Document:

EX-10.86

 

Exhibit 10.86

Erie Insurance Group

RETIREMENT PLAN FOR EMPLOYEES

As Amended and Restated Effective December 31, 2005

27

 

Erie Insurance Group

RETIREMENT PLAN FOR EMPLOYEES

As Amended and Restated Effective December 31, 2005

Table of Content

	 	 	 	 	 
	ARTICLE I — INTRODUCTION
	 	 	32	 
	ARTICLE II — DEFINITIONS
	 	 	33	 
	2.1 “Accrued Pension”
	 	 	33	 
	2.2 “Actuary”
	 	 	33	 
	2.3 “Administrator”
	 	 	33	 
	2.4 “Affiliate”
	 	 	33	 
	2.5 “Anniversary Date”
	 	 	33	 
	2.6 “Annuity Starting Date”
	 	 	33	 
	2.7 “Beneficiary”
	 	 	34	 
	2.8 “Board of Directors” or “Board”
	 	 	34	 
	2.9 “Code”
	 	 	34	 
	2.10 “Company”
	 	 	34	 
	2.11 “Compensation”
	 	 	34	 
	2.12 “Covered Employee”
	 	 	34	 
	2.13 “Credited Service”
	 	 	35	 
	2.14 “Date of Hire”
	 	 	35	 
	2.15 “Date of Severance”
	 	 	35	 
	2.16 “Earliest Retirement Age”
	 	 	36	 
	2.17 “Effective Date”
	 	 	36	 
	2.18 “Employee”
	 	 	36	 
	2.19 “Employer(s)”
	 	 	36	 
	2.20 “ERISA”
	 	 	36	 
	2.21 “Final Average Earnings”
	 	 	36	 
	2.22 “Highly Compensated”
	 	 	37	 
	2.23 “Hour of Service”
	 	 	37	 
	2.24 “Leased Employee”
	 	 	37	 
	2.25 “Maternity or Paternity Absence”
	 	 	38	 
	2.26 “Normal Retirement Age”
	 	 	38	 
	2.27 “Normal Retirement Date”
	 	 	38	 

28

 

	 	 	 	 	 
	2.28 “Participant”
	 	 	38	 
	2.29 “Period of Severance”
	 	 	38	 
	2.30 “Plan” or “Pension Plan”
	 	 	39	 
	2.31 “Plan Year”
	 	 	39	 
	2.32 “Service”
	 	 	39	 
	2.33 “Social Security Covered Compensation”
	 	 	39	 
	2.34 “Test Compensation”
	 	 	39	 
	2.35 “Top Paid Group”
	 	 	40	 
	2.36 “Total and Permanent Disability”
	 	 	40	 
	2.37 “Trust Agreement”
	 	 	40	 
	2.38 “Trustee”
	 	 	40	 
	2.39 “Trust Fund” or “Fund”
	 	 	40	 
	ARTICLE III — ADMINISTRATION OF THE PLAN
	 	 	41	 
	3.1 Pension Administrator
	 	 	41	 
	3.2 Powers
	 	 	41	 
	3.3 Delegation of Duties
	 	 	43	 
	3.4 Administrator as Named Fiduciary
	 	 	43	 
	3.5 Conclusiveness of Various Documents
	 	 	43	 
	3.6 Actions to be Uniform
	 	 	44	 
	3.7 Liability and Indemnification
	 	 	44	 
	3.8 Claims Review Procedure
	 	 	44	 
	3.9 Waiver of Participation
	 	 	46	 
	ARTICLE IV — SERVICE PROVISIONS
	 	 	47	 
	4.1 Service
	 	 	47	 
	4.2 Credited Service
	 	 	47	 
	4.3 Loss and Reinstatement of Service
	 	 	47	 
	4.4 Transfer To Other Employment
	 	 	48	 
	4.5 Transfer From Other Employment
	 	 	48	 
	ARTICLE V — ELIGIBILITY FOR PENSIONS
	 	 	49	 
	5.1 Normal Retirement
	 	 	49	 
	5.2 Early Retirement
	 	 	49	 
	5.3 Disability Retirement
	 	 	49	 
	5.4 Vesting
	 	 	50	 
	ARTICLE VI — AMOUNT OF PENSIONS
	 	 	51	 
	6.1 Normal Retirement Pension
	 	 	51	 

29

 

	 	 	 	 	 
	6.2 Early Retirement Pension
	 	 	51	 
	6.3 Disability Retirement Pension
	 	 	51	 
	6.4 Deferred Pension Upon Termination of Service
	 	 	52	 
	6.5 Increase in Pension for Certain Retired Participants
	 	 	53	 
	6.6 Offset of Accruals by Plan Distributions
	 	 	53	 
	6.7 Non-Duplication of Benefits
	 	 	53	 
	6.8 Special Provisions Pertaining to Section 401(a)(17) Employees
	 	 	54	 
	ARTICLE VII — COMMENCEMENT AND DURATION OF PENSIONS
	 	 	55	 
	7.1 Normal and Early Retirement Pensions
	 	 	55	 
	7.2 Disability Retirement Pension
	 	 	55	 
	7.3 Deferred Vested Pension
	 	 	56	 
	7.4 Reemployment of a Retired Participant
	 	 	57	 
	7.5 Automatic Surviving Spouse’s Pension
	 	 	58	 
	7.6 Requirement for Spouse Consent
	 	 	60	 
	7.7 Optional Forms of Pensions
	 	 	60	 
	7.8 Payment of Small Pension
	 	 	62	 
	7.9 Repayment of Cashout on Reemployment
	 	 	63	 
	7.10 Delay in Commencement of Pension Payments
	 	 	64	 
	7.11 Direct Rollover of Eligible Rollover Distributions.
	 	 	66	 
	7.12 Change to Pension Payments in Connection with Qualifying Event
	 	 	67	 
	ARTICLE VIII — DEATH BENEFITS
	 	 	71	 
	8.1 Death Prior to Retirement or Severance
	 	 	71	 
	8.2 Death Prior to Commencement of Early or Disability Pensions
	 	 	71	 
	8.3 Death Prior to Commencement of Vested Pensions
	 	 	72	 
	8.4 Effect of Valid 100% Joint and Survivor Election
	 	 	73	 
	8.5 Death on or After Annuity Starting Date
	 	 	73	 
	8.6 Death Benefit for Vested Participants Who Terminated After
September 1, 1974 and Prior to August 23, 1984
	 	 	73	 
	ARTICLE IX — TRUST FUND AND THE TRUSTEE
	 	 	75	 
	9.1 Trust Fund
	 	 	75	 
	9.2 Irrevocability
	 	 	76	 
	9.3 Contributions by the Company
	 	 	76	 
	9.4 Contributions By Participants
	 	 	77	 
	9.5 Benefits Payable Only From Trust Fund
	 	 	77	 
	9.6 Plan Expenses
	 	 	78	 

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	ARTICLE X — BENEFIT LIMITATIONS
	 	 	79	 
	10.1 Maximum Limitation Under Section 415(b) of the Code
	 	 	79	 
	ARTICLE XI — MISCELLANEOUS PROVISIONS
	 	 	83	 
	11.1 Plan Non-Contractual
	 	 	83	 
	11.2 Non-Alienation of Retirement Rights or Benefits
	 	 	83	 
	11.3 Payment of Pension to Others
	 	 	84	 
	11.4 Prohibition Against Reversion
	 	 	84	 
	11.5 Merger, Transfer of Assets or Liabilities
	 	 	84	 
	11.6 Actuarial Equivalence
	 	 	85	 
	11.7 Change of Vesting Schedule
	 	 	85	 
	11.8 Controlled Group
	 	 	85	 
	11.9 Severability
	 	 	85	 
	11.10 Employer Records
	 	 	86	 
	11.11 Application of Plan Provisions
	 	 	86	 
	11.12 Missing Participants
	 	 	86	 
	11.13 IRC 414(u) Compliance Provision
	 	 	87	 
	11.14 Economic Growth and Tax Relief Reconciliation Act of 2001
	 	 	87	 
	ARTICLE XII — AMENDMENT AND TERMINATION
	 	 	88	 
	12.1 Amendment and Termination of the Plan
	 	 	88	 
	12.2 Administration of the Plan in Case of Termination
	 	 	88	 
	12.3 Internal Revenue Service Limitations
	 	 	89	 
	ARTICLE XIII — TOP-HEAVY PROVISIONS
	 	 	90	 
	13.1 General
	 	 	90	 
	13.2 Definitions Relating to Top-Heavy Provisions
	 	 	90	 
	13.3 Top-Heavy Plan Vesting Requirements
	 	 	92	 
	13.4 Top-Heavy Plan Minimum Benefit Requirements
	 	 	93	 
	13.5 Limited Application of this Article
	 	 	94	 
	ARTICLE XIV — JURISDICTION
	 	 	95	 
	14.1 Jurisdiction
	 	 	95	 
	APPENDIX A
	 	 	96	 
	1. Limitations on Contributions
	 	 	96	 
	2. Increase in Compensation Limit
	 	 	97	 
	3. Modification of Top-Heavy Rules
	 	 	97	 

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Erie Insurance Group

RETIREMENT PLAN FOR EMPLOYEES

Effective December 31, 1946

As Amended and Restated Effective December 31, 2005

ARTICLE I — INTRODUCTION

     The Erie Insurance Group adopted a Retirement Plan, effective December 31, 1946. Such
Plan, which has been heretofore amended from time to time by action of the Board of Directors in
accordance with the provisions of the Plan, is herein amended and restated.

     This amendment and restatement of the Plan shall constitute an amendment, restatement and
continuation of the Plan. This amendment and restatement is generally effective December 31, 2005.
However, certain provisions of this amendment and restatement are effective as of some other date.
The provisions of this amendment and restatement with stated effective dates prior to December 31,
2005 shall be deemed to amend the corresponding provisions, if any, of the Plan as in effect before
this amendment and restatement and all amendments thereto as of such dates. Events occurring
before the applicable effective date of any provision of this amendment and restatement shall be
governed by the applicable provision of the Plan as in effect on the date of the event. The object
of the Plan is to provide retirement pensions for eligible employees.

32

 

ARTICLE II — DEFINITIONS

For the purposes of this Retirement Plan for Employees, the following words and phrases shall
have the following meanings unless a different meaning is clearly required by the context. Any
terms herein used 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 again so
applicable.

	2.1	 	 “Accrued Pension” shall mean a pension amount determined with respect to a
Participant in accordance with Section 6.2(a) of the Plan using the date of determination for
the date of early retirement.
	 
	2.2 	 	 “Actuary” shall mean the actuary or firm of actuaries chosen by, but
independent of the Company, who is, or in the case of a firm one or more of whose members is,
an enrolled actuary under the provisions of Section 3042 of the Employee Retirement Income
Security Act of 1974.
	 
	2.3 	 	“Administrator” shall mean the Pension Administrator appointed by the Board
under the provisions of Article III of the Plan.
	 
	2.4 	 	 “Affiliate” means any other employer which, together with the Company, is a
member of a controlled group of corporations or of a commonly controlled trade or business (as
defined in Code Sections 414(b) and (c) and as modified, where appropriate, by Code Section
415(h)) or of an affiliated service group (as defined in Code Section 414(m)) or other
organization described in Code Section 414(o). Each such Affiliate shall be treated as an
Affiliate only during such period as it is or was an Affiliate as defined above.
	 
	2.5	 	“Anniversary Date” shall mean any December 31 occurring after the Effective
Date.
	 
	2.6 	 	 “Annuity Starting Date” shall mean the first day of the first period for which
an amount is received as an annuity (whether by reason of retirement or other termination of
employment) or, in the case of a benefit not payable as an annuity, the first day on which all
events have occurred which entitle the Participant to such benefit. A Participant whose
benefit is suspended under any provision of the Plan shall be deemed to have reached a new
Annuity Starting Date until when such benefit again becomes

33

 

	 	 	payable. The Annuity Starting Date for a benefit payable under Section 7.10 shall be the
applicable date described therein.

	2.7 	 	 “Beneficiary” shall mean any person who, by reason of a designation made by a
Participant, is or will be entitled to receive any amount or benefit hereunder upon the death
of such Participant.
	 
	2.8 	 	 “Board of Directors” or “Board” shall mean the Board of Directors of the
Company.
	 
	2.9 	 	 “Code” shall mean the Internal Revenue Code of 1986, as amended.
	 
	2.10 	 	 “Company” shall mean Erie Indemnity Company, a corporation organized and
existing under the laws of Pennsylvania.
	 
	2.11 	 	 “Compensation” for any period shall mean the rate of base salary of a Covered
Employee from the Employers during the period. For this purpose, “base salary” shall exclude
Form W-2 income in the form of overtime compensation, bonuses, commissions, deferred
compensation plan payments or severance pay under any severance benefit plan, but shall
include Form W-2 income paid as a lump sum in lieu of merit increase and compensation excluded
from Form W-2 income because of salary reduction agreements in connection with plans described
in Section 125, 132(f)(4) or 401(k) of the Code, or resulting from deferred compensation
contracts for the period in question. Effective for each Plan Year beginning on and after
December 31, 1989, in no event shall the amount of Compensation taken into account under the
Plan exceed the adjusted annual limitation permitted under Section 401(a)(17) of the Code for
such Plan Year. Subject to the provisions of Appendix A, such adjusted annual limitation
shall be, for each Plan Year beginning on and after December 31, 1989 and prior to December
31, 1994, $200,000 as adjusted for such year in the same manner as under Section 415(d) of the
Code and, for each Plan Year beginning on and after December 31, 1994, $150,000 as adjusted
for such year as provided under Section 401(a)(17)(B) of the Code. However, with respect to
the determination of a retirement pension or Accrued Pension for the 1993 Plan Year, the
adjusted annual limitation for the 1993 Plan Year will be assumed to apply to all prior years.
	 
	2.12  	 	“Covered Employee” shall mean any Employee of an Employer, excluding:

34

 

	 	(a)	 	any such Employee whose employment is governed by the terms of a collective
bargaining agreement under which retirement benefits were the subject of good faith
bargaining,
	 
	 	(b)	 	any such Employee who has voluntarily waived participation in the Plan, and

	 
	 	(c)	 	any such Employee who is compensated on an hourly basis.

Notwithstanding any provision of the Plan to the contrary, an individual who an Employer
determines to be a contract employee, independent contractor, leased employee (including a
Leased Employee as defined hereunder), leased owner, leased manager, shared employee or
person working under a similar classification shall not become a Covered Employee
hereunder, regardless of whether any such individual is ultimately determined to be a
common law employee, unless and until the Employer shall otherwise determine.

	2.13  	 	“Credited Service” shall mean a Participant’s service determined in accordance
with Article IV hereof for the purpose of calculating the amount of benefit earned under the
Plan.
	 
	2.14  	 	“Date of Hire” shall mean the date on which an Employee first commences
employment or reemployment and works at least one Hour of Service for an Employer or an
Affiliate.
	 
	2.15  	 	“Date of Severance” shall mean the earliest to occur of the following dates:

	 	(a)	 	date of retirement,
	 
	 	(b)	 	date of voluntary employment termination,
	 
	 	(c)	 	date of discharge by an Employer unless he is subsequently reemployed and
given pay back to the date of discharge,
	 
	 	(d)	 	date of death,
	 
	 	(e)	 	the first anniversary of a date of absence from active employment for any
other reason; provided, however, that a later Date of Severance shall apply with
respect to a leave of absence which, under Employer policy, provides for a later Date
of Severance and, provided further, that the second anniversary of a date of absence
from active employment shall be used for an Employee who is absent by reason of a
Maternity or Paternity Absence which commenced on or after December 31, 1985, or who
is absent by reason of Total and Permanent Disability.

35

 

	 	 	An Employee shall not incur a Date of Severance while he is in the active service of the
United States Armed Forces if his reemployment rights are protected by law.
	 
	2.16  	 	“Earliest Retirement Age” shall mean the earliest date on which, under the
Plan, the Participant could elect to receive retirement benefits in accordance with Section
5.1 or 5.2 hereof.
	 
	2.17  	 	“Effective Date” shall mean December 31, 1946.
	 
	2.18  	 	“Employee” shall mean any common-law employee of an Employer or an Affiliate;
provided, however, that for purposes of Section 2.22; “Employee” shall include any
self-employed individual performing services for an Employer or Affiliate who is treated as an
employee under Section 401(c)(1) of the Code.
	 
	2.19 	 	 “Employer(s)” shall mean the Company, Erie Family Life Insurance Company, Erie
Insurance Exchange, Erie Insurance Company, EI Holding Corp., EI Service Corp., Erie Insurance
Company of New York, Erie Insurance Property & Casualty Company, Flagship City Insurance
Company and any other Affiliate which may adopt this Plan.
	 
	2.20 	 	 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
amended.
	 
	2.21 	 	 “Final Average Earnings” shall mean 1/36th of the Participant’s aggregate
Compensation during the thirty-six consecutive calendar months as a Covered Employee which
produces the greatest aggregate Compensation out of the one hundred twenty calendar month
period as a Covered Employee ending on the earlier of the date on which the Participant
retires or terminates employment with the Employers or the date on which the Participant is no
longer considered a Covered Employee. In the event a Participant does not have thirty-six
consecutive calendar months of Compensation as a Covered Employee (i) months in which the
Participant is not a Covered Employee and months in which the Participant has no Compensation
will be excluded for purposes of determining consecutive months for the thirty-six and one
hundred twenty month periods and (ii) with respect to a Participant with fewer than thirty-six
total calendar months of Compensation as a Covered Employee, Final Average Earnings will be
determined as the average monthly Compensation over the Participant’s entire period of
employment as a Covered Employee.

36

 

	2.22 	 	 “Highly Compensated” shall mean any Employee who is a more than five percent
(5%) owner of an Employer or both earned $80,000 or more in Test Compensation from the
Employer in the prior Plan Year (the “lookback year”) and was member of the Top Paid Group for
such year; provided, however, that such $80,000 figure shall be adjusted for cost of living at
the same time and in the same manner as determined under Code Section 415(d).
	 
	2.23 	 	 “Hour of Service” shall include the following:

	 	(a)	 	each hour for which an Employee is directly or indirectly paid or entitled
to payment from an Employer or an Affiliate as an Employee for the performance of
duties during an applicable computation period (these hours must be credited to the
Employee in the computation period during which the duties were performed and not
when paid, if different); and
	 
	 	(b)	 	each hour for which back pay, irrespective of mitigation of damages, has
been awarded or agreed to by an Employer or an Affiliate (these hours must be
credited in the computation period or periods to which the award or agreement
pertains rather than that in which the payment, award or agreement was made); and
	 
	 	(c)	 	each hour for which an Employee is directly or indirectly paid or entitled
to payment from an Employer or an Affiliate for reasons, such as vacation, sickness
or disability, other than for the performance of duties (these hours shall be
calculated and credited pursuant to Section 2530.200b-2 of the Department of Labor
regulations which are incorporated herein by reference).

	2.24  	 	“Leased Employee” shall mean any person (other than an Employee of an
Employer) who pursuant to an agreement between the Employer and any other person (“leasing
organization”) has performed services for the Employer (or for the Employer and related
persons determined in accordance with Section 414(n)(6) of the Code) on a substantially
full-time basis for a period of at least one year and such services are performed under
primary direction or control by the recipient. Except as provided below, any person
satisfying the foregoing criteria shall be treated as an Employee. Contributions or benefits
provided a Leased Employee by the leasing organization which are attributable to services
performed for the Employer shall be treated as provided by the Employer.

37

 

	 	 	Notwithstanding the foregoing, a Leased Employee shall not be considered an Employee of an
Employer if: (i) such Leased Employee is covered by a money purchase pension plan
providing: (1) a nonintegrated employer contribution rate of at least 10 percent of
compensation, (2) immediate participation, and (3) full and immediate vesting; and (ii)
Leased Employees do not constitute more than 20 percent of the Employer’s non-Highly
Compensated workforce.

	2.25  	 	“Maternity or Paternity Absence” shall mean an absence from work by an
Employee for any period:

	 	(a)	 	by reason of pregnancy of the Employee,
	 
	 	(b)	 	by reason of the birth of a child of the Employee,
	 
	 	(c)	 	by reason of the placement of a child with the Employee in connection with
the adoption of such child by such Employee, or
	 
	 	(d)	 	for purposes of caring for such child for a period immediately following
such birth or placement.

An absence will not be considered a “Maternity or Paternity Absence” unless the Employee
provides the Administrator with such timely information as the Administrator may
reasonably require to establish that the absence from work is for one of the four
permitted reasons outlined above. Nothing in this Plan shall require an Employer to grant
a paid leave of absence to any Employee.

	2.26  	 	“Normal Retirement Age” of a Participant shall be age 65.
	 
	2.27  	 	“Normal Retirement Date” of a Participant shall be the first day of the month
next following the month in which his sixty-fifth birthday occurs.
	 
	2.28  	 	“Participant” shall mean any Covered Employee and any former Covered Employee
who is entitled to, or who is receiving, a retirement benefit or deferred vested pension under
the Plan.
	 
	2.29  	 	“Period of Severance” shall mean the period of time between an Employee’s Date
of Severance and the date as of which he performs his first Hour of Service following
reemployment.

38

 

	2.30  	 	“Plan” or “Pension Plan” shall mean this “Erie Insurance Group Retirement Plan
for Employees” as herein set forth with all amendments, modifications, appendices, and
supplements hereafter made.
	 
	2.31 	 	 “Plan Year” shall mean any period of 12 consecutive calendar months next
preceding an Anniversary Date of the Plan.
	 
	2.32 	 	 “Service” shall mean an Employee’s service determined in accordance with
Article IV hereof for the purposes of meeting the eligibility requirements for a benefit under
the Plan.
	 
	2.33  	 	“Social Security Covered Compensation” shall mean, for any Plan Year, the
average (without indexing) of the Social Security taxable wage bases in effect for each
calendar year during the 35-year period ending with the last day of the calendar year in which
the Participant attains (or will attain) Social Security Retirement Age (as such term is
defined in Section 10.1(a)(iv) hereof). In determining a Participant’s Social Security
Covered Compensation for a Plan Year, the Social Security taxable wage base for the current
Plan Year and any subsequent Plan Year shall be assumed to be the same as in effect for the
Plan Year for which the determination is being made. A Participant’s Social Security Covered
Compensation shall be automatically adjusted for each Plan Year in accordance with these
provisions, up to and including the Plan Year in which the Participant attains Social Security
Retirement Age.
	 
	2.34 	 	 “Test Compensation” shall mean, for any Plan Year, an Employee’s compensation,
reported under Sections 6041 and 6051 of the Code on Form W-2, as paid by the Company or other
Employer for the calendar year ending with or within such Plan Year, including any amounts
contributed pursuant to a salary reduction election on behalf of a Covered Employee to a plan
described in Sections 125, 132(f), 402(e)(3), 402(h)(1)(B), 403(b), or 457(b) of the Code for
the period in question. Test Compensation in any given year shall not exceed the adjusted
annual limitation in effect for such year (as set forth in Section 2.11), provided that such
limitation shall not be applied in determining the status of an Employee as a Highly
Compensated Employee or Key Employee. To the extent permitted under regulations and other
guidance promulgated by the Internal Revenue Service, the Company may elect to determine Test
Compensation on a basis other than that provided above.

39

 

	2.35  	 	“Top Paid Group” means all active Employees who, as of a given year, are in
the top twenty percent (20%) of the Company’s work force on the basis of Test Compensation for
such year, excluding the following:

	 	(a)	 	employees who have not completed six (6) months of Service by the end of
such year;
	 
	 	(b)	 	employees who work less than seventeen and one-half (17-1/2) hours per week
for such year;
	 
	 	(c)	 	employees who normally do not work more than six (6) months in a year;
	 
	 	(d)	 	employees under age twenty-one (21) at the end of such year; and
	 
	 	(e)	 	non-resident aliens who received no U.S. – source income for such year.

For purposes of this Section, the Company’s work force shall include individuals employed
by an Affiliate.

	2.36  	 	“Total and Permanent Disability” shall mean permanent incapacity resulting in
the Participant being unable to engage in any gainful employment or occupation by reason of
any medically demonstrable physical or mental condition, excluding, however, (a) incapacity
contracted, suffered or incurred while the Participant was engaged in or which resulted from
having engaged in a felonious enterprise; and (b) incapacity contracted, suffered or incurred
in the employment of other than an Employer, including self-employment.
	 
	2.37  	 	“Trust Agreement” shall mean the trust agreement between the Company and a
Trustee as provided in Section 9.1, together with all amendments, modifications and
supplements, thereto.
	 
	2.38 	 	 “Trustee” shall mean the Trustee or Trustees designated under a Trust
Agreement including any successor or successors.
	 
	2.39 	 	 “Trust Fund” or “Fund” shall mean the retirement plan trust fund established
by the Company in accordance with Article IX.

40

 

ARTICLE III — ADMINISTRATION OF THE PLAN

	3.1	 	Pension Administrator
	 
	 	 	The Plan shall be administered by a Pension Administrator (the “Administrator”) who
shall serve at the pleasure of the Board of Directors. Any individual serving as the
Administrator may resign by delivering his written resignation to the Board. In the event
of the death, resignation or removal of the Administrator, the Board shall fill the
vacancy. In making the appointment, the Board shall not be limited to any particular
group, and nothing herein contained shall be construed to prevent any Participant,
director, officer, employee or shareholder of the Employers from serving as the
Administrator. The Administrator will not be compensated from the Trust Fund for services
performed in such capacity, but the Company or Fund will reimburse such individual for
expenses reasonably incurred by him in such capacity. If the Board does not appoint any
individuals to the Administrator, then the Company shall act as the Administrator.
	 
	 	 	Appointment by the Board shall be evidenced by a certified copy of the resolution of the
Board making such appointment, and copies of such certified resolution shall be delivered
to the Trustee and to such other persons as may require such notice.
	 
	3.2	 	Powers
	 
	 	 	The Administrator will have full power to administer the Plan in all of its details,
subject, however, to the requirements of ERISA. This power shall include having the sole
and absolute discretion to interpret and apply the provisions of the Plan to determine the
rights and status hereunder of any individual, to decide disputes arising under the Plan,
and to make any determinations and findings of fact with respect to benefits payable
hereunder and the persons entitled thereto as may be required for any purpose under the
Plan. Without limiting the generality of the above, the Administrator is granted the
following authority which it shall discharge in its sole and absolute discretion in
accordance with Plan provisions as interpreted by the Administrator:

	 	(a)	 	To make and enforce such rules and regulations as it deems necessary or
proper for the efficient administration of the Plan, including the modification of
the claims procedure under Section 3.8 in accordance with any regulations issued
under Section 503 of ERISA.
	 
	 	(b)	 	To interpret the Plan.

41

 

	 	(c)	 	To decide all questions concerning the Plan and the eligibility of any
person to participate in the Plan, his period of participation and/or service under
the Plan, his date of birth, his eligibility to accrue a benefit under the Plan and
to receive a distribution from the Plan.
	 
	 	(d)	 	To compute the amount of benefits which will be payable to any Participant
or other person in accordance with the provisions of the Plan, and to determine the
identity of the person or persons to whom such benefits will be paid.
	 
	 	(e)	 	To authorize the payment of Plan benefits and to direct cessation of
benefit payments.
	 
	 	(f)	 	To appoint one or more investment managers to manage the investment and
reinvestment of the Fund and to enter into management contracts on behalf of the
Company with respect to such appointments. Unless and until the Administrator
appoints an investment manager with respect to all or a specific portion of the Fund,
the Trustee shall have exclusive authority to manage and control all or such portion
of the Fund.
	 
	 	(g)	 	To appoint, employ or engage such other agents, counsel accountants,
consultants and actuaries as may be required to assist in administering the Plan.
	 
	 	(h)	 	To establish procedures to determine whether a domestic relations order is
a qualified domestic relations order within the meaning of Section 414(p) of the
Code, to determine under such procedures whether a domestic relations order is a
qualified domestic relations order and whether a putative alternate payee otherwise
qualifies for benefits hereunder, to inform the parties to the order as to the effect
of the order, and to direct the Trustee to hold in escrow or pay any amounts so
directed to be held or paid by the order.
	 
	 	(i)	 	To determine whether the Plan has incurred a partial termination.
	 
	 	(j)	 	To obtain from the Employers, Employees, Participants, spouses and
Beneficiaries such information as shall be necessary for the proper administration of
the Plan.
	 
	 	(k)	 	To perform all reporting and disclosure requirements imposed upon the Plan
by ERISA, the Code or any other lawful authority.
	 
	 	(l)	 	To take such steps as it, in its discretion, considers necessary and/or
appropriate to remedy any inequity under the Plan that results from incorrect
information received or communicated or as the consequence of administrative error.
	 
	 	(m)	 	To correct any defect, reconcile any inconsistency or supply any omission
under the Plan.
	 
	 	(n)	 	To delegate its powers and duties to others in accordance with Section 3.3.

42

 

	 	(o)	 	To exercise such other authority and responsibility as is specifically
assigned to it under the terms of the Plan and to perform any other acts necessary to
the performance of its powers and duties.

The Administrator at its discretion may either request the Company or direct the Fund to
pay for any or all services rendered by the Trustee and by persons appointed, employed or
engaged under Section 3.2(f) or (g) or under the terms of the Trust Agreement.

The Administrator’s interpretations, decisions, computations and determinations under this
Section 3.2 which are made in good faith will be final and conclusive upon the Employers,
all Participants and all other persons concerned. Any action taken by the Administrator
with respect to the rights or benefits of any person under the Plan shall be revocable by
the Administrator as to payments or distributions not theretofore made, pursuant to such
action, from the Trust Fund; and appropriate adjustments may be made in future payments or
distributions to a Participant or Beneficiary to offset any excess payment or underpayment
previously made to such Participant or Beneficiary from the Trust Fund. No ruling or
decision of the Administrator in any one case shall create a basis for a retroactive
adjustment in any other case prior to the date of written filing of each specific claim.

	3.3	 	Delegation of Duties
	 
	 	 	The Administrator may, from time to time, designate any individual to carry out any
of the responsibilities of the Administrator other than the appointment of an investment
manager(s). The individual so designated will have full authority or such limited
authority as the Administrator may specify, to take such actions as are necessary or
appropriate to carry out the responsibilities assigned by the Administrator.
	 
	3.4	 	Administrator as Named Fiduciary
	 
	 	 	The Administrator will be a “named fiduciary” for purposes of section 402(a)(1) of
ERISA with authority to control and manage the operation and administration of the Plan.
	 
	3.5	 	Conclusiveness of Various Documents
	 
	 	 	The Administrator and the Company and its directors and officers will be entitled to
rely upon all tables, valuations, certificates and reports furnished by any actuary,

43

 

	 	 	accountant, counsel or other expert appointed, employed or engaged by the Administrator or
the Company.

	3.6	 	Actions to be Uniform
	 
	 	 	Any discretionary actions to be taken under the Plan by the Administrator will be
nondiscriminatory and uniform with respect to all persons similarly situated.
	 
	3.7	 	Liability and Indemnification
	 
	 	 	To the full extent allowed by law, the Administrator shall not incur any liability to
any Participant or Beneficiary, or to any other person, by reason of any act or failure to
act on the part of the Administrator if such act or omission is not the result of the
Administrator’s gross negligence, willful misconduct or exercise of bad faith. To the
full extent allowed by law, the Company agrees to indemnify the Administrator against all
liability and expenses (including reasonable attorney’s fees and other reasonable
expenses) occasioned by any act or omission to act if such act or omission is not the
result of the Administrator’s gross negligence, willful misconduct or exercise of bad
faith. Neither this Section 3.7 nor any other provision of this Plan shall be applied to
invalidate, modify, or limit in any respect any contract, agreement, or arrangement for
indemnifying or insuring the Administrator against, or otherwise limiting, such liability
or expense, or for settlement of such liability, to the extent such contract, agreement,
or arrangement is not precluded by the terms of Section 410 of ERISA.
	 
	3.8	 	Claims Review Procedure
	 
	 	 	The Administrator shall be responsible for the claims procedure under the Plan. An
application for a retirement benefit or other benefit under the Plan shall be considered a
claim for purposes of this Section 3.8.

	 	(a)	 	Original Claim. In the event a claim of any Participant, Beneficiary,
alternate payee, or other person (hereinafter referred to in this Section as the
“Claimant”) for a benefit is partially or completely denied, the Administrator shall
give, within ninety (90) days after receipt of the claim (or if special circumstances,
made known to the Claimant, require an extension of time for processing the claim,
within one hundred eighty (180) days after receipt of the claim), written notice of
such denial to the Claimant. Such notice shall set forth, in a manner calculated to be
understood by the Claimant, the specific reason or reasons for the denial (with
reference to pertinent Plan provisions upon which the denial is based); an explanation
of additional material or information, if any, necessary for the

44

 

	 	 	 	Claimant to perfect the claim; a statement of why the material or information is
necessary; on and after January 1, 2002, a statement of the Claimant’s right to
bring a civil action under Section 502(a) of ERISA; and an explanation of the Plan’s
claims review procedure, including the time limits applicable to such procedure.
	 
	 	(b)	 	Review of Denied Claim.

	 	(i)	 	A Claimant whose claim is partially or completely denied shall
have the right to request a full and fair review of the denial by a written
request delivered to the Administrator within sixty (60) days of receipt of the
written notice of claim denial, or within such longer time as the
Administrator, under uniform rules, determines. In such review, the Claimant
or his duly authorized representative shall have the right to review, upon
request and free of charge, all documents, records or other information
relevant to the claim and to submit any written comments, documents, or records
relating to the claim to the Administrator.
	 
	 	(ii)	 	The Administrator, within sixty (60) days after the request for
review, or in special circumstances, such as where the Administrator in its
sole discretion holds a hearing, within one hundred twenty (120) days of the
request for review, will submit its decision in writing. Such decision shall
take into account all comments, documents, records and other information
properly submitted by the Claimant, whether or not such information was
considered in the original claim determination. The decision on review will be
binding on all parties, will be written in a manner calculated to be understood
by the Claimant, will contain specific reasons for the decision and specific
references to the pertinent Plan provisions upon which the decision is based,
will indicate that the Claimant may review, upon request and free of charge,
all documents, records or other information relevant to the claim and on and
after January 1, 2002, will contain a statement of the Claimant’s right to
bring a civil action under Section 502(a) of ERISA.
	 
	 	(iii)	 	If a Claimant fails to file a claim or request for review in
the manner and in accordance with the time limitations specified herein, such
claim or request for review shall be waived, and the Claimant shall thereafter
be barred from again asserting such claim.

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	 	(c)	 	Determination by the Administrator Conclusive. The Administrator’s
determination of factual matter relating to Participants, Beneficiaries and alternate
payees including, without limitation, a Participant’s Credited Service, Service and any
other factual matters, shall be conclusive. The Administrator and the Company and its
respective officers and directors shall be entitled to rely upon all tables,
valuations, certificates and reports furnished by an actuary, any accountant for the
Plan, the Trustee or any investment managers and upon opinions given by any legal
counsel for the Plan insofar as such reliance is consistent with ERISA. The actuary,
the Trustee and other service providers may act and rely upon all information reported
to them by the Administrator and/or the Company and need not inquire into the accuracy
thereof nor shall be charged with any notice to the contrary.

	3.9	 	Waiver of Participation
	 
	 	 	It is the purpose of this Plan to provide for the accrual of retirement benefits for
all Covered Employees. Notwithstanding the foregoing, any Covered Employee may waive
participation in this Plan by executing a Waiver of Participation on a form provided by
the Administrator for such purpose. Any Waiver of Participation shall be effective for
the Plan Year in which it is executed and shall be irrevocable. During any Plan Year for
which a Waiver of Participation is in effect, no Service, Credited Service or Compensation
shall be recognized under the Plan for the Covered Employee.

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ARTICLE IV — SERVICE PROVISIONS

	4.1	 	Service
	 
	 	 	Service shall be used to determine a Participant’s vested rights under the Plan. An
Employee shall receive Service for the period of time between his Date of Hire and his
Date of Severance, provided that no Service shall be received for the period of continued
absence between the first and second anniversary of the date of first absence from work by
reason of a Maternity or Paternity Absence. Service shall be counted for full years only.
Service shall include any prior periods of Service that are reinstated in accordance with
Section 4.3 below. Service shall include any Period of Severance which has continued for
less than one year.
	 
	 	 	Notwithstanding the foregoing, Service (but not Credited Service) shall include periods of
absence granted under The Family and Medical Leave Act of 1993, to the extent of the
minimum service credit required by said Act.
	 
	4.2	 	Credited Service
	 
	 	 	Credited Service shall be used to compute the amount of a Participant’s benefit and
to determine a Participant’s eligibility for an early retirement and a disability
retirement under the Plan. Credited Service shall be based on Service but shall not
include (i) any period of Service in which a Participant is not a Covered Employee, and
(ii) any Period of Severance; provided, however, that a Participant’s Credited Service
shall include that Credited Service accumulated during the period in which the Participant
is eligible for a disability retirement pension (as determined under Sections 5.3, 6.3 and
7.2 hereof). Solely for purposes of computing the amount of a Participant’s benefit under
Section 6.1 and subject to the foregoing provisions of this Section, Credited Service
shall include a year of credit for any fraction of a year of Service.
	 
	4.3	 	Loss and Reinstatement of Service
	 
	 	 	In the event a Participant incurs a Date of Severance prior to his becoming eligible
for a retirement benefit or deferred vested pension under the Plan, he shall be deemed to
receive a distribution equal to the actuarial equivalent value of the entire vested
pension earned through his Date of Severance. In such a case, the Participant shall lose
his Service and Credited Service and his Accrued Pension shall be forfeited as of such
date of deemed distribution. If such individual is subsequently reemployed as a Covered
Employee, the individual, after again completing one year of Service, shall be

47

 

	 	 	considered a Plan Participant retroactively as of such date of reemployment and have his
forfeited Service, Credited Service and Accrued Pension reinstated if his last Period of
Severance is less than the greater of:

	 	(a)	 	five years, or
	 
	 	(b)	 	the Participant’s forfeited Service (including any periods of Service
previously reinstated under the provisions of this Section 4.3 or its predecessor).

	4.4	 	Transfer To Other Employment
	 
	 	 	Upon the transfer of a Participant covered by the Plan to other employment with an
Employer or Affiliate whereby he ceases to be a Covered Employee hereunder, his Accrued
Pension based on his Credited Service and Final Average Earnings as of the transfer date
shall be frozen and Credited Service shall cease to accrue for purposes of the Plan. In
the event such Participant remains in the employment of an Employer until such time as,
except for such transfer, he would have met the age, service and/or other eligibility
requirements for any pension under the Plan, such frozen Accrued Pension shall become
payable in accordance with the appropriate provisions of the Plan as in effect on the date
of transfer.
	 
	4.5	 	Transfer From Other Employment
	 
	 	 	Upon transfer or retransfer of an individual from other employment with an Employer
or Affiliate such that the individual becomes a Covered Employee hereunder, his years of
Service as otherwise computed under this Article IV will include the period of his
employment with an Employer or Affiliate prior to such transfer or retransfer for the
purpose of meeting the vesting requirements under this Plan; provided, however, that only
years of Credited Service acquired while employed as a Covered Employee covered under this
Plan shall be used to compute the amount of any pension under this Plan.

48

 

ARTICLE V — ELIGIBILITY FOR PENSIONS

	5.1	 	Normal Retirement
	 
	 	 	A Participant whose employment with an Employer and all Affiliates is terminated when
or after he attains Normal Retirement Age shall be eligible for a normal retirement
pension in the amount as provided in Section 6.1 hereof. A Participant’s right to his
normal retirement pension shall be nonforfeitable upon the attainment of his Normal
Retirement Age provided he is an Employee on such date. A Participant continuing in
employment with an Employer after his Normal Retirement Date in a capacity such that he
completes 40 or more Hours of Service per month will be provided with a notice
incorporating the substance of the notification described in Section 2530.203-3(b)(4) of
the Code of Federal Regulations. Such notice shall include a statement that the
Participant’s pension will be suspended and permanently withheld for months in which he
completes 40 or more Hours of Service. Any benefit accrual earned by a Participant for
any given Plan Year ending on or after the date on which the Participant attains Normal
Retirement Age shall be reduced (but not below zero) by the amount of any actuarial
adjustment which may be required in connection with a delay in payment of a Participant’s
normal retirement benefit or the suspension of benefits otherwise payable after the
Participant attains Normal Retirement Age.
	 
	5.2	 	Early Retirement
	 
	 	 	A Participant with 15 or more years of Credited Service whose employment with an
Employer and all Affiliates is terminated when or after he reaches the age of 55 but prior
to the attainment of his Normal Retirement Age, shall be eligible for an early retirement
pension in the amount as provided in Section 6.2 hereof.
	 
	5.3	 	Disability Retirement
	 
	 	 	A Participant whose status as a Covered Employee is terminated due to his Total and
Permanent Disability after 15 or more years of Credited Service and who is eligible for
and receiving disability benefits under the Erie Insurance Group Long Term Disability Plan
shall be eligible for a disability retirement pension in an amount as provided in Section
6.3 hereof beginning at his Normal Retirement Date or later disability retirement date
providing he remains subject to a Total and Permanent Disability continuously through his
Normal Retirement Age or later disability retirement date.

49

 

	5.4	 	Vesting
	 
	 	 	A Participant with 5 years or more of Service and whose employment with an Employer
and all Affiliates is terminated at a time when he is ineligible for any retirement
pension under the Plan shall be eligible for a deferred vested pension as computed under
Section 6.4.
	 
	 	 	If a Participant is reemployed as a Covered Employee by an Employer after having qualified
for a deferred vested pension in accordance with this Section 5.4, such Participant shall
retain his right to receive such deferred vested pension and he shall be reinstated with
the Service and Credited Service to which he was entitled at the time of his prior
termination of employment. Any benefits to which the Participant may be entitled upon his
subsequent retirement or termination of employment shall be reduced actuarially, as
provided in Section 7.4, to reflect any deferred vested pension benefits paid prior to
reemployment.

50

 

ARTICLE VI — AMOUNT OF PENSIONS 

	6.1	 	Normal Retirement Pension
	 
	 	 	Subject to the provisions of Articles VII and X, the monthly pension of a Participant
who is eligible for a normal retirement pension under the provisions of Section 5.1 (as
stated in the form of a life annuity) shall be one-twelfth (1/12) of the result obtained
by multiplying the sum of (a) and (b) by (c), where:

	 	(a)	 	equals 1.0% of the Participant’s Final Average Earnings not in excess of
Social Security Covered Compensation;
	 
	 	(b)	 	equals 1.5% of the Participant’s Final Average Earnings in excess of Social
Security Covered Compensation; and
	 
	 	(c)	 	equals the Participant’s Credited Service not in excess of 30 years.

In no event shall the overall permitted disparity limits of Section 1.401(l)-5 of the
Income Tax Regulations be exceeded.

	6.2	 	Early Retirement Pension
	 
	 	 	Subject to the provisions of Articles VII and X, the monthly early retirement pension
of a Participant eligible for an early retirement pension under the provisions of Section
5.2 shall be, at the option of the Participant, either (a) or (b) as set forth below:

	 	(a)	 	A deferred pension, commencing as of the Participant’s Normal Retirement
Date, equal to the amount of pension, determined under Section 6.1, to which he is
entitled based upon his Credited Service and Final Average Earnings as of his date of
early retirement and the level of Social Security Covered Compensation in effect on
such date.
	 
	 	(b)	 	An immediate pension, commencing as of any month following the month in
which such Participant retires early, determined as provided in (a) above, but
reduced by 1/4 of 1 percent for each complete calendar month up to 60 such months and
by 3/8ths of 1 percent for each complete calendar month in excess of 60 months, by
which his early retirement pension commencement date precedes his Normal Retirement
Date.

	6.3	 	Disability Retirement Pension
	 
	 	 	Subject to the provisions of Articles VII and X, a Participant eligible for
disability benefits under the provisions of Section 5.3 and under Title II of the Social
Security Act shall receive a disability retirement pension beginning as of his Normal
Retirement

51

 

	 	 	Date. Such disability retirement pension shall be in an amount determined in accordance
with Section 6.1 assuming that:

	 	(a)	 	Service and Credited Service are granted for each calendar year (and part
thereof) during which he continues to be subject to a Total and Permanent Disability
and to qualify for Social Security disability benefits, and
	 
	 	(b)	 	his Compensation during his last full calendar year before his termination
due to disability continues unchanged from the calendar year including his date of
disability to the calendar year including his Normal Retirement Age, and
	 
	 	(c)	 	his Social Security Covered Compensation is based on the level in effect at
the time he becomes disabled.

	6.4	 	Deferred Pension Upon Termination of Service
	 
	 	 	Subject to the provisions of Articles VII and X, the monthly pension, commencing as
of Normal Retirement Date, of a former Covered Employee whose employment with an Employer
and Affiliates has terminated after he has become eligible for a deferred vested pension
in accordance with Section 5.4, shall be equal to the pension such Participant would have
been entitled to under Section 6.2(a) as of his termination of employment, multiplied by a
vesting percentage determined in accordance with the table immediately below:

	 	 	 	 	 
	Years of Service	 	Vesting Percentage
	Less than 5
	 	 	0	%
	5 or more
	 	 	100	%

Except as otherwise provided under Section 8.1, any Participant having less than five
years of Service at the time of his death or other termination of employment with the
Employers or an Affiliate shall have no vested rights under this Plan and neither he nor
his spouse or Beneficiary shall be entitled to any benefits under this Plan.

A former Covered Employee who is eligible for a deferred vested pension and who is
credited with 15 or more years of Credited Service may elect (by written application) to
commence his deferred vested pension in a reduced amount at any time between the ages of
55 and 65, in which case the monthly pension amount as determined above shall be reduced
in accordance with the provisions of subsection (b) of Section 6.2 based on the number of
months that his Annuity Starting Date precedes his Normal Retirement Date.

52

 

	6.5	 	Increase in Pension for Certain Retired Participants

	 	(a)	 	Notwithstanding the foregoing provisions of this Article VI and effective for
Plan payments made on or after January 1, 1996, the monthly pension payable to a
Qualified Pensioner (or to the Beneficiary of a Qualified Pensioner) shall be
increased by the greater of five percent (5%) or twenty dollars ($20.00). For
purposes of this subsection (a), a “Qualified Pensioner” means a Participant who
retired under the normal retirement, early retirement, or disability retirement
provisions of the Plan prior to January 1, 1994.
	 
	 	(b)	 	Notwithstanding the foregoing provisions of this Article VI and effective
for Plan payments made on or after January 1, 1999, the monthly pension payable to a
Qualified Pensioner (or to the Beneficiary of a Qualified Pensioner) shall be
increased by the greater of four percent (4%) or fifteen dollars ($15.00). For
purposes of this subsection (b), a “Qualified Pensioner” means a Participant who
retired under the normal retirement, early retirement, or disability retirement
provisions of the Plan and commenced Plan payment prior to January 1, 1997.

	6.6	 	Offset of Accruals by Plan Distributions
	 
	 	 	In the event distribution of benefits commence to an employed Participant pursuant to
Section 7.10 or for any other reason after the employed Participant has attained his
Normal Retirement Age, any increase in the Participant’s monthly benefit which accrues in
any Plan Year in which such distribution is made shall be reduced (but not below zero) by
the Actuarial Equivalent of total Plan benefit distributions made to such Participant by
the close of such Plan Year.
	 
	6.7	 	Non-Duplication of Benefits

	 	(a)	 	There shall be no duplication of any retirement benefit or deferred vested
pension benefit payable under this Plan, and any pension or retirement benefit
payable under any other qualified defined benefit pension, retirement, or similar
plan to which an Employer or predecessor Employer of the particular Participant has
contributed, based upon the same period of service. Unless such other benefits are
clearly intended to be in addition to benefits under this Plan, the Administrator
shall make or cause to be made appropriate adjustments in the retirement benefit or
deferred vested pension benefit payable under this Plan in respect to any Participant
to carry out the provisions of this paragraph.

53

 

	 	(b)	 	No benefit shall be payable to any Participant under more than one Section
of the Plan for the same period of time. No retirement benefit or deferred vested
pension benefit shall be paid to any Participant while he is receiving benefits under
a long-term disability benefit contract or plan to which an Employer or Affiliate has
contributed.

	6.8	 	Special Provisions Pertaining to Section 401(a)(17) Employees
	 
	 	 	Unless otherwise provided under the Plan, the Accrued Pension of each Section
401(a)(17) Employee (as hereinafter defined) will be the greater of the Accrued Pension
determined for such Employee under (a) or (b) below:

	 	(a)	 	The Employee’s Accrued Pension determined with respect to the benefit
formula applicable for the Plan Year beginning on or after December 31, 1994, as
applied to the Employee’s total years of service taken into account under the Plan
for the purpose of benefit accruals; or
	 
	 	(b)	 	The sum of: (i) the Employee’s Accrued Pension as of the last day of the
last Plan Year beginning before December 31, 1994, frozen in accordance with Section
1.401(a)(4)-13 of the Income Tax Regulations, and (ii) the Employee’s Accrued Pension
determined under the benefit formula applicable for the Plan Years beginning on and
after December 31, 1994, as applied to the Employee’s years of service credited for
Plan Years beginning on and after December 31, 1994, for purposes of benefit
accruals.

A “Section 401(a)(17) Employee” means a Covered Employee whose current Accrued Pension as
of a date on or after the first day of the first Plan Year beginning on or after December
31, 1994, is based on Compensation for a year beginning on or after December 31, 1994,
that exceeded $150,000.

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ARTICLE VII — COMMENCEMENT AND DURATION OF PENSIONS 

	7.1	 	Normal and Early Retirement Pensions

	 	(a)	 	Any normal or early retirement pension shall be payable to a retired Participant
who has applied therefor in accordance with the rules established by the
Administrator, commencing as of the later of the Participant’s Normal Retirement Date
or the first day of the month next following the date as of which the Participant
retires. A Participant who is eligible for an early retirement pension may elect
payment prior to Normal Retirement Date and receive a reduced pension under the
provisions of Section 6.2. A Participant who fails to elect such an early payment
will be deemed to have made an election to defer distribution.
	 
	 	(b)	 	Subject to Sections 7.8 and 7.10, a normal or early retirement pension
shall be payable monthly for the remaining life of such retired Participant. The
last payment to the retired Participant under this form shall be for the month in
which the death of such retired Participant occurs. However, if the retired
Participant duly accepted the Automatic Surviving Spouse’s Pension as set forth in
Section 7.5 or elected an optional form of pension in Section 7.7 and is receiving
his retirement pension pursuant to such election, then any pension payments to him
and his surviving spouse or Beneficiary shall be as set forth in Section 7.5 or 7.7,
whichever applicable.

	7.2	 	Disability Retirement Pension
	 
	 	 	A disability retirement pension shall be payable to a disabled Participant who has
applied therefor in accordance with the rules established by the Administrator, commencing
as of the Participant’s Normal Retirement Date or later disability retirement date (or, if
later, commencing as of the first day of the month next following the date as of which
application for the disability retirement pension was made), provided the Participant has
remained continuously disabled (within the meaning of Section 5.3) up to his Normal
Retirement Date or later disability retirement date.
	 
	 	 	To ascertain whether a Participant retains his eligibility for a disability retirement
pension, the Participant may be required by the Administrator to submit to a medical
examination at any time prior to his Normal Retirement Age, but not more often than
semi-annually. If it is determined by the Administrator that the Participant is no longer
disabled (within the meaning of Section 5.3) on the basis of such an examination, or that
he has engaged or is engaging in gainful employment (except for purposes of

55

 

	 	 	rehabilitation approved by the Administrator), or that prior to his Normal Retirement Age
he ceases to be eligible for disability benefits under the Social Security Act, then his
eligibility for a disability retirement pension will end and, his Credited Service
accumulated to that time shall be reinstated, whether or not the Participant returns to
employment as a Covered Employee. Such Participant shall be eligible for a retirement or
deferred vested pension, based on such Credited Service, under the provisions of Section
5.1, 5.2, or 5.4.
	 
	 	 	If a participant who is disabled (within the meaning of Section 5.3) chooses to begin a
retirement or deferred vested pension prior to his Normal Retirement Date and prior to a
determination by the Administration that he is no longer disabled, the retirement or
deferred vested pension shall be based on the Participant’s Credited Service as of his
termination of employment due to disability.
	 
	 	 	In the event a Participant who is otherwise eligible for a disability retirement pension
refuses to submit to a medical examination as required by the Administrator, all his
rights to a disability retirement pension hereunder shall cease until he submits to such
examination.
	 
	 	 	Subject to Section 7.8, a disability pension shall be payable monthly for the remaining
life of such retired Participant. The last payment to the retired Participant under this
form shall be for the month in which the death of such retired Participant occurs.
However, if the Participant duly accepted the Automatic Surviving Spouse’s Pension as set
forth in Section 7.5 or elected an optional form of pension in Section 7.7 and is
receiving his retirement pension pursuant to such election, then any pension payments to
him and his surviving spouse or Beneficiary shall be as set forth in Section 7.5 or 7.7,
whichever applicable.
	 
	7.3	 	Deferred Vested Pension
	 
	 	 	A deferred vested pension shall be payable to a Participant who has met the criteria
provided in Section 5.4 and who has applied therefore in accordance with rules established
by the Administrator, commencing as of the Participant’s Normal Retirement Date, or, if
the Participant has at least 15 years of Credited Service as of his termination of
employment, commencing as of the first day of any month between the age of 55 and his
Normal Retirement Date in accordance with an eligible Participant’s election to receive a
reduced amount under the provisions of Section 6.4. A Participant

56

 

	 	 	who fails to elect such an early commencement of benefits will be deemed to have made an
election to defer distribution. Subject to Section 7.8, a deferred vested pension shall
be payable monthly for the remaining life of the Participant. The last payment to the
Participant under this form shall be for the month in which the death of such Participant
occurs. However, if the Participant duly elected the Automatic Surviving Spouse’s Pension
as set forth in Section 7.5 or elected an optional form of pension in Section 7.7 and is
receiving his deferred vested pension pursuant to such election, then any pension payments
to him and his surviving spouse or Beneficiary shall be as set forth in Section 7.5 or
7.7, whichever applicable.

	7.4	 	Reemployment of a Retired Participant
	 
	 	 	The pension payable to any Participant receiving retirement benefits or deferred
vested pension benefits shall cease and be permanently withheld if and when such
Participant is reemployed by an Employer; provided, however, that no pension shall be
withheld by the Plan pursuant to this Section 7.4 for any month during which such
reemployed Participant has been employed in a classification which is not covered under
the Plan or during which such Participant fails to complete 40 or more Hours of Service.
In addition, no payment shall be withheld by the Plan pursuant to this Section 7.4 unless
the Plan notifies the reemployed Participant by personal delivery or first class mail
during the first calendar month in which the Plan withholds payments that his benefits are
suspended. Such notification shall contain a description of the specific reasons why
benefit payments are being suspended, a general description of the Plan provisions
relating to the suspension of payments, a copy of such provisions, and a statement to the
effect that applicable Department of Labor regulations may be found in Section 2530.203-3
of the Code of Federal Regulations. In addition, the suspension notification shall inform
the reemployed Participant of the Company’s procedure for affording a review of the
suspension of benefits.
	 
	 	 	The retirement or deferred vested pension shall resume with the month following subsequent
retirement or termination of employment. Any retirement or deferred vested pension
payable upon such subsequent retirement or termination shall be determined as provided in
Article VI on the basis of the Participant’s Credited Service at the time of his previous
retirement or termination, plus his Credited Service as a Participant during his period of
reemployment; provided, however, that such retirement or deferred vested pension shall be
reduced by the actuarial equivalent of the retirement or deferred vested pension benefits,
if any, that the Participant received prior to his reemployment.

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	 	 	Notwithstanding the foregoing, in no event shall a Participant’s retirement or deferred
vested pension payable following his subsequent retirement or termination be less than
that retirement or deferred vested pension payable to the Participant prior to his
reemployment. In the determination of the Final Average Earnings of a Participant who is
reemployed and who again becomes an active Participant, the thirty-six month period to be
considered shall be the number of months in such period of reemployment prior to his
subsequent date of retirement or termination, plus such number of months immediately prior
to his earlier retirement or termination as shall total thirty-six months.
	 
	7.5	 	Automatic Surviving Spouse’s Pension
	 
	 	 	A married Participant who is eligible to commence payments pursuant to the normal,
early or disability retirement provisions of the Plan or pursuant to the deferred vested
pension provisions of the Plan and whose benefit may not be paid under the provisions of
Section 7.8 shall automatically be deemed to have elected, at the commencement dates
otherwise specified herein, an immediate monthly pension during his lifetime with the
provision that, following his death, a monthly survivor’s pension equal to 50 percent of
his reduced pension shall be payable to his surviving spouse during the further lifetime
of the spouse (the “Automatic Surviving Spouse’s Pension”). Such pension shall be
actuarially equivalent to an immediate single life annuity. The automatic election
provided in this Section 7.5 shall become effective as of the Participant’s Annuity
Starting Date.
	 
	 	 	An unmarried Participant who retires pursuant to the normal, early or disability
retirement provisions of the Plan or pursuant to the deferred vested pension provisions of
the Plan and whose benefit may not be paid under the provisions of Section 7.8 shall
automatically be deemed to have elected a monthly pension payable for his lifetime.
	 
	 	 	A Participant may prevent the automatic election provided in this Section 7.5 at any time
within the “applicable election period” (as hereafter defined) by executing a specific
written rejection of such an election on a form approved by the Administrator and filing
it with the Administrator; provided that such rejection shall not take effect unless the
Participant’s spouse, if applicable, consents to such rejection in accordance with Section
7.6 of the Plan. Any election to revoke the Automatic Surviving Spouse’s Pension and any
spouse’s consent thereto must specify the particular optional form of benefit elected by
the Participant and, if applicable, must state the specific non-spouse Beneficiary or
Beneficiaries (including any class of Beneficiaries or any contingent

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	 	 	Beneficiaries) who may be entitled to any benefits upon the Participant’s death. Any
subsequent change in optional form of benefit or in a non-spouse Beneficiary selected
shall be valid only if accompanied by the written and witnessed consent of the
Participant’s spouse in the manner described in Section 7.6.

During the period beginning no more than 90 days and ending no less than 30 days prior to
the Participant’s Annuity Starting Date, the Administrator shall furnish to the
Participant a written general description of the automatic election provided in this
Section 7.5. The general description shall include a written explanation of the
Participant’s and spouse’s rights under the Automatic Surviving Spouse’s Pension,
including the availability and effect of the election to reject the Automatic Surviving
Spouse’s Pension. Such description shall also provide information as to the material
features of the optional forms of benefit as well as a brief explanation of their relative
values as compared to the Automatic Surviving Spouse’s Pension. In addition, in the event
the Participant’s Annuity Starting Date is prior to his attainment of Normal Retirement
Age, such description shall inform the Participant of his right to defer receipt of the
Plan distribution. A Participant may make and revoke his written rejection of an
Automatic Surviving Spouse’s Option at any time and any number of times within the
“applicable election period”. The “applicable election period” shall commence 90 days
prior to the Participant’s Annuity Starting Date and shall end on the Participant’s
Annuity Starting Date. Notwithstanding the foregoing, effective on and after January 1,
1997, the written description identified in this paragraph may be provided after the
Participant’s Annuity Starting Date provided the Participant has at least 30 days
following distribution of the written description to reject the Automatic Surviving
Spouse’s Pension and elect another form of payment permitted under the Plan. Distribution
to the Participant may commence after seven days have elapsed from the date the
Administrator provides the written description provided that the Participant has received
information that clearly indicates his right to at least 30 days to consider the contents
of the description, the Participant affirmatively elects distribution and any required
spousal consent is satisfied.

A Participant who retires pursuant to the normal, early or disability retirement
provisions of the Plan or pursuant to the deferred vested pension provisions of the Plan
and who is entitled, under such provisions, to a pension with a lump sum actuarial
equivalent value not in excess of $5,000 (or for distributions prior to December 31,

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2001 was not in excess of $3,500 at the time of that distribution or any prior
distribution) shall receive his pension in accordance with Section 7.8 hereof.

	7.6	 	Requirement for Spouse Consent
	 
	 	 	Any election of a married Participant under Sections 7.5 and 7.7 (other than an
election to revoke a rejection of the Automatic Surviving Spouse’s Pension under Section
7.5) shall require the consent of the Participant’s spouse unless it is established to the
satisfaction of the Administrator that the consent required under this Section 7.6 may not
be obtained:

	 	(a)	 	because there is no spouse or because the spouse cannot be located,
	 
	 	(b)	 	because the Participant is legally separated from the spouse,
	 
	 	(c)	 	because the Participant has been abandoned by his spouse (within the
meaning of local law) and such Participant has a court order to that effect, or
	 
	 	(d)	 	because of such other circumstances as the Secretary of the Treasury may by
regulations prescribe.

Any consent by a spouse shall be in writing acknowledging the effect of such election or
revocation and witnessed by a notary public or such Plan representatives as may be
designated for this purpose by the Administrator. Any spouse’s consent (or establishment
that the spouse’s consent may not be obtained) shall be effective only with respect to
such spouse.

	7.7	 	Optional Forms of Pensions
	 
	 	 	In lieu of a benefit in the form of payment determined in Section 7.5, a Participant
may, with the consent of his spouse as described in Section 7.6, elect an actuarially
equivalent benefit described below. This election is effective as of a Participant’s
Annuity Starting Date.

	 	(a)	 	Option A: 10-Year Certain and Life Option — A reduced
monthly retirement income is payable to the Participant during his remaining
lifetime, and upon his death prior to receiving payment for a period equivalent to
120 months, monthly payments of the same reduced amount will be made to his
Beneficiary until the number of monthly payments made to the Beneficiary, when added
to the number of monthly payments made to the Participant, is equivalent to 120
monthly payments.
	 
	 	(b)	 	Option B: 15-year Certain and Life Option — A reduced
monthly retirement income is payable to the Participant during his remaining
lifetime, and upon his death prior to receiving payment for a period equivalent to
180 months, monthly

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	 	 	 	payments of the same reduced amount will be made to his Beneficiary until the
number of monthly payments made to the Beneficiary, when added to the number of
monthly payments made to the Participant, is equivalent to 180 monthly payments.
	 
	 	(c)	 	Option C: 50% Joint and Survivor Option — a reduced monthly
retirement income is payable to the Participant for his remaining lifetime, and upon
his death, monthly income of 50% of such reduced monthly income previously paid to
the Participant shall be paid to his Beneficiary for as long thereafter as that
person shall live.
	 
	 	(c)	 	Option D: 100% Joint and Survivor Option — a reduced
monthly retirement income is payable to the Participant for his remaining lifetime,
and upon his death, monthly income of 100% of such reduced monthly income previously
paid to the Participant shall be paid to his Beneficiary for as long thereafter as
that person shall live.
	 
	 	(e)	 	Option E: Joint and Survivor Pop-Up Option — a reduced
monthly retirement income is payable to the Participant for his remaining lifetime,
and upon his death, monthly income of either 50% or 100% (as elected by the
Participant) of such reduced monthly income previously paid to the Participant shall
be paid to the Participant’s spouse for as long thereafter as such spouse shall live;
provided, however, that in the event the spouse of the Participant predeceases the
Participant and such spouse’s death occurs within 60 months of the Participant’s
Annuity Starting Date, the provisions of Section 7.12 shall apply. Notwithstanding
any provision of the Plan to the contrary (i) the Joint and Survivor Pop-Up Option
shall be available only with respect to a Participant who has retired under the
normal retirement provisions of Section 5.1 or the early retirement provisions of
Section 5.2, and (ii) actuarial equivalence of a benefit payable under the Joint and
Survivor Pop-Up Option shall be determined under Section 11.6; provided, however,
that in the event an annuity contract is purchased from an insurance company with
respect to such benefit, actuarial equivalence shall thereafter be determined by
reference to the specific annuity contract which will be purchased by the Plan to
provide the monthly retirement income payable under this form of payment.

Election of these options must be made during the applicable election period described in
Section 7.5. Except to the extent otherwise provided under Section 8.4, if either the
Participant or his Beneficiary dies after the election of an option is made but before the
Annuity Starting Date such option will not become effective. If the Beneficiary shall

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die after commencement of the joint and survivor pension, but before the death of the
retired Participant, the Participant shall continue to receive the reduced pension payable
in accordance with such option. An option may be cancelled by the Participant prior to
the Annuity Starting Date. The effect of such cancellation shall be to reinstate the life
annuity specified in Section 7.1, 7.2 or 7.3, whichever applicable, or, if the Participant
is married, the Automatic Surviving Spouse’s Pension under Section 7.5 (in which case any
subsequent option election must satisfy the requirements of Section 7.5). Except to the
extent expressly permitted under the Plan, no election regarding an optional form of
payment may be made by a Participant following the Participant’s Annuity Starting Date.
If the Beneficiary designated by a Participant in connection with the election of an
optional form of benefit is not the spouse of the Participant, then the election shall be
effective only if the minimum distribution incidental benefit requirements of Section
1.401(a)(9)-6 of the Income Tax Regulations are satisfied with respect to such
distribution.

	7.8	 	Payment of Small Pension

	 	(a)	 	Notwithstanding any provision of the Plan to the contrary, if the actuarial
equivalent present value of any retirement benefit, deferred vested pension or
survivor benefit does not exceed $5,000 such benefit shall be paid as soon as
practicable in a lump sum equal to such present value. No lump sum payments shall be
made if the actuarial equivalent present value of the benefit is in excess of this
threshold.
	 
	 	(b)	 	Effective for any distribution to a Participant under this Section 7.8 on
and after March 28, 2005, the lump sum payment described above shall be made on the
conditions that the Participant is alive as of the applicable Annuity Starting Date
and, except as otherwise provided in this subsection (b), that the Participant
affirmatively elects payment in cash or as a Direct Rollover (as defined in Section
7.11). No further election or consent shall be required or permitted with respect to
such distribution. Effective for any distribution to a Participant under this
Section 7.8 on and after February 1, 2006, if the Participant fails to affirmatively
elect payment in cash or as a Direct Rollover within the 60-day period following the
Administrator’s distribution of the Direct Rollover explanation and election, as
applicable to a benefit with an actuarial equivalent present value in excess of
$1,000, the Administrator shall direct distribution of the lump sum payment in the
form of a Direct Rollover to an individual retirement plan or annuity selected by the
Administrator. If the actuarial equivalent present value of the retirement

62

 

	 	 	 	benefit or deferred vested pension does not exceed $1,000 as of the applicable
Annuity Starting Date and the Participant fails to make a cash/Direct Rollover
election within such 60-day period, the Plan shall pay such benefit in the form of
an actuarial equivalent cash lump sum as soon as practicable following the
expiration of such 60-day period.
	 
	 	(c)	 	The actuarial equivalent present value of a retirement benefit, deferred
vested pension or survivor benefit shall be calculated and paid on the basis of the
“applicable mortality table”, as defined in Section 417(e)(3)(A)(ii)(I) of the Code,
and the “applicable interest rate”, as defined in Section 417(e)(3)(A)(ii)(II) of the
Code, for the second calendar month preceding the month in which the distribution is
payable; provided, however, that in the event the Alternative Present Value (as
hereinafter defined) of the applicable benefit is a larger amount, such larger amount
shall be paid (provided such Alternative Present Value calculation does not exceed
$5,000). For purposes of this Section 7.8, the “Alternative Present Value” of a
retirement benefit, deferred vested pension or survivor benefit shall be based on the
Accrued Pension earned by the Participant at the earlier of his termination of
employment, or December 30, 1995, determined by using the UP-1984 mortality table
(reflecting a one-year setback for Participants and a two-year setback for
Beneficiaries) and a 6% interest rate.
	 
	 	(d)	 	The provisions of this Section 7.8 shall likewise apply to any Participant
who terminates his employment with an Employer and all Affiliates prior to his
completion of such period of Service as is required for a deferred vested pension
under the Plan. In such case the terminated Participant shall be deemed to receive a
lump sum distribution of the actuarial equivalent present value of his entire vested
pension as of his date of termination of employment. Subject to Section 7.9 hereof,
a Participant who receives a distribution (or deemed distribution) under this Section
7.8 shall lose his Credited Service (and Service, in the case of a deemed
distribution) under the Plan, shall forfeit his nonvested Accrued Pension and shall
no longer be considered a Participant hereunder after such date of distribution (or
deemed distribution).

	7.9	 	Repayment of Cashout on Reemployment
	 
	 	 	Notwithstanding any provision of Section 7.8 to the contrary, in the event a
Participant described in Section 7.8 receives a distribution described thereunder and is
subsequently reemployed by an Employer as a Covered Employee, such Participant’s Credited
Service and Accrued Pension earned before his termination of employment shall be

63

 

	 	 	reinstated for all purposes of the Plan if the Participant repays to the Plan the full
amount of his distribution with interest, compounded annually from the date of
distribution to December 30, 1988 at the rate of five percent (5%) per annum and from
December 31, 1988 to the date of repayment at the rate determined for each Plan Year
within such period under Section 411(c)(2)(C) of the Internal Revenue Code. With respect
to a former Participant who has been deemed to receive a distribution of his entire vested
pension upon his termination of employment in accordance with the second paragraph of
Section 7.8, such individual shall be deemed to have repaid such distribution, with
interest, as of his date of rehire and such Participant’s Service, Credited Service and
Accrued Pension earned before his termination of employment shall be reinstated as of such
date. For purposes of the foregoing, the period in which the Participant’s repayment or
deemed repayment must occur shall end on the earlier of the fifth anniversary of the
Participant’s reemployment or the date on which the Participant’s Period of Severance
extends to five consecutive years.
	 
	7.10	 	Delay in Commencement of Pension Payments

	 	(a)	 	In no event shall payment of any pension under the provisions of this Article VII
commence as of a date that is later than 60 days after the close of the Plan Year
during which a Participant attains his Normal Retirement Date or, if later,
terminates his employment with an Employer and Affiliates. A Participant who has
terminated employment with an Employer and Affiliates may not elect to defer payment
of any retirement or deferred vested benefit beyond the Participant’s Normal
Retirement Date. No payment to an alternate payee under a qualified domestic
relations order may be made before the affected Participant’s earliest retirement age
under the Code. No payment under the Plan will be increased on account of any delay
in payment due to a Participant’s or Beneficiary’s failure to properly file the
required application forms furnished by the Administrator or to otherwise accept such
payment.
	 
	 	(b)	 	Notwithstanding any inconsistent provision of the Plan and effective
January 1, 2003, all distributions under the Plan shall be made in accordance with
Code Section 401(a)(9), including the incidental death benefit requirement of Code
Section 401(a)(9)(G), and Treasury Regulations Sections 1.401(a)(9)-1 through
1.401(a)(9)-9. Specifically, distribution of the Participant’s interest shall:

	 	(i)	 	be completed no later than the Required Beginning Date; or
	 
	 	(ii)	 	commence not later than the Required Beginning Date with
distribution to the Participant made over the life of the Participant or joint
lives of the

64

 

	 	 	 	Participant and a designated beneficiary or a period not longer than the
life of the Participant or joint lives of the Participant and a designated
beneficiary.

For purposes of this Section 7.10, Required Beginning Date shall mean April 1 of the
calendar year following the later of the calendar year in which the Participant
attains age 701/2 or the calendar year in which the Participant terminates employment
or retires; provided, however, if the Participant is a five-percent owner (as
defined in Code Section 416), the Required Beginning Date shall be April 1 of the
calendar year following the calendar year in which the Participant attains age 701/2,
regardless of the date that the five-percent owner terminates employment or retires.
In the case of a Participant who terminates employment or retires in a calendar
year after the calendar year in which he attains age 701/2 and who has not commenced
payments as of the first day of such later calendar year, the Plan benefit accrued
by the Participant shall be actuarially increased, to the extent required by
regulations, to take into account the period (commencing on the April 1st
of the calendar year following the calendar year in which the Participant attains
age 701/2 and ending on the date payment commences) during which the Participant did
not receive any benefits under the Plan; provided, however, that such actuarial
increase, to the extent permitted by regulations, shall reduce the benefit accrual
otherwise occurring during such period.

	 	(c)	 	In the event that a Participant dies prior to the date that distribution
commences:

	 	(i)	 	any portion of the Participant’s interest that is not payable
to a designated beneficiary shall be distributed not later than the end of the
calendar year which includes the fifth anniversary of the date of the
Participant’s death; and
	 
	 	(ii)	 	any portion of the Participant’s interest that is payable to a
designated beneficiary shall be distributed in accordance with subsection (i)
above or over the life of the designated beneficiary (or over a period not
extending beyond the life expectancy of the beneficiary), commencing not later
than the end of the calendar year following the calendar year of the
Participant’s death or, if the beneficiary is the Participant’s surviving
spouse, commencing not later than the last day of the later of the calendar
year in which the Participant would have attained age 701/2 or the calendar year
following the calendar year which includes the date of the Participant’s death.

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	 	(d)	 	In the event that a Participant dies after distribution of his interest has
begun, but prior to distribution of his entire interest, the remaining portion of such
interest shall be distributed in a method that is at least a rapid as the method in
effect at the date of the Participant’s death.

	7.11 	 	 Direct Rollover of Eligible Rollover Distributions.
	 
	 	 	Notwithstanding any provision of the Plan to the contrary, a Distributee may elect,
subject to provisions adopted by the Administrator which shall be consistent with income
tax regulations, to have any portion of an Eligible Rollover Distribution paid directly to
an Eligible Retirement Plan specified by the Distributee in a Direct Rollover to such
plan. The Administrator shall notify a Distributee of his right to elect a Direct
Rollover. Such notice shall be provided to the Distributee not less than 30 days before
the vested benefit maintained on behalf of the Distributee is distributed. A
Distributee’s affirmative election to make or not make a Direct Rollover may be
implemented by the Administrator less than 30 days after the Distributee receives such
notice of his Direct Rollover rights, but only if the Administrator notifies the
Distributee that he has the right to consider the decision of whether or not to elect a
Direct Rollover for up to 30 days. For purposes of this Section:

	 	(a)	 	The term “Distributee” shall mean a Covered Employee or former Covered
Employee. In addition, such an individual’s surviving spouse or such an individual’s
spouse or former spouse who is an alternate payee within the meaning of Section
414(p)(8) of the Code are Distributees with respect to the interest of the spouse or
former spouse.
	 
	 	(b)	 	The term “Eligible Rollover Distribution” shall mean any distribution of
all or any portion of the balance to the credit of the Distributee other than: any
distribution that is one of a series of substantially equal periodic payments made
for the life (or life expectancy) of the Distributee or the joint lives (or joint
life expectancies) of the Distributee and his beneficiary, or for a specified period
of ten years or more; any distribution to the extent such distribution is required
under Section 401(a)(9) of the Code; that portion of a hardship withdrawal that is
attributable to elective contributions within the meaning of Section 1.401(k)-1(g) of
Income Tax Regulations; and the portion of any distribution that is not includible in
gross income (provided, however, that any such portion consisting of after-tax
contributions shall not fail to be treated as an Eligible Rollover Distribution if
such portion is deposited into an individual retirement account or annuity described
in Code Section 408(a) or 408(b), or into a qualified defined

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	 	 	 	contribution plan described in Code Section 401(a) or annuity plan described in Code
Section 403(a) that agrees to separately account for amounts so transferred,
including separately accounting for the portion of such distribution which is
includible in gross income and the portion of such distribution which is not so
includible).
	 
	 	(c)	 	The term “Eligible Retirement Plan” shall mean an individual retirement
account or annuity, as described in Code Sections 408(a) and 408(b), respectively, an
annuity plan described in Section 403(a) of the Code, or a qualified trust described
in Section 401(a) of the Code that accepts the Distributee’s Eligible Rollover
Distribution. An Eligible Retirement Plan shall also mean an annuity contract
described in Code Section 403(b) and an eligible plan under Code Section 457(b) which
is maintained by a state, political subdivision of a state, or any agency or
instrumentality of a state or political subdivision of a state and which agrees to
separately account for amounts transferred into such plan from this Plan.
	 
	 	(d)	 	The term “Direct Rollover” shall mean a payment by the Plan to the Eligible
Retirement Plan specified by the Distributee.

	7.12	 	Change to Pension Payments in Connection with Qualifying Event.

	 	(a)	 	In the event an Eligible Retiree (as hereinafter defined) experiences a
Qualifying Event (as hereinafter defined), the provisions of this Section 7.12 shall
apply, provided that the Eligible Retiree furnishes the Administrator with reasonable
notice of the Qualifying Event within 120 days of the Qualifying Event and provides
such further information applicable hereunder as the Administrator may reasonably
require. For purposes of this Section:

	 	(i)	 	“Eligible Retiree” shall mean a Participant
who has retired under the normal retirement provisions of
Section 5.1 or the early retirement provisions of Section 5.2
and who, as of his Annuity Starting Date, was either:

	 	(A)	 	legally married and commencing
receipt of his retirement income in the form of an
Automatic Surviving Spouse’s Pension (as defined in
Section 7.5), under the 100% Joint and Survivor Option
(with his spouse as Beneficiary thereunder) or under the
Joint and Survivor Pop-Up Option; or

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	 	(B)	 	unmarried and commencing receipt
of his retirement income in the normal form of benefit
provided under Section 7.1 (a life annuity).

	 	(ii)	 	“Qualifying Event” shall mean an event
described in (A), (B) or (C) below:

	 	(A)	 	The spouse of an Eligible Retiree
who is receiving retirement income under the Joint and
Survivor Pop-Up Option under Section 7.7(e) predeceases
the Eligible Retiree and such spouse’s death occurs within
60 months of the Eligible Retiree’s Annuity Starting Date;
	 
	 	(B)	 	The marital status of an Eligible
Retiree who is receiving retirement income under any of
the forms of payment described in subparagraph (a)(i)(A)
of this Section 7.12 changes within 120 months of his
Annuity Starting Date due to the Eligible Retiree’s
divorce, marital dissolution, or legal separation; or
	 
	 	(C)	 	The marital status of an Eligible
Retiree who is described under subparagraph (a)(i)(B) of
this Section 7.12 changes and within 120 months of his
Annuity Starting Date due to the Eligible Retiree’s
marriage.

	 	(iii)	 	“Qualifying Event Election Period” shall mean
the 90-day period beginning on the date on which the Eligible
Retiree timely notifies the Administrator of a Qualifying Event,
as provided in Section 7.12(a) above.
	 
	 	(iv)	 	The determination of an Eligible Retiree’s
marital status and the determination of whether a divorce,
marital dissolution or legal separation has occurred shall be
made on the basis of the laws of the Commonwealth of
Pennsylvania unless preempted by federal law.

	 	(b)	 	In the event of the occurrence of a Qualifying Event described in
subparagraphs (a)(ii)(A) or (a)(ii)(B) of this Section 7.12, and contingent upon the
Eligible Retiree’s timely notification to the Administrator, the retirement income
payable to the affected Eligible Retiree shall revert to the normal form of benefit
provided under Section 7.1 (a life annuity) as of the first day of the month
following the expiration of the Qualifying Event Election Period; provided, however,
that:

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	 	(i)	 	The amount of such monthly life annuity shall
be the actuarial equivalent of the Eligible Retiree’s benefit,
determined as of the time of calculation hereunder, under the
form of payment in effect as of his Annuity Starting Date;
provided, however, that such monthly amount shall not exceed the
amount of the monthly life annuity which the Eligible Retiree
was entitled to as of his Annuity Starting Date; and
	 
	 	(ii)	 	In the case of a Qualifying Event described in
subparagraph (a)(ii)(B) of this Section 7.12, the spouse or
ex-spouse of the Eligible Retiree, as part of the division of
marital property (or other determination which is not subject to
modification under state law), expressly waives all interest in
the Eligible Retiree’s pension under the Plan and such waiver is
incorporated into a document which satisfies the formal
requirements of a “Qualified Domestic Relations Order” as
defined in Section 414(p) of the Code; and
	 
	 	(iii)	 	In the case of a Qualifying Event described
in subparagraph (a)(ii)(B) of this Section 7.12, the spouse or
ex-spouse of the Eligible Retiree shall secure such proof of
insurability as the Administrator may require, in its
discretion.

	 	(c)	 	In the case of any Qualifying Event described in subparagraph (a)(ii)(C) of
this Section 7.12 and contingent upon the Eligible Retiree’s timely notification to
the Administrator, the affected Eligible Retiree shall be permitted to elect, within
the Qualifying Event Election Period, to receive his future retirement income from
the Plan in one of the forms of payment described in paragraphs (c), (d), or (e) of
Section 7.7 (a 50% or 100% Joint and Survivor Option or a 50% or 100% Joint and
Survivor Pop-Up Option) with his spouse as Beneficiary thereunder; provided, however,
that:

	 	(i)	 	Payments under any elected form of payment shall
commence as of the first day of the month next following the
month in which the Eligible Retiree makes full and complete
application to the Administrator in accordance with rules
established by the Administrator (such commencement date referred
to herein as the “Adjusted Commencement Date”); and

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	 	(ii)	 	Payments under any elected form of payment shall
be the actuarial equivalent of the Eligible Retiree’s benefit,
determined as of the time of calculation hereunder, under the
form of payment in effect as of his Annuity Starting Date;
provided, however, that such monthly amount shall not exceed the
amount of the monthly benefit under the elected form of payment
which the Eligible Retiree was entitled to as of his Annuity
Starting Date; and
	 
	 	(iii)	 	The Eligible Retiree shall secure such proof of
insurability of the Eligible Retiree and/or the Eligible
Retiree’s spouse as the Administrator may require, in its
discretion; and
	 
	 	(iv)	 	The provisions of Sections 7.5 and 7.6 hereof
shall apply with respect to any Eligible Retiree who is married
as of the Adjusted Commencement Date and, for purposes of such
Sections and Section 7.7, the Adjusted Commencement Date shall be
deemed the Annuity Starting Date for the elected form of payment
described in this Section 7.12(c); and
	 
	 	(v)	 	In no event shall more than one election be made
under this Section 7.12(c) by an Eligible Retiree with respect to
any single Qualifying Event nor shall this Section 7.12 be
applicable more than twice with respect to any Eligible Retiree,
Section 7.12(c), irrespective of the number of Qualifying Events
affecting such Eligible Retiree; and
	 
	 	(vi)	 	A Participant’s status as an Eligible Retiree
must be independently satisfied with respect to each Qualifying
Event (substituting, where applicable, the Adjusted Commencement
Date for the Annuity Starting Date under Section 7.12(a)(i)).

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ARTICLE VIII — DEATH BENEFITS 

	8.1	 	Death Prior to Retirement or Severance
	 
	 	 	Upon the death of a Participant prior to his Date of Severance, his surviving spouse,
if any, shall receive a monthly surviving spouse’s benefit under the assumption that the
Participant had retired the day prior to his death with an Accrued Pension under the Plan
as determined in accordance with the provisions of Section 6.2(a), and under the further
assumption that the automatic election of a surviving spouse’s benefit pursuant to
subsection 7.5 was in effect at the time of death. Such surviving spouse benefit shall
commence as of the first day of the month following the Participant’s death, shall be
unreduced for early commencement and shall be payable for the lifetime of the surviving
spouse.
	 
	 	 	For purposes of Sections 8.1, 8.2 and 8.3, the interest that is payable to the
Participant’s surviving spouse shall be distributed over a period not in excess of the
life expectancy of such surviving spouse and shall commence no later than the December 31
of the calendar year in which the Participant would have attained age 65 (or the December
31 of the calendar year immediately following the calendar year of the Participant’s
death, if later).
	 
	8.2	 	Death Prior to Commencement of Early or Disability Pensions
	 
	 	 	Upon the death of a Participant after his Date of Severance, and prior to his Annuity
Starting Date and while the Participant is awaiting the commencement of payment of either:
(1) an early retirement pension pursuant to Section 6.2(a) above, or (2) a disability
pension after attainment of age 55 but prior to the attainment of his Normal Retirement
Date, his surviving spouse, if any, shall receive a monthly surviving spouse’s benefit
under the assumption that the Participant had retired the day prior to his death with an
Accrued Pension under the Plan as determined in accordance with the provisions of Section
6.2(a), and under the further assumption that the automatic election of a surviving
spouse’s benefit pursuant to subsection 7.5 was in effect at the time of death. Such
surviving spouse’s benefit shall commence as of the first day of the month following the
Participant’s death unless the surviving spouse elects a later commencement date. Such
benefit shall be reduced for early commencement in accordance with the provisions of
Section 6.2(b) and shall be payable for the lifetime of the surviving spouse.

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	 	 	Upon the death of a disabled Participant who is awaiting commencement of his pension at
his Normal Retirement Date and who is under age 55 at the time of his death, his surviving
spouse, if any, shall receive a monthly surviving spouse’s benefit determined under the
provisions of Section 8.1 assuming he died prior to his Date of Severance.
	 
	 	 	If a Participant terminates employment when eligible for a disability retirement pension
under Section 5.3 and at a time during which he is receiving long term disability benefits
under the Erie Insurance Group Long Term Disability Plan, then service to date of death
will be included for benefit purposes.
	 
	8.3	 	Death Prior to Commencement of Vested Pensions
	 
	 	 	If a vested former Participant who has at least one Hour of Service on or after
December 31, 1976, and who has been married for at least one year on his date of death,
dies on or after August 23, 1984 but prior to his Annuity Starting Date, then his spouse
shall be provided with a preretirement survivor annuity determined as follows:

	 	(a)	 	in the case of a Participant who dies after the date on which the
Participant attained his Earliest Retirement Age as though such Participant had
retired on the day before the Participant’s date of death, with an immediate benefit
determined under the provisions of Section 6.2(a) and payable under the Automatic
Surviving Spouse’s Pension in Section 7.5 of the Plan, or
	 
	 	(b)	 	in the case of a Participant who dies on or before the date on which the
Participant would have attained his Earliest Retirement Age, as though such
Participant had:

	 	(i)	 	separated from Service on the date of death,

	 
	 	(ii)	 	survived to his Earliest Retirement Age,
	 
	 	(iii)	 	retired with an immediate benefit determined under the
provisions of Section 6.4 and payable under the Automatic Surviving Spouse’s
Option in Section 7.5 of the Plan at the Earliest Retirement Age, and
	 
	 	(iv)	 	died on the day after the day on which such Participant would
have attained the Earliest Retirement Age.

	 	 	Under this Section 8.3, a monthly surviving spouse’s benefit shall commence as of the
first day of the month following the later of the month of the Participant’s death or the
month in which the Participant would have attained his Earliest Retirement Age under the
Plan unless the surviving spouse elects a later commencement date (which shall not be
later than the December 31 of the calendar year in which the deceased Participant would
have attained age 65). Such surviving spouse’s benefit shall be reduced for early

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	 	 	commencement in accordance with Section 6.2(b) and shall be payable thereafter for the
remainder of the surviving spouse’s lifetime.

	8.4	 	Effect of Valid 100% Joint and Survivor Election
	 
	 	 	Notwithstanding the foregoing, in the event a Participant described in Section 8.1,
8.2 or 8.3 above has made a valid election of Option D under Section 7.7 and names his
spouse as Beneficiary thereunder or a valid election of a 100% Joint and Survivor Pop-Up
Option under Section 7.7, the amount of the Pre-Retirement Survivor Annuity shall be equal
to the reduced monthly amount which otherwise would have been payable to the Participant
as determined through application of the foregoing provisions of this Article VIII.
	 
	8.5	 	Death on or After Annuity Starting Date
	 
	 	 	Upon the death of a Participant on or after his Annuity Starting Date, payments, if
any, to a Beneficiary shall be made in accordance with the form of benefit in effect on
the date of the Participant’s death. If the Beneficiary of the deceased Participant is
entitled to receive the remaining certain period payments from the 10-Year or 15-Year
Certain and Life forms of payment, the Administrator shall instruct the Trustee to pay to
such Beneficiary the actuarial equivalent value of the monthly payments to which the
Beneficiary is entitled in a single sum. Actuarial equivalence for this purpose shall be
determined under the assumptions set forth in Section 7.8. If the Beneficiary under such
form of payment is the surviving spouse of the deceased Participant, then any amounts
payable may be converted to an actuarially equivalent life annuity to such spouse provided
the spouse requests payment in such form. Notwithstanding the foregoing, in all events
the deceased Participant’s remaining interest in the Plan shall be distributed at least as
rapidly as under the form of distribution in operation as of the date of the Participant’s
death.
	 
	8.6	 	Death Benefit for Vested Participants Who Terminated After
September 1, 1974 and Prior to August 23, 1984
	 
	 	 	Any vested former Participant who terminated after September 1, 1974 and prior to
August 23, 1984 and whose benefits are not in pay status as of August 23, 1984 is to be
provided with the right to elect to receive such benefits reduced and payable in the form
of a qualified 50% joint and survivor annuity as defined by ERISA and the Internal Revenue
Code as in effect prior to August 23, 1984, including the right to revoke such coverage
without spousal consent if such former Participant:

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	 	(a)	 	completed at least one Hour of Service under the Plan after September 1,
1974, and
	 
	 	(b)	 	survives to his Annuity Starting Date.

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ARTICLE IX — TRUST FUND AND THE TRUSTEE

	9.1	 	Trust Fund

	 	(a)	 	The Company has executed a Trust Agreement with a Trustee under the terms of
which a Trust Fund will be established for the purpose of receiving and holding
contributions made by the Company as well as interest and other income on investments
of such funds, and for the purpose of paying the pensions and other benefits provided
by the Plan and paying any expenses incident to the operation of the Plan or Trust
Fund as otherwise provided herein. The Trustee is to manage and operate the Trust
Fund and to receive, hold, invest and reinvest the funds of the Trust.
	 
	 	(b)	 	The Company may modify the Trust Agreement as provided therein to
accomplish the purpose of the Plan. The Administrator may remove any Trustee and may
select any successor trustee, subject to approval of the Board. Pensions under the
Plan may alternatively be provided through the purchase of annuity contracts issued
by an insurance company. In lieu of a Trust Agreement and Trust Fund, the Company
may utilize a contract or contracts of insurance for the purpose of receiving and
holding contributions made by the Company and for the purpose of paying pensions and
other benefits provided by the Plan, and in such event the references hereunder to
“Trust Agreement”, “Trustee” and “Trust Fund” shall be deemed to be references to
“Insurance Contract”, “Insurance Carrier” and “Insured Fund” respectively.
	 
	 	 	 	The Board may, from time-to-time, designate another person to carry out any of its
responsibilities under the Section 9.1. The person so designated will have full
authority, or such limited authority as the Board may specify, to take such actions
as are necessary or appropriate to carry out the duties delegated by the Board.
	 
	 	(c)	 	The Administrator may select an independent investment manager to invest
any portion of the Trust Fund in each of the various funds. Such investment manager
shall be either registered as an investment manager under the Investment Adviser’s
Act of 1940, a bank, a mutual fund, or an insurance company, and as required by the
Administrator, shall acknowledge in writing that he is a fiduciary with respect to
the Plan.
	 
	 	(d)	 	The Administrator shall perform such duties relating to the operation of
the Trust Fund as the Board delegates to it and shall perform the duties specified in
this Section 9.1.

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	 	 	 	The Administrator shall have the following responsibilities:

	 	(i)	 	to appoint and remove Trustees, subject to approval of the
Board;
	 
	 	(ii)	 	to appoint investment managers;
	 
	 	(iii)	 	to select investment funds or other investments under the
Plan;
	 
	 	(iv)	 	to allocate the duties and procedures for the Trustee and
investment managers;
	 
	 	(v)	 	to establish an investment philosophy and goals for each of the
investment managers;
	 
	 	(vi)	 	to monitor the Trustee with respect to servicing the Trust Fund
in a fiduciary capacity; and
	 
	 	(vii)	 	to monitor the investment managers including, without
limitation, their investment philosophies, goals, and rates of return.

	 	 	The Administrator may, from time-to-time, designate another person to carry
out any of the Administrator’s responsibilities under this Section 9.1. The person
so designated will have full authority, or such limited authority as the
Administrator may specify, to take such actions as are necessary or appropriate to
carry out the duties delegated by the Administrator.

	9.2	 	Irrevocability
	 
	 	 	The Trust Fund shall be used to pay pensions and other benefits as provided in the Plan
and, as provided in Section 9.6, those reasonable expenses, taxes and fees incurred in the
administration of the Plan and Trust Fund which are not paid directly by the Company. No
part of the principal or income of the fund shall be used for or diverted to purposes
other than those provided in the Plan and no part of the Trust Fund shall revert to the
Company for the benefit of the Company, except as permitted under Sections 9.3, 11.4 and
12.2 hereof.
	 
	9.3	 	Contributions by the Company
	 
	 	 	The Company will pay to the Trustee, subject to all the other provisions of the Plan, such
amounts as its Board determines, authorizes and directs; provided that as a minimum
contribution, the Company intends to pay to the Trustee such amounts as may be necessary
to meet the minimum funding standards established under the Employee Retirement Income
Security Act of 1974. The Company also intends to pay all expenses incident to the
operation of the Plan that are not paid directly from the Trust Fund. Any forfeitures
arising from the severance of employment or death of a

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	 	 	Participant, or for any other reason, shall be used to reduce the contributions of the
Company under the Plan and shall not be applied to increase the pensions or benefits any
Participant would otherwise receive under the Plan at any time prior to the termination of
the Plan.
	 
	 	 	Payments made to meet the minimum funding standards established under ERISA shall, to the
maximum extent permitted by valid provisions of ERISA, be in complete discharge of the
financial obligation of the Company under this Plan. The pension benefits of the Plan
shall, subject to valid provisions of ERISA, be only such as can be provided by the assets
of the Trust and there shall be no further liability or obligation on any Employer to make
any further contributions to the Trust for any reason. Except as prescribed by valid
provisions of ERISA, the Company does not guarantee continuity of payment of any benefits
under the Plan. The Company does not, in any event, guarantee that its contributions or
the Trust Fund will be sufficient to provide the benefits hereunder. All rights of
Participants and Beneficiaries, and of any person claiming under any Participant or
Beneficiary, shall be enforceable only against the Trust Fund, except as ERISA may
otherwise provide.
	 
	 	 	Notwithstanding any provisions of the Plan to the contrary, each contribution made by the
Company shall be conditioned upon the deductibility of the contribution under Section 404
of the Code. If the deduction of all or part of the contribution is disallowed, the
contribution shall, to the extent disallowed, be repaid to the Company within one year
after the date of disallowance. A contribution also may be repaid to the Company, within
one year after the date made, to the extent it exceeded the full funding limitation or
otherwise was made in error because of a mistake in fact. Amounts returned under this
Section 9.3 shall recognize any net losses attributable to the returned contribution but
shall not include any net earnings thereon.
	 
	9.4	 	Contributions By Participants
	 
	 	 	No Participant shall be required or allowed to make any contribution to the Trust Fund
established under the Plan.
	 
	9.5	 	Benefits Payable Only From Trust Fund
	 
	 	 	Payment of benefits under the Plan to Participants and Beneficiaries will be made only by
the Trustee from the funds or securities held by the Trust and/or the annuity contract or
contracts held by the Trust. Except as may be provided by law, no liability for the

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	 	 	payment of benefits to Participants or their Beneficiaries hereunder shall be imposed upon
the Company, any Employer or the officers or shareholders of the Company or any Employer,
and there shall be no liability or obligation on the part of the Company or any Employer,
to make any further contributions in the event of termination of the Plan.
	 
	9.6	 	Plan Expenses
	 
	 	 	All reasonable expenses, taxes and fees of the Plan, the Administrator and the Trustee
incurred in the administration of the Plan and Trust Fund shall be paid from the Trust
Fund; provided, however, that the obligation of the Trust Fund to pay such expenses, taxes
and fees shall cease to exist to the extent that the same are paid, at the discretion of
the Company, by the Employers.

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ARTICLE X — BENEFIT LIMITATIONS

	10.1	 	Maximum Limitation Under Section 415(b) of the Code

	 
		 	
Any provisions of the Plan to the contrary notwithstanding but subject to the provisions
of Appendix A, benefits payable under the Plan shall be subject to the following
limitations:

	 	(a)	 	Maximum Annual Benefit:

	 	(i)	 	Subject to the exception below, the Annual Benefit (as
hereinafter defined) payable under this Plan for any limitation year beginning
on or after January 1, 1995 shall not exceed the lesser of the Dollar Maximum
of $120,000 or the Percentage Maximum of 100% of the Participant’s average
compensation for the period of three consecutive years during which the
Participant had the greatest aggregate compensation from an Employer.
Compensation, in determining a Participant’s Percentage Maximum, shall include
the total of all amounts paid to a Participant by an Employer during the
limitation year which are defined as wages within the meaning of Section
3401(a) of the Code and, for years beginning on and after January 1, 1998,
shall include amounts contributed pursuant to a salary reduction election on
behalf of the Participant to a plan described in Sections 125, 402(e)(3),
402(h)(1)(B), 403(b) or 457(b) of the Code and, for periods on and after
January 1, 2001, to a plan described in Section 132(f)(4) of the Code.
Effective each January 1, the Dollar Maximum described above shall be
automatically adjusted to the new dollar limitation for that calendar year as
determined by the Secretary of the Treasury pursuant to Section 415(d) of the
Code.
	 
	 	(ii)	 	For purposes of this Section, “Annual Benefit” means the
benefit payable in the form of a straight-life annuity or a qualified joint
and survivor pension, with no ancillary benefit, on an annualized basis. If a
benefit is payable in any other form, the Annual Benefit limitation shall be
applied by adjusting it to the equivalent of a straight-life annuity. The
actuarially equivalent straight-life annuity is equal to the greater of (i)
the annuity benefit computed using the Plan’s interest rate and mortality
tables for adjusting forms of payment or (ii) the annuity benefit computed
using an interest rate of 5% and the “applicable mortality table” under Code
Section 417(e). In determining the

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	 	 	 	actuarially equivalent straight-life annuity for a benefit form subject
to Code Section 417(e)(3), the actuarial assumptions used shall be the
“applicable interest rate” and the “applicable mortality table” under
Code Section 417(e). For these purposes, the lookback month shall be the
second month preceding the Plan Year that includes the Annuity Starting
Date. Notwithstanding the foregoing, for Plan Years beginning in 2004
and 2005, when determining the actuarially equivalent straight-life
annuity for a benefit form subject to Code Section 417(e)(3), the
interest rate shall be the greater of 5.5% or the “applicable interest
rate”; provided, however, that in the case of any Participant or
Beneficiary receiving a distribution after December 31, 2003 and before
January 1, 2005, the amount payable under any form of benefit subject to
Code Section 417(e)(3) and subject to any adjustment under Code Section
415(b)(2)(B) shall not, solely be reason to the change to Code Section
415(b)(2)(E)(ii) by the Pension Funding Equity Act of 2004, be less than
the amount that would have been so payable had such amount been
determined using the “applicable interest rate” as in effect on December
31, 2003.
	 
	 	(iii)	 	For purposes of the maximum limitation of this Article, all qualified defined benefit
plans (whether or not terminated) maintained by an Employer or any Affiliate shall be treated
as a single plan. For purposes of applying the limitations of Section 415 of the Internal
Revenue Code, the terms “Employer” and “Affiliate” shall be construed in light of Sections
414(b) and (c) of the Code, as modified by Code Section 415(h).
	 
	 	(iv)	 	If the Annual Benefit begins before a Participant’s Social Security
Retirement Age (as hereinafter defined), the Dollar Maximum (but not the
Percentage Maximum) shall be actuarially reduced so that it is the actuarial
equivalent of an Annual Benefit beginning at the Participant’s Social
Security Retirement Age:

	 	(A)	 	If a Participant’s Social Security Retirement Age is 65, the
Dollar Maximum for benefits commencing on or after age 62 is
determined by reducing the Dollar Maximum by 5/9 of one percent for
each month by which benefits commence before the month in which the
Participant attains age 65.

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	 	(B)	 	If a Participant’s Social Security Retirement Age is greater
than 65, the Dollar Maximum for benefits commencing on or after age
62 is determined by reducing the Dollar Maximum by 5/9 of one
percent for each of the first 36 months and 5/12 of one percent for
each of the additional months (up to 24 months) by which benefits
commence before the month of the Participant’s Social Security
Retirement Age.

	 	 	 	For purposes of this Section, the term “Social Security Retirement Age”
shall mean the age used as the retirement age of a Participant under
Section 216(l) of the Social Security Act, except that such Section shall
be applied without regard to the age increase factor and as if the early
retirement age under Section 216(l)(2) of such Act were 62.
	 
	 	(v)	 	If the Annual Benefit begins before age 62, the Dollar Maximum (but not
the Percentage Maximum) shall be reduced so that it is the actuarial
equivalent of the Dollar Maximum beginning at age sixty-two (62). For
purposes hereof, the age adjusted Dollar Maximum beginning prior to age 62
shall be determined as the lesser of (i) the actuarial equivalent annual
benefit computed using the Plan’s interest rate and mortality table for early
retirement benefits or (ii) the actuarial equivalent annual benefit computed
using an interest rate of 5% and the “applicable mortality table” under
Section 417(e) of the Code.
	 
	 	(vi)	 	If the Annual Benefit begins after a Participant’s Social Security
Retirement Age, the Dollar Maximum (but not the Percentage Maximum) shall be
increased so that it is the actuarial equivalent of an Annual Pension
beginning at such age. For purposes hereof, the annual benefit beginning
after Social Security Retirement Age shall be determined as the lesser of (i)
the actuarial equivalent annual benefit computed using the Plan’s interest
rate and mortality table for the late retirement benefits or (ii) the
actuarial equivalent annual benefit computed using an interest rate of 5% and
the “applicable mortality table” under Section 417(e) of the Code.
	 
	 	(vii)	 	For purposes of adjusting the Annual Benefit under
paragraphs (i), (ii), (iv), (v) and/or (vi), no adjustments shall be taken
into account before the year for which such adjustment first takes effect.
	 
	 	(viii)	 	The foregoing Section 415(b)(2)(E) actuarial assumptions shall apply to all
benefits under the Plan (including benefits accrued before and after the RPA
‘94 effective date which shall be the first limitation year beginning on or
after January 1, 1995).

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	 	(b)	 	Adjustment for Plan Participation
	 
	 	 	 	If a Participant retires with less than 10 years of Plan participation, the Dollar
Maximum (but not the Percentage Maximum) shall be reduced by multiplying such
dollar limitation by a fraction, the numerator of which is the Participant’s years
of participation in the Plan and the denominator of which is 10.
	 
	 	(c)	 	Adjustment for Years of Service
	 
	 	 	 	If a Participant has less than 10 years of Service, the maximum Annual Benefit
payable to the Participant shall be reduced by multiplying such maximum Annual
Benefit by a fraction, the numerator of which is the Participant’s years of Service
or part thereof, and the denominator of which is 10.
	 
	 	(d)	 	Exception Benefits

	 	(i)	 	Subject to the limitations of paragraph (a), this Plan may
pay an Annual Benefit to any retired Participant which shall exceed 100% of
such Participant’s average compensation, provided that the Annual Pension
shall not be in excess of $10,000 for the current Plan Year and for all prior
Plan Years, and provided that the Participant shall not be or have been at any
time considered as an active participant in any defined contribution plan
maintained by an Employer or an Affiliate.
	 
	 	(ii)	 	In no event shall the adjustments for participation or
Service (pursuant to subsections (b) and (c), respectively) reduce the
limitation provided in paragraphs (a)(i) or (d)(i) hereof, whichever is
applicable, to an amount less than one-tenth (1/10) of the applicable
limitation as determined without regard to such adjustments.
	 
	 	(iii)	 	To the extent provided by the Secretary of the Treasury or
his delegate, the adjustment for Plan participation described in subsection
(b) herein shall be applied separately with respect to each change in the
benefit structure of the Plan.

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ARTICLE XI — MISCELLANEOUS PROVISIONS

	11.1	 	Plan Non-Contractual
	 
	 	 	No Participant or Beneficiary shall have any right or interest under the Plan unless and
until he becomes entitled thereto as provided in the Plan. The adoption and maintenance
of the Plan shall not be deemed to constitute a contract between an Employer and any
Employee. Inclusion in the Plan will not affect an Employer’s right to discharge or
otherwise discipline Employees and membership in the Plan will not give any Employee the
right to be retained in the service of an Employer nor any right or claim to a pension or
other benefit unless such right is specifically granted under the terms of the Plan.
	 
	11.2	 	Non-Alienation of Retirement Rights or Benefits

	 	(a)	 	Except as provided in Section 11.2(b) or 11.2(c), no benefit payable under the
Plan shall be subject in any manner to anticipation, sale, transfer, assignment,
pledge, encumbrance, security interest or charge, and any action by way of
anticipating, alienating, selling, transferring, assigning, pledging, encumbering,
charging or granting a security interest in the same shall be void and of no effect;
nor shall any such benefit be in any manner liable for or subject to the debts,
contracts, liabilities, engagements or torts of the person entitled to such benefit.
	 
	 	(b)	 	Section 11.2(a) shall not apply to the creation, assignment, or recognition
of a right to any benefit payable pursuant to a qualified domestic relations order as
defined in Section 414(p) of the Code. The Administrator shall establish reasonable
procedures to determine the status of domestic relations orders and to administer
distributions under such orders which are deemed to be qualified domestic relations
orders. Such procedures shall be in writing shall comply with the provisions of
Section 414(p) of the Code and shall be incorporated into this plan document. To the
extent that, because of a qualified domestic relations order, more than one
individual is to be treated as a surviving spouse, the total amount payable from the
Plan as a result of the death of a Participant shall not exceed the amount that would
be payable from the Plan if there were only one surviving spouse.
	 
	 	(c)	 	Notwithstanding the provisions of Section 11.2(a), the Plan may offset any
portion of the Accrued Pension of a Participant or the Participant’s Beneficiary
against a claim of the Plan arising:

	 	(i)	 	as a result of the Participant’s or Beneficiary’s conviction of a crime
involving the Plan; or
	 
	 	(ii)	 	with regard to the Participant’s or Beneficiary’s violation of
ERISA’s fiduciary provisions upon:

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	 	(A)	 	the entry of any civil judgment, consent order,
or decree against the Participant or Beneficiary; or
	 
	 	(B)	 	the execution of any settlement agreement
between the Participant or Beneficiary and the Department of Labor or
Pension Benefit Guaranty Corporation.

	11.3	 	Payment of Pension to Others
	 
	 	 	In the event that the Administrator shall find that any Participant or Beneficiary to whom
a pension is payable, is unable to care for his affairs because of illness, accident or
incapacity, any payment due (unless prior claim therefor shall have been made by a duly
qualified guardian or other legal representative) may, in the discretion of the
Administrator, be paid to the spouse, parent, child, brother or sister of such Participant
or Beneficiary or to any other person deemed by the Administrator to be maintaining or
responsible for the maintenance of such Participant or Beneficiary. Any such payment
shall be a payment for the account of the Participant or Beneficiary and shall be a
complete discharge of any liability of the Plan and any Employer therefor.
	 
	11.4	 	Prohibition Against Reversion
	 
	 	 	Except as provided in Section 9.2 hereof, in no event shall any funds held in the Trust
Fund revert to the Company or be diverted to purposes other than the exclusive benefit of
Participants or their Beneficiaries prior to the satisfaction of all liabilities under the
Plan; provided, however, that in the event the Plan is terminated, if, after all plan
liabilities are satisfied, there remains a balance in the Fund as a result of actuarial
error, such balance shall be returned to the Company.
	 
	11.5	 	Merger, Transfer of Assets or Liabilities
	 
	 	 	The Company may merge or consolidate the Plan with, transfer assets and liabilities of the
Plan to, or receive a transfer of assets and liabilities from, any other plan without the
consent of any other Employer or other person, if such transfer is effected in accordance
with applicable law and if such other plan meets the requirements of Code Sections 401(a)
and 501(a), permits such transfer or the receipt of such transfer and, with respect to
liabilities to be transferred from this Plan to such other plan, satisfies the
requirements of Code Sections 411(d)(6) and 417. This Plan may not be merged or
consolidated with any other plan, nor may any assets or liabilities of this Plan be
transferred to any other plan, unless the terms of the merger, consolidation or transfer
are such that each Participant in the Plan would, if the Plan were terminated

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	 	 	immediately after such merger, consolidation or transfer, receive a pension having a value
equal to or greater than the pension he would have been entitled to receive if this Plan
had terminated immediately prior to the merger, consolidation or transfer.
	 
	11.6	 	Actuarial Equivalence
	 
	 	 	Any determination of actuarial equivalence required by the provisions of this Plan, when
not otherwise specified in the Plan, shall be made on the basis of the mortality table
referenced in IRS Revenue Ruling 2001-62, or its successor, with an annual interest rate
of 6%.
	 
	11.7	 	Change of Vesting Schedule
	 
	 	 	If the Plan’s vesting schedule is amended or if the Plan is deemed amended by an automatic
change to or from a Top-Heavy Plan vesting schedule (Section 13.3), each Participant with
at least three years of Service with an Employer may elect, within a reasonable period
after the adoption of the amendment or change, to have his nonforfeitable pension computed
under the Plan without regard to such amendment or change.
	 
	 	 	The period during which the election may be made shall commence at the date the amendment
is adopted or deemed to be made and shall end on the latest of:

	 	(a)	 	60 days after the amendment is adopted;
	 
	 	(b)	 	60 days after the amendment becomes effective; or
	 
	 	(c)	 	60 days after the Participant is issued written notice of the amendment by
the Administrator.

	 	 	Notwithstanding the foregoing provisions of this Section 11.7, the vested interest of any
Participant on the date such amendment is effective shall not be less than his vested
interest under the Plan as in effect immediately prior to the effective date of such
change.
	 
	11.8	 	Controlled Group 
	 
	 	 	For purposes only of determining eligibility to participate in the Plan and eligibility
for any pension (but not the amount thereof) under the Plan, all employment with an
Employer or an Affiliate shall be deemed to be employment with an Employer in computing
Hours of Service and Service.
	 
	11.9	 	Severability 

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	 	 	If any provision of this Plan is held to be invalid or unenforceable, such
determination shall not affect the other provisions of this Plan. In such event, this
Plan shall be construed and enforced as if such provision had not been included herein.
	 
	11.10	 	Employer Records
	 
	 	 	The records of a Participant’s Employer shall be presumed to be conclusive of the facts
concerning his employment or non-employment, Service, Credited Service and Compensation
unless shown beyond a reasonable doubt to be incorrect.
	 
	11.11	 	Application of Plan Provisions 
	 
	 	 	This Plan shall be binding on all Participants and their spouses and Beneficiaries and
upon heirs, executors, administrators, successors, and assigns of all persons having an
interest herein. The provisions of the Plan in no event shall be considered as giving any
such person any legal or equitable right against the Company, an Employer or an Affiliate,
any of its officers, employees, directors, or shareholders, or against the Trustee, except
such rights as are specifically provided for in the Plan or hereafter created in
accordance with the terms of the Plan.
	 
	11.12	 	Missing Participants.
	 
	 	 	If a Participant who has left employment with the Company and Affiliates has failed to
file an application for benefits within 120 days after attainment of his Normal Retirement
Date, the Administrator shall treat the Participant’s retirement benefit or vested Accrued
Pension as forfeited; provided, however, that such Accrued Pension shall be reinstated
retroactive to the commencement date set forth below upon the subsequent filing of a
completed application with the Administrator and shall commence within ninety (90) days
after such application is filed. For purposes of this Section 11.12, the commencement
date shall be the later of:

	 	(a)	 	Normal Retirement Date; and
	 
	 	(b)	 	the date on which the Participant terminated employment with the Employer
and Affiliates.
	 
	 	No payment under the Plan will be increased on account of any delay in payment due to a
Participant’s or Beneficiary’s failure to properly file the required application forms
furnished by the Administrator or to otherwise accept such payments.

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	 	11.13	 	IRC 414(u) Compliance Provision
	 
	 	 	 	Notwithstanding any provision of the Plan to the contrary and effective as of December 12,
1994, contributions, benefits and service credit with respect to qualified military
service shall be provided in accordance with Section 414(u) of the Code.
	 
	 	11.14	 	Economic Growth and Tax Relief Reconciliation Act of 2001
	 
	 	 	 	Notwithstanding any provisions of the Plan to the contrary, the provisions related to the
Economic Growth and Tax Relief Reconciliation Act of 2001 shall apply as provided in
Appendix A.

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ARTICLE XII — AMENDMENT AND TERMINATION

	12.1	 	Amendment and Termination of the Plan
	 
	 	 	The Company hopes and expects to continue the Plan, but expressly reserves the right at
any time and from time to time, without the consent of Participants,

	 	(a)	 	to reduce or discontinue payments to the Plan;
	 
	 	(b)	 	to terminate the Plan;
	 
	 	(c)	 	to amend the Plan, retroactively or otherwise, in such manner as it may
deem necessary or advisable in order to qualify the Plan and any trust established in
conjunction therewith under the provisions of Sections 401(a) and 501(a) of the Code,
or any similar Code provisions from time to time in effect;
	 
	 	(d)	 	to amend the Plan in any other respect, provided, however, that no such
amendment shall forfeit or diminish the interest of any Participant in the Trust Fund
to the extent that such interest has become vested in such Participant, except as may
be permitted under the Code or ERISA.

	 	 	Any such amendment to or termination of this Plan shall be evidenced by an instrument
executed on behalf of the Company by the President. Such instrument shall recite at which
time the amendments contained therein shall become effective.
	 
	 	 	Promptly after an amendment of this Plan shall have become effective, the Company shall
cause a copy of such amendment to be filed with the Administrator and with the Trustee,
and the Administrator shall take such steps as it may deem appropriate to reasonably
communicate the amendment to Participants.
	 
	12.2	 	Administration of the Plan in Case of Termination 
	 
	 	 	Upon termination of the Plan, as determined by the Pension Benefit Guaranty Corporation,
the assets of the Trust Fund shall be liquidated and distributed in accordance with
Section 4044 of ERISA and applicable regulations issued thereunder. In the event of the
termination of the Plan or a partial termination of the Plan, the rights of all affected
Participants to Accrued Pensions determined as of the date of such termination or partial
termination, to the extent funded, or as further adjusted by the Pension Benefit Guaranty
Corporation as of such date, shall be nonforfeitable. Notwithstanding the foregoing, upon
Plan termination, the benefit of any Highly Compensated Employee shall be limited to a
benefit that is nondiscriminatory under Section 401(a)(4) of the Code.

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	 	 	Upon termination of the Plan, after the satisfaction of all liabilities of the Plan to its
Participants, Beneficiaries and surviving spouses, the Company shall receive any remaining
amount resulting from any variations between actual requirements and actuarially expected
requirements.
	 
	12.3	 	Internal Revenue Service Limitations 

	 	(a)	 	Except in such cases where the circumstances described in subsection (b)
apply, the annual payments under the Plan to any one (1) of the twenty-five (25)
highest paid Highly Compensated Employees (and Highly Compensated former Employees),
ranked by Test Compensation, shall not exceed the sum of:

	 	(i)	 	those payments that would be made on behalf of such Employee
under a single life annuity that is the Actuarial Equivalent of the sum of the
Employee’s Accrued Pension and the Employee’s Other Benefits (as defined in
subsection (c) below) under the Plan; and
	 
	 	(ii)	 	those payments the Employee is entitled to receive under a
social security supplement.

	 	(b)	 	The provisions of subsection (a) above shall not apply if:

	 	(i)	 	after payment of all such benefits to an Employee described in
subsection (a), the value of Plan assets equals or exceeds 110% of the value of
current liabilities (as defined in Code Section 412(l)(7) under the Plan;
	 
	 	(ii)	 	the value of all such benefits to an Employee described in
subsection (a) above is less than one percent of the value of current
liabilities under the Plan prior to the payment of all such benefits to such
Employee; or
	 
	 	(iii)	 	the value of all such benefits to an Employee described in
subsection (a) does not exceed $5,000 or such other amount as may be prescribed
under Section 411(a)(11)(A) of the Code as the maximum amount that may be paid
out without the Participant’s consent.

	 	(c)	 	For purposes of this Section 12.3, “Other Benefits” shall include any loan
in excess of the amounts set forth in Code Section 72(p)(2)(A), any periodic income,
any withdrawal values payable to a living Employee and any death benefits not
provided for by insurance on the Employee’s life. “Other Benefits” for this purpose
shall not include any social security supplements.

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ARTICLE XIII — TOP-HEAVY PROVISIONS

	13.1	 	General
	 
	 	 	Notwithstanding any provision of this Plan to the contrary but subject to the provisions
of Appendix A, the provisions of this Article XIII shall apply with respect to any Plan
Year provided the Plan is a Top-Heavy Plan (as defined in Section 13.2(c) below) for such
Plan Year.
	 
	13.2	 	Definitions Relating to Top-Heavy Provisions 
	 
	 	 	For purposes of this Article XIII:

	 	(a)	 	“Key Employee” means any Employee or former Employee (and the beneficiaries
of such an Employee or former Employee) who, during the current Plan Year or any of
the four preceding Plan Years, is:

	 	(i)	 	an officer of an Employer having annual Test Compensation
greater than 50 percent of the amount in effect under Section 415(b)(1)(A) of
the Code for any such Plan Year; for purposes of this definition, no more than
the lesser of (1) 50 Employees or (2) the greater of three Employees or 10% of
the Employees shall be treated as officers;
	 
	 	(ii)	 	an owner (or considered an owner under Section 318 of the
Code) of one of the ten largest interests in an Employer if such individual’s
annual Test Compensation exceeds the dollar limitation under Section
415(c)(1)(A) of the Code;
	 
	 	(iii)	 	a five percent (5%) owner (or considered an owner under
Section 318 of the Code) who owns more than five percent (5%) of the
outstanding stock of an Employer or who owns Employer stock possessing more
than five percent (5%) of the total combined voting power of all stock of an
Employer;
	 
	 	(iv)	 	a one percent (1%) owner (or considered an owner under
Section 318 of the Code) who has annual Test Compensation from an Employer of
$150,000 or more, and who owns more than one percent (1%) of the outstanding
stock of an Employer or who owns Employer stock possessing more than one
percent (1%) of the total combined voting power of all stock of an Employer.

	 	(b)	 	“Determination Date” means, with respect to any Plan Year, the last day of
the immediately preceding Plan Year.

90

 

	 	(c)	 	“Top-Heavy Plan” means a plan where, as of the Determination Date, the
present value of the cumulative accrued benefits (including any part of any accrued
benefit distributed in the five-year period ending on the Determination Date) under
the Plan for Key Employees exceeds sixty percent (60%) of the present value of the
cumulative accrued benefits (including any part of any accrued benefit distributed in
the five-year period ending on the Determination Date) under the Plan for all
Employees.

	 	(i)	 	If this Plan is in a Required Aggregation Group, each Plan of
an Employer required to be in such group will be a Top-Heavy Plan if such
group is a Top-Heavy Group.
	 
	 	(ii)	 	If this Plan is in a Permissive Aggregation Group which is
not a Top-Heavy Group, no Plan of an Employer in such group will be a
Top-Heavy Plan.

	 	(d)	 	“Required Aggregation Group” means:

	 	(i)	 	each plan of an Employer in which a Key Employee is a
participant, and
	 
	 	(ii)	 	each other plan of an Employer which enables a plan in which
a Key Employee is a participant to meet the requirements of Internal Revenue
Code Sections 401(a)(4) or 410. A terminated plan must be aggregated with
other plans of an Employer if it was maintained within the five-year period
ending on the Determination Date for the Plan Year in question and it would,
but for the fact it terminated, be part of a required aggregation group for
such Plan Year.

	 	(e)	 	“Permissive Aggregation Group” means any plan of an Employer which is not
part of the Required Aggregation Group, but is treated as if it were at the option of
the Company, provided such group continues to meet the requirements of Internal
Revenue Code Sections 401(a)(4) and 410.
	 
	 	(f)	 	“Top-Heavy Group” means any Required or Permissive Aggregation Group, if as
of the Determination Date, the sum of the present value of cumulative accrued
benefits for Key Employees under all defined benefit plans included in such Group and
the aggregate of the accounts of Key Employees under all defined contribution plans
included in such Group exceeds sixty percent (60%) of the similar sum determined for
all Employees.
	 
	 	(g)	 	“Present Value of Accrued Benefits” shall be determined as of the most
recent valuation date within a twelve-month period ending on the Determination Date,

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	 	 	 	but for the purposes of determining whether this Plan is a Top-Heavy Plan, shall
not include:

	 	(i)	 	any rollover contribution initiated by the Employee.
	 
	 	(ii)	 	any accrued benefit or account attributable to an Employee
who is not a Key Employee, but who was a Key Employee in any prior Plan Year.
To the extent that a Key Employee is deemed to be a Key Employee if he meets
the definition of Key Employee within any of the four (4) preceding Plan
Years, this provision shall apply following the end of such period of time.
	 
	 	(iii)	 	Any accrued benefit or account attributable to any
individual who has not performed any services for an Employer at any time
during the five-year period ending on the Determination Date.

	 	 	 	Solely for purposes of determining if the Plan is a Top Heavy Plan as described
above, the Present Value of Accrued Benefits shall be determined by using the
single accrual method which is used for all plans of the Company and of any
Affiliate. If no such single method exists, benefits shall be determined as if
they accrued not more rapidly than the lowest accrued rate permitted under Section
411(b)(1)(C) of the Code.
	 
	 	(h)	 	“Valuation Date” means December 31.

	 
	 	(i)	 	“Non-Key Employee” means any Employee who is not a Key Employee.

	13.3	 	Top-Heavy Plan Vesting Requirements

	 	(a)	 	For any Plan Year in which the Plan is a Top-Heavy Plan, the following
vesting schedule will apply to benefits derived from Employer contributions. The
nonforfeitable interest in a Participant’s accrued benefit will be determined as
follows:

	 	 	 	 	 
	 	 	Nonforfeitable Percentage of
	Years of Service	 	Accrued Benefit
	0 but less than 2
	 	 	0	%
	2 but less than 3
	 	 	20	%
	3 but less than 4
	 	 	40	%
	4 but less than 5
	 	 	60	%
	5 or more
	 	 	100	%

	 	 	 	This Section 13.3 does not apply to any Participant who does not have an Hour of
Service after the Plan becomes a Top-Heavy Plan.

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	 	(b)	 	If the vesting schedule under the Plan shifts in or out of the above
schedule due to determination of whether or not the Plan is a Top-Heavy Plan, such
shift shall be an amendment to the vesting schedule and Section 11.7 shall apply.

	13.4	 	Top-Heavy Plan Minimum Benefit Requirements

	 	(a)	 	For any Plan Year in which the Plan is determined to be a Top-Heavy Plan,
each Non-Key Employee Participant who has completed a year of service will accrue a
minimum annual benefit (derived from Employer contributions and expressed as a life
annuity beginning at Normal Retirement Age and determined without regard to any
Social Security contribution or benefit).
	 
	 	(b)	 	Such accrual of a minimum annual benefit will be the lesser of:

	 	(i)	 	Two percent (2%) of the Participant’s highest average
compensation for the five consecutive years during which the Participant had
the greatest compensation from the Employer multiplied by the years of service
as defined in (c) below, or
	 
	 	(ii)	 	Twenty percent (20%) times the Participant’s highest average
compensation for the five consecutive years during which the Participant had
the greatest compensation from an Employer.

	 	(c)	(i)	 For the purpose of the accrual of minimum annual benefit, year of
service shall mean a year of Credited Service as defined in Article IV, but will
exclude years when the Plan was not a Top-Heavy Plan for any Plan Year ending during
such year of Credited Service, as well as years of Credited Service in a Plan Year
beginning before December 31, 1984. Notwithstanding the above, each Non-Key Employee
Participant who has completed 1,000 Hours of Service in a year in which the Plan is a
Top-Heavy Plan shall be entitled to the minimum annual benefit regardless of the
level of such Non-Key Employee’s compensation.
	 
	 	 	(ii)	The compensation required to be taken into account for
purposes of this Section 13.4 is the compensation described in Section
10.1(a)(i) of the Plan; provided, however, that compensation shall not exceed
the adjusted annual limitation in effect for the given year (as set forth in
Section 2.11) and compensation in years which end in a Plan Year beginning
before December 31, 1984 and compensation in years after the close of the last
Plan Year in which the Plan is a Top-Heavy Plan shall be disregarded.

93

 

	 	(d)	 	Notwithstanding any other provision of the Plan, an Employee shall be a
Participant for the purposes of this Section 13.4, and a Participant shall be
entitled to an accrual under this Section 13.4, even if he would not otherwise be
entitled to receive an accrual or would have received a lesser accrual for the year
because the Non-Key Employee Participant is not employed on a specified date.
	 
	 	(e)	 	If the annual retirement pension payable under the Plan to a Participant
who has accrued a minimum annual benefit under this Article XIII commences at a date
other than at Normal Retirement Age, such Participant shall receive at least an
amount that is the actuarial equivalent of the minimum annual benefit commencing at
Normal Retirement Age as provided under this Section 13.4 using a five percent (5%)
interest rate assumption for such determination. If the annual retirement pension
payable to a Participant who has accrued a minimum annual benefit under this Article
XIII is in a form other than a single life annuity, such Participant shall receive an
amount that is not less than the minimum annual benefit as otherwise provided in this
Section 13.4 adjusted to be the actuarial equivalent of a single life annuity
commencing at the same age using the provisions of Section 11.6 of the Plan for such
determination.
	 
	 	(f)	 	In the case of Employees covered under both this Plan and any other plan
maintained by an Employer, this Plan will provide the top heavy minimum benefit which
shall be offset by the benefit, if any, provided under such other plans.

	13.5	 	Limited Application of this Article.
	 
	 	 	The sole purpose of this Article is to comply with Section 416 of the Code and the terms
of this Article shall be interpreted, applied, and if and to the extent necessary, shall
be deemed modified so as to satisfy solely the minimum requirements of Section 416 of the
Code and the regulations promulgated with respect thereto.

94

 

ARTICLE XIV — JURISDICTION

	14.1	 	Jurisdiction
	 
	 	 	The provisions of the Plan shall be construed in accordance with ERISA, the Code, and,
where not superseded by ERISA, the laws of the Commonwealth of Pennsylvania.

Executed at Erie, Pennsylvania, this 19th day of December, 2006.

	 	 	 	 	 
	 	ERIE INDEMNITY COMPANY

 	 
	 	By:  	/s/ Jeffrey A. Ludrof
 	 
	 	 	         President & CEO	 
	 	 	 	 

95

 

	 	 	 	 	 

APPENDIX A

This Appendix A to the Plan is adopted to reflect certain provisions of the Economic Growth
and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). The provisions contained in this Appendix
A are intended to serve as good faith compliance with the requirements of EGTRRA and are to be
construed in accordance with EGTRRA and guidance issued thereunder. Except as otherwise
provided, the provisions of this Appendix A shall be effective as of the first day of the first
Plan Year beginning after December 31, 2001 and shall supersede the provisions of the Plan to
the extent those provisions are inconsistent with the provisions of this Appendix A.

	1.	 	Limitations on Contributions

	 	(a)	 	Effective for limitation years ending after December 31, 2001, benefit
increases resulting from the increase in the limitations of Code Section 415(b) will be
provided to all employees participating in the Plan who have one Hour of Service on or
after the first day of the first limitation year ending after December 31, 2001.
	 
	 	(b)	 	The “Defined Benefit Dollar Limitation” is $160,000 as adjusted effective
January 1 of each year under Code Section 415(d), in such manner, as the Secretary
shall prescribe, and payable in the form of a straight life annuity. A limitation as
adjusted under Code Section 415(d) will apply to limitation years ending with or within
the calendar year for which the adjustment applies.
	 
	 	 	 	The maximum permissible benefit is the lesser of the Defined Benefit Dollar
Limitation or the defined benefit compensation limit as set forth in Code Section
415(b) (both adjusted where required, as provided in (i) and, if applicable, in (ii)
or (iii) below).

	 	(i)	 	If the Participant has fewer than 10 years of participation in
the Plan, the Defined Benefit Dollar Limitation shall be multiplied by a
fraction, the numerator of which is the number of years (or part thereof) of
participation in the Plan and the denominator of which is 10. In the case of a
Participant who has fewer than 10 years of service with the employer, the
defined benefit compensation limitation shall be multiplied by a fraction the
numerator of which is the number of years (or part thereof) of service with the
employer and the denominator of which is 10.
	 
	 	(ii)	 	If the benefit of a Participant begins prior to age 62, the
Defined Benefit Dollar Limitation applicable to the Participant at such earlier
age is an annual benefit payable in the form of a straight life annuity
beginning at the earlier age that is the actuarial equivalent of the Defined
Benefit Dollar Limitation applicable to the Participant at age 62 (adjusted
under (i) above, if required). The Defined Benefit Dollar Limitation applicable
at an age prior to age 62 is determined as the lesser of the actuarial
equivalent (at such age) of the Defined Benefit Dollar Limitation computed using
the interest rate and mortality table (or other tabular factor) specified in the
Plan or the actuarial equivalent (at such age) of the Defined Benefit Dollar
Limitation computed using a 5 percent interest rate and the applicable mortality
table as defined in the Plan. Any decrease in the Defined Benefit Dollar
Limitation determined in accordance with this paragraph (b) shall not reflect a
mortality decrement if benefits are not forfeited upon the death of the
Participant. If any benefits are forfeited upon death, the full mortality
decrement is taken into account.
	 
	 	(iii)	 	If the benefit of a Participant begins after the Participant
attains age 65, the Defined Benefit Dollar Limitation applicable to the
Participant at the later age is the annual benefit payable in the form of a
straight life annuity beginning at the

96

 

	 	 	 	later age that is actuarially equivalent to the Defined Benefit Dollar
Limitation applicable to the Participant at age 65 (adjusted under (i) above,
if required). The actuarial equivalent of the Defined Benefit Dollar
Limitation applicable at an age after age 65 is determined as the lesser of
the actuarial equivalent (at such age) of the Defined Benefit Dollar
Limitation computed using the interest rate and mortality table (or other
tabular factor) specified in the Plan and the actuarial equivalent (at such
age) of the Defined Benefit Dollar Limitation computed using a 5 percent
interest rate assumption and the applicable mortality table as defined in the
Plan. For these purposes, mortality between age 65 and the age at which
benefits commence shall be ignored.

	 	(c)	 	For purposes of applying the defined benefit compensation limit, a multiemployer plan shall
not be combined or aggregated with the Plan.

	 
	2.	 	Increase in Compensation Limit
	 
	 	 	The annual compensation of each participant taken into account in determining benefit
accruals in any Plan Year beginning after December 31, 2001 shall not exceed $200,000 (as
adjusted for cost-of-living increases in accordance with Code Section 401(a)(17)(B) and such
cost-of-living adjustments in effect for a calendar year shall apply to the annual
compensation for the determination period that begins with or within such calendar year).
Annual compensation means compensation during the Plan Year or such other consecutive
12-month period over which compensation is otherwise determined under the Plan (the
determination period).
	 
	 	 	For purposes of determining benefit accruals in any given Plan Year beginning after December
31, 2001, the annual compensation limitation for any determination period after December 31,
1993 and before December 31, 2001, shall be $200,000.
	 
	3.	 	Modification of Top-Heavy Rules
	 
	 	 	This Section 3 of Appendix A amends Article XIII of the Plan and applies for purposes of
determining whether the Plan is a top-heavy plan, under Code Section 416(g) for Plan Years
beginning after December 31, 2001, and satisfies the minimum benefits requirements of Code
Section 416(c) for such years.

	 	(a)	 	Key employee means any employee or former employee (including any deceased
employee) who at any time during the Plan Year that includes the determination date was
an officer of the employer having annual compensation greater than $130,000 (as
adjusted under Code Section 416(i)(1) for Plan Years beginning after December 31,
2002), a 5-percent owner of the employer, or a 1-percent owner of the employer having
annual compensation of more than $150,000. For this purpose, annual compensation means
compensation within the meaning of Code Section 415(c)(3). The determination of who is
a key employee will be made in accordance with Code Section 416(i)(1) and the
applicable regulations and other guidance of general applicability issued thereunder.
	 
	 	(b)	 	The present values of accrued benefits and the amounts of account balances of
an employee as of the determination date shall be increased by the distributions made
with respect to the employee under the Plan and any plan aggregated with the plan under
Code Section 416(g)(2) during the 1-year period ending on the determination date. The
preceding sentence shall also apply to distributions under a terminated plan which, had
it not been terminated, would have been aggregated with the Plan under Code Section
416(g)(2)(A)(i). In the case of a distribution made for a reason other than separation
from service, death, or disability, this provision shall be applied by substituting
“5-year period” for “1-year period”. However, the accrued benefits and

97

 

	 	 	 	accounts of any individual who has not performed services for the employer during the
1-year period ending on the determination date shall not be taken into account.
	 
	 	(c)	 	For purposes of satisfying the minimum benefit requirements of the Plan and
Code Section 416(c)(1), in determining years of service with the employer, any service
with the employer shall be disregarded to the extent that such service occurs during a
Plan Year when the plan does not benefit (within the meaning of Code Section 410(b)) a
key employee or former key employee.

98EX-10.87

 

Exhibit 10.87

ERIE INSURANCE GROUP

EMPLOYEE SAVINGS PLAN

As Amended and Restated

Effective as of January 1, 2006

99

 

INTRODUCTION

The Erie Indemnity Company (the “Company”) adopted the Erie Insurance Group Employee Savings Plan
(the “Plan”) effective January 1, 1989. The Company has subsequently amended the Plan from time to
time and was last amended and restated the Plan effective as of January 1, 2001.

This amendment and restatement of the Plan shall constitute an amendment, restatement and
continuation of the Plan. This amendment and restatement is generally effective as of January 1,
2006. However, certain provisions of this amendment and restatement are effective as of some other
date. The provisions of this amendment and restatement with stated effective dates prior to
January 1, 2006, shall be deemed to amend the corresponding provisions, if any, of the Plan as in
effect before this amendment and restatement and all amendments thereto as of such dates. Events
occurring before the applicable effective date of any provision of this amendment and restatement
shall be governed by the applicable provision of the Plan as in effect on the date of the event.

The purpose of the Plan is to provide a pre-tax long term savings vehicle for eligible employees
and to provide participants with an opportunity to contribute toward additional retirement security
according to the provisions of Sections 401(a), 401(k) and 402A of the Internal Revenue Code of
1986, as amended.

100

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	INTRODUCTION	 	 	 	Page
	ARTICLE ONE — DEFINITIONS	 	 		 
	 
	 	1.1	 	Administrator or Plan Administrator	 	 	105	 
	 
	 	1.2	 	Affiliate	 	 	105	 
	 
	 	1.3	 	Board	 	 	105	 
	 
	 	1.4	 	Catch-Up Contribution	 	 	105	 
	 
	 	1.5	 	Code	 	 	105	 
	 
	 	1.6	 	Company	 	 	105	 
	 
	 	1.7	 	Compensation	 	 	105	 
	 
	 	1.8	 	Covered Employee	 	 	106	 
	 
	 	1.9	 	Effective Date	 	 	106	 
	 
	 	1.10	 	Elective Deferral	 	 	106	 
	 
	 	1.11	 	Employee	 	 	106	 
	 
	 	1.12	 	Employer(s)	 	 	106	 
	 
	 	1.13	 	Erie Indemnity Stock	 	 	106	 
	 
	 	1.14	 	Erie Indemnity Stock Fund	 	 	106	 
	 
	 	1.15	 	ERISA	 	 	106	 
	 
	 	1.16	 	Highly Compensated	 	 	106	 
	 
	 	1.17	 	Hour of Service	 	 	106	 
	 
	 	1.18	 	Interactive Electronic Communication	 	 	107	 
	 
	 	1.19	 	Leased Employee	 	 	107	 
	 
	 	1.20	 	Normal Retirement Date	 	 	108	 
	 
	 	1.21	 	Notice	 	 	108	 
	 
	 	1.22	 	Participant	 	 	108	 
	 
	 	1.23	 	Plan	 	 	108	 
	 
	 	1.24	 	Plan Year	 	 	108	 
	 
	 	1.25	 	Qualified Domestic Relations Order or QDRO	 	 	108	 
	 
	 	1.26	 	Rollover Contribution	 	 	109	 
	 
	 	1.27	 	Roth Catch-Up Contribution	 	 	109	 
	 
	 	1.28	 	Roth Elective Deferral	 	 	109	 
	 
	 	1.29	 	Roth Rollover Contribution	 	 	109	 
	 
	 	1.30	 	Safe Harbor Matching Contribution	 	 	109	 
	 
	 	1.31	 	Spousal Consent	 	 	109	 
	 
	 	1.32	 	Tax Deferred Catch-Up Contribution	 	 	110	 
	 
	 	1.33	 	Tax Deferred Contribution	 	 	110	 
	 
	 	1.34	 	Test Compensation	 	 	110	 
	 
	 	1.35	 	Top Paid Group	 	 	110	 
	 
	 	1.36	 	Total Account	 	 	111	 
	 
	 	1.37	 	Trust Agreement	 	 	111	 
	 
	 	1.38	 	Trust Fund	 	 	112	 
	 
	 	1.39	 	Trustee	 	 	112	 

101

 

	 	 	 	 	 	 	 	 	 
		 	 	 	Page
	 
	 	1.40	 	Valuation Date	 	 	112	 
	 
	 	1.41	 	Year of Eligibility Service	 	 	112	 
	 
	 	 	 	 	 	 		 
	ARTICLE TWO — PARTICIPATION	 	 		 
	 
	 	2.1	 	Participation	 	 	113	 
	 
	 	2.2	 	Rehired Employees	 	 	113	 
	 
	 	2.3	 	Employment Transfers	 	 	113	 
	 
	 	 	 	 	 	 		 
	ARTICLE THREE — EMPLOYER CONTRIBUTIONS	 	 		 
	 
	 	3.1	 	Elective Deferrals	 	 	114	 
	 
	 	3.2	 	Dollar Limitation on Tax Elective Deferrals	 	 	114	 
	 
	 	3.3	 	Catch-Up Contribution	 	 	116	 
	 
	 	3.4	 	Safe Harbor Matching Contributions	 	 	116	 
	 
	 	3.5	 	Source of Employer Contributions	 	 	118	 
	 
	 	3.6	 	Investment of Employer Contributions	 	 	118	 
	 
	 	3.7	 	Recovery of Contributions	 	 	118	 
	 
	 	3.8	 	Other Provisions Relating to Employer Contributions	 	 	119	 
	 
	 	 	 	 	 	 		 
	ARTICLE FOUR — ROLLOVER CONTRIBUTIONS	 	 		 
	 
	 	4.1	 	Rollover Contributions	 	 	120	 
	 
	 	4.2	 	Vesting of Rollover Contributions	 	 	120	 
	 
	 	 	 	 	 	 		 
	ARTICLE FIVE — PARTICIPANT ACCOUNTS AND VALUATION OF FUNDS	 	 		 
	 
	 	5.1	 	Establishment of Participant Accounts	 	 	121	 
	 
	 	5.2	 	Procedure as of Each Valuation Date	 	 	121	 
	 
	 	5.3	 	Investment Elections	 	 	121	 
	 
	 	5.4	 	Erie Indemnity Stock Fund	 	 	123	 
	 
	 	5.5	 	Temporary Suspension of Certain Administrative Activities	 	 	124	 
	 
	 	 	 	 	 	 		 
	ARTICLE SIX — VESTING & DISTRIBUTIONS	 	 		 
	 
	 	6.1	 	Vesting	 	 	125	 
	 
	 	6.2	 	Distributions Upon Retirement, or Other Termination of Employment	 	 	125	 
	 
	 	6.3	 	Payment of Amounts Distributed	 	 	126	 
	 
	 	6.4	 	Direct Rollovers	 	 	128	 

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		 	 	 	Page
	ARTICLE SEVEN — WITHDRAWALS	 	 		 
	 
	 	7.1	 	Withdrawals Generally	 	 	130	 
	 
	 	7.2	 	Hardship Withdrawal	 	 	130	 
	 
	 	7.3	 	Safe Harbor Distribution	 	 	131	 
	 
	 	7.4	 	Hardship Withdrawal Priority	 	 	131	 
	 
	 	7.5	 	Modifications to Hardship Withdrawal Standards	 	 	132	 
	 
	 	 	 	 	 	 		 
	ARTICLE EIGHT — THE TRUST FUND	 	 		 
	 
	 	8.1	 	Trust Agreement	 	 	133	 
	 
	 	8.2	 	Appointment of Independent Accountants	 	 	133	 
	 
	 	8.3	 	Appointment of Investment Manager	 	 	133	 
	 
	 	8.4	 	Role of Administrator in Operation of the Trust Fund	 	 	133	 
	 
	 	8.5	 	Voting of Erie Indemnity Stock	 	 	134	 
	 
	 	 	 	 	 	 		 
	ARTICLE NINE — ADMINISTRATION OF THE PLAN	 	 		 
	 
	 	9.1	 	The Administrator	 	 	136	 
	 
	 	9.2	 	Powers of Administrator	 	 	136	 
	 
	 	9.3	 	Delegation of Duties	 	 	138	 
	 
	 	9.4	 	Conclusiveness of Various Documents	 	 	138	 
	 
	 	9.5	 	Actions to be Uniform	 	 	138	 
	 
	 	9.6	 	Liability and Indemnification	 	 	138	 
	 
	 	 	 	 	 	 		 
	ARTICLE TEN — CLAIMS PROCEDURE	 	 		 
	 
	 	10.1	 	Claims Review Procedure	 	 	140	 
	 
	 	10.2	 	Original Claim	 	 	140	 
	 
	 	10.3	 	Review of Denied Claim	 	 	140	 
	 
	 	10.4	 	Determination by the Administrator Conclusive	 	 	141	 
	 
	 	 	 	 	 	 		 
	ARTICLE ELEVEN — MISCELLANEOUS	 	 		 
	 
	 	11.1	 	Non-Alienation of Benefits	 	 	142	 
	 
	 	11.2	 	Risk to Participants and Source of Payments	 	 	143	 
	 
	 	11.3	 	Expenses	 	 	143	 
	 
	 	11.4	 	Rights of Participants	 	 	143	 
	 
	 	11.5	 	Statement of Accounts	 	 	143	 
	 
	 	11.6	 	Designation of Beneficiary	 	 	144	 
	 
	 	11.7	 	Payment to Incompetents	 	 	144	 
	 
	 	11.8	 	Authority to Determine Payee	 	 	145	 
	 
	 	11.9	 	Severability	 	 	145	 
	 
	 	11.10	 	Employer Records	 	 	145	 
	 
	 	11.11	 	Limitation on Contributions	 	 	145	 
	 
	 	11.12	 	IRC 414(u) Compliance Provision	 	 	147	 
	 
	 	 	 	 	 	 		 
	ARTICLE TWELVE — AMENDMENT, TERMINATION OR MERGER OF THE PLAN	 	 		 
	 
	 	12.1	 	Right to Amend	 	 	148	 
	 
	 	12.2	 	Right to Terminate	 	 	148	 
	 
	 	12.3	 	Merger, Transfer of Assets or Liabilities	 	 	149	 

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		 	 	 	Page
	 
	 	 	 	 	 	 	 	 
	ARTICLE THIRTEEN — TOP HEAVY PROVISIONS	 	 	 	 
	 
	 	13.1	 	Top Heavy Provisions Inapplicable	 	 	150	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE FOURTEEN — LOANS	 	 	 	 
	 
	 	14.1	 	Availability of Loans	 	 	151	 
	 
	 	14.2	 	Terms and Conditions of Participant Loans	 	 	151	 
	 
	 	14.3	 	Loan Accounts	 	 	153	 

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ARTICLE ONE

DEFINITIONS

As used in this Plan, the following terms shall have the following meanings unless a different
meaning is clearly required by the context. Any terms herein used 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 again so applicable.

1.1     “Administrator” or “Plan Administrator” means the Administrator appointed by the Board in
accordance with the provisions of Article Nine.

1.2     “Affiliate” means any other employer which, together with the Company, is a member of a controlled
group of corporations or of a commonly controlled trade or business (as defined in Code
Sections 414(b) and (c) and as modified, where appropriate, by Code Section 415(h)) or of an
affiliated service group (as defined in Code Section 414(m)) or other organization described
in Code Section 414(o). Each such Affiliate shall be treated as an Affiliate only during such
period as it is or was an Affiliate as defined above.

1.3     “Board” means the Board of Directors of the Company.

1.4     “Catch-Up Contribution” means, with respect to a given Participant, the total amount of the
Participant’s Tax Deferred Catch-Up Contributions and the Participant’s Roth Catch-Up
Contributions.

1.5     “Code” means the Internal Revenue Code of 1986, as amended from time to time.

1.6     “Company” means Erie Indemnity Company, a corporation organized and existing under the laws of
Pennsylvania.

1.7     “Compensation” for any period means the rate of base salary or the wages paid by an Employer to an
Employee during the period. For this purpose, the “rate of base salary or the wages paid”
shall exclude Form W-2 income in the form of overtime compensation, bonuses, commissions,
deferred compensation plan payments or severance pay under any severance benefit plan, but
shall include Form W-2 income paid as a lump sum in lieu of merit increase and compensation
excluded from Form W-2 income because of salary reduction agreements in connection with plans
described in Sections 125, 132(f)(4) or 401(k) of the Code or resulting from deferred
compensation contracts for the Plan Year in question. The Plan shall not take into
consideration a Participant’s Compensation to the extent it exceeds the adjusted annual
limitation permitted under Section 401(a)(17) of the Code for such Plan Year. However, for
the sole purpose of computing Plan contributions that are based on an Employee’s percentage of
Compensation election, such adjusted annual limitation may be ignored provided the Employee
does not receive a higher allocation of any type of contribution than the Employee could have
received under the Plan had the adjusted annual limitation been considered. For purposes
hereof, such adjusted annual limitation shall be, for each Plan Year beginning on and after
January 1, 1989 and prior to January 1, 1994, $200,000 as adjusted for such year in the same
manner as under Section 415(d) of

105

 

the Code, for each Plan Year beginning on and after January 1, 1994 and prior to January 1,
2002, $150,000 as adjusted for such year as provided under Section 401(a)(17)(B) of the Code
and, for each Plan Year beginning on and after January 1, 2002, $200,000 as adjusted for such
year as provided under Section 401(a)(17)(B) of the Code

1.8     “Covered Employee” means any Employee of an Employer, excluding any such Employee whose employment
is governed by the terms of a collective bargaining agreement under which retirement benefits
were the subject of good faith bargaining.

Notwithstanding any provision of the Plan to the contrary, any individual who an Employer
determines to be a contract employee, independent contractor, leased employee (including a
Leased Employee as defined hereunder), leased owner, leased manager, shared employee or person
working under a similar classification shall not become a Covered Employee hereunder,
regardless of whether any such individual is ultimately determined to be a common law
employee, unless and until the Employer shall otherwise determine. An Employee shall be
considered a Covered Employee only during such period in which the individual satisfies the
requirements defined above.

1.9     “Effective Date” means January 1, 1989.

1.10   “Elective Deferral” means, with respect to a given Participant, the total amount of the
Participant’s Tax Deferred Contributions and the Participant’s Roth Elective Deferrals.

1.11   “Employee” means any common-law employee of an Employer or an Affiliate; provided, however, that
for purposes of Section 1.16 “Employee” shall include any self-employed individual performing
services for an Employer or Affiliate who is treated as an employee under Section 401(c)(1) of
the Code.

1.12   “Employer(s)” means the Company, Erie Family Life Insurance Company, Erie Insurance Exchange, Erie
Insurance Company, EI Holding Corp., EI Service Corp., Erie Insurance Company of New York,
Erie Insurance Property & Casualty Company, Flagship City Insurance Company and any other
Affiliate which may adopt this Plan.

1.13   “Erie Indemnity Stock” means the Class A common stock of the Company which is a qualifying
employer security within the meaning of Section 407(d)(5) of ERISA.

1.14   “Erie Indemnity Stock Fund” means the investment fund described in Section 5.4.

1.15   “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

1.16   “Highly Compensated” means any Employee who is a more than five percent (5%) owner of an Employer
or both earned $80,000 or more in Test Compensation from the Employer in the lookback year and
was member of the Top Paid Group for such year; provided, however, that such $80,000 figure
shall be adjusted for cost of living at the same time and in the same manner as determined
under Code Section 415(d).

1.17   “Hour of Service” shall include the following:

106

 

	 	(a)	 	Each hour for which an Employee is directly or indirectly paid or entitled to
payment from an Employer or an Affiliate as an Employee for the performance of duties
during an applicable computation period (these hours must be credited to the Employee
in the computation period during which the duties were performed and not when paid, if
different); and
	 
	 	(b)	 	Each hour for which back pay, irrespective of mitigation of damages, has been
awarded or agreed to by an Employer or an Affiliate (these hours must be credited in
the computation period or periods to which the award or agreement pertains rather than
that in which the payment, award or agreement was made); and
	 
	 	(c)	 	Each hour for which an Employee is directly or indirectly paid or entitled to
payment from an Employer or an Affiliate for reasons, such as vacation, sickness or
disability, other than for the performance of duties (these hours shall be calculated
and credited pursuant to Section 2530.200b-2 of the Department of Labor regulations
which are incorporated herein by reference).

1.18   “Interactive Electronic Communication” means a communication between a Participant or beneficiary
and the person or entity designated by the Administrator to perform recordkeeping and other
administrative services on behalf of the Plan pursuant to a system maintained by such person
or entity and communicated to each Participant and beneficiary whereby each such individual
may make elections and exercise options as described herein with respect to all or a portion
of his Total Account through the use of such system and a personal identification number. If
a Participant or beneficiary (i) consents to participate in Interactive Electronic
Communication procedures adopted by the Administrator and (ii) acknowledges that actions taken
by him through the use of his personal identification number pursuant to the Interactive
Electronic Communication procedure constitute his signature for purposes of initiating
transactions such as investment option changes, and increases, decreases, and suspensions of
Elective Deferrals, the Participant or beneficiary, as the case may be, will be deemed to have
given his written consent and authorization to any such action resulting from the use of the
Interactive Electronic Communication system by the Participant or beneficiary.

1.19   “Leased Employee” means any person (other than an Employee of an Employer) who pursuant
to an agreement between the Employer and any other person (“leasing organization”) has
performed services for the Employer (or for the Employer and related persons determined in
accordance with Section 414(n)(6) of the Code) on a substantially full-time basis for a period
of at least one year and such services are performed under primary direction or control by the
recipient. Except as provided below, any person satisfying the foregoing criteria shall be
treated as an Employee. Contributions or benefits provided a Leased Employee by the leasing
organization which are attributable to services performed for the Employer shall be treated as
provided by the Employer.

	 	 	Notwithstanding the foregoing, a Leased Employee shall not be considered an Employee of an
Employer if: (i) such Leased Employee is covered by a money purchase pension plan providing:
(1) a nonintegrated employer contribution rate of at least 10 percent of compensation, (2)
immediate participation, and (3) full and immediate vesting; and (ii)

107

 

	 	 	Leased Employees do not constitute more than 20 percent of the Employer’s non-Highly
Compensated workforce.

1.20   “Normal Retirement Date” means the first day of the month next following the month in which the
Participant attains age 65 (his “Normal Retirement Age”).

1.21   “Notice” means, unless otherwise specifically provided herein, (i) written Notice on an appropriate
form provided by the Administrator that is, in the discretion of the Administrator, properly
completed and executed by the party giving such Notice and which is delivered by hand or by
mail to the Administrator or to such party designated by the terms of the Plan or by the
Administrator to receive the Notice, or (ii) Notice by Interactive Electronic Communication to
the person or entity designated by the Administrator to perform recordkeeping and other
administrative services on behalf of the Plan. The form of Notice satisfactory in any given
circumstance under the Plan shall be determined by the Administrator, in its discretion, and
shall be applied uniformly to all Participants and beneficiaries. Notice to any party as
provided herein shall be deemed to be given when it is actually received (either physically or
by Interactive Electronic Communication, as the case may be) by the party to whom such Notice
is given.

1.22   “Participant” means any Covered Employee who participates in the Plan as provided in Section 3.1
(an “active” Participant) or Section 4.1, and further, shall include any current or former
Covered Employee who has suspended his Elective Deferrals or has terminated or retired if such
individual has a vested Total Account balance maintained on his behalf under the Plan.

1.23   “Plan” means this Erie Insurance Group Employee Savings Plan as herein set forth with all
amendments, modifications and supplements hereafter made.

1.24   “Plan Year” means the calendar year.

1.25   “Qualified Domestic Relations Order” or “QDRO” means any judgment, decree or order (including
approval of a property settlement agreement) which is made pursuant to a State Domestic
Relations Law (including a community property law) and which:

	 	(a)	 	relates to provision of child support, alimony payments, or marital property
rights of a spouse, former spouse, child or other dependent of a Participant;
	 
	 	(b)	 	recognizes or creates an alternate payee’s right to, or assigns to an alternate
payee the right to receive all or a portion of the benefits payable with respect to a
Participant under this Plan; and
	 
	 	(c)	 	clearly specifies:

	 	(i)	 	name and last known address of the Participant and of each
alternate payee;
	 
	 	(ii)	 	the amount, percentage, or manner in which such could be
determined, of the Participant’s benefits to be paid to such alternate payee by
the Plan;

108

 

	 	(iii)	 	the number of payments or time periods the QDRO covers; and
	 
	 	(iv)	 	each plan to which the QDRO applies.

	 	 	A QDRO cannot require the Plan to provide a type or form of benefit, or any option not
otherwise provided by the Plan, nor can it require the Plan to provide increased benefits.
A QDRO cannot require payment to an alternate payee by virtue of a previous QDRO.
	 
	 	 	A written procedure will be established to determine the qualified status of domestic
relations orders and to administer distributions thereunder.

1.26   “Rollover Contribution” means the Rollover Contribution or Roth Rollover Contribution made by a
Covered Employee pursuant to Section 4.1.

1.27   “Roth Catch-Up Contribution” means, effective with respect to pay periods ending on or after
January 1, 2007, or such later date as the Administrator shall determine, that portion of the
Employer contribution made pursuant to Section 3.3 that is, at the election of the
Participant, includible in the Participant’s gross income at the time the contribution is
made.

1.28   “Roth Elective Deferral” means, effective with respect to pay periods ending on or after January
1, 2007, or such later date as the Administrator shall determine, the Employer contribution
made pursuant to a Participant’s election under Section 3.1(a) to contribute a stated
percentage, from one percent (1%) to one hundred percent (100%) of his future Compensation in
lieu of receiving such amount directly in cash and to have such amount contributed to a
Designated Roth Account maintained on his behalf under the Plan. A Roth Elective Deferral
shall be includible in the Participant’s gross income at the time of deferral and shall be
irrevocably designated as a Roth Elective Deferral by the Participant in his election.

1.29   “Roth Rollover Contribution” means that portion of a Covered Employee’s Rollover Contribution that
is attributable to a designated Roth account under an eligible retirement plan.

1.30   “Safe Harbor Matching Contribution” means the Employer contribution made pursuant to Section 3.4.

1.31   “Spousal Consent” means a written consent given by a Participant’s legally-recognized spouse to a
Participant’s designation of a specified beneficiary or beneficiaries (including the
designation of any class of beneficiaries or any contingent beneficiaries) under Section
11.6(a). Any Spousal Consent shall be effective only with respect to such spouse. Such
consent shall be duly witnessed by a Plan representative or a notary public and shall
acknowledge the effect on the spouse of the Participant’s election. The Participant may
revoke, without limitation, any such designation without the need for Spousal Consent. Any
new designation will require a new Spousal Consent. The requirement for Spousal Consent may
be waived by the Administrator if it is established that there is no spouse, the spouse cannot
be located, the Participant has a court order

109

 

evidencing a legal separation from or abandonment by the spouse, or for such other
circumstances as shall be prescribed by applicable law.

1.32   “Tax Deferred Catch-Up Contribution” means that portion of the Employer contribution made pursuant
to Section 3.3 that is, at the election of the Participant, not includible in the
Participant’s gross income at the time the contribution is made.

1.33   “Tax Deferred Contribution” means the Employer contribution made pursuant to a Participant’s
election under Section 3.1(a) to reduce his future taxable Compensation by a stated
percentage, from one percent (1%) to one hundred percent (100%), in lieu of receiving such
amount directly in cash and to have such amount contributed to a Tax Deferred Account
maintained on his behalf under the Plan. A Tax Deferred Contribution shall not be includable
in the Participant’s gross income at the time of deferral.

1.34   “Test Compensation” means, for any Plan Year, an Employee’s compensation, reported under Sections
6041 and 6051 of the Code on Form W-2, as paid by an Employer or an Affiliate for the calendar
year ending with or within such Plan Year, including any amounts contributed pursuant to a
salary reduction election on behalf of a Covered Employee to a plan described in Sections 125,
132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b), or 457(b) of the Code for the period in question.
Test Compensation in any given year shall not exceed the adjusted annual limitation in effect
for such year (as set forth in Section 1.7), provided that such limitation shall not be
applied in determining the status of an Employee as a Highly Compensated Employee. To the
extent permitted under regulations and other guidance promulgated by the Internal Revenue
Service, the Company may elect to determine Test Compensation on a basis other than that
provided above.

1.35   “Top Paid Group” means all active Employees who, as of a given year, are in the top twenty percent
(20%) of the Company’s work force on the basis of Test Compensation for such year, excluding
the following:

	 	(a)	 	Employees who have not completed six months of service by the end of such year;
	 
	 	(b)	 	Employees who work less than 17-1/2 hours per week for such year;
	 
	 	(c)	 	Employees who normally do not work more than six months in a year;
	 
	 	(d)	 	Employees under age 21 at the end of such year; and
	 
	 	(e)	 	non-resident aliens who received no U.S.-source income for such year.

	 	 	For purposes of this Section, the Company’s work force shall include individuals employed by
an Affiliate.

110

 

1.36   “Total Account” means the total amounts held under the Plan for a Participant, consisting of the
following accounts:

	 	(a)	 	“Designated Roth Account” the portion of the Participant’s Total Account
consisting of Roth Elective Deferrals plus (minus) any investment earnings(losses) on
such contributions and less any distributions or withdrawals made from this account in
accordance with Articles Six and Seven, respectively.
	 
	 	(b)	 	“Employer Account” the portion of the Participant’s Total Account consisting of
employer matching contributions made under the Plan with respect to Plan Years
beginning before January 1, 2001, plus (minus) any investment earnings (losses) on such
contributions and less any distributions or withdrawals made from this account in
accordance with Articles Six and Seven, respectively.
	 
	 	(c)	 	“Rollover Account” the portion of the Participant’s Total Account consisting of
Rollover Contributions other than that portion of any Rollover Contribution that is
attributable to a Roth Rollover Contribution plus (minus) any investment earnings
(losses) on such contributions and less any distributions or withdrawals made from this
account in accordance with Articles Six and Seven, respectively.
	 
	 	(d)	 	“Roth Catch-Up Account” the portion of the Participant’s Total Account
consisting of Roth Catch-Up Contributions plus (minus) any investment earnings (losses)
on such contributions and less any distributions or withdrawals made from this account
in accordance with Article Six and Seven, respectively.
	 
	 	(e)	 	“Roth Rollover Account” the portion of the Participant’s Total Account
consisting of Roth Rollover Contributions plus (minus) any investment earnings (losses)
on such contributions and less any distributions or withdrawals made from this account
in accordance with Article Six and Seven, respectively.
	 
	 	(f)	 	“Safe Harbor Matching Account” the portion of the Participant’s Total Account
consisting of Safe Harbor Matching Contributions, plus (minus) any investment earnings
(losses) on such contributions and less any distributions made from this account in
accordance with Article Six.
	 
	 	(g)	 	“Tax Deferred Account” the portion of the Participant’s Total Account
consisting of Tax Deferred Contributions plus (minus) any investment earnings (losses)
on such contributions and less any distributions or withdrawals made from this account
in accordance with Articles Six and Seven, respectively.
	 
	 	(h)	 	“Tax Deferred Catch-Up Account” the portion of the Participant’s Total Account
consisting of Tax Deferred Catch-Up Contributions plus (minus) any investment earnings
(losses) on such contributions and less any distributions or withdrawals made from this
account in accordance with Article Six and Seven, respectively.

1.37   “Trust Agreement” means the Trust Agreement between the Company and a Trustee as provided in
Section 8.1, together with all amendments, modifications and supplements hereafter made.

111

 

1.38   “Trust Fund” means the fund established under the terms of the Trust Agreement with the Trustee for
the purpose of holding and investing the assets of the Plan. The Trust Fund shall consist of
such investment funds or vehicles as the Administrator may, in its discretion, designate from
time to time and may include such investments as may be selected by a Participant or
beneficiary under a self-directed “open option” arrangement authorized by the Administrator.

Nothing herein shall prohibit the Trust Fund from holding reasonable amounts in cash or cash
equivalents in any fund or vehicle offered under the Plan. The portion of the Trust Fund to
be invested in the various funds or vehicles shall be determined by Participant investment
elections made pursuant to Article Five. The Administrator may, in its discretion, offer
additional investment funds or vehicles to all Participants and may cease to offer any
investment fund or vehicle at such time as it deems appropriate.

Except as otherwise indicated, the Trust Fund shall be deemed to include that portion of a
Total Account which a Participant or beneficiary elects to invest in a group annuity contract
provided by the Erie Family Life Insurance Company.

1.39   “Trustee” means the Trustee or Trustees acting as such under a Trust Agreement, including any
successor or successors.

1.40   
“Valuation Date” means the close of business as of each business day.

1.41   “Year of Eligibility Service” means an “Eligibility Computation Period” in which an Employee
completes at least 1,000 Hours of Service.

	 	 	The “Eligibility Computation Period” with respect to an Employee shall mean the 12
consecutive month period that begins on the first day on which the Employee is credited with
an Hour of Service in the employment of an Employer or Affiliate (“Employment Commencement
Date”) and ends on the first anniversary thereof, and each Plan Year thereafter beginning
with the Plan Year that includes the first anniversary of the Employee’s Employment
Commencement Date. In the event an Employee completes 1,000 Hours of Service during the
Eligibility Computation Period that begins on his Employment Commencement Date and completes
1,000 Hours of Service during the Eligibility Computation Period that begins on the January 1
that next follows his Employment Commencement Date, such Employee shall be credited with two
Years of Eligibility Service.

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ARTICLE TWO

PARTICIPATION

2.1 Participation

	 	(a)	 	Any Employee shall be eligible to participate in the Plan on the first day of a pay
period, provided he is a Covered Employee and is actively employed by an Employer on
such date and, provided further, that he makes proper application for participation
within a reasonable time prior to the start of such pay period by furnishing Notice in
accordance with procedures established by the Administrator and communicated to Covered
Employees.
	 
	 	(b)	 	Notwithstanding the foregoing, any Covered Employee who is compensated on an hourly
basis and who is classified by an Employer as other than a regular hourly employee
shall be eligible to participate in the Plan on the January 1 or July 1 coincident with
or next following such Employee’s completion of each of the following requirements,
provided he remains a Covered Employee as of such January 1 or July 1:

	 	(i)	 	His attainment of age 21 years; and
	 
	 	(ii)	 	His completion of one Year of Eligibility Service.

	 	 	 	If the Employee is not a Covered Employee on the date he otherwise would have become
eligible to participate in the Plan, such Employee shall automatically become
eligible to participate in the Plan upon his return to employment as a Covered
Employee.

2.2 Rehired Employees

	 	 	An Employee who had been an “active” Participant in the Plan, who terminates his employment
and is subsequently re-employed may become eligible to participate in the Plan under Section
3.1 on the first day of any pay period following re-employment, provided he is a Covered
Employee and is actively employed by an Employer on such date and, provided further, that he
makes proper application for participation within a reasonable time prior to the start of
such pay period by furnishing Notice in accordance with procedures established by the
Administrator and communicated to Covered Employees.

2.3 Employment Transfers

	 	(a)	 	Upon the transfer of a Covered Employee to other employment with an Employer or
Affiliate whereby he ceases to be a Covered Employee hereunder, such individual’s
ability to have Elective Deferrals made to the Plan on his behalf (and to receive Safe
Harbor Matching Contributions) with respect to Compensation earned on and after this
date of transfer shall cease and such Participant shall be considered an “inactive”
Participant under the Plan.
	 
	 	(b)	 	Upon the transfer of an individual from other employment with an Employer or
Affiliate such that the individual becomes a Covered Employee hereunder, such
individual shall be eligible to participate in the Plan as provided in Section 2.1
hereof.

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ARTICLE THREE

EMPLOYER CONTRIBUTIONS

	3.1	 	Elective Deferrals

	 	(a)	 	Each Covered Employee who is eligible to participate in the Plan and who has
elected to become a Participant (in accordance with Article Two) may, at the time of
making application to become a Participant, elect to make Elective Deferrals in a
fixed, whole percentage, from one percent (1%) to one hundred percent (100%) of that
Compensation otherwise payable in future pay periods. Such election shall be made in
accordance with procedures adopted by the Administrator and communicated to
Participants. In all events, a Participant will be permitted to (i) begin making
Elective Deferrals, (ii) change an existing election to made Elective Deferrals, and
(iii) cease making Elective Deferrals at least once each Plan Year.
	 
	 	 	 	Subject to the limitations set forth in Sections 3.2 and 11.11, Elective Deferrals
shall be made pursuant to the Participant’s election and shall be designated as
either Tax Deferred Contributions or Roth Elective Deferrals in accordance with such
election; providing however, that the Administrator, in its discretion may authorize
at any time a suspension or reduction of Elective Deferrals, or any part thereof,
with respect to any Participant. Elective Deferrals shall be withheld by the
Participant’s Employer each pay period by regular payroll deduction in accordance
with the Employer’s payroll withholding procedures and shall be credited to the
Participant’s Tax Deferred Account or Designated Roth Account as of the date the
contributions are received by the Trustee or otherwise deposited in the Trust Fund.
Such contributions shall be deposited in the Trust Fund as soon as such amounts can
reasonably be segregated from the Employer’s general assets.

	 	(b)	 	Elective Deferrals constitute Employer contributions under the Plan and are intended
to qualify as elective contributions under Section 401(k) of the Code. Elective Deferrals may
be made only with respect to an amount which the Participant could otherwise elect to receive
in cash and which is not currently available to the Participant as of the date an election
specified in this Section 3.1 is made. In the event a Participant has no Compensation for any
payroll period, no Elective Deferral may be made for such period.

	3.2	 	Dollar Limitation on Elective Deferrals

	 	(a)	 	Any provision of this Plan to the contrary notwithstanding, no Employer shall
be permitted, during any calendar year, to make with respect to such calendar year,
Elective Deferrals on behalf of a Participant under the Plan (when combined with the
Participant’s elective deferrals under any other plans, contracts, or arrangements)
that will exceed the limitation in affect for such year under Section 402(g)(1) of the
Code, as adjusted in accordance with Section 402(g)(4) of the Code. Make-up
contributions on account of qualified military service under

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	 	 	 	Section 414(u) of the Code shall not be recognized as elective deferrals for
purposes of this section.
	 
	 	(b)	 	In the event any amount of Elective Deferrals for a calendar year exceeds the
limitation applicable under this Section 3.2 for such calendar year, such excess amount
(hereafter described for purposes of this Section, as “Excess Deferrals”), as adjusted
for any income or loss allocable thereto in accordance with regulations, shall to the
extent possible be distributed to such Participant, as provided in subparagraphs (i),
(ii), (iii) and (iv) below:

	 	(i)	 	At a date not later than the March 1st of the calendar year
immediately following the calendar year to which such Excess Deferrals are
attributable, any Participant to whom this Section 3.2 applies may notify, in
writing, the Administrator by submitting a form as may be provided by the
Administrator which shall specify the amount of the Participant’s Excess
Deferrals for the given calendar year and shall contain a certified statement
by the Participant indicating that if such amount is not distributed, such
Excess Deferrals will exceed the limit imposed on the Participant by Section
402(g) of the Code for the year in which the Elective Deferrals occurred.
	 
	 	 	 	Notwithstanding the foregoing and solely for the purpose of facilitating a
distribution of Excess Deferrals as required by regulation, in the event a
Participant has Excess Deferrals in a given year calculated by taking into
account his Elective Deferrals hereunder and his elective deferrals under
any other plan, contract, or arrangement maintained by an Employer or
Affiliate, the Participant will be deemed to have notified the Administrator
in the manner provided in this subparagraph.
	 
	 	(ii)	 	At a date not later than the April 15 of the calendar year
immediately following the calendar year to which such Excess Deferrals are
attributable, the Plan may distribute to the Participant the amount of the
Excess Deferrals allocated to the Plan as adjusted for any income or loss
allocable to such excess. Any Excess Deferrals distributed pursuant to this
subparagraph that have not previously been included in income are to be
included in the gross income of the Participant for the year to which such
Excess Deferrals relate. Any income that is allocable to Excess Deferrals (as
determined in accordance with rules promulgated by the Secretary of the
Treasury or his delegate) that is distributed pursuant to this subparagraph is
to be included in the gross income of the Participant for the year in which
such amount is distributed. In making a distribution as permitted under this
Section, the Administrator shall first allocate the Excess Deferral to any Roth
Elective Deferrals for such year and shall allocate the Excess Deferral to Tax
Deferred Contributions only to the extent the Excess Deferral exceeds such Roth
Elective Deferrals. The Administrator shall designate the distribution as that
consisting of Excess Deferrals within the meaning of Section 402(g)(1) of the
Code. Any distribution of less than the entire amount of Excess Deferrals plus
income or loss attributable to such deferral contributions shall be treated as
a pro

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	 	 	 	rata distribution of such excess deferral contributions and income/loss. No
corrective distribution under this Section shall be recognized for purposes
of determining whether the minimum distribution requirements of Section
401(a)(9) of the Code are satisfied with respect to any Participant.
	 
	 	(iii)	 	Any distribution in accordance with this Section 3.2 shall be
made without regard to any notice or consent otherwise required under Sections
411(a)(11) or 417 of the Code.

	3.3	 	Catch-Up Contributions

	 	(a)	 	A Participant who is a Covered Employee and who is age 50 or older at any time
during a given Plan Year shall be eligible to elect to make a Tax Deferred Catch-Up
Contribution for such Plan Year or, for Plan Years beginning on and after January 1,
2007, a Roth Catch-Up Contribution for such Plan Year. Such election shall be made,
and may be changed prospectively, in accordance with procedures adopted by the
Administrator and communicated to Covered Employees.
	 
	 	(b)	 	A Catch-Up Contribution is an Employer contribution that is actually made on
behalf of a Participant described in Section 3.3(a) whose Elective Deferrals for the
give Plan Year are otherwise limited as provided in Section 3.2. and that is in an
amount that does not exceed the dollar limit under Section 414(v)(2)(B)(i) of the Code,
as adjusted in accordance with Section 414(v)(2)(C) of the Code. A Catch-Up
Contribution is not taken into account for purposes of the limitations provided in
Sections 3.2 and 11.11 of the Plan and the Plan shall not be treated as failing the
requirements identified in Section 414(v)(3) of the Code, as applicable, by reason of
such Catch-Up Contributions.

	3.4	 	Safe Harbor Matching Contributions

	 	(a)	 	The Employer shall contribute an amount to the Trust Fund equal to the sum of
those amounts individually determined with respect to each Participant, as follows:

	 	(i)	 	One hundred percent (100%) of the Elective Deferrals made with
respect to the Participant during such pay period which do not exceed three
percent (3%) of the Participant’s Compensation during such pay period; and
	 
	 	(ii)	 	Fifty percent (50%) of the Elective Deferrals made with respect
to the Participant during such pay period which exceed three percent (3%), but
do not exceed five percent (5%), of the Participant’s Compensation during such
pay period.

	 	 	 	Such contributions shall be designated as Safe Harbor Matching Contributions and
shall be 100% vested and nonforfeitable when made. The Employer shall make Safe
Harbor Matching Contributions as soon as practicable following the end of the pay
period to which they relate and such contributions shall be credited to
Participants’ Safe Harbor Matching Accounts as of the date they are received

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	 	 	 	by the Trustee or otherwise deposited in the Trust Fund. Notwithstanding the
foregoing provisions, Catch-Up Contributions shall be treated as Elective Deferrals
under this Section 3.4 solely to the extent a Participant’s Elective Deferrals
(exclusive of Catch-Up Contributions) for a given Plan Year do not equal or exceed
five percent (5%) of the Participant’s Compensation during the Plan Year and
provided that any such inclusion of Catch-Up Contributions in Elective Deferrals
will not cause the amount of Elective Deferrals that are recognized for purposes of
the Safe Harbor Matching Contribution formula to exceed five percent (5%) of the
Participant’s Compensation during the Plan Year. The Safe Harbor Matching
Contribution made on behalf of each Participant shall be adjusted as of the last day
of a Plan Year to ensure that the actual Safe Harbor Matching Contribution made
equals the appropriate percentages set forth in this Section 3.4(a), as determined
on the Plan Year basis.
	 
	 	(b)	 	Effective with respect to each Plan Year in which the provisions of Section 3.4
are applicable, the Administrator shall provide Notice during the “Safe Harbor Notice
Period” (as hereinafter defined) to each Covered Employee who is eligible to
participate in the Plan during such Plan Year. Such Notice shall describe the
following:

	 	(i)	 	The formula used to determine the Safe Harbor Matching
Contribution to be made on behalf of such Employee for such Plan Year;
	 
	 	(ii)	 	Any requirements that such Employee must satisfy to become
entitled to receive such contributions;
	 
	 	(iii)	 	The type and amount of Compensation that may be deferred under
the Plan as Elective Deferrals and Catch-Up Contributions;
	 
	 	(iv)	 	The procedures for making or changing an election to make
Elective Deferrals and Catch-Up Contributions, including the periods available
for making or changing such elections;
	 
	 	(v)	 	The withdrawal and vesting provisions applicable to
contributions under the Plan; and
	 
	 	(vi)	 	A means by which Covered Employees may easily obtain additional
information about the Plan.

	 	 	 	For purposes hereof, the “Safe Harbor Notice Period” shall mean a period beginning
90 days before the first day of the applicable Plan Year and ending 30 days before
the first day of the applicable Plan Year; provided, however, with respect to a
Covered Employee who becomes eligible to participate in the Plan during a given Plan
Year in which the provisions of Section 3.4 are applicable, the “Safe Harbor Notice
Period” shall begin 90 days before the day such Employee may first participate in
the Plan and shall end on the day such Employee may first participate in the Plan.

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	 	(c)	 	The Employer elects to treat the Plan as automatically satisfying the
nondiscrimination in amount of employer contribution requirements of Section 401(a)(4)
of the Code. Notwithstanding any provision of this Section 3.4 to the contrary, the
Employer reserves the right to suspend future Safe Harbor Matching Contributions at any
time provided that the procedures for implementing such suspension are consistent with
Section 1.401(k)-3(g) of the Income Tax Regulations.

	3.5	 	Source of Employer Contributions

	 	(a)	 	The Employer shall make all contributions to the Plan without regard to current
or accumulated net profits. Notwithstanding the foregoing, for purposes of Sections
401(a)(27) and 401(k) of the Code, the Plan shall continue to be considered a profit
sharing plan. Effective January 1, 2007, this Plan is also intended to be a qualified
Roth contribution program under Section 402A of the Code. All Employer contributions
shall be made in cash and shall be conditioned on the deductibility of the
contribution.
	 
	 	(b)	 	Any provision of the Plan to the contrary notwithstanding, the total Employer
contribution made with respect to any Plan Year, when added to any other contributions
made by the Employer to a plan qualified under Section 401(a) of the Code, shall not
exceed such amount which is deductible for such Plan Year pursuant to Sections
404(a)(3) or 404(a)(7) of the Code. In any event, all contributions for a Plan Year
shall be paid within the regular or extended time for filing the Employer’s federal
income tax return for the fiscal year which includes the Plan Year end.

	3.6	 	Investment of Employer Contributions
	 
	 	 	The Employer contributions made on behalf of a Participant shall be invested by the Trustee
in accordance with the Participant’s election under Sections 5.3(a) and 5.4(a).
	 
	3.7	 	Recovery of Contributions
	 
	 	 	Except as provided in this Section 3.7, the assets of the Plan shall never inure to the
benefit of an Employer or Affiliate and shall be held for the exclusive purpose of providing
benefits under the Plan and defraying reasonable expenses of the Plan. However, no
provision of this Plan shall:

	 	(a)	 	Prohibit the return of a contribution to an Employer or a Participant within
one year after payment if such contribution was made by a mistake of fact;
	 
	 	(b)	 	Prohibit the return of a contribution that is determined to be nondeductible
(to the extent disallowed as a deduction);

	 	 	provided, however, in the case of the return of a contribution which was made as a result of
a mistake of fact, the amount which shall be returned is the excess of the amount
contributed over the amount which would have been contributed had the mistake of fact not
occurred. Further, in the case of the return of a contribution that is determined to be

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	 	 	nondeductible, and in the case of a contribution made as the result of a mistake of fact,
earnings attributable to the excess contribution may not be returned, but losses
attributable thereto must reduce the amount to be returned. Further, in both such cases, if
the withdrawal of the amount attributable to the mistaken or nondeductible contribution
would cause the balance of the account of any Participant to be reduced to less than the
balance which would have been in the account had the mistaken or nondeductible amount not
been contributed, then the amount to be returned to the Employer will be limited so as to
avoid such reduction.

	3.8	 	Other Provisions Relating to Employer Contributions
	 
	(a)	 	Except as otherwise provided in accordance with procedures adopted by the Administrator and
communicated to applicable Participants, a Participant may as of any time:

	 	(i)	 	suspend the Elective Deferrals and/or Catch-Up Contributions
being made on his behalf; or
	 
	 	(ii)	 	increase or decrease the rate of Elective Deferrals and/or
Catch-Up Contributions made on his behalf or have such contributions resumed
after a period of suspension;
	 
	 	(iii)	 	change the allocation of the Elective Deferrals made on his
behalf from Tax Deferred Contributions to Roth Elective Deferrals, or vice
versa; or
	 
	 	(iv)	 	change the allocation of the Catch-Up Contributions made on his
behalf from Tax Deferred Catch-Up Contributions to Roth Catch-Up Contributions,
or vice versa.

	 	 	 	Such suspension or change in rate or allocation shall be effective as of the first
day of the pay period next following the date the Participant delivers Notice of the
same to the Administrator, provided such Notice is delivered to the Administrator in
such time as to allow the Administrator a reasonable period within which to act on
the election contained therein.
	 
	 	 	 	During any period of suspension, regardless of the length of its duration, the
Participant’s Account shall be maintained in accordance with the procedure set forth
in Article Five.

	(b)	 	In the event Safe Harbor Matching Contributions have been made with respect to Elective
Deferrals that are subsequently determined to fail to meet the annual dollar limitation
specified in Section 3.2(a) (and if such Excess Deferrals are distributed pursuant to Section
3.2(b)), such Safe Harbor Matching Contributions (and any income or loss attributable thereto
determined in accordance with regulations) shall be forfeited and applied to reduce future
Safe Harbor Matching Contributions.

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ARTICLE FOUR

ROLLOVER CONTRIBUTIONS

	4.1	 	Rollover Contributions

	 	(a)	 	Under such rules and procedures as the Administrator may establish, any Covered
Employee may make a cash Rollover Contribution to this Plan of all or a portion of the
amount received by the Covered Employee in the form of an eligible rollover
distribution from an eligible retirement plan (as such terms are defined in Section
6.4); provided, however, that the Plan shall not accept (i) a rollover of after-tax
employee contributions; (ii) a rollover from an individual retirement account or
annuity that is other than a conduit IRA, as determined by the Administrator, or (iii)
a rollover from such other source, and/or under such circumstances, as the
Administrator, in its discretion, shall determine to be ineligible. Effective January
1, 2007, that portion of a Rollover Contribution that is attributable to a designated
Roth account under an eligible retirement plan shall be accepted provided it meets the
other requirements of this section and is made as a direct rollover to a Roth Rollover
Account hereunder. Such Roth Rollover Contribution shall be subject to separate
accounting, including accounting for the amount of such contribution not includable in
income. Any portion of a Rollover Contribution that is not a Roth Rollover
Contribution and that is accepted by the Administrator shall be allocated to a Rollover
Account established on behalf of the Covered Employee. No Rollover Contribution may be
made to the Plan unless the Covered Employee had demonstrated to the Administrator’s
satisfaction that the contribution satisfied the conditions for tax-free rollover
treatment under the applicable provisions of the Code.
	 
	 	(b)	 	In the event the Administrator has reasonably concluded that an amount may be
accepted by the Plan as a Rollover Contribution under Section 4.1(a) but later
determines that all or a portion of such amount fails to satisfy the provisions of
Section 4.1(a), the Administrator shall cause such ineligible amount and related
investment earnings to be distributed to the Covered Employee (or, if applicable,
beneficiary) as soon as administratively feasible.

	4.2	 	Vesting of Rollover Contributions
	 
	 	 	Amounts contributed under Section 4.1 hereof shall at all times be 100% vested.

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ARTICLE FIVE

PARTICIPANT ACCOUNTS AND VALUATION OF FUNDS

	5.1	 	Establishment of Participant Accounts

	 	(a)	 	There shall be established and maintained for each Participant a Total Account.
A Total Account may consist of the following accounts:

	 	(i)	 	a Tax Deferred Account;
	 
	 	(ii)	 	a Safe Harbor Matching Account;
	 
	 	(iii)	 	an Employer Account;
	 
	 	(iv)	 	a Rollover Account;
	 
	 	(v)	 	a Tax Deferred Catch-Up Account;
	 
	 	(vi)	 	for periods on and after January 1, 2007, a Designated Roth Account;
	 
	 	(vii)	 	for periods on and after January 1, 2007, a Roth Catch-Up Account; and
	 
	 	(viii)	 	for periods on and after January 1, 2007, a Roth Rollover Account.

	 	(b)	 	Within each of the accounts listed in Section 5.1(a) that are applicable to a
given Participant, separate records shall be kept of the portion, if any, of each
account invested in each investment fund or vehicle then offered under the Plan. The
Administrator may adopt rules, consistent with income tax regulations, that designate
certain accounts as constituting a separate contract for purposes of Section 72 of the
Code.

	5.2	 	Procedure as of Each Valuation Date
	 
	 	 	As of each Valuation Date, each Participant’s balance in his various accounts shall be
adjusted in accordance with the valuation procedure adopted by the Administrator.

	5.3	 	Investment Elections

	 	(a)	 	When a Covered Employee submits his application to become a Participant, he
shall give Notice regarding the investment of contributions to be made on his behalf
under the Plan. Such Notice shall be provided to the Administrator or its designee
within such time and in accordance with such means as are designated by the
Administrator and communicated to Participants and Covered Employees. Subject to such
procedural rules as may be established by the Administrator from time-to-time, such
Notice shall specify, in 1% increments from 0% to 100%, the percentage of each
applicable contribution source which is to be invested in each investment option then
made available.

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	 	 	 	A Participant may change the investment elections made under this Section 5.3(a) at
any time by giving Notice to the Administrator or its designee within such time and
in accordance with such means as are designated by the Administrator and
communicated to Participants and Covered Employees. Such Notice of change shall be
subject to the procedural specifications set forth above (and, if applicable,
subject to the limitations set forth in Section 5.4) and, except as may otherwise be
provided in the Trust Agreement, shall be effective with respect to contributions
received by the Trustee (or otherwise deposited into the Trust Fund) as of the
Valuation Date on which the Notice is received or as of the next following Valuation
Date, in accordance with procedures established by the Administrator, and
communicated to Participants and Covered Employees.

	 	 	A Covered Employee making a Rollover Contribution shall give Notice regarding the
investment of such contribution. Such Notice shall be delivered on or prior to the date
the Rollover Contribution is effective and shall specify, in 1% increments from 0% to
100%, the percentage of the Rollover Contribution to be invested in each investment option
which is then made available for the investment of Rollover Contributions.

	(b)	 	Each Participant and beneficiary shall have the opportunity to change the manner in which the
Total Account maintained on his behalf under the Plan is invested. Such opportunity shall be
exercised by giving Notice to the Administrator or its designee within such time and in
accordance with such means as are designated by the Administrator and communicated to
Participants, Covered Employees and affected beneficiaries. Subject to such procedural rules
as may be established by the Administrator from time-to-time, such Notice shall specify, in a
whole dollar amount or in 1% increments from 0% to 100%, the dollar amount, or percentage, of
the Total Account maintained on behalf of the Participant or beneficiary which is to be
invested in each investment option then made available. Except as may otherwise be set forth
in the Trust Agreement, such Notice shall be effective as of the Valuation Date on which the
Notice is received by the Trustee or as of the next following Valuation Date, in accordance
with procedures established by the Administrator and communicated to Participants, Covered
Employees and affected beneficiaries. Notwithstanding any provision of this paragraph (b) to
the contrary, (i) the election under this Section 5.3(b) shall be subject to any contractual
limitations imposed on the direct transfer of assets between given investment funds or such
other reasonable limitation on exchanges as may be agreed to between the Administrator and the
person or entity designated by the Administrator to perform administrative services on behalf
of the Plan (ii) the election under this Section 5.3(b) shall be subject to any regulatory
restrictions on transfers, as determined by the Administrator, in its discretion, (iii) in no
event shall any portion of the Total Account maintained on behalf of a Participant or
beneficiary in the Erie Family Life Group Annuity Fund be transferred to any other investment
fund and (iv) in no event shall any portion of the Total Account maintained on behalf of a
Participant be transferred to the Erie Indemnity Stock Fund.

	 	(c)	 	Any investment elections or changes in elections under this Section 5.3 may be
limited or delayed by the Administrator or Trustee, if, in the judgment of such party,
giving immediate effect to such elections would adversely affect the Total Account
balances of a significant number of Participants.

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	 	(d)	 	In the event a Participant’s, Covered Employee’s or beneficiary’s investment
election under the Plan is incomplete, the Participant, Covered Employee or beneficiary
will be deemed to have chosen to invest in such default fund as is set forth in the
Trust Agreement or as otherwise determined by the Administrator.
	 
	 	(e)	 	Any investment election or deemed investment election under the Plan shall
remain in effect until changed by an election under this Section.
	 
	 	(f)	 	Each Participant, Covered Employee and beneficiary is solely responsible for
the selection of his investment option. The Trustee, the Administrator, the Employer,
and the directors, officers, supervisors and other employees of the Employer are not
empowered to advise a Participant, Covered Employee or beneficiary as to the manner in
which any portion of his Total Account shall be invested. The fact that an investment
option is available under the Plan shall not be construed as a recommendation for
investment in that investment option.

	5.4	 	Erie Indemnity Stock Fund
	 
	 	 	The provisions of this Section shall become applicable to the extent to which Participants’
and beneficiaries’ Employer Accounts and/or Safe Harbor Matching Accounts under the Plan are
invested in the Erie Indemnity Stock Fund.

	(a)	 	The Administrator shall make available under the Plan an investment fund which shall consist
exclusively of Erie Indemnity Stock; provided, however, that in the discretion of the Trustee,
within guidelines set by the Administrator, a portion of such fund may be held in short-term
interest-bearing investments or cash pending purchase of Erie Indemnity Stock and to provide
sufficient liquidity for exchanges out of the fund, withdrawals and loans. Such investment
fund shall be referred to as the “Erie Indemnity Stock Fund”. Except as otherwise provided in
this Section 5.4, a Participant shall be permitted to invest all or a portion of the Safe
Harbor Matching Contributions, made on his behalf in the Erie Indemnity Stock Fund in
accordance with the provisions of Section 5.3. A Participant shall not be permitted to invest
any portion of the Elective Deferrals or Catch-Up Contributions made on his behalf in the Erie
Indemnity Stock Fund nor shall any Participant or Covered Employee be permitted to invest any
portion of a Rollover Contribution in the Erie Indemnity Stock Fund. No Participant, Covered
Employee or beneficiary may transfer any portion of the Total Account maintained on his behalf
to the Erie Indemnity Stock Fund. For purposes of implementing Participant investment
elections under Section 5.3, or a Participant’s or beneficiary’s distribution election under
Section 6.3, the Trustee may, in its discretion, purchase or sell Erie Indemnity Stock on the
open market or by privately-negotiated transaction; provided however, that any such purchase
or sale shall be made only in exchange for fair market value as determined by the Trustee and,
provided further that, no commission shall be charged to or paid by the Plan with respect to
any purchase or sale of Erie Indemnity Stock between the Plan and a party in interest (as
defined in Section 3(14) of ERISA). Any distributions, dividends or other income received by
the Trustee with respect to the Erie Indemnity Stock Fund shall be reinvested by the Trustee
in the Erie Indemnity Stock Fund.

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	(b)	 	The restrictions contained in this paragraph (b) shall apply to that portion of the Employer
Accounts and/or Safe Harbor Matching Accounts maintained on behalf of Participants or
beneficiaries which are invested in the Erie Indemnity Stock Fund and, if and to the extent
necessary, any election made by a Participant or beneficiary under the Plan shall be deemed
modified to be consistent with this paragraph (b).

	 	 	 	Notwithstanding the provisions of Section 5.4 and Articles Seven and Fourteen:

	 	(i)	 	No Participant or beneficiary shall, on the basis of
material nonpublic information with respect to the Company or its affiliates,
make an election permitted by that Section or those Articles if (1) such
election would result in an exchange into or out of, loans from, withdrawals
from, or an increase or decrease in the amount of contributions to the Erie
Indemnity Stock Fund, and (2) the transaction resulting from such election is
prohibited by Rule 10b-5.
	 
	 	(ii)	 	No officer shall make an election permitted by that
Section or those Articles if such election would result in a transaction
involving the Erie Indemnity Stock Fund which is not an exempt transaction
pursuant to Rule 16b-3.

	 	 	 	For purposes of this paragraph (b), the terms “Rule 10b-5” and Rule 16b-3” shall
mean the rules, as amended, having those designations promulgated by the United
States Securities and Exchange Commission pursuant to the Securities Exchange Act of
1934, as amended, and the terms “affiliate” and “officer” shall have the meanings
set forth in Rule 12b-2 and Rule 16a-1(f), respectively, both as so promulgated and
amended.

	5.5	 	Temporary Suspension of Certain Administrative Activities
	 
	 	 	In the event of a change in the investment options available under the Plan, a change in
vendors providing services to the Plan, or a change in the Plan’s administrative procedures,
the Administrator may establish procedures for temporarily suspending certain activities
under the plan, as the Administrator may determine are necessary or appropriate, in its
discretion. Such temporary suspension shall be conditioned upon any notification to
Participants required by law. The activities that may be suspended include, but are not
limited, changes in Elective Deferrals Rollover Contributions, investment elections or
transfers, distributions, in-service withdrawals and loans.

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ARTICLE SIX

VESTING & DISTRIBUTIONS

	6.1	 	Vesting
	 
	 	 	A Participant shall be fully vested in all contributions made and investment earnings
credited under the provisions of the Plan.
	 
	6.2	 	Distributions Upon Retirement or Other Termination of Employment

	 	(a)	 	Subject to the provisions of paragraph (b) below, upon the termination of a
Participant’s employment with the Company and Affiliates for any reason, the
Participant (or, if the Participant is deceased, his beneficiary) shall be paid the
entire vested Total Account maintained on behalf of the Participant as provided in
subparagraph (i), (ii) or (iii) below:

	 	(i)	 	If the vested Total Account exceeds $3,500 as of the determination
date chosen by the Administrator or its designee, the Participant (or
beneficiary) may elect, in such manner as provided by the Administrator or its
designee, to either take or commence an immediate distribution of such vested
Total Account in a form permitted under Section 6.3 or to defer receipt of the
same until a later date, but not beyond the end of the calendar year in which the
Participant attains age 70-1/2 and not beyond such other required commencement
date under Section 401(a)(9) of the Code. The failure of any terminated
Participant (or terminated Participant’s beneficiary) to make an election with
respect to a vested Total Account in excess of the $3,500 threshold shall be
deemed an election by the Participant (or beneficiary) to defer receipt of such
vested Total Account. A Participant or beneficiary who elects (or is deemed to
have elected) to defer receipt of the vested Total Account may request a
distribution of the vested Total Account in a form permitted under Section 6.3 at
a subsequent date permitted under Section 401(a)(9) of the Code. Pending
distribution of his Total Account, such Participant or beneficiary shall be
permitted to change the manner in which such Total Account is invested in
accordance with Section 5.3(b).
	 
	 	(ii)	 	If the vested Total Account does not exceed $3,500 as of the
determination date chosen by the Administrator or its designee and such
determination date precedes January 1, 2007, such vested Total Account shall be
paid in a lump sum to the Participant or beneficiary. Such payment shall be made
as soon as practicable following the Participant’s (or beneficiary’s) election to
take payment in cash or as a direct rollover and shall be made in accordance with
such election. If a Participant fails to make an affirmative election to receive
cash or make a direct rollover within 60 days of being apprised of his
distribution options, distribution of the lump sum shall be made as a direct
rollover to an individual retirement account selected by the Administrator unless
the vested Total Account as of the determination date is $1,000 or less, in which
case distribution of the lump sum shall be made to the Participant in cash. If a
beneficiary fails to make an affirmative election to receive cash or, if
eligible,

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	 	 	 	make a direct rollover within 60 days of being apprised of his distribution
options, distribution of the lump sum shall be made to the beneficiary in cash.
	 
	 	(iii)	 	If the vested Total Account does not exceed $3,500 as of the
determination date chosen by the Administrator or its designee and such
determination date is on or after January 1, 2007, such vested Total Account
shall be paid in a lump sum to the Participant (or beneficiary) on the conditions
that the Participant (or beneficiary) is alive as of the applicable payment date
and, except as otherwise provided in this subparagraph (iii), that the
Participant (or beneficiary) affirmatively elects payment in cash or as a direct
rollover. If the vested Total Account maintained on behalf of the Participant
(or beneficiary) does not exceed $1,000 as of the applicable determination date
and the Participant (or beneficiary) fails to make an affirmative election to
receive cash or make a direct rollover within 60 days of being apprised of his
distribution options, the Plan shall pay such vested Total Account to the
Participant (or Beneficiary) as a lump sum in cash.
	 
	 	(iv)	 	For purposes of this Section 6.2(a), the value of a vested Total
Account shall be determined with regard to that portion, if any, that is
attributable to a Rollover Contribution (and earnings allocated thereon).

	 	(b)	 	The Administrator or its designee shall notify a Participant or beneficiary of
his election right under Section 6.2(a) and, in the case of a Participant who may defer
payment of the vested portion of his Total Account in accordance with Section 6.2(a),
of his right to defer payment. Such notification shall be provided to the Participant
or beneficiary not less than 30 days and not more than 90 days before payment is made;
provided however, that a Participant or beneficiary may affirmatively elect to be paid
the vested Total Account being maintained on his behalf within 30 days after the
Participant or beneficiary received the notice described in this Section 6.2(b).
	 
	 	(c)	 	A Participant who returns to employment with the Employer on a full or
part-time basis prior to distribution of his vested Total Account under paragraph (a)
shall be deemed to have cancelled his distribution election as of his date of
reemployment.
	 
	 	(d)	 	All payments made pursuant to this Article Six shall be based on the
Participant’s vested Total Account balance on the Valuation Date as of which payment is
made. Payment shall be made from the accounts comprising the Participant’s (or
beneficiary’s) Total Account and from the investment funds in which such Total Account
is invested in such order of priority as the Administrator, pursuant to a uniform and
nondiscriminatory policy, shall direct.

	6.3	 	Payment of Amounts Distributed

	 	(a)	 	Distributions to a Participant or beneficiary may be paid in the form of:

	 	(i)	 	a lump sum;

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	 	(ii)	 	monthly, quarterly or annual installments that will provide a fixed
amount per pay period; or
	 
	 	(iii)	 	monthly, quarterly or annual installments that will provide
substantially equal payments over a fixed period that is not in excess of the
lesser of fifteen (15) years or the recipient’s life expectancy, as determined by
the Administrator as of the date the payments begin.

	 	 	 	A Participant or beneficiary who has elected payment in an installment form under
Section 6.3(a)(ii) or (iii) may elect, at some future date, to have the balance of the
vested Total Account maintained on his behalf paid in the form of a lump sum. Except
as provided in the preceding sentence, a Participant or beneficiary may not change his
elected form of distribution following the date Plan payments begin. A Participant
who returns to employment with the Employer on a full or part-time basis following
commencement of an installment form of distribution shall be deemed to have cancelled
his distribution election as of his date of reemployment. In no event may
distributions from the Plan be made in the form of an annuity.
	 
	 	(b)	 	A distributee who is receiving payment in the form of a lump sum shall elect to
have that portion of his Employer Account and Safe Harbor Matching Account which is
invested in the Erie Indemnity Stock Fund paid either (i) in whole units of Erie
Indemnity Stock (with fractional units being distributed in cash) or (ii) in cash. The
election of a Participant or beneficiary under this Section 6.3(b) shall be made in
connection with the Participant’s or beneficiary’s lumps sum election under Section
6.2. In the event distribution is made in the form of installments or is made in the
form of a lump sum, but such lump sum is paid in the absence of a Participant’s or
beneficiary’s distribution election, that portion of an Employer Account and Safe
Harbor Matching Account which is invested in the Erie Indemnity Stock Fund at the time
of distribution shall be paid in cash.
	 
	 	(c)	 	Notwithstanding any inconsistent provision of the Plan and effective January 1,
2003, all distributions under the Plan shall be made in accordance with Code Section
401(a)(9), including the incidental death benefit requirement of Code Section
401(a)(9)(G), and Treasury Regulations Sections 1.401(a)(9)-1 through 1.401(a)(9)-9.
Specifically, distribution of the Participant’s interest shall:

	 	(i)	 	be completed no later than the required beginning date; or
	 
	 	(ii)	 	commence not later than the required beginning date with
distribution to the Participant made over the life of the Participant or joint
lives of the Participant and a designated beneficiary or a period not longer
than the life of the Participant or joint lives of the Participant and a
designated beneficiary.

	 	 	 	For purposes of this Section 6.3. “required beginning date” shall mean April 1 of the
calendar year following the later of the calendar year in which the Participant
attains age 701/2 or the calendar year in which the Participant terminates employment
or retires; provided, however, if the Participant is a five-percent owner (as defined
in Code Section 416), the required beginning date shall be April

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	 			1 of the calendar year following the calendar year in which the Participant attains
age 701/2, regardless of the date that the five-percent owner terminates employment or
retires.
	 
	 	 	 	Notwithstanding the foregoing, unless the Participant elects otherwise, distribution
of benefits under Section 6.2 will begin no later than the 60th day after
the latest of the close of the Plan Year in which:

	 	(i)	 	the Participant attains age 65;
	 
	 	(ii)	 	occurs the fifth anniversary of the Plan Year in which the
Participant commenced participant in the Plan; or
	 
	 	(iii)	 	the Participant terminated employment with the Company and
Affiliates.

	 	(d)	 	In the event that a Participant dies prior to the date that distribution
commences:

	 	(i)	 	any portion of the Participant’s interest that is not payable to
a designated beneficiary shall be distributed not later than the end of the
calendar year which includes the fifth anniversary of the date of the
Participant’s death; and
	 
	 	(ii)	 	any portion of the Participant’s interest that is payable to a
designated beneficiary shall be distributed in accordance with subsection (i)
above or over the life of the designated beneficiary (or over a period not
extending beyond the life expectancy of the beneficiary), commencing not later
than the end of the calendar year following the calendar year of the
Participant’s death or, if the beneficiary is the Participant’s surviving
spouse, commencing not later than the last day of the later of the calendar year
in which the Participant would have attained age 701/2, or the calendar year
following the calendar year which includes the date of the Participant’s death.

	 	(e)	 	In the event a Participant dies after distribution of his interest has begun,
but prior to distribution of his entire interest, the remaining portion of such
interest shall be distributed, at the election of the Participant’s beneficiary, in a
lump sum or in a method that is at least as rapid as the method being used at the date
of the Participant’s death.

	6.4	 	Direct Rollovers

	 	(a)	 	A distributee may elect, subject to provisions adopted by the Administrator
which shall be consistent with income tax regulations, to have any portion of an
eligible rollover distribution paid directly to an eligible retirement plan specified
by the distributee in a direct rollover. The Administrator shall notify a distributee
of his right to elect a direct rollover; such notice shall be furnished to the
distributee between 30 days and 90 days prior to the date as of which the distributee
is to receive a distribution from the Plan, provided that the distributee may
affirmatively

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	 	 	 	elect a distribution or direct rollover to occur within 30 days after the furnishing
of such notice.
	 
	 	(b)	 	Definitions.

	 	(i)	 	Eligible Rollover Distribution: An eligible rollover distribution
is any distribution of all or any portion of the balance to the credit of the
distributee, except that an eligible rollover distribution does not include any
distribution that is one of a series of substantially equal periodic payments
(not less frequently than annually) made for the life (or life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the distributee
and the distributee’s designated beneficiary, or for a specified period of 10
years or more; any distribution to the extent such distribution is required under
Code Section 401(a)(9); and that portion of a hardship withdrawal that is
attributable to Elective Deferrals. A portion of a distribution shall not fail
to be an eligible rollover distribution merely because the portion consists of
after-tax employee contributions or Roth Elective Deferrals which are not
includible in gross income.
	 
	 	(ii)	 	Eligible Retirement Plan: An eligible retirement plan is an
individual retirement account described in Code Section 408(a), an individual
retirement annuity described in Code Section 408(b), an annuity plan described in
Code Section 403(a), an annuity contract described in Code Section 403(b), an
eligible plan under Code Section 457(b) which is maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or a
political subdivision of a state and which agrees to separately account for
amounts transferred, or a qualified trust described in Code Section 401(a), that
accepts the distributee’s eligible rollover distribution. However, in the case
of an eligible rollover distribution: (A) that includes after-tax employee
contributions, an eligible retirement plan is an individual retirement account or
annuity described in Code Section 408(a) or (b), or a qualified defined
contribution plan described in Code Sections 401(a) or 403(a) that agrees to
separately account for such eligible rollover distributions, including separately
accounting for the portion of such distribution which is includible in gross
income and the portion of such distribution which is not so includible, (B) that
includes a Designated Roth Account, an eligible retirement plan is an individual
retirement plan described in Code Section 408A or a qualified defined
contribution plan described in Code Section 401(a) that agrees to separately
account for such eligible rollover distribution, including separately accounting
for the portion of such distribution which is includible in gross income and the
portion of such distribution which is part not so includible.
	 
	 	(iii)	 	Distributee: A distributee includes an Employee or former
Employee. In addition, the Employee’s or former Employee’s surviving spouse and
the Employee’s or former Employee’s spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in

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	 	 	 	Code Section 414(p), are distributees with regard to the interest of the
spouse or former spouse.
	 
	 	(iv)	 	Direct Rollover: A direct rollover is a payment by the Plan to the
eligible retirement plan specified by the distributee.

ARTICLE SEVEN

WITHDRAWALS

	7.1	 	Withdrawals Generally
	 
	 	 	A Participant actively employed with the Company or an Affiliate and a Participant on a
disability leave of absence (collectively herein referred to in this Article as an “Eligible
Applicant”) may make written application to the Administrator for withdrawal of a portion of
his account balance without terminating his employment, but only in such amounts and under
such conditions as specified in this Article Seven. All such applications for a withdrawal
made by an Eligible Applicant shall be approved or denied by the Administrator in accordance
with a uniform, non-discriminatory policy and such action by the Administrator shall be
final.
	 
	7.2	 	Hardship Withdrawal
	 
	 	 	Upon proper written application of an Eligible Applicant in such form as the Administrator
may specify, the Administrator may permit the Eligible Applicant to withdraw in cash the
portion of the balance of his Total Account representing his Rollover Account (if
applicable), his Roth Rollover Account (if applicable), his Employer Account and his
Elective Deferrals and Catch-Up Contributions without earnings thereon, provided that the
reason for such withdrawal is to enable the Eligible Applicant to meet unusual or special
situations in his financial affairs resulting in immediate and heavy financial needs of the
Eligible Applicant and, provided further, that the Administrator must be satisfied that any
withdrawal hereunder is not in excess of the amount necessary to meet the immediate and
heavy financial need and is not available from other resources of the Eligible Applicant.
The amount available for withdrawal shall be based on the balances of the applicable
accounts (and the Elective Deferrals made) on the Valuation Date as of which payment is
made. Amounts required to meet the following items are deemed to be for immediate and heavy
financial needs:

	 	(a)	 	payments necessary to prevent the eviction of the Eligible Applicant from, or
foreclosure of the mortgage on, his principal residence;
	 
	 	(b)	 	expenses for medical care described in Code Section 213(d) incurred by the
Eligible Applicant, his spouse, his children, or his dependents as defined in Code
Section 152, or necessary for these persons to obtain medical care described in Section
213(d) of the Code;
	 
	 	(c)	 	costs directly related to the purchase of an Eligible Applicant’s principal
residence;

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	 	(d)	 	payment of tuition, related educational fees and room and board expenses, for
the next 12 months of post-secondary education for the Eligible Applicant, his spouse,
his children, or his dependents (as defined in Code Section 152 and, for taxable years
beginning on or after January 1, 2005, without regard to Code Sections 152(b)(1),
(b)(2), and (d)(1)(B)); or
	 
	 	(e)	 	payments for burial or funeral expenses for the Eligible Applicant’s deceased
parent, his spouse, his children, or his dependents as defined in Code Section 152,
without regard to Code Section 152(d)(1)(B) of the Code; or
	 
	 	(f)	 	expenses for the repair of damage to the Eligible Applicant’s principal
residence that would qualify for a casualty deduction under Code Section 165
(determined without regard to whether the loss exceeds 10% of adjusted gross income).

	7.3	 	Safe Harbor Distribution
	 
	 	 	A distribution shall be deemed necessary to satisfy an immediate and heavy financial need of
an Eligible Applicant if all of the following requirements are satisfied:

	 	(a)	 	the distribution is not in excess of the amount of the immediate and heavy
financial need of the Eligible Applicant including any amounts necessary to pay any
federal, state or local income taxes or penalties reasonably anticipated to result from
such distribution;
	 
	 	(b)	 	the Eligible Applicant has obtained all other forms of distribution and
nontaxable loans currently available from all plans maintained by an Employer; and
	 
	 	(c)	 	the Eligible Applicant shall be suspended from making Elective Deferrals to the
Plan until the first day of the pay period occurring six full months from the effective
date of the withdrawal.

	7.4	 	Hardship Withdrawal Priority

	 	(a)	 	A withdrawal pursuant to this Article Seven shall be made from the Total
Account maintained on behalf of an Eligible Applicant in the order of priority set
forth in this Section 7.4. That portion of a Eligible Applicant’s Total Account which
is of a lower priority shall be withdrawn only after those portions of the Total
Account which are of higher priority have been completely withdrawn:

	 	(i)	 	Designated Roth Account (excluding earnings);
	 
	 	(ii)	 	Roth Catch-Up Account (excluding earnings);
	 
	 	(iii)	 	Roth Rollover Account;
	 
	 	(iv)	 	Rollover Account;
	 
	 	(v)	 	Employer Account;

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	 	(vi)	 	Tax-Deferred Catch-Up Account (excluding earnings); and
	 
	 	(vii)	 	Tax-Deferred Account (excluding earnings).

	 	 	 	In no event shall a hardship withdrawal be taken from the Safe Harbor Matching
Account maintained on behalf of an Eligible Applicant.
	 
	 	(b)	 	Subsequent to the determination under paragraph (a), withdrawals shall be made
out of those investment options in which the applicable account is invested according
to the withdrawal hierarchy designated by the Administrator and communicated to
Participants.

	7.5	 	Modifications to Hardship Withdrawal Standards
	 
	 	 	The Company shall have full discretionary authority to modify the provisions of Sections
7.2, 7.3 and 7.4 provided that any modifications shall be evidenced by a writing approved by
the Plan Administrator, shall be consistently applied to all pending and future applications
as of the date of the modification and shall not operate so as to reduce or eliminate any
benefit protected under Section 411(d)(6) of the Code that has accrued as of the date of
modifications.

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ARTICLE EIGHT

THE TRUST FUND

	8.1	 	Trust Agreement
	 
	 	 	The Company has entered into a Trust Agreement for the purpose of holding assets of the
Trust Fund other than assets attributable to amounts invested in a group annuity contract
provided by the Erie Family Life Insurance Company. The Trust Agreement provides, among
other things, that all funds received by the Trustee thereunder shall be held, administered,
invested and distributed by the Trustee, and that no part of the corpus or income of the
Trust Fund held by the Trustee shall be used for, or diverted to, purposes other than for
the exclusive benefit of Participants or their beneficiaries. The Administrator, subject to
approval of the Board, may remove such Trustee or any successor Trustee, and any Trustee or
any successor Trustee may resign. Upon removal or resignation of a Trustee, the
Administrator shall appoint a successor Trustee, which appointment shall be subject to
approval of the Board.
	 
	 	 	The Administrator shall have authority to direct that there shall be more than one Trustee
under the Trust Agreement and to determine the portion of the assets under the Trust
Agreement to be held by each such Trustee. Such action shall be subject to approval of the
Board. If such action is taken, the Administrator shall designate the additional Trustee or
Trustees, and each Trustee shall hold and invest and keep records with respect to the
portion of such assets held by it.
	 
	 	 	The Board may, from time-to-time, designate another person to carry out any of its
responsibilities under this Section 8.1. The person so designated will have full authority,
or such limited authority as the Board may specify, to take such actions as are necessary or
appropriate to carry out the duties delegated by the Board.
	 
	8.2	 	Appointment of Independent Accountants
	 
	 	 	The Company may select a firm of independent public accountants to examine and report on the
financial position and the results of the operations of the Trust Fund created under the
Plan, at such times as it deems proper and/or necessary.
	 
	8.3	 	Appointment of Investment Manager
	 
	 	 	The Administrator may select an independent investment manager to invest the portion of the
Trust Fund in each of the various funds. Such investment manager shall be either registered
as an investment manager under the Investment Adviser’s Act of 1940, a bank, a mutual fund
or an insurance company, and as required by the Administrator, shall acknowledge in writing
that he is a fiduciary with respect to the Plan.
	 
	8.4	 	Role of Administrator in Operation of the Trust Fund
	 
	 	 	The Administrator shall perform such duties relating to the operation of the Trust Fund as
the Board delegates to it and shall perform the duties specified in this Section 8.4.

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	 	 	The Administrator shall have the following responsibilities:

	 	(a)	 	to appoint and remove Trustees, subject to approval of the
Board;
	 
	 	(b)	 	to appoint investment and fund managers;
	 
	 	(c)	 	to allocate the duties and procedures for the Trustee and
investment fund managers;
	 
	 	(d)	 	to select investment funds or other investments to offer under
the Plan;
	 
	 	(e)	 	to establish an investment philosophy and goals for each of the
investment and fund managers;
	 
	 	(f)	 	to monitor the Trustee with respect to servicing the Trust Fund
in a fiduciary capacity; and
	 
	 	(g)	 	to monitor the investment and fund managers including, without
limitation, their investment philosophies, goals, and rates of return.

	 	 	The Administrator may, from time-to-time, designate another person to carry out any of the
Administrator’s responsibilities under this Section 8.4. The person so designated will have
full authority, or such limited authority as the Administrator may specify, to take such
actions as are necessary or appropriate to carry out the duties delegated by the
Administrator
	 
	8.5	 	Voting of Erie Indemnity Stock

	 	(a)	 	Each Participant or beneficiary who has an Employer Account or Safe Harbor
Matching Account maintained under the Plan on his behalf with an investment in the Erie
Indemnity Stock Fund shall have the powers and responsibilities set forth in this
Section 8.5.
	 
	 	(b)	 	Prior to each meeting of the Class A shareholders of the Company during which a
vote of Class A shares is to be taken, the Company shall cause to be sent to each
person described in Section 8.5(a), a copy of the proxy solicitation material for such
meeting, together with a form requesting confidential voting instructions for the
voting of Erie Indemnity Stock held in the Erie Indemnity Stock Fund in proportion to
the number of shares or units of the Erie Indemnity Stock Fund held by such a person’s
Employer Account. Upon receipt of such a person’s instructions, the Trustee shall then
vote in person, or by proxy, such Erie Indemnity Stock as so instructed.
	 
	 	(c)	 	Instructions received from the persons described in Section 8.5(a) by the
Trustee regarding the voting of Erie Indemnity Stock held in the Erie Indemnity Stock
Fund shall be held in strictest confidence and shall not be divulged to any other
person, including directors, officers or employees of the Company, or any Affiliate,
except as otherwise required by law.

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	 	(d)	 	Except as otherwise set forth in the Trust Agreement, the Trustee shall vote
Erie Indemnity Stock which represents those shares or units of the Erie Indemnity Stock
Fund for which the Trustee does not receive affirmative direction from Participants and
beneficiaries in the same proportion as the Trustee votes those shares of Erie
Indemnity Stock held in the Erie Indemnity Stock Fund for which it has received voting
instructions.

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ARTICLE NINE

ADMINISTRATION OF THE PLAN

	9.1	 	The Administrator
	 
	 	 	The Plan shall be administered by a Plan Administrator who shall serve at the pleasure of
the Board. The Board has appointed the Company’s Senior Vice President, Treasurer and Chief
Investment Officer to serve as Administrator. The Administrator may resign by delivering
his written resignation to the Board. In the event of the death, resignation or removal of
the Administrator, the Board shall fill the vacancy. In making the appointment, the Board
shall not be limited to any particular person or group, and nothing herein contained shall
be construed to prevent any Participant, director, officer, employee or shareholder of the
Employers from serving as the Administrator. The Administrator will not be compensated from
the Trust Fund for services performed in such capacity, but the Company will reimburse such
individual for expenses reasonably incurred by him in such capacity. The Administrator
shall be the “named fiduciary” for purposes of ERISA; provided, however, that Participants
and beneficiaries with Employer Accounts under the Plan shall be considered “named
fiduciaries” solely to the extent of those fiduciary duties and responsibilities which are
directly related to the exercise of voting rights with respect to Plan interests invested in
the Erie Indemnity Stock Fund (and not to other aspects of Plan operation and/or
administration).
	 
	 	 	Appointment by the Board shall be evidenced by a certified copy of the resolution of the
Board making such appointment, and copies of such certified resolution shall be delivered to
the Trustee and to such other persons as may require such notice.
	 
	9.2	 	Powers of Administrator
	 
	 	 	The Administrator will have full power to administer the Plan in all of its details,
subject, however, to the requirements of ERISA. This power shall include having the sole
and absolute discretion to interpret and apply the provisions of the Plan, to determine the
rights and status hereunder of any individual, to decide disputes arising under the Plan,
and to make any determinations and findings of fact with respect to benefits payable
hereunder and the persons entitled thereto as may be required for any purpose under the
Plan. Without limiting the generality of the above, the Administrator is hereby granted the
following authority which it shall discharge in its sole and absolute discretion in
accordance with Plan provisions as interpreted by the Administrator:

	 	(a)	 	To make and enforce such rules and regulations as it deems necessary or proper
for the efficient administration of the Plan, including the modification of the claims
procedure under Article Ten in accordance with any regulations issued under Section 503
of ERISA.
	 
	 	(b)	 	To interpret the Plan.
	 
	 	(c)	 	To decide all questions concerning the Plan and the eligibility of any person
to participate in the Plan, his period of participation and/or service under the Plan,
his date of birth, the value of the Total Account, or any part thereof, maintained on

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	 	 	 	behalf of the person and the rights of any person to receive a distribution from the
Plan and the amount of such distribution.
	 
	 	(d)	 	To determine the character and amount of Tax Deferred Contributions, Roth
Elective Deferrals, Tax Deferred Catch-Up Contributions, Roth Catch-Up Contributions
and Safe Harbor Matching Contributions to be made on behalf of any Participant in
accordance with the provisions of the Plan.
	 
	 	(e)	 	To identify the proper payee of any portion of a Total Account, to authorize
the payment of Plan benefits and to direct cessation of benefit payments.
	 
	 	(f)	 	To appoint, employ or engage such other agents, counsel, accountants,
consultants and actuaries as may be required to assist in administering the Plan.
	 
	 	(g)	 	To establish procedures to determine whether a domestic relations order is a
qualified domestic relations order within the meaning of Section 414(p) of the Code, to
determine under such procedures whether a domestic relations order is a qualified
domestic relations order and whether a putative alternate payee otherwise qualifies for
benefits hereunder, to inform the parties to the order as to the effect of the order,
and to direct the Trustee to hold in escrow or pay any amounts so directed to be held
or paid by the order.
	 
	 	(h)	 	To obtain from the Employers, Employees, Participants, spouses and
beneficiaries such information as shall be necessary for the proper administration of
the Plan.
	 
	 	(i)	 	To perform all reporting and disclosure requirements imposed upon the Plan by
ERISA, the Code or any other lawful authority.
	 
	 	(j)	 	To ensure that procedures are established which are sufficient to safeguard the
confidentiality of information relating to the purchase, holding, and sale of Erie
Indemnity Stock held in the Erie Indemnity Stock Fund and the exercise of shareholder
rights with respect to Erie Indemnity Stock held in the Erie Indemnity Stock Fund and
to ensure such procedures are being followed.
	 
	 	(k)	 	To appoint and remove an independent fiduciary for the purpose of carrying-out
activities relating to any situations which the Administrator determines involves an
unreasonable potential for undue Employer influence with regard to the direct or
indirect exercise of shareholder rights with respect to Erie Indemnity Stock holdings
in the Erie Indemnity Stock Fund.
	 
	 	(l)	 	To take such steps as it, in its discretion, considers necessary and/or
appropriate to remedy an inequity under the Plan that results from incorrect
information received or communicated or as the consequence of administrative error.
	 
	 	(m)	 	To correct any defect, reconcile any inconsistency or supply any omission under
the Plan.
	 
	 	(n)	 	To delegate its powers and duties to others in accordance with Section 9.3.

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	 	(o)	 	To exercise such other authority and responsibility as is specifically assigned
to it under the terms of the Plan and to perform any other acts necessary to the
performance of its powers and duties.
	 
	 	(p)	 	To determine if and when Participants and beneficiaries must be notified of any
temporary suspension, limitation or restriction of their ability to execute various
transactions under the Plan (including any notice required by Section 101(i) of ERISA)
and to determine the content and method of distribution of any such notification.

	 	 	The Administrator at its discretion may either request the Company or direct the Fund to pay
for any or all services rendered by the Trustee, any investment manager, and by persons
appointed, employed or engaged under Section 9.2(f) or under the terms of the Trust
Agreement.
	 
	 	 	The Administrator’s interpretations, decisions, computations and determinations under this
Section 9.2 which are made in good faith will be final and conclusive upon the Employers,
all Participants and all other persons concerned. Any action taken by the Administrator
with respect to the rights or benefits of any person under the Plan shall be revocable by
the Administrator as to payments or distributions not theretofore made, pursuant to such
action, from the Trust Fund; and appropriate adjustments may be made in future payments or
distributions to a Participant or beneficiary to offset any excess payment or underpayment
previously made to such Participant or beneficiary from the Trust Fund. No ruling or
decision of the Administrator in any one case shall create a basis for a retroactive
adjustment in any other case prior to the date of a written filing of each specific claim.
	 
	9.3	 	Delegation of Duties
	 
	 	 	The Administrator may, from time to time, designate any person to carry out any of the
responsibilities of the Administrator. The person so designated will have full authority,
or such limited authority as the Administrator may specify, to take such actions as are
necessary or appropriate to carry out the duties delegated by the Administrator.
	 
	9.4	 	Conclusiveness of Various Documents
	 
	 	 	The Administrator and the Company and its directors and officers will be entitled to rely
upon all tables, valuations, certificates and reports furnished by any actuary, accountant,
counsel or other expert appointed, employed or engaged by the Administrator or the Company.
	 
	9.5	 	Actions to be Uniform
	 
	 	 	Any discretionary actions to be taken under the Plan by the Administrator will be
nondiscriminatory and uniform with respect to all persons similarly situated.
	 
	9.6	 	Liability and Indemnification

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	 	 	To the full extent allowed by law, the Administrator shall not incur any liability to any
Participant or beneficiary, or to any other person, by reason of any act or failure to act
on the part of the Administrator if such act or omission is not the result of the
Administrator’s gross negligence, willful misconduct or exercise of bad faith. To the full
extent allowed by law, the Company agrees to indemnify the Administrator against all
liability and expenses (including reasonable attorney’s fees and other reasonable expenses)
occasioned by any act or omission to act if such act or omission is not the result of the
Administrator’s gross negligence, willful misconduct or exercise of bad faith. Neither this
Section 9.6 nor any other provision of this Plan
shall be applied to invalidate, modify, or limit in any respect any contract, agreement, or
arrangement for indemnifying or insuring the Administrator against, or otherwise limiting,
such liability or expense, or for settlement of such liability, to the extent such contract,
agreement, or arrangement is not precluded by the terms of Section 410 of ERISA.

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ARTICLE TEN

CLAIMS PROCEDURE

	10.1	 	Claims Review Procedure
	 
	 	 	The Administrator shall be responsible for the claims procedure under the Plan. An
application for a distribution, withdrawal or loan under the Plan shall be considered a
claim for purposes of this Article Ten.
	 
	10.2	 	Original Claim
	 
	 	 	In the event a claim of any Participant,
beneficiary, alternate payee, or other person
(hereinafter referred to in this Section as the
“Claimant”) for a benefit is partially or
completely denied, the Administrator shall
give, within ninety (90) days after receipt of
the claim (or if special circumstances, made
known to the Claimant, require an extension of
time for processing the claim, within one
hundred eighty (180) days after receipt of the
claim), written notice of such denial to the
Claimant. Such notice shall set forth, in a
manner calculated to be understood by the
Claimant, the specific reason or reasons for
the denial (with reference to pertinent Plan
provisions upon which the denial is based); an
explanation of additional material or
information, if any, necessary for the Claimant
to perfect the claim; a statement of why the
material or information is necessary; a
statement of the Claimant’s right to bring a
civil action under Section 502(a) of ERISA; and
an explanation of the Plan’s claims review
procedure, including the time limits applicable
to such procedure
	 
	10.3	 	Review of Denied Claim

	 	(a)	 	A Claimant whose claim is partially or completely denied shall have the right
to request a full and fair review of the denial by a written request delivered to the
Administrator within sixty (60) days of receipt of the written notice of claim denial,
or within such longer time as the Administrator, under uniform rules, determines. In
such review, the Claimant or his duly authorized representative shall have the right to
review, upon request and free of charge, all documents, records or other information
relevant to the claim and to submit any written comments, documents, or records
relating to the claim to the Administrator.
	 
	 	(b)	 	The Administrator, within sixty (60) days after the request for review, or in
special circumstances, such as where the Administrator in its sole discretion holds a
hearing, within one hundred twenty (120) days of the request for review, will submit
its decision in writing. Such decision shall take into account all comments,
documents, records and other information properly submitted by the Claimant, whether or
not such information was considered in the original claim determination. The decision
on review will be binding on all parties, will be

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	 	 	 	written in a manner calculated to be understood by the Claimant, will contain
specific reasons for the decision and specific references to the pertinent Plan
provisions upon which the decision is based, will indicate that the Claimant may
review, upon request and free of charge, all documents, records or other information
relevant to the claim and will contain a statement of the Claimant’s right to bring
a civil action under Section 502(a) of ERISA.
	 
	 	(c)	 	If a Claimant fails to file a claim or request for review in the manner and in
accordance with the time limitations specified herein, such claim or request for review
shall be waived, and the Claimant shall thereafter be barred from again asserting such
claim.

	10.4	 	Determination by the Administrator Conclusive
	 
	 	 	The Administrator’s determination of factual matters relating to Participants, beneficiaries
and alternate payees shall be conclusive. The Administrator and the Company and its
respective officers and directors shall be entitled to rely upon all tables, valuations,
certificates and reports furnished by any accountant for the Plan, the Trustee or any
investment managers and upon opinions given by any legal counsel for the Plan insofar as
such reliance is consistent with ERISA. The Trustee and other service providers may act and
rely upon all information reported to them by the Administrator and/or the Company and need
not inquire into the accuracy thereof nor shall be charged with any notice to the contrary.

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ARTICLE ELEVEN

MISCELLANEOUS

	11.1	 	Non-Alienation of Benefits

	 	(a)	 	Except as provided in Section 11.1(b) or 11.1(c), no benefit payable under the
Plan shall be subject in any manner to anticipation, sale, transfer, assignment,
pledge, encumbrance, security interest or charge, and any action by way of
anticipating, alienating, selling, transferring, assigning, pledging, encumbering,
charging or granting a security interest in the same shall be void and of no effect;
nor shall any such benefit be in any manner liable for or subject to the debts,
contracts, liabilities, engagements or torts of the person entitled to such benefit.
	 
	 	(b)	 	Section 11.1(a) shall not apply to the creation, assignment, or recognition of
a right to any benefit payable pursuant to a Qualified Domestic Relations Order. The
Administrator shall establish reasonable procedures to determine the status of domestic
relations orders and to administer distributions under such orders which are deemed to
be Qualified Domestic Relations Orders. Such procedures shall be in writing and shall
comply with the provisions of Section 414(p) of the Code. To the extent that, because
of a Qualified Domestic Relations Order, more than one individual is to be treated as a
surviving spouse, the total amount payable from the Plan as a result of the death of a
Participant shall not exceed the amount that would be payable from the Plan if there
were only one surviving spouse.
	 
	 	(c)	 	Notwithstanding the provisions of Section 11.1(a), the Plan may offset any
portion of the Total Account maintained on behalf of a Participant or beneficiary
against a claim of the Plan arising:

	 	(i)	 	as a result of the Participant’s or beneficiary’s conviction of
a crime involving the Plan; or
	 
	 	(ii)	 	with regard to the Participant’s or beneficiary’s violation of
ERISA’s fiduciary provisions upon:

	 	(A)	 	the entry of any civil judgment, consent order,
or decree against the Participant or beneficiary; or
	 
	 	(B)	 	the execution of any settlement agreement
between the Participant and the Department of Labor or Pension Benefit
Guaranty Corporation.

	 	 	 	The provisions of this Section 11.1(c) shall apply only to orders, judgments,
decrees and settlements issued or entered into which expressly provide for such
offset.

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	11.2	 	Risk to Participants and Source of Payments
	 
	 	 	Each Participant assumes all risk in connection with any decrease in the value of any
investment fund in the Trust Fund, and the Trust Fund shall be the sole source of any
payments to be made to Participants or their beneficiaries under the Plan.
	 
	11.3	 	Expenses
	 
	 	 	Subject to any restriction applicable under Section 5.4(a), brokerage fees, transfer taxes
and other expenses incurred by the Trustee in connection with the purchase or sale of
securities may be added to the cost of such securities or deducted from the proceeds
thereof, as the case may be. Earnings credited to accounts invested in mutual funds shall
be net of direct fund management expenses. Fees and other expenses associated with a
self-directed “open option” arrangement shall be assessed directly against the Total Account
maintained on behalf of the Participant or beneficiary participating in such arrangement.
	 
	 	 	All other costs and expenses incurred in administering the Plan shall be paid by the Company
or an Employer, unless the Administrator authorizes the payment of such expenses from the
Trust Fund.
	 
	11.4	 	Rights of Participants
	 
	 	 	No Participant or beneficiary shall have any right or interest under the Plan unless and
until he becomes entitled thereto as provided in the Plan. The adoption and maintenance of
the Plan shall not be deemed to constitute a contract between an Employer and any Employee
or Participant. Inclusion in the Plan will not affect an Employer’s right to discharge or
otherwise discipline Employees and membership in the Plan will not give any Employee the
right to be retained in the service of an Employer nor any right or claim to a benefit
unless such right is specifically granted under the terms of the Plan.
	 
	 	 	The Plan shall be binding on all Participants and their spouses and beneficiaries and upon
heirs, executors, administrators, successors, and assigns of all persons having an interest
herein. The provisions of the Plan in no event shall be considered as giving any such
person any legal or equitable right against the Company, an Employer or an Affiliate, any of
its officers, employees, directors, or shareholders, or against the Trustee, except such
rights as are specifically provided for in the Plan or hereafter created in accordance with
the terms of the Plan.
	 
	11.5	 	Statement of Accounts
	 
	 	 	As soon as practicable after the last day of March, June, September and December, or such
other time or times as the Administrator shall designate, the Administrator shall cause to
be sent to each current or former Participant a written statement of his account.

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	11.6	 	Designation of Beneficiary

	 	(a)	 	Each Participant shall file with the Administrator, on such form as may be
provided by the Administrator, a written designation of a beneficiary or beneficiaries
who shall receive payment of the Participant’s interest under the Plan in the event of
his death. If the Participant is married, the Participant’s beneficiary must be his
spouse (in accordance with Code Section 401(a)(11)(B)(iii)) unless Spousal Consent
requirements are satisfied. In the event the Participant shall die and there is no
properly designated beneficiary then living, the interest of the Participant under the
Plan shall be paid in a lump sum to his surviving spouse, or, if there is no surviving
spouse, to his estate or other successor, all as the Administrator may determine.
	 
	 	(b)	 	A beneficiary entitled to a payment of all or a portion of a Participant’s
Total Account due to the death of the Participant may disclaim his interest therein
subject to the following requirements. To be eligible to disclaim, a beneficiary must
be a natural person, must not have received a distribution of all or any portion of
said Total Account at the time such disclaimer is executed and delivered, and must have
attained at least age twenty-one (21) years as of the date of the Participant’s death.
Any disclaimer must be in writing and must be executed personally by the beneficiary
before a notary public. A disclaimer shall state that the beneficiary’s entire
interest is disclaimed or shall specify what portion thereof is disclaimed. To be
effective, an original executed copy of the disclaimer must be both executed and
actually delivered to the Administrator after the date of the Participant’s death but
not later than one hundred eighty (180) days after the date of the Participant’s death.
A disclaimer shall be irrevocable when delivered to the Administrator. A disclaimer
shall be considered to be delivered to the Administrator only when actually received by
the Administrator. The Administrator shall be the sole judge of the content,
interpretation and validity of a purported disclaimer. Upon the filing of a valid
disclaimer, the beneficiary shall be considered not to have survived the Participant as
to the interest disclaimed. A disclaimer by a beneficiary shall not be considered to
be a transfer of an interest or an assignment or alienation of benefits in violation of
Section 11.1 hereof. No other form of attempted disclaimer shall be recognized by the
Administrator.

	11.7	 	Payment to Incompetents
	 
	 	 	If any person entitled to receive any benefits hereunder is a minor, or is in the judgment
of the Administrator, legally, physically, or mentally incapable of personally receiving and
receipting for any distribution, the Administrator may instruct the Trustee to make
distribution to such other person, persons or institutions who, in the judgment of the
Administrator, are then maintaining or have custody of such distributee. As a condition to
the issuance of such instruction for the distribution to such other person or institution,
the Administrator may require such person or institution to exhibit or to secure an order,
decree or judgment of a court of competent jurisdiction with respect to the incapacity of
the person who would otherwise be entitled to receive the benefits.

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	11.8	 	Authority to Determine Payee
	 
	 	 	The determination of the Administrator as to the identity of the proper payee of any benefit
under the Plan and the amount of such benefit properly payable shall be conclusive, and
payment in accordance with such determination shall constitute a complete discharge of all
obligations on account of such benefit.
	 
	11.9	 	Severability
	 
	 	 	If any provision of this Plan is held to be invalid or unenforceable, such determination
shall not affect the other provisions of this Plan. In such event, this Plan shall be
construed and enforced as if such provision had not been included herein.
	 
	11.10	 	Employer Records
	 
	 	 	The records of a Participant’s Employer shall be presumed to be conclusive of the facts
concerning his employment or non-employment, periods of service and Compensation unless
shown beyond a reasonable doubt to be incorrect.
	 
	11.11	 	Limitation on Contributions

	 	(a)	 	In no event shall the total annual additions on behalf of a Participant under
this Plan and under any other defined contribution plan or plans maintained by the
Employer with respect to any limitation year exceed the lesser of $40,000 (or such
dollar figure, as increased in accordance with Section 415(d) of the Code for years up
to and including the given limitation year) or 100% of the Test Compensation, paid to
the Participant by an Employer within such limitation year. All amounts contributed to
any defined contribution plan maintained by an Employer or an Affiliate (taking into
account Section 415(h) of the Code) other than any rollover contribution and any salary
reduction contribution to a simplified employee pension shall be aggregated with
contributions made by an Employer under this Plan in computing any Employee’s total
annual additions limitation. For purposes hereof, the limitation year shall be the
calendar year.
	 
	 	 	 	For purposes of this section, “total annual additions” for any limitation year shall
mean the sum of the following:

	 	(i)	 	Employer contributions under this Plan and under any other defined
contribution plan maintained by an Employer or Affiliate;
	 
	 	(ii)	 	Reallocated forfeitures under any defined contribution plan
maintained by an Employer or Affiliate;
	 
	 	(iii)	 	After-tax contributions under any other defined contribution plan
maintained by an Employer or Affiliate; and
	 
	 	(iv)	 	Amounts allocated to an individual medical account, as defined in
Section 415(1)(2) of the Code, as part of a pension or annuity plan and

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	 	 	 	amounts derived from contributions paid or accrued which are attributable to
post-retirement medical benefits described in Section 419A(d) of the Code,
under a welfare benefit fund (as defined in Section 419(e) of the Code)
maintained by an Employer or Affiliate.

	 	 	 	Catch-Up Contributions under Section 3.3, make-up contributions on account of
qualified military service under Section 414(u) of the Code and loan repayments
under Section 14.2 shall not be recognized as annual additions for purposes of this
section.

	(b)	 	In the event that a Participant’s total annual additions for any limitation year
exceed the limitations of Section 11.11(a) because of a reasonable error in estimating the
Participant’s Compensation, a reasonable error in determining the amount of Elective Deferrals
that a Participant may make within the limitations of paragraph (a) above or due to such other
facts and circumstances as the Commissioner of Internal Revenue finds justifiable, his total
annual additions shall be reduced in the following order until such limitations are met:

	 	(i)	 	any after-tax employee contributions made in the limitation
year by the Participant under any other plan maintained by an Employer or
Affiliate shall be returned to the Participant in accordance with the
provisions of such plan to the extent necessary to meet the above limitations;
	 
	 	(ii)	 	If further corrective adjustment is necessary, Elective
Deferrals made on the Participant’s behalf in the limitation year that are in
excess of five percent (5%) of the Participant’s Compensation shall be
distributed to the Participant beginning with Tax Deferred Contributions, if
applicable;
	 
	 	(iii)	 	If further corrective adjustment is necessary, the Elective
Deferrals made on the Participant’s behalf in the limitation year that are not
in excess of five percent (5%) of the Participant’s Compensation and the Safe
Harbor Matching Contributions made on the Participant’s behalf in the
limitation year shall be reduced proportionately to the extent necessary to
meet the above limitations.

	 	 	 	Elective Deferrals so reduced shall be distributed to the Participant. Safe Harbor
Matching Contributions so reduced shall be held unallocated in a suspense account
and shall be applied to reduce the Safe Harbor Matching Contribution with respect to
all Participants for the subsequent limitation year. Any distribution under this
paragraph which includes Elective Deferrals shall also include gains on such
Elective Deferrals.
	 
	 	 	 	The Administrator may change the order of the reductions listed above in any manner
which, in the judgment of the Administrator, is in the Participant’s best interest.
	 
	(c)	 	The sole purpose of this Section is to comply with Section 415(c) of the Code
and the terms of this Section shall be interpreted, applied, and if and to the extent
necessary, shall be deemed modified so as to satisfy solely the minimum

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	 	 	 	requirements of Section 415(c) of the Code and the regulations promulgated with
respect thereto.

	11.12	 	IRC 414(u) Compliance Provision
	 
	 	 	Notwithstanding any provision of the Plan to the contrary, contributions, benefits and
service credit with respect to qualified military service shall be provided in accordance
with Section 414(u) of the Code.

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ARTICLE TWELVE

AMENDMENT, TERMINATION OR MERGER OF THE PLAN

	12.1	 	Right to Amend
	 
	 	 	The Company reserves the right at any time or times to modify or amend the Plan by
resolution of the Board setting forth such modification or amendment; provided, however,
that no such modification or amendment shall be made which would:

	 	(a)	 	increase the duties or liabilities of the Trustee without its written consent;
or
	 
	 	(b)	 	impermissibly divest a Participant of any portion of his Total Account
hereunder that has accrued to him prior to the effective date of such amendment; or
	 
	 	(c)	 	cause or permit any portion of the Trust Fund to be converted to or become the
property of the Company; or
	 
	 	(d)	 	cause any portion of the Trust Fund to be used for purposes other than the
exclusive benefit of the Participants or their beneficiaries;

	 	 	unless such modification or amendment is necessary or appropriate to enable the Plan or
Trust Fund to qualify under Section 401 of the Code, as amended from time to time, or to
retain for the Plan or Trust Fund such qualified status.

	12.2	 	Right to Terminate

	 	(a)	 	Although it is the expectation of the Company that it will continue the Plan as
a permanent retirement program for the benefit of the Employees eligible hereunder, the
Company reserves the right at any time, by action of its Board, at its sole discretion,
to terminate the Plan in whole or in part. There shall be no liability or obligation
on the part of an Employer to make any further contributions to the Trust Fund in the
event of the termination of the Plan.
	 
	 	(b)	 	Notwithstanding anything to the contrary contained herein, Trustee’s fees and
other expenses incident to the operation and management of the Plan incurred after the
termination of the Plan may, at the discretion of the Company, be paid from assets of
the Trust Fund that are not part of any Participant’s Total Account.
	 
	 	(c)	 	In the event of the termination of the Plan in whole or in part or in the event
of the complete discontinuance of Employer contributions under the Plan, each affected
Participant’s interest in the Trust Fund shall become 100% vested and shall be
nonforfeitable.

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	12.3	 	Merger, Transfer of Assets or Liabilities
	 
	 	 	The Company may merge or consolidate the Plan with, transfer assets and liabilities of the
Plan to, or receive a transfer of assets and liabilities from, any other plan without the
consent of any other Employer or other person, if such transfer is effected in accordance
with applicable law and if such other plan meets the requirements of Code Sections 401(a)
and 501(a), permits such transfer or the receipt of such transfer and, with respect to
liabilities to be transferred from this Plan to such other plan, satisfies the requirements
of Code Sections 411(d)(6). This Plan may not be merged or consolidated with any other
plan, nor may any assets or liabilities of this Plan be transferred to any other plan,
unless the terms of the merger, consolidation or transfer are such that each Participant in
the Plan would, if the Plan were terminated immediately after such merger, consolidation or
transfer, receive a benefit equal to or greater than the benefit he would have been entitled
to receive if this Plan had terminated immediately prior to the merger, consolidation or
transfer.

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ARTICLE THIRTEEN

TOP HEAVY PROVISIONS

	13.1	 	Top Heavy Provisions Inapplicable
	 
	 	 	The Plan is a cash or deferred arrangement described in Section 416(g)(4)(H) of the Code
and, as a result, is deemed to not be a top heavy plan.

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ARTICLE FOURTEEN

LOANS

	14.1	 	Availability of Loans
	 
	 	 	Subject to the provisions of this Article Fourteen, Participants actively employed with the
Company or an Affiliate (herein referred to in this Article as “Eligible Applicants”) may
apply for a loan from the Plan. All such applications for a loan made by an Eligible
Applicant shall be approved or denied by the Administrator in accordance with a uniform,
non-discriminatory policy and such action by the Administrator shall be final. All loans
approved shall be effective as of the “loan effective date” (as hereinafter defined)
provided the loan application was submitted to the Administrator within a reasonable time
(as determined by the Administrator) prior to the loan effective date. All loans shall be
made only in consideration of adequate security. For purposes hereof the term “loan
effective date” shall mean the date, mutually agreed upon by the Participant and the
Administrator, on which the loan shall be considered effective.
	 
	 	 	The Administrator may establish rules governing the granting of loans, provided (i) that
such rules are not inconsistent with the provisions of this Article Fourteen, (ii) that any
such rules adopted by the Administrator shall be described in the documents supporting the
loan transaction and (iii) that loans are made available to all Eligible Applicants on a
reasonably equivalent basis and are not made available to Eligible Applicants who are Highly
Compensated in an amount greater than the amount made available to other Eligible
Applicants.
	 
	14.2	 	Terms and Conditions of Participant Loans

	 	(a)	 	Amount of Loan. At the time the loan is made, the principal amount of the
loan, when added to all other outstanding loans of the Participant from the Plan and
any other qualified plan of an Employer and Affiliates, shall not exceed the lesser of:

	 	(i)	 	$50,000, as reduced by the excess, if any, of the Eligible
Applicant’s highest outstanding loan balance from the Plan during the one-year
period ending on the day before the date such new loan is secured over the
outstanding balance of loans from the Plan on the date such loan is made; or
	 
	 	(ii)	 	one-half of the current value of the Total Account maintained on
behalf of the Eligible Applicant under the Plan.

	 	 	 	The current value of a Total Account shall be determined as of the Valuation Date on
which the Eligible Applicant initiates the loan process by providing Notice to the
Administrator or its designee. No loan shall be made in an amount less than $1,000.
Any loan amount shall be made in accordance with Section 14.3.
	 
	 	(b)	 	Application for Loan. The Eligible Applicant must give the Administrator
adequate written notice, as determined by the Administrator, of the requested amount
and desired time for receiving a loan. In addition, if an Eligible Applicant

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	 	 	 	is married at the time of application, the Administrator shall require Spousal Consent
prior to approving the loan application.
	 
	 	(c)	 	Length of Loan. The Eligible Applicant and the Administrator shall arrange for
the repayment of a Plan loan. The period of repayment shall not exceed five years from
the date the loan is made. All repayment schedules (whether by payroll withholding or
otherwise) shall commence as of the next administratively feasible pay period following
the disbursement of the loan and shall provide for substantially level amortization of
principal and interest. An Eligible Applicant on a leave of absence shall be permitted
to extend the term of the loan by the length of the absence; provided, however, that
except with respect to a leave of absence on account of qualifying military service,
the term of the loan, as extended, shall not exceed five years from the date the loan
is made. An Eligible Applicant who terminates employment with the Company and
Affiliates must make principal and interest payments in the amount and on such dates as
otherwise due. In the event such payments are not made the maturity of the loan shall
be accelerated and the outstanding principal amount of the loan, together with all
accrued interest, shall be deemed immediately due and distributable at such date or
dates as the Administrator deems reasonable and as may be specified by applicable law
and regulation. Except as otherwise permitted in Income Tax Regulations, in no event
shall the date of deemed distribution extend beyond the end of the calendar quarter
next following the calendar quarter in which the payment was not made.
	 
	 	(d)	 	Prepayment. The Eligible Applicant shall be permitted to repay the loan in
total as of any date prior to maturity without penalty.
	 
	 	(e)	 	Note. The loan shall be evidenced by a promissory note executed by the
Eligible Applicant and delivered to the Administrator. The Eligible Applicant will
agree to execute any other documents (e.g., payroll withholding forms) that may be
necessary or appropriate to effect the loan.
	 
	 	(f)	 	Interest. All loans shall be considered investments of the Trust and interest
shall be charged on the loan at the rate set by the Administrator as of the loan
effective date. Such rate, applicable to loans effective in a given calendar quarter,
shall be the prime lending rate as reported in the Wall Street Journal on the last
business day of the previous calendar quarter, plus 100 basis points, provided that
such interest rate may be limited in accordance with law during a period of qualifying
military service.
	 
	 	(g)	 	Security. Subject to the extent required under regulations promulgated by the
Secretary of Labor or his delegate, a Plan loan shall be secured by an assignment of
the Eligible Applicant’s right, title and interest in that portion of his Total Account
under the Plan as shall adequately secure the loan, provided such security shall not
exceed one-half of the current value of the Eligible Applicant’s vested Total Account.
The Administrator may also require such additional collateral as may be deemed
necessary to adequately secure repayment of the loan.
	 
	 	(h)	 	Default. The Administrator shall take reasonable steps to secure repayment of
any loan granted hereunder in accordance with its terms; however, when the

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	 	 	 	Administrator declares a loan to an Eligible Applicant to be in default, the
outstanding balance of the loan, together with unpaid, accrued interest, shall be
deemed a lien against the Total Account maintained on behalf of the Eligible
Applicant. The Administrator shall take such reasonable steps as it shall deem
necessary or appropriate to eliminate the default before causing an offset
distribution to be made with respect to the Eligible Applicant for the purpose of
fully amortizing the loan outstanding; however, should the loan remain in default
after these administrative procedures are taken, the Administrator will consider the
entire amount of the loan outstanding (including all accrued interest to date) as a
distribution as of the first date, on or following the administrative procedures, on
which the Eligible Applicant has a distributable event and will process the Total
Account of the Eligible Applicant accordingly.
	 
	 	(j)	 	Other Terms and Conditions. The Administrator shall fix such other terms and
conditions of the loan as it deems necessary to comply with legal requirements, to
maintain the qualification of the Plan and Trust Fund under Code Section 401(a), to
exempt the loan transaction from the prohibited transaction rules of under Code Section
4975, or to prevent the treatment of the loan for tax purposes as a distribution to the
Eligible Participant. The Administrator may fix other terms and conditions of the
loan, not inconsistent with the provisions of this Article Fourteen.
	 
	 	(k)	 	No Prohibited Transactions. No loan shall be made unless such loan is exempt
from the tax imposed on prohibited transactions by Code Section 4975 or would be exempt
from such tax (if the Eligible Participant were a disqualified person as defined in
Section 4975(e)(2) of the Code) by reason of Code Section 4975(d)(1).

	14.3	 	Loan Accounts
	 
	 	 	A loan made by the Plan to a Eligible Applicant in accordance with Sections 14.1 and 14.2
shall be from the Total Account maintained on behalf of such Eligible Applicant and from the
investment funds in which such Total Account is invested in such order of priority as the
Administrator, pursuant to a uniform and nondiscriminatory policy, shall direct. Payments
of principal and interest on loans shall be paid over to the Trustee as soon as possible
after each payroll deduction or other repayment and shall be credited to the Total Account
of the Eligible Applicant as of the date the repayments are received by the Trustee. Loan
repayments will be credited in such manner as determined by the Administrator to those
accounts and those investment options which were accessed in connection with the granting of
the loan to the Eligible Applicant. The Administrator shall have the authority to establish
other reasonable
rules, not inconsistent with the provisions of the Plan, governing the establishment and
maintenance of loan accounts.

153

 

Executed at Erie, Pennsylvania, this 19th day of December, 2006.

	 	 	 	 	 
	 	ERIE INDEMNITY COMPANY

 	 
	 	By:  	/s/ Jeffrey A. Ludrof
 	 
	 	 	Title: President & CEO	 
	 	 	 	 

154

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