Document:

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                        EXHIBIT 10.8 - FIRST AMENDMENT TO
                   ERIE INSURANCE GROUP EMPLOYEE SAVINGS PLAN

            (As Amended And Restated Effective as of January 1, 2001)

WHEREAS, Erie Indemnity Company (the "Company") maintains the Erie Insurance
Group Employee Savings Plan (the "Plan") under an amendment and restatement
effective as of January 1, 2001;

WHEREAS, the Plan provides that the Company may amend the Plan; and

WHEREAS, the Company wishes to amend the Plan as hereinafter set forth. The
purpose of this Amendment is to make changes in connection with recent
legislative and regulatory changes affecting tax-qualified plans. The provisions
of this Amendment shall be effective as of the dates stated herein. Words and
phrases used herein with initial capital letters which are defined in the Plan
are used herein as defined.

NOW THEREFORE, the Company hereby amends the Plan as follows:

1.    Effective January 1, 2002, the following provisions shall be added to the
      end of the first paragraph of Section 6.3(c) of the Plan:

      "With respect to distribution under the Plan made in calendar years
      beginning on or after January 1, 2002, the Plan will apply the minimum
      distribution requirements of Section 401(a)(9) of the Code in accordance
      with the regulations under Section 401(a)(9) that were proposed in January
      2001, notwithstanding any provisions of the Plan to the contrary. This
      amendment will continue in effect until the end of the last calendar year
      beginning before the effective date of final regulations under Section
      401(a)(9) of the Code or such other date specified in guidance published
      by the Internal Revenue Service."

2.    Effective January 1, 2002, Sections 10.1, 10.2 and 10.3 of the Plan shall
      be deleted in their entirety and the following shall be inserted in lieu
      thereof:

      "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.

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      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; 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. If the notice of denial is not furnished within the
            required time period specified above, the claim shall be deemed to
            be denied and the Claimant shall be permitted to proceed to the
            review stage described in Section 10.3.

      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 sixty (60) days after the date on which the claim
                  is deemed denied under Section 10.2), 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 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

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                  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. If no decision is made within
                  the time period specified above, the claim shall be deemed to
                  be denied on review.

            (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."

3.    Effective January 1, 2001, a new section shall be added to Article Eleven
      of the Plan and such new section shall read as follows:

      "8.15 Provision for Community Renewal Tax Relief Act of 2000

            For Plan Years and limitation years ending on and after January 1,
            2001, the definition of "Test Compensation" shall include elective
            amounts that are not includable in the gross income of the Employee
            by reason of Section 132(f)(4) of the Code."

4.    Effective January 1, 2002, Section 14.2(c) of the Plan shall be deleted in
      its entirety and the following shall be inserted in lieu thereof:

            "(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

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                  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 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 calender quarter in
                  which the payment was not made."

Executed at Erie, Pennsylvania, this 10th day of December, 2001.

                                             ERIE INDEMNITY COMPANY

                                             By: /s/ Stephen A. Milne
                                                --------------------------------
                                                Stephen A. Milne
                                                President and CEO

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EXHIBIT 10.9

                                   APPENDIX A

                           2001 ANNUAL INCENTIVE PLAN
                                       OF
                             ERIE INDEMNITY COMPANY

1. PURPOSE. The purpose of the Annual Incentive Plan (the "Plan") of Erie
Indemnity Company (the "Company") is to promote the best interests of the Erie
Insurance Exchange while enhancing shareholder value of the Company and to
promote the attainment of significant business objectives by the Company, its
subsidiaries and affiliates by basing a portion of selected employees'
compensation on the performance of such employee and the Company (as defined
below).

2. DEFINITIONS.

      a. "AWARD AGREEMENT" means the agreement entered into between the Company
and a Participant, setting forth the terms and conditions applicable to an award
granted to the Participant under this Plan.

      b. "BASE SALARY" shall mean the annual base salary for a Participant at
December 31, 2001.

      c. "COMBINED RATIO" means the sum of the loss ratio (including loss
adjustment expenses), expense ratio and policyholder dividend ratio, as
determined in accordance with statutory accounting principles and reported to
A.M. Best Company for the combined property casualty operations of the Erie
Insurance Exchange and affiliated property casualty companies (collectively
"Erie"). For Erie, the Combined Ratio shall be adjusted to exclude the net
revenues from the management operations of Erie Indemnity Company in the
calculation of the underwriting expense ratio.

      d. "COMPANY" means Erie Indemnity Company and any corporation, partnership
or other organization of which the Company owns or controls, directly or
indirectly, not less than 50% of the total combined voting power of all classes
of stock or other equity interests. For purposes of this Plan, the term
"Company" shall include any successors thereto.

      e. "COMMITTEE" means the Executive Compensation Committee of the Board of
Directors of the Company, or its functional successor, unless some other Board
committee has been designated by the Board of Directors to administer the Plan.

      f. "PARTICIPANT" means any individual who has met the eligibility
requirements set forth in Section 5 hereof and to whom a grant has been made and
is outstanding under the Plan.

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      g. "PEER GROUP" means a group of companies selected by the Committee on an
industry and line of business basis.

      h. "PERFORMANCE MEASURES" means the criteria upon which awards for 2001
will be based and, unless otherwise determined by the Committee shall be: (i) a
combination of the difference between ERIE's average Combined Ratio for 1999,
2000 and 2001 and the Combined Ratio of the Peer Group for 1999, 2000 and 2001
and the difference between ERIE's growth in net written premiums in 2001 as
compared to growth in net written premiums of the Peer Group in 2001 ("Financial
Performance Measure"); and (ii) the Participant's individual performance
assessment under the Company's existing performance assessment system
("Individual Performance Measure"). The Financial Performance Measure and the
Individual Performance Measure are collectively referred to as (the "Performance
Measures").

      i. "TARGET AWARD" means:

            the specific percentage of a Participant's base salary as determined
            by the Committee.

3. ADMINISTRATION. The Plan shall be administered by the Committee.

      The Committee's determinations under the Plan need not be uniform and may
be made by it selectively among persons who receive, or are eligible to receive,
awards under the Plan, whether or not such persons are similarly situated.
Whenever the Plan refers to a determination being made by the Committee, it
shall be deemed to mean a determination by the Committee in its sole discretion.

      Subject to the provisions of the Plan, the Committee shall be authorized
to interpret the Plan, to make, amend and rescind such rules as it deems
necessary for the proper administration of the Plan, to make all other
determinations necessary or advisable for the administration of the Plan and to
correct any defect or supply any omission or reconcile any inconsistency in the
Plan in the manner and to the extent the Committee deems desirable to carry the
Plan into effect. Any action taken or determination made by the Committee shall
be conclusive on all parties.

4. WEIGHTING OF PERFORMANCE MEASURES. The Target Award shall be weighted in a
manner so that 75% of the Target Award shall be based upon the Financial
Performance Measure and 25% of the Target Award shall be based upon the
Individual Performance Measure. Satisfaction of either of the Performance
Measures shall entitle a Participant to payment with respect to that portion of
the award notwithstanding the fact that the other Performance Measure is not
satisfied.

5. ELIGIBLE PERSONS. Any key employee of the Company who the Committee
determines, in its sole discretion, has a significant effect on the operations
of the Company shall be eligible to participate in the Plan. Any Participant in
this Plan shall be deemed ineligible to participate in the Erie Insurance Group
Employee Profit Sharing Bonus Plan. No employee shall have a right (a) to be
selected under the Plan, or (b) having once been selected, to (i) be selected
again or (ii) continue as an employee.

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6. DETERMINATION OF AWARDS. The Committee shall determine the actual award to
each Participant for the year, based upon the following formula:

Participant Award = (.75 of Target Award x Financial Performance Percentage
Earned) + (.25 of Target Award x Individual Performance Percentage Earned).

      The Financial Performance Percentage Earned and Individual Performance
Percentage Earned shall be determined in accordance with Appendix I and Appendix
II, respectively. For the Financial Performance Percentage Earned, the amount
shall be mathematically interpolated between cells in the matrix based upon
Erie's actual differences in Combined Ratio and Growth in New Written Premiums.
The Individual Performance Percentage Earned shall be based on the performance
assessment conducted during calendar year 2001.

      The total award payable to any Participant may range from zero (0) to one
hundred and sixty (160) percent of the Participant's Target Award, depending
upon whether, or the extent to which, the Performance Measures have been
achieved. Notwithstanding anything in this Plan to the contrary, a Participant
shall not be entitled to, and no amount shall be payable to, such Participant in
the event that the Participant's Performance Points (as reflected in Appendix
II) are below 109. All such determinations regarding the achievement of
Performance Measures and the determination of actual awards will be made by the
Committee.

7. DISTRIBUTION OF AWARDS. Awards under the Plan shall be paid in cash as soon
as practicable after 2001 year-end audited financial statements for Erie have
been prepared and Peer Group data is available. Estimates of awards may be paid
earlier at the discretion of the Committee and final adjustments paid upon the
availability of audited financial statements.

8. TERMINATION OF EMPLOYMENT. A Participant must be actively employed by the
Company on the date his or her award is determined by the Committee ("the
Payment Date") in order to be entitled to payment of any award. In the event
active employment of a Participant shall be terminated before the Payment Date
for any reason other than discharge for "Cause" (as defined in such employee's
employment agreement with the Company or, if no such agreement exists, as
defined by the Committee) or voluntary resignation, such Participant may receive
such portion of his or her award as may be determined by the Committee. A
Participant discharged for Cause shall not be entitled to receive any award for
the year. A Participant who voluntarily resigns prior to the Payment Date shall
not be entitled to receive any award unless otherwise determined by the
Committee.

9. MISCELLANEOUS.

      a. NONASSIGNABILITY. No award will be assignable or transferable without
the written consent of the Committee in its sole discretion, except by will or
by the laws of descent and distribution.

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      b. WITHHOLDING TAXES. Whenever payments under the Plan are to be made, the
Company will withhold therefrom an amount sufficient to satisfy any applicable
governmental withholding tax requirements related thereto.

      c. AMENDMENT OR TERMINATION OF THE PLAN. The Board of Directors of the
Company may at any time amend, suspend or discontinue the Plan, in whole or in
part. The Committee may at any time alter or amend any or all Award Agreements
under the Plan to the extent permitted by law.

      d. OTHER PAYMENTS OR AWARDS. Nothing contained in the Plan will be deemed
in any way to limit or restrict the Company from making any award or payment to
any person under any other plan, arrangement or understanding, whether now
existing or hereafter in effect.

      e. PAYMENTS TO OTHER PERSONS. If payments are legally required to be made
to any person other than the person to whom any amount is available under the
Plan, payments will be made accordingly. Any such payment will be a complete
discharge of the liability of the Company under this Plan.

      f. LIMITS OF LIABILITY.

            1. Any liability of the Company to any Participant with respect to
an award shall be based solely upon contractual obligations created by the Plan
and the Award Agreement.

            2. Neither the Company, nor any member of its Board of Directors or
of the Committee, nor any other person participating in any determination of any
question under the Plan, or in the interpretation, administration or application
of the Plan, shall have any liability to any party for any action taken or not
taken in good faith under the Plan.

      g. RIGHTS OF EMPLOYEES.

            1. Status as an employee eligible to receive an award under the Plan
shall not be construed as a commitment that any award will be made under this
Plan to such employee or to other such employees generally.

            2. Nothing contained in this Plan or in any Award Agreement (or in
any other documents related to this Plan or to any award or Award Agreement)
shall confer upon any employee or Participant any right to continue in the
employ or other service of the Company or constitute any contract or limit in
any way the right of the Company to change such person's compensation or other
benefits or to terminate the employment or other service of such person with or
without cause.

      h. SECTION HEADINGS. The section headings contained herein are for the
purposes of convenience only, and in the event of any conflict, the text of the
Plan, rather than the section headings, will control.

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      i. INVALIDITY. If any term or provision contained herein will to any
extent be invalid or unenforceable, such term or provision will be reformed so
that it is valid, and such invalidity or unenforceability will not affect any
other provision or part hereof.

      j. APPLICABLE LAW. The Plan, the Award Agreements and all actions taken
hereunder or thereunder shall be governed by, and construed in accordance with,
the laws of the Commonwealth of Pennsylvania without regard to the conflict of
law principles thereof.

      k. EFFECTIVE DATE. The Plan shall be effective as of January 1, 2001.

                                             /s/ Robert C. Wilburn
                                       -----------------------------------------
                                             Robert C. Wilburn, Chairman
                                             Executive Compensation Committee

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