legally bound hereby, the Employer and the
Executive agree as follows:

	 	1.	 	The Split Dollar Agreement as attached to this policy is
hereby mutually agreed to be terminated effective upon the execution
of this Agreement. The life insurance policy issued with respect to
the Split Dollar Agreement shall remain in full force and effect,
and the Executive shall remain the owner of such policy. Any
premium loans due and owing to the Employer by the Executive shall
be paid in full from the accumulated cash value in the policy as
soon as practicable after the execution of this Agreement by the
parties.

51

 

	 	2.	 	The Employer agrees to pay all premiums on life insurance
Policy No.
16-176-764 insuring Executive’s life issued by the Northwestern Mutual
Life Insurance Company of Milwaukee, Wisconsin necessary to pay up the
policy such that no further premium would be required under current
dividend assumptions which contemplate that the policy would be paid
up twelve (12) years after its issuance date; provided, that in the
event the Employee remains continuously employed with the Employer for
at least twelve (12) years from the date of the policy issuance,
dividends at that point in time should be sufficient to pay all future
premiums; and no further premium payments would be required by the
Employer. In the event that dividends are not sufficient to pay
future premium at the end of the twelve (12) year period, then the
Employer shall continue making such premium payments as are necessary
to continue the policy in force so long as Employee remains employed
with Employer. No contributions toward the payment of premiums by the
Executive are required.
	 
	 	3.	 	The Executive will execute an endorsement on the policy
restricting the Executive’s right to (a) surrender the policy for
its cash value, (b) obtain a policy loan from the insurance company,
(c) assign the policy as collateral, (d) change the ownership of the
policy by endorsement or assignment, except for a change in
ownership to a trust or similar entity for estate tax planning
purposes for the benefit of Executive, his heirs or assigns, or (e)
change insured. Such endorsement shall remain in effect for the
benefit of the Employer so long as the Executive remains
continuously employed with Employer for twelve (12) years from the
date of policy issuance at which time the Company shall execute a
release of such endorsement. If employment is terminated, the
Executive shall have all rights under the policy without restriction
and the Company shall execute a release of such endorsement.
	 
	 	4.	 	The Employer shall not be entitled to receive any benefits
under the policy.
	 
	 	5.	 	The Executive shall recognize the premium paid hereunder as
additional compensation for federal income tax purposes.
	 
	 	6.	 	The Employer shall, in addition to the premium payment,
annually increase the Executive’s normal compensation by an amount
determined by the following formula: P/1-X where P equals premium
paid by the Employer on the policy pursuant to this Agreement and X
equals the Executive’s marginal Federal income tax bracket for such
year plus the tax rate for any of the following that may be
applicable:

	 	i.	 	Pennsylvania income tax;
	 
	 	ii.	 	Employee portion of Pennsylvania unemployment tax;
	 
	 	iii.	 	Local income tax;
	 
	 	iv.	 	Employee portion of FICA OASDI; and
	 
	 	v.	 	Employee portion of FICA Medicare.

52

 

	 	7.	 	This Agreement is being delivered and is intended to be
performed in Pennsylvania and shall be construed and enforced in
accordance with the laws of Pennsylvania.
	 
	 	8.	 	This Agreement is the entire understanding among the parties
and may be altered, amended or revoked only by subsequent written
instrument executed by all parties.

WITNESS WHEREOF the parties have executed this Agreement this 23rd day of
December, 2003.

	 	 	 	 	 
	 	 	
By:
	 	/s/ Philip A. Garcia
	 	 	 	 	

	(Corporate Seal)	 	 	 	 Philip A. Garcia, Executive Vice President
	 	 	 	 	 
	 	 	
Attest:
	 	/s/ Jan R. Van Gorder
	 	 	 	 	

	 	 	 	 	  Jan R. Van Gorder, Secretary
	 	 	 	 	 
	 	 	 	 	/s/ Jeffrey A. Ludrof
	 	 	 	 	

	 	 	 	 	Employee

53

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