Document:

EX-10.104

Exhibit 10.104

DEFERRED COMPENSATION PLAN

OF ERIE INDEMNITY COMPANY

(As Amended and Restated as of January 1, 2009)

BASIC PLAN DOCUMENT

APPENDIX A

APPENDIX B

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DEFERRED COMPENSATION PLAN

OF ERIE INDEMNITY COMPANY

(As Amended and Restated as of January 1, 2009)

BASIC PLAN DOCUMENT

ARTICLE ONE

INTRODUCTION

This Deferred Compensation Plan of Erie Indemnity Company (the “Plan”) is an unfunded,
non-qualified, deferred compensation arrangement created for a select group of management and
highly compensated employees of Erie Indemnity Company (the “Company”) and its affiliates. It is
intended that the Plan will aid in retaining and attracting qualified executives by providing such
executives with a vehicle for deferring certain compensation until retirement or other separation
from service from the Company and for restoring on behalf of participating executives, certain
contributions that would have been made under the tax-qualified 401(k) plan maintained by the
Company, but for limitations applicable to such 401(k) plan.

The Plan has been amended from time to time and was last amended and restated effective January 1,
2001. This amendment and restatement of the Plan shall constitute an amendment, restatement and
continuation of the Plan and is generally effective as of January 1, 2009. However, certain
provisions of this amendment and restatement are effective as of some other date. 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.

This amendment and restatement of the Plan consists of three primary documents: (i) this Basic Plan
Document, which principally addresses definitions and procedural matters that apply to all amounts
that accumulate under the Plan, (ii) Appendix A, which incorporates provisions of the Plan relating
to Plan accounts that were earned and vested on or before December 31, 2004, and (iii) Appendix B,
which incorporates provisions of the Plan relating to those portions of Plan accounts that are
earned or become vested on or after January 1, 2005.

ARTICLE TWO

DEFINITIONS

When the following words or phrases are used in the Plan document with initial capital letters,
they shall have the following meanings, except where otherwise modified in Appendix A or Appendix
B:

2.1 “Administrator” shall mean the person or committee, appointed by the Chief Executive
Officer of the Company, who shall be responsible for the administrative functions assigned to it
under the Plan.

2.2 “Affiliate” shall mean a corporation or partnership in which more than 50% of the
equity is owned directly or indirectly by the Company including, without limitation, the following:
Erie Family Life Insurance Company, Erie Insurance Company, EI Holding Corp., EI Service Corp.,
Erie Insurance Company of New York, Erie Insurance Property & Casualty Company and Flagship City
Insurance Company.

2.3 “Beneficiary” shall mean the individual(s) or trust(s) selected by a Participant to
receive payment of amounts credited under the Plan in the event of the Participant’s death, as
evidenced by the most recent, properly completed and executed, Beneficiary designation which the
Participant has delivered to the Administrator prior to the Participant’s death. A Participant may
make separate Beneficiary designations to govern the distribution of the Participant’s interest in
those amounts, if any, credited to the Deferred Compensation Account maintained on his behalf under
Appendix A and in those amounts, if any, credited to the Deferred Compensation Account maintained
on his behalf under Appendix B. Such Beneficiary designations shall apply in the event of the
Participant’s death before commencement of payments and to any method of payment the Participant
may elect that provides for the

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possibility of payments to a Beneficiary after the Participant’s death. A Participant may change
his Beneficiary at any time by delivering a new designation of Beneficiary to the Administrator on
such form or forms as may be satisfactory to the Administrator. A new designation of Beneficiary
shall be effective upon receipt by the Administrator of the completed and executed designation. As
of such effective date, the new designation shall divest any Beneficiary named in a prior
designation in that interest indicated in the prior designation. If no effective Beneficiary
designation is in effect on the death of the Participant, or if all designated Beneficiaries have
predeceased the Participant, any payments to be made under the Plan on account of the Participant’s
death shall be paid to the estate of the Participant.

2.4 “Board” shall mean the Board of Directors of the Erie Indemnity Company.

2.5 “Code” shall mean the Internal Revenue Code of 1986, as amended.

2.6 “Company” shall mean the Erie Indemnity Company, a Pennsylvania business corporation.

2.7 “Deferred Compensation Account” shall mean such account as defined in Appendix A and/or
Appendix B, as applicable.

2.8 “Employee” shall mean a person engaged in performing services for the Company, or an
Affiliate, as an exempt or non-exempt full-time employee, as defined by the Company’s Corporate
Personnel Manual, as in existence at the time of determination, and not as an independent
contractor.

2.9 “Participant” shall mean each Employee who participates in the Plan in accordance with
the terms and conditions of the Plan.

2.10 “Plan” shall mean the Deferred Compensation Plan of Erie Indemnity Company as set
forth in the provisions of the Basic Plan Document, Appendix A, Appendix B, and including any
amendments, appendices and exhibits to these documents.

2.11 “Qualified Plan” shall mean the Erie Insurance Group Employee Savings Plan, a
tax-qualified plan under Section 401(a) of the Code, as said plan is amended from time to time.

2.12 “Vested” shall mean, as of any given date, the portion of the Deferred Compensation
Account maintained on behalf of a Participant which is then 100% vested and nonforfeitable. All
Deferred Compensation Accounts maintained under the Plan shall be 100% vested and nonforfeitable at
all times.

ARTICLE THREE

ADMINISTRATION

	3.1.	 	GENERAL ADMINISTRATION

The Administrator shall be charged with the administration of the Plan. The Administrator shall
have all such powers as may be necessary to discharge its duties relative to the administration of
the Plan, including by way of illustration and not limitation, discretionary authority to interpret
and construe the Plan, to determine and decide all questions of fact, and all disputes arising
under the Plan including, but not limited to, the eligibility of any Employee to participate
hereunder, the validity of any election or designation as may be necessary or appropriate hereunder
and the right of any Participant or Beneficiary to receive payment of all or any portion of amounts
represented by a Deferred Compensation Account, maintained hereunder. The Administrator shall have
all power necessary to adopt, alter and repeal such administrative rules, regulations and practices
governing the operation of the Plan as it, in its sole discretion, may from time to time deem
advisable and shall have the power to make equitable adjustments to remedy any mistakes or errors
made in the administration of the Plan. The Administrator shall not be liable to any person for
any action taken or omitted in connection with the interpretation and administration of the Plan
unless attributable to willful misconduct. The Administrator, the Company and its respective
officers and directors shall be entitled to conclusively rely upon all tables, valuations,
certificates, opinions and reports furnished by any actuary, accountant, controller, counsel or
other person employed or engaged by the Company with respect to the Plan,

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insofar as such reliance is consistent with the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”) and other applicable law. The service providers to the Plan 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. Any individual
serving as Administrator shall not participate in any action or determination regarding solely his
own benefits payable hereunder. Decisions of the Administrator made in good faith shall be final,
conclusive and binding upon all parties. Until modified by the Administrator, the claims and
review procedures set forth in Section 3.2 shall be the exclusive procedures for the disposition of
claims for benefits arising under the Plan.

	3.2.	 	CLAIMS PROCEDURE

The Administrator shall be responsible for the claims procedure under the Plan.

	 	(a)	 	Original Claim. In the event a claim of any Participant, Beneficiary,
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.
	 
	 	(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 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.

	 	(c)	 	Determination by the Administrator is Conclusive. The
Administrator’s determination of factual matter relating to Participants,
Beneficiaries and other persons including, without limitation, a Participant’s
compensation, the amount of any contribution credit and any other factual matters,
shall be conclusive.

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	3.3	 	EXHAUSTION OF ADMINISTRATIVE REMEDIES

The exhaustion of the claims review procedure is mandatory for resolving every claim and dispute
arising under the Plan. As to such claims and disputes:

	 	a)	 	No claimant shall be permitted to commence any civil action to recover Plan
benefits or to enforce or clarify rights under the Plan under Section 502 or Section
510 of ERISA or under any other provision of law, whether or not statutory, until the
claims review procedure set forth herein has been exhausted in its entirety; and
	 
	 	b)	 	In any such civil action all explicit and all implicit determinations by the
Administrator (including, but not limited to, determinations as to whether the claim,
or a request for a review of a denied claim, was timely filed) shall be afforded the
maximum deference permitted by law.

	3.4	 	DEADLINE TO FILE CIVIL ACTION

No civil action to recover Plan benefits or to enforce or clarify rights under the Plan under
Section 502 or Section 510 of ERISA or under any other provision of law, whether or not statutory,
may be brought by any claimant on any matter pertaining to the Plan unless the civil action is
commenced in the proper forum before the earlier of:

	 	a)	 	Thirty months after the claimant knew or reasonably should have known of the
principal facts on which the claim is based; or
	 
	 	b)	 	Six months after the claimant has exhausted the claims review procedure.

	3.5	 	FICA AND OTHER TAXES

For each year in which credits are made under the Plan for or on behalf of a Participant who is
employed in such year, the Company or Affiliate employing the Participant shall withhold from that
portion of the Participant’s compensation that is not being deferred, in a manner determined by the
Administrator, the Participant’s share of FICA and other employment taxes. If the Administrator
determines it to be necessary or appropriate, the Administrator may reduce any deferral of a
Participant under the Plan in order to comply with this Section 3.5.

ARTICLE FOUR

AMENDMENT AND TERMINATION

The Company expects to continue the Plan indefinitely, but reserves the right to amend or terminate
the Plan at any time, if, in its sole judgment, such amendment or termination is necessary or
desirable. Any such amendment or termination shall be made pursuant to a resolution of the Board
and shall be effective as of the date specified in such resolution. Without consent of the
Participant, no amendment or termination of the Plan shall reduce the balance of a Participant’s
Deferred Compensation Account at the time of amendment or termination. Except as may otherwise be
provided by the Company, or as provided in Appendix B, in the event of a termination of the Plan,
the Company (or any transferee, or successor entity of the Company) shall be obligated to pay
amounts represented by Vested Deferred Compensation Account balances to Participants and
Beneficiaries at such time or times and in such forms as provided under the terms of the Plan.
Nothing herein shall limit the Company’s reserved right to terminate and liquidate the Plan in
accordance with generally applicable guidance prescribed by the Commissioner of Internal Revenue
and published in the Internal Revenue Bulletin.

ARTICLE FIVE

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GENERAL PROVISIONS

	5.1.	 	NO EFFECT ON EMPLOYMENT RIGHTS

Nothing contained herein shall be construed as creating any contract of employment between the
Company or any Affiliate and any Participant nor shall any provision hereof confer upon any
Participant the right to be retained in the service of the Company or any Affiliate nor limit the
right of the Company or any Affiliate to discharge or otherwise deal with Participants without
regard to the existence of the Plan.

	5.2.	 	GENERAL CONTRACTUAL OBLIGATION

It is the intent of this Plan, and each Participant understands, that no trust has been created for
his or her benefit in connection with this Plan and that eligibility and participation in this Plan
does not grant any Participant or Beneficiary any interest in any asset of the Company or any
Affiliate. The Company’s obligation to pay to the Participant or Beneficiary the amounts credited
hereunder is a general contract obligation and shall be satisfied solely from the general assets of
the Company. Nothing contained in the Plan shall constitute a guaranty by the Company, any
Affiliate, or any other entity or person that the assets of the Company will be sufficient to pay
amounts determined in accordance with the Plan. The obligation of the Company under the Plan shall
be merely that of an unfunded and unsecured promise of the Company to pay amounts in the future.
In each case in which amounts represented by the balances credited to a Participant’s Vested
Deferred Compensation Account have been distributed to the Participant, Beneficiary, or other
person entitled to receipt thereof and which purports to cover in full the benefits hereunder, such
Participant, Beneficiary or other person shall have no further right or interest in the other
assets of the Company on account of participation in the Plan. Notwithstanding a Participant’s
entitlement to Vested amounts under the terms of the Plan, the status of the Participant, or any
person claiming by or through the Participant, is that of an unsecured general creditor to the
extent of his entire interest under the Plan as herein described.

	5.3.	 	BINDING ON COMPANY, PARTICIPANTS AND THEIR SUCCESSORS

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

	5.4.	 	SPENDTHRIFT PROVISIONS

The interest of a Participant or Beneficiary under the Plan shall not be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, either
voluntarily or involuntarily, prior to the Participant’s or Beneficiary’s actual receipt of amounts
represented by the balances credited under the Plan on his behalf; any attempt to anticipate,
alienate, sell, transfer, assign, pledge, encumber or charge any such interest prior to such
receipt shall be void. Amounts credited hereunder and not paid to a Participant or Beneficiary
shall not be subject to garnishment, attachment or other legal or equitable process nor shall they
be an asset in bankruptcy. Notwithstanding the preceding sentence, no amount shall be payable from
this Plan to a Participant, or any person claiming by or through a Participant, unless and until
any and all amounts representing debts or other obligations owed to the Company or any Affiliate by
the Participant have been fully paid and satisfied; provided, however, that any such offset, as
applicable to a person’s Plan interest under Appendix B, shall not exceed such offset as is
permitted under Section 409A of the Code. Neither the Company nor any Affiliate shall be liable in
any manner for or subject to the debts, contracts, liabilities, torts or engagements of any person
who has a Deferred Compensation Account maintained on his behalf under the Plan.

	5.5.	 	NO SPOUSAL RIGHTS

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Except as required by law or specifically provided by the Plan, no spouse or surviving spouse of a
Participant and no person designated to be a Beneficiary shall have any rights or interest in the
accounts accumulated under the Plan including, but not limited to, the right to be the sole
Beneficiary or to consent to the Participant’s designation of Beneficiary.

	5.6.	 	 DISCLOSURE

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

	5.7.	 	INCAPACITY OF RECIPIENT

In the event a Participant or Beneficiary is declared incompetent and a guardian, conservator or
other person legally charged with the care of his person or of his estate is appointed, any Vested
Deferred Compensation Account under the Plan to which such Participant, or Beneficiary is entitled
shall be paid to such guardian, conservator or other person legally charged with the care of his
person or his estate. Except as provided in the preceding sentence, when the Administrator, in its
sole discretion, determines that a Participant or Beneficiary is unable to manage his financial
affairs, the Administrator may direct the Company to make distribution(s) from the Vested Deferred
Compensation Account maintained on behalf of such Participant or Beneficiary to any one or more of
the spouse, lineal ascendants or descendants or other closest living relatives of such Participant
or Beneficiary who demonstrates to the satisfaction of the Administrator the propriety of making
such distribution(s). Any payment so made shall not exceed such amount as is permitted under
Section 409A of the Code and shall be in complete discharge of any liability of the Company and
Administrator under the Plan for such payment. The Administrator shall not be required to see to
the application of any such distribution made as provided above.

	5.8.	 	INFORMATION FURNISHED BY PARTICIPANTS AND BENEFICIARIES

Neither the Company nor the Administrator shall be liable or responsible for any error in the
computation of a Participant’s or Beneficiary’s interest under the Plan resulting from any
misstatement of fact made by the Participant or Beneficiary, directly or indirectly, to the Company
or to the Administrator and used by it in determining the Participant’s or Beneficiary’s Plan
interest. Neither the Company nor the Administrator shall be obligated or required to increase the
Plan interest of any such Participant or Beneficiary which, on discovery of the misstatement, is
found to be understated as a result of such misstatement. However, the Plan interest of any
Participant or Beneficiary which is overstated by reason of any such misstatement shall be reduced
to the amount appropriate in view of accurate facts.

	5.9.	 	OVERPAYMENTS

If a payment or a series of payments made from the Plan is found to be greater than the payment(s)
to which a Participant or Beneficiary is entitled due to factual errors, mathematical errors or
otherwise, the Administrator may, in its discretion and to the extent consistent with Section 409A
of the Code, suspend or reduce future payments to such Participant or Beneficiary or exercise such
legal or equitable remedies as it deems appropriate to correct the overpayment.

	5.10.	 	UNCLAIMED BENEFIT

In the event that any amount determined to be payable to a Participant or Beneficiary hereunder
remains unclaimed by such Participant or Beneficiary for a period of four years after the
whereabouts or existence of such person was last known to the Administrator, the Administrator may
direct that all rights of such person to such amounts be terminated absolutely; provided, however,
that if such Participant or Beneficiary subsequently appears and files a claim for payment in
accordance with Article Three and such claim is fully or partially successful, the liability under
the Plan for an amount equal to the successful claim shall be reinstated.

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	5.11.	 	ELECTIONS, APPLICATIONS, NOTICES

Every designation, direction, election, revocation or notice authorized or required under the Plan
which is to be delivered to the Company or the Administrator shall be deemed delivered to the
Company or the Administrator as the case may be: (a) on the date it is personally delivered to the
Administrator (either physically at the Company’s executive offices at 100 Erie Insurance Place,
Erie, Pennsylvania 16530 or at such other location designated by the Administrator or through
interactive electronic communication) or (b) three business days after it is sent by registered or
certified mail, postage prepaid, addressed to the Administrator at the offices indicated above.
Every such item which is to be delivered to a person or entity designated by the Administrator to
perform recordkeeping and other administrative services on behalf of the Plan shall be deemed
delivered to such person or entity when it is actually received (either physically or through
interactive electronic communication) by such person or entity. Every designation, direction,
election, revocation or notice authorized or required which is to be delivered to a Participant or
Beneficiary shall be deemed delivered to a Participant or Beneficiary: (a) on the date it is
personally delivered to such individual (either physically or through interactive electronic
communication), or (b) three business days after it is sent by registered or certified mail,
postage prepaid, addressed to such individual at the last address shown for him on the Company’s
records. Any notice required under the Plan may be waived by the person entitled thereto.

	5.12.	 	COUNTERPARTS

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

	5.13.	 	SEVERABILITY

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

	5.14.	 	GOVERNING LAW

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

	5.15.	 	HEADINGS

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

	5.16.	 	CONSTRUCTION

The masculine gender, where appearing in this Plan, shall be deemed to also include the feminine
gender. The singular shall also include the plural, where appropriate. Any words or phrases used
herein with initial capital letters that are not otherwise defined in this Basic Plan Document,
Appendix A, or Appendix B shall have the meanings assigned to them in the Qualified Plan, as in
effect as of the date the relevant determination is being made under the Plan, unless a different
meaning is required by the context. Such incorporation of Qualified Plan words and phrases shall
not apply with respect to any term or provision that is expressly addressed in the Plan.

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Executed at Erie, Pennsylvania this 23rd day of December, 2008, effective as of January 1,
2009.

	 	 	 	 	 	 	 
	 	 	ERIE INDEMNITY COMPANY	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James J. Tanous
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Executive Vice President, Secretary and General Counsel
	 	 

	 	 	 
	ATTEST:
	 	 
	 
	 	 
	 
	 	 
	    /s/ Brian Bolash
 

	 	 

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APPENDIX A

DEFERRED COMPENSATION PLAN

OF ERIE INDEMNITY COMPANY

Accounts Earned and Vested On or Before December 31, 2004

ARTICLE ONE

INTRODUCTION

This Appendix A incorporates the provisions of the Plan as it relates to Deferred Compensation
Accounts that were earned and vested on or before December 31, 2004, without material modifications
to the terms of the Plan after October 3, 2004. The provisions of this Appendix A shall apply in
determining the rights and features of such accounts.

ARTICLE TWO

DEFINITIONS

When the following words or phrases are used in this Appendix A with initial capital letters, they
shall have the following meanings:

2.1 “Administrator” is a term that is defined in Article Two of the Basic Plan Document.

2.2 “Affiliate” is a term that is defined in Article Two of the Basic Plan Document.

2.3 “Amendment Form” shall mean the Amendment Form described in Section 5.3.

2.4 “Beneficiary” is a term that is defined in Article Two of the Basic Plan Document.

2.5 “Board” is a term that is defined in Article Two of the Basic Plan Document.

2.6 “Code” is a term that is defined in Article Two of the Basic Plan Document.

2.7 “Committee” shall mean the Executive Compensation and Development Committee of the
Board or its successor, as designated by the Board.

2.8 “Company” is a term that is defined in Article Two of the Basic Plan Document.

2.9 “Compensation” shall mean “Compensation” as defined under the Qualified Plan provided,
however, that for purposes of the Plan, any limitation on recognized Compensation under Section
401(a)(17) of the Code shall be ignored. Except as otherwise specified by the Board, any change in
the definition of Compensation under the Qualified Plan (other than a change related to Section
401(a)(17) of the Code shall automatically be considered a change to the Plan, effective as of the
effective date of change under the Qualified Plan, and the Plan shall thereafter be administered in
accordance with such change.

2.10 “Deferred Compensation Account” shall mean the bookkeeping account described in
Section 4.1.

2.11 “Election Form” shall mean the Participation Election Form described in Section 3.2
and/or Section 3.3, as applicable to amounts under this Appendix A.

2.12 “Employee” is a term that is defined in Article Two of the Basic Plan Document.

2.13 “Hypothetical Interest” shall mean the gains and losses credited to a Participant’s
Deferred Compensation Account in accordance with Section 4.4.

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2.14 “Participant” shall mean each Employee who participated in the Plan in accordance with
the terms and conditions of this Appendix A. Participant shall also include a former Employee who
had become a Participant as an Employee and on whose behalf the Administrator is maintaining a
Deferred Compensation Account pursuant to the terms of this Appendix A.

2.15 “Plan” is a term that is defined in Article Two of the Basic Plan Document.

2.16 “Qualified Plan” is a term that is defined in Article Two of the Basic Plan Document.

2.17 “Supplemental Company Contribution” shall mean, the contribution credit described in
Section 4.3(b) and determined in reference to a formula set forth in the Qualified Plan. Except as
otherwise specified by the Board of Directors, any change in the employer matching contribution
formula under the Qualified Plan shall automatically be considered a change to the Plan, effective
as of the effective date of change under the Qualified Plan, and the Plan shall thereafter be
administered in accordance with such change.

2.18 “Supplemental Employee Contribution” shall mean the contribution credit described in
Section 4.3(a) and determined in reference to a formula set forth in the Qualified Plan. Except as
otherwise specified by the Board of Directors, any change in the elective contribution formula
under the Qualified Plan shall automatically be considered a change to the Plan, effective as of
the effective date of change under the Qualified Plan, and the Plan shall thereafter be
administered in accordance with such change.

2.19 “Valuation Date” shall mean the close of business as of each business day.

2.20 “Vested” is a term that is defined in Article Two of the Basic Plan Document.

ARTICLE THREE

PARTICIPATION

	3.1	 	ELIGIBILITY

The individuals who were eligible to participate in the Plan were those Employees selected by the
Committee. The Committee made its selection of Employees eligible to participate at least 30 days
before January 1 of the year next beginning or at such other times as it shall decide for the
purpose of determining the eligibility of new Employees hired by the Company or its Affiliates.

The Committee, in its sole discretion, determined to what extent an Employee was eligible to
participate under the provisions of Section 4.2 and/or Section 4.3 hereof. Except as otherwise
provided by the Committee, an Employee who had been selected by the Committee as eligible to
participate under Section 4.2 and/or Section 4.3 of the Plan continued such eligibility from year
to year of his employment with the Company or Affiliate, regardless of whether the Employee elected
to participate or not, unless the Committee, in its discretion, terminated all or part of that
Employee’s eligibility.

	3.2	 	PARTICIPATION UNDER DEFERRED COMPENSATION PROVISIONS

An Employee who was eligible under the provisions of Section 3.1 to participate under the deferral
provisions of Section 4.2 may have elected to participate, altered the extent of his participation,
or suspended or terminated his participation under such deferral provisions by having delivered a
properly completed and executed Election Form to the Administrator. This form will have specified:

	 	a)	 	The amount of annual salary to be deferred and/or the amount of any bonus to be
deferred;
	 
	 	b)	 	The Participant’s investment designation in accordance with Section 4.5;

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	 	c)	 	The method by which the amounts credited to the Participant’s Deferred
Compensation Account are to be paid;
	 
	 	d)	 	The date at which payment of the amounts credited to the Participant’s Deferred
Compensation Account is to occur (in the event of a lump sum distribution) or commence
(in the event of a form of distribution other than a lump sum); and
	 
	 	e)	 	The Beneficiary to whom payment of all amounts credited to the Participant’s
Deferred Compensation Account under this Appendix A will be made in the event of the
Participant’s death (unless this Beneficiary had already been designated pursuant to
Section 3.3 or otherwise).

The election under paragraph (a) above was irrevocable with respect to the calendar year to which
it applied. The election under paragraph (b) above may be changed as provided in Section 4.5 and
shall be subject to the provisions of Section 3.4. The elections under paragraphs (c) and (d)
above shall be irrevocable except as provided in Section 5.3 and shall be subject to the provisions
of Section 3.4. The election under paragraph (e) above may be changed by the Participant at any
time and shall be subject to the provisions of Section 3.4.

	3.3	 	PARTICIPATION UNDER SUPPLEMENTAL 401(k) PROVISIONS

An Employee who was eligible under the provisions of Section 3.1 to participate under the deferral
provisions of Section 4.3 may have elected to participate, altered the extent of his participation,
or suspended or terminated his participation under such deferral provisions by having delivered a
properly completed and executed Election Form to the Administrator. This form will have specified:

	 	a)	 	The amount of his future Compensation to be deferred;
	 
	 	b)	 	The Participant’s investment designation in accordance with Section 4.5;
	 
	 	c)	 	The method by which amounts credited to the Participant’s Deferred Compensation
Account are to be paid;
	 
	 	d)	 	The date at which payment of the amounts credited to the Participant’s Deferred
Compensation Account is to occur (in the event of a lump sum distribution) or commence
(in the event of a form of distribution other than a lump sum); and
	 
	 	e)	 	The Beneficiary to whom payment of all amounts credited to the Participant’s
Deferred Compensation Account under this Appendix A will be made in the event of the
Participant’s death (unless this Beneficiary had already been designated pursuant to
Section 3.2 or otherwise).

The election under paragraph (a) above was irrevocable with respect to the calendar year to which
it applied. The election under paragraph (b) above may be changed as provided in Section 4.5 and
shall be subject to the provisions of Section 3.4. The elections under paragraphs (c) and (d)
above shall be irrevocable except as provided in Section 5.3 and shall be subject to the provisions
of Section 3.4. The election under paragraph (e) above may be changed by the Participant at any
time and shall be subject to the provisions of Section 3.4.

	3.4	 	COORDINATION OF ELECTIONS

Notwithstanding any provision of this Article Three to the contrary, an Employee who was eligible
to participate under the provisions of Sections 4.2 and 4.3 and who elected to participate under
both Sections was required to coordinate and combine certain elections (stated below) into a single
election that is applicable both to salary and/or bonuses deferred under Section 4.2 and
Compensation deferred under Section 4.3. The elections that are coordinated into a single election
under this Section 3.4 are:

	 	a)	 	A Participant’s investment designation described in Sections 3.2(b) and 3.3(b);
	 
	 	b)	 	A Participant’s method of payment election described in Sections 3.2(c) and
3.3(c);

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	 	c)	 	A Participant’s election regarding the time payment is made or commences, as
described in Sections 3.2(d) and 3.3(d); and
	 
	 	d)	 	A Participant’s Beneficiary designation described in Sections 3.2(e) and
3.3(e).

The effective date of this Section 3.4 with respect to any Participant was the effective date of
the Participant’s initial deferral under Section 4.2 or his initial deferral under Section 4.3,
whichever was later.

	3.5	 	EFFECTIVE DATE FOR PARTICIPATION

The effective date for participation in the Plan by an Employee who was eligible to participate
under Section 3.1 was the first day of the calendar year that immediately followed the calendar
year in which the Administrator received the Employee’s Election Form. The effective date for
participation in the Plan by a newly hired Employee who was eligible shall be the date that the
Employee began active employment with the Company or an Affiliate as long as the Administrator had
received the Employee’s Election Form prior to this date. The deferral of a Participant’s salary
under Section 4.2 and/or the deferral of a Participant’s Compensation under Section 4.3 began or
ended, as appropriate, as of the first pay period that ended in the calendar year that immediately
followed the calendar year in which the Administrator received the Employee’s Election Form;
provided that, in all events, the Employee’s Election Form was received by the Administrator before
the beginning of such pay period. The deferral of any Participant bonus under Section 4.2 was
effective as of the date such bonus would otherwise have been payable to the Participant.

ARTICLE FOUR

COMPENSATION DEFERRED

	4.1	 	DEFERRED COMPENSATION ACCOUNT

A Deferred Compensation Account was established for each Employee who properly completed, executed
and delivered an Election Form under Section 3.2 and/or Section 3.3. The compensation each
Participant elected to defer under Section 4.2 and/or any Supplemental Employee Contributions and
Supplemental Company Contributions credited on the Participant’s behalf under Section 4.3 for
calendar years beginning before January 1, 2005, as well as Hypothetical Interest earned on such
deferred compensation, is credited to this Deferred Compensation Account. A Participant’s Deferred
Compensation Account shall be kept only for bookkeeping and accounting purposes and no Company
funds shall be transferred or designated to this account. A Participant’s interest in the Deferred
Compensation Account maintained on his behalf shall be Vested at all times.

	4.2	 	AMOUNT OF SALARY/BONUS DEFERRAL

An Employee who was eligible to participate under the provisions of this Section 4.2 may have
elected to defer receipt of up to 25% of his annual salary for services as an Employee of the
Company or an Affiliate. In addition to, or in lieu of, a deferral of annual salary, a Participant
may have elected to defer receipt of up to 100% of any annual bonus to be payable by the Company or
an Affiliate. An election to defer salary and/or bonus was made by the end of the calendar year
which preceded the calendar year in which the deferral election was effective and the compensation
was earned. Compensation deferred under this Section 4.2 was credited to the Participant’s
Deferred Compensation Account on the date such compensation would otherwise have been payable to
the Participant.

	4.3	 	AMOUNT OF SUPPLEMENTAL 401(k) CONTRIBUTIONS

	 	a)	 	An Employee who was eligible to participate under the provisions of this
Section 4.3 may have elected to have Supplemental Employee Contributions made to the
Plan on his behalf within such times and in accordance with such means as were
designated by the Administrator. The amount of Supplemental Employee Contribution
credited hereunder with respect to a participating Employee for any given year was
determined by the Administrator, in its discretion, and was in reference to the amount
by which the elective contributions made on behalf of such Employee for such year under
the Qualified Plan was limited by the application of Section 402(g) of the Code.

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	 	b)	 	In the event that (i) the allocation of employer matching contributions under
the Qualified Plan on behalf of a Participant was limited for any given Plan Year due
to the limitation on elective contributions made on such Participant’s behalf under the
Qualified Plan under Section 402(g) of the Code, and (ii) the Participant was making
Supplemental Employee Contributions for the given year at such level as the
Administrator, in its discretion, deems sufficient, the amount by which such employer
matching contributions were limited, as determined by the Administrator in its
discretion, was credited under the Plan as a matching contribution on Supplemental
Employee Contributions and was designated as Supplemental Company Contributions.
	 
	 	c)	 	Compensation deferred under this Section 4.3 was credited to the Participant’s
Deferred Compensation Account as of the date such compensation would otherwise have
been treated as a contribution allocation under the Qualified Plan.

	4.4	 	HYPOTHETICAL INTEREST

The Deferred Compensation Account maintained on behalf of a Participant under this Appendix A is
credited with Hypothetical Interest. The Hypothetical Interest is credited as of each Valuation
Date on the amount credited to the Participant’s Deferred Compensation Account on such Valuation
Date in accordance with the valuation procedure adopted by the Administrator. The Hypothetical
Interest credited to each Deferred Compensation Account is determined by the Administrator and
computed in reference to the appreciation or depreciation experienced since the immediately
preceding Valuation Date by the hypothetical investment funds which the Administrator may offer to
Participants under Section 4.5. For any given period, Hypothetical Interest may be a positive or a
negative figure. The crediting of Hypothetical Interest shall occur so long as there is a balance
in the Participant’s Deferred Compensation Account regardless of whether the Participant has
terminated employment with the Company or Affiliates or has died. The Administrator may prescribe
any reasonable method or procedure for the accounting of Hypothetical Interest.

	4.5	 	PARTICIPANT INVESTMENT DESIGNATION

	 	a)	 	A Participant (and any eligible Employee first electing to
participate in the Plan) may have designated on such form or forms
satisfactory to the Administrator, that portion of his future deferred
compensation and, separately, that portion of any existing Deferred
Compensation Account maintained on his behalf which shall be credited
with Hypothetical Interest in reference to each of the hypothetical
investment funds that were offered by the Administrator, in the
discretion of the Administrator. Such designations specified, in 1%
increments, the percentages to be credited in reference to each of the
hypothetical investment funds offered. Such designations may remain in
effect until the Participant submits a new designation within such
times and in accordance with such means as are designated by the
Administrator. All new designations are effective as of a given date
specified by the Administrator. In the event a Participant fails to
make an effective designation under this paragraph (a), the
Administrator, acting in its discretion, shall make such designation on
behalf of the Participant.	 
	 				
	 	b)	 	In accepting participation in the Plan, a Participant agreed on
behalf of himself and his Beneficiary to assume all risk in connection
with any decrease in value of the hypothetical investment funds in
reference to which Hypothetical Interest is credited to the
Participant’s Deferred Compensation Account. The Company, the
Affiliates and the Administrator shall not be liable to any Participant
or Beneficiary for the under-performance of any hypothetical investment
fund offered under the Plan.	
	 				
	 	c)	 	The Administrator may, in its discretion, offer additional
hypothetical investment funds to Participants and may cease to offer
any such fund at such time as it deems appropriate. In the event the
Administrator decides to discontinue offering a hypothetical investment
fund under the Plan, those Participants on whose behalf Hypothetical
Interest is then being credited on the basis of the discontinued
hypothetical investment fund may be required, at the discretion of the
Administrator,	

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	 	 	 	to have affected amounts consolidated with (or “mapped” to) a
replacement hypothetical investment fund selected by the Administrator
or may be required to designate, from such selection of funds as may be
offered by the Administrator, a hypothetical fund or funds as a
replacement for the investment fund being discontinued. Any such
designation by a Participant shall be made in accordance with paragraph
(a) above. Hypothetical Interest credited on behalf of any Participant
who is affected by the discontinuation of a hypothetical investment fund
but who fails to make any replacement designation offered in this
paragraph (c) shall mirror, to the extent of the Participant’s interest
in such discontinued fund, such hypothetical investment fund or funds as
the Administrator may choose in its discretion. Any changes under this
paragraph (c) shall take effect as of such times and under such rules as
shall be established by the Administrator.	 
	 
	 	d)	 	Notwithstanding any provision of the Plan to the contrary, the
eligibility of a Participant to make any designation under this Section
4.5 shall not be construed as to provide any Participant or other
person with a beneficial ownership interest in any assets of the
Company or an Affiliate. Title to and beneficial ownership of any
assets which the Company or any Affiliate may earmark to pay the
contingent deferred compensation hereunder shall at all times remain in
the Company or Affiliate. The Participant, his Beneficiary and any
heirs, successors or assigns shall not have any legal or equitable
right, interest or control over or any property interest whatsoever in
any specific assets of the Company or any Affiliate or related entity
on account of having an interest under the Plan. Any and all of the
Company’s assets, and any life insurance policies, annuity contracts or
the proceeds therefrom which may be acquired by the Company shall be,
and remain, the general unpledged, unrestricted assets of the Company.
In no event shall the Company or any Affiliate be required to purchase
any specific shares or interest in any investment fund.

	4.6	 	STATEMENTS

Statements will be sent to each Participant as to the balance of his Deferred Compensation Account
at least once each calendar year.

ARTICLE FIVE

PAYMENT OF DEFERRED COMPENSATION

	5.1	 	PAYMENT 

Upon termination of employment with the Company and all Affiliates, the Vested balance credited to
the Participant’s Deferred Compensation Account shall be paid to him according to the method and at
the times selected by the Participant in his Election Form or, if applicable, in the most recent,
properly executed and effective Amendment Form(s) which the Participant has delivered to the
Administrator prior to the Participant’s termination of employment.

	5.2	 	METHODS OF PAYMENT

The Participant may elect any of the following methods of payment for the amounts represented by
his Vested Deferred Compensation Account:

	 	a)	 	A lump sum distribution;	 
	 
	 	b)	 	Payments in approximately equal annual installments for a
period not to exceed 10 years;
	 
	 	c)	 	Payments in approximately equal monthly installments for a
period not to exceed 10 years; and

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	 	d)	 	Payment of a dollar amount or percentage (as specified by the
Participant) of the Participant’s Vested Deferred Compensation Account
in the form of a single sum payment with the balance of such Account
being paid under either the method described in paragraph (b) or the
method described in paragraph (c) above.	 

In the event the Participant dies before receiving the entire distribution to which he is entitled
under the Plan, the balance in the Participant’s Vested Deferred Compensation Account on his date
of death shall be paid as soon as practicable in a lump sum to the Beneficiary designated by the
Participant in the most recent, properly executed, Beneficiary designation which the Participant
has delivered to the Administrator prior to the Participant’s death.

	5.3	 	AMENDMENT TO PAYMENT ELECTION

A Participant who is employed by the Company or an Affiliate may request to defer the date at which
payment of his Vested Deferred Compensation Account will occur (or commence) and may request a
change in his elected method of payment by submitting an Amendment Form to the Administrator which
indicates the period of additional deferral and/or the desired method of payment; provided,
however:

	 	a)	 	Such request of additional deferral or alternative method of
payment shall be subject to the Administrator’s power, to be exercised
at Administrator’s discretion, to direct that payment of the
Participant’s Vested Deferred Compensation Account will occur or
commence, or will be paid under a method, in accordance with the
Participant’s election(s) on a previously delivered Amendment Form or
on the Participant’s Election Form; and	 
	 
	 	b)	 	In no event shall any requested additional deferral or
alternative method of payment become effective unless the Amendment
Form evidencing such request is submitted to, and approved by, the
Administrator at least twelve months prior to the date payment of the
Vested Deferred Compensation Account would otherwise have occurred or
commenced under the Election Form or Amendment Form in effect on the
date the Participant requests the additional deferral or alternative
method of payment.
	 
	 	c)	 	A Participant may at any time elect to change his Beneficiary
in accordance with Article Two of the Basic Plan document, subject to
the provisions of Section 3.4.

	5.4	 	EMERGENCY CIRCUMSTANCES

Notwithstanding any other provision of this Plan, if the Committee determines, after consideration
of a Participant’s application, that the Participant has a financial necessity of such a
substantial nature that a current payment of compensation deferred under this Plan is warranted,
the Committee may in its sole and absolute discretion direct that all or a portion of the
Participant’s Vested Deferred Compensation Account balance be paid to him. The payment shall be
made in the manner and at the times specified by the Committee for payment; provided, however, such
payment shall not be in excess of that amount which is, in the discretion of the Committee,
required to satisfy the financial necessity.

ARTICLE SIX

CONSTRUCTION

This Appendix A is intended to memorialize the provisions of the Plan as it pertains to
grandfathered amounts within the meaning of guidance promulgated by the Internal Revenue Service
pursuant to Section 409A of the Code. As a result, the Administrator shall interpret and construe
the terms of this Appendix A so as to preserve the status of these amounts as grandfathered amounts
under such guidance. References, or cross references to an identified Article, Section, or
specific part thereof, shall refer to such Article, Section (or part) of this Appendix A, unless
otherwise qualified by the context.

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APPENDIX B

DEFERRED COMPENSATION PLAN

OF ERIE INDEMNITY COMPANY

Accounts Not Earned and Vested On or Before December 31, 2004

ARTICLE ONE

INTRODUCTION

This Appendix B incorporates the provisions of the Plan as it relates to Deferred Compensation
Accounts other than such accounts that were earned and vested on or before December 31, 2004,
without material modifications to the terms of the Plan after October 3, 2004. The provisions of
this Appendix B shall apply in determining the rights and features of such accounts and is
generally effective as of
 January 1, 2009.

ARTICLE TWO

DEFINITIONS

When the following words or phrases are used in this Appendix B with initial capital letters, they
shall have the following meanings:

2.1 “Administrator” is a term that is defined in Article Two of the Basic Plan Document.

2.2 “Affiliate” is a term that is defined in Article Two of the Basic Plan Document.

2.3 “Amendment Form” shall mean the Amendment Form described in Section 5.7. An Amendment
Form may be in paper and/or electronic form, as designated by the Administrator.

2.4 “Beneficiary” is a term that is defined in Article Two of the Basic Plan Document.

2.5 “Board” is a term that is defined in Article Two of the Basic Plan Document.

2.6 “Code” is a term that is defined in Article Two of the Basic Plan Document.

2.7 “Committee” shall mean the Executive Compensation and Development Committee of the
Board, or its successor, as designated by the Board.

2.8 “Compensation” shall mean for any period, the rate of base salary or the wages paid by
the Company or an Affiliate 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 year in question.

2.9 “Company” is a term that is defined in Article Two of the Basic Plan Document.

2.10 “Controlled Group Member” shall mean any organization which, together with the
Company, is a member of a controlled group of corporations under Sections 414(b), 414(c), and
1563(a) of the Code, applying an 80% test for purposes of Section 1563(a).

2.11 “Deferred Compensation Account” shall mean the bookkeeping account described in
Section 4.4.

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2.12 “Election Form” shall mean the Participation Election Form described in Section 3.2
and/or Section 3.3. An Election Form may be in paper and/or electronic form, as designated by the
Administrator.

2.13 “Employee” is a term that is defined in Article Two of the Basic Plan Document.

2.14 “Hypothetical Interest” shall mean the gains and losses credited to a Participant’s
Deferred Compensation Account in accordance with Section 4.5.

2.15 “Participant” shall mean each Employee who participated in the Plan in accordance with
the terms and conditions of this Appendix B. Participant shall also include a former Employee who
had become a Participant as an Employee and on whose behalf the Administrator is maintaining a
Deferred Compensation Account pursuant to the terms of this Appendix B.

2.16 “Plan” is a term that is defined in Article Two of the Basic Plan Document.

2.17 “Qualified Plan” is a term that is defined in Article Two of the Basic Plan Document.

2.18 “Separation from Service” shall mean an Employee’s complete cessation of all services
as an Employee for the Company and all Controlled Group Members or as otherwise set forth below:

	 	a)	 	A Separation from Service shall not be considered to have occurred if the
individual’s employment relationship is treated by an Employer as continuing while the
individual is on military leave, sick leave, or other bona fide leave of absence if
such period of leave does not exceed six months or, if longer, so long as the
individual’s right to reemployment is provided by statute or by contract. If the
period of leave exceeds six months and such reemployment rights are not provided, the
employment relationship is deemed to cease on the first date immediately following such
six-month period.

	 
	 	b)	 	A Separation from Service shall also not be considered to have occurred if the
individual’s employment relationship is treated by an Employer as continuing while the
individual is on a leave of absence due to any medically determinable physical or
mental impairment that can be expected to result in death or to last for a continuous
period of not less than six months, where such impairment causes the individual to be
unable to perform the duties of his position or any substantially similar position,
provided that, for purposes of the Plan, the employment relationship shall be
considered to continue no longer than 29 months or, if longer, so long as the
individual’s right to reemployment is provided by statute or by contract. If the
period of leave exceeds 29 months and such reemployment rights are not provided, the
employment relationship is deemed to cease on the first date immediately following such
29-month period.

	 
	 	c)	 	A Separation from Service shall also not be considered to have occurred,
regardless of the level of services anticipated or provided by the individual as an
employee, if the individual continues to provide services to the Employer in a capacity
other than as an employee of the Employer at a rate that is fifty percent (50%) or more
of the level of services rendered, on average, during the immediately preceding
36-month period (or the full period of such services, if less than 36 months) and the
remuneration for such services is fifty percent (50%) or more of the average
remuneration earned during the 36-month period (or the full period of such services, if
less than 36 months).

	 
	 	d)	 	Otherwise, a Separation from Service is presumed to have occurred if the facts
and circumstances indicate that (A) an Employer and the individual reasonably
anticipated that no further services would be performed after a certain date or that
the level of bona fide services the individual would perform after such date would
permanently decrease to 20% or less of the average level of bona fide services over the
immediately preceding 36-month period (or the full period of such services, if less
than 36 months) or (B) the level of bona fide services the individual performs after a
given date decreases to a level equal to 20% or less of the average level of bona fide
services performed by the individual over the immediately preceding 36-month period (or
the full period of such services, if less than 36 months).

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2.19 “Specified Employee” shall mean, for any period during which the Company remains
publicly traded, an individual who is included in the group of employees who are determined to be
“key employees” under Section 416(i)(1)(A)(i), (ii), or (iii) of the Code (as applied in accordance
with regulations thereunder and disregarding Section 416(i)(5) of the Code), identified in the
manner and under the procedures specified in a writing adopted by the Committee.

2.20 “Supplemental Company Contribution” shall mean, the contribution credit described in
Section 4.3(b) and determined in reference to a formula set forth in the Qualified Plan. Except as
otherwise specified by the Board, any change in the employer matching contribution formula under
the Qualified Plan shall automatically be considered a change to the Plan, effective as of the
effective date of change under the Qualified Plan, and the Plan shall thereafter be administered in
accordance with such change.

2.21 “Supplemental Employee Contribution” shall mean the contribution credit described in Section 4.3(a).

2.22 “Valuation Date” shall mean the close of business as of each business day.

2.23 “Vested” is a term that is defined in Article Two of the Basic Plan Document.

ARTICLE THREE

PARTICIPATION

	3.1	 	ELIGIBILITY

The individuals who are eligible to participate in the Plan are those Employees selected by the
Committee. The Committee shall make its selection of eligible Employees before January 1 of the
year next beginning or at such other times as it shall decide for the purpose of determining the
eligibility of new Employees hired by the Company or its Affiliates or Employees newly promoted
into a classification eligible for participation in the Plan.

The Committee, in its sole discretion, shall determine to what extent an Employee is eligible to
participate under the provisions of Article Four. Except as otherwise provided by the Committee,
an Employee who has been selected by the Committee as eligible to participate under Section 4.2
and/or Section 4.3 of the Plan shall continue such eligibility from year to year of his employment
with the Company or Affiliate, regardless of whether the Employee elects to participate or not;
provided, however, that the Committee, in its discretion, may terminate all or part of an
Employee’s eligibility for any given year. To participate in the Plan for any given year, an
Employee must be classified within a select group of management and highly compensated employees
for such year.

	3.2	 	PARTICIPATION UNDER DEFERRED COMPENSATION PROVISIONS

An Employee who is eligible under the provisions of Section 3.1 to participate under the deferral
provisions of Section 4.2 may elect to participate, alter the extent of his participation, or
suspend or terminate his participation under such deferral provisions by delivering a properly
completed and executed Election Form to the Administrator. This Election Form shall specify:

	 	a)	 	The percentage of any bonus to be deferred as provided in Section 4.2 for the
calendar year to which the election applies;
	 
	 	b)	 	The Participant’s investment designation in accordance with Section 4.6;
	 
	 	c)	 	The method by which the amounts deferred for the calendar year to which the
election applies (included Hypothetical Interest on such deferrals) are to be paid in
accordance with a method of payment permitted under Section 5.2(a);
	 
	 	d)	 	The time as of which payment of the amounts deferred for the calendar year to
which the election applies (included Hypothetical Interest on such deferrals) is to
occur (in the event of a lump sum distribution) or commence (in the event of a form of
distribution other than a lump sum) in accordance

155

 

	 	 	 	with a time of payment permitted under Section 5.2(b); and
	 
	 	e)	 	The Beneficiary to whom payment of all amounts credited to the Participant’s
Deferred Compensation Account under this Appendix B will be made in the event of the
Participant’s death (unless this Beneficiary has already been designated pursuant to
Section 3.3 or otherwise).

The election under paragraph (a) above shall be irrevocable with respect to the calendar year to
which it applies, except as provided in Sections 4.1(c) or 4.1(d). The election under paragraph
(b) above may be changed as provided in Section 4.6 and shall be subject to the provisions of
Section 3.4. The elections under paragraphs (c) and (d) above shall be irrevocable except as
provided in Section 5.7 and shall be subject to the provisions of Section 3.4. The election under
paragraph (e) above may be made and may be changed as provided in Article Two of the Basic Plan
Document, subject to the provisions of Section 3.4.

	3.3	 	PARTICIPATION UNDER SUPPLEMENTAL 401(k) PROVISIONS

An Employee who is eligible under the provisions of Section 3.1 to participate under the deferral
provisions of Section 4.3 may elect to participate, alter the extent of his participation, or
suspend or terminate his participation under such deferral provisions by delivering a properly
completed and executed Election Form to the Administrator. This Election Form shall specify:

	 	a)	 	The percentage of his future Compensation to be deferred as provided in Section
4.3 for the calendar year to which the election applies;
	 
	 	b)	 	The Participant’s investment designation in accordance with Section 4.6;
	 
	 	c)	 	The method by which amounts the Participant defers for the calendar year to
which the election applies and which are attributable to the Participant’s Supplemental
Employee Contributions (included Hypothetical Interest on such deferrals) are to be
paid in accordance with a method of payment permitted under Section 5.2(a);
	 
	 	d)	 	The time as of which payment of the amounts the Participant defers for the
calendar year to which the election applies and which are attributable to the
Participant’s Supplemental Employee Contributions (included Hypothetical Interest on
such deferrals) is to occur (in the event of a lump sum distribution) or commence (in
the event of a form of distribution other than a lump sum) in accordance with a time of
payment permitted under Section 5.2(b);
	 
	 	e)	 	The method by which amounts represented by those credits to the Participant’s
Deferred Compensation Account which are attributable to the Supplemental Company
Contributions made on the Participant’s behalf (including Hypothetical Interest on such
amounts) are to be paid in accordance with a method of payment permitted under Section
5.2(a);
	 
	 	f)	 	The time as of which payment of the amounts represented by those credits to the
Participant’s Deferred Compensation Account which are attributable to the Supplemental
Company Contributions made on the Participant’s behalf (including Hypothetical Interest
on such amounts) is to occur (in the event of a lump sum distribution) or commence (in
the event of a form of distribution other than a lump sum) in accordance with a time of
payment permitted under Section 5.2(b); and
	 
	 	g)	 	The Beneficiary to whom payment of all amounts credited to the Participant’s
Deferred Compensation Account under this Appendix B will be made in the event of the
Participant’s death (unless this Beneficiary has already been designated pursuant to
Section 3.2 or otherwise).

The election under paragraph (a) above shall be irrevocable with respect to the calendar year to
which it applies, except as provided in Sections 4.1(c) or 4.1(d). The election under paragraph
(b) above may be changed as provided in Section 4.6 and shall be subject to the provisions of
Section 3.4. The elections under paragraphs (c), (d), (e) and (f) above shall be irrevocable
except as provided in Section 5.7 and, with respect to elections under paragraphs (c) and (d),
shall be subject to the provisions of Section 3.4. The election under paragraph (g) above may be
made and may be changed as provided in Article Two of the Basic Plan Document, subject to the
provisions of Section 3.4.

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	3.4	 	COORDINATION OF ELECTIONS

Notwithstanding any provision of the Plan to the contrary, an Employee is eligible to participate
under the provisions of Sections 4.2 and 4.3 and who elected to participate under both Sections
shall be required to coordinate and combine certain elections (stated below) into a single election
that is applicable both to a bonus deferred under Section 4.2 and Compensation deferred under
Section 4.3. The elections that shall be coordinated into a single election under this Section 3.4
are:

	 	a)	 	A Participant’s investment designation described in Sections 3.2(b) and 3.3(b);
	 
	 	b)	 	A Participant’s method of payment election described in Sections 3.2(c) and
3.3(c);
	 
	 	c)	 	A Participant’s time of payment election described in Sections 3.2(d) and
3.3(d); and
	 
	 	d)	 	A Participant’s Beneficiary designation described in Sections 3.2(e) and
3.3(g).

The effective date of this Section 3.4 with respect to any Participant shall be the effective date
of the Participant’s initial deferral under Section 4.2 or his initial deferral under Section 4.3,
whichever is later.

	3.5	 	EFFECTIVE DATE FOR PARTICIPATION

	 	a)	 	Except as provided under paragraph (b) below, the effective date for
participation in the Plan by an Employee who is eligible to participate under Section
3.1 shall be the first day of the calendar year that immediately follows the calendar
year in which the Administrator receives the Employee’s properly completed and executed
Election Form. For any given year, the effective date for the deferral of any
Participant bonus under Section 4.2 shall be the date such bonus would otherwise be
payable to the Participant and the effective date for the deferral of a Participant’s
Compensation under Section 4.3 shall be the last day of the first pay period that ends
in the calendar year that immediately follows the calendar year in which the
Administrator receives the Employee’s properly completed and executed Election Form.
	 
	 	b)	 	The effective date for participation in the Plan by a newly hired Employee or a
newly promoted Employee who is eligible to participate under Section 3.1 shall be the
date that the Employee begins active employment with the Company or an Affiliate or the
date on which the Employee’s promotion is effective, provided the Administrator has
received the Employee’s Election Form prior to such date. Notwithstanding the
preceding sentence, a newly hired Employee or newly promoted Employee who is eligible
to participate under Section 3.1 may elect to participate under the provisions of
Section 3.2 and/or Section 3.3 by delivering a properly completed and executed Election
Form to the Administrator within 30 days of the Employee’s date of hire or, if
applicable, effective date of promotion. In the event such an Employee completes such
action, the Employee’s elections under Section 3.2 and/or Section 3.3 shall apply only
with respect to that portion of a bonus and/or that Compensation that is attributable
to the Employee’s services performed after the Election Form has been delivered to the
Administrator and the effective date for participation of such Employee shall be the
date as of which the Administrator determines such Election Form to be effective.

	3.6	 	CESSATION OF ELIGIBILITY

If during a calendar year a Participant has a Separation from Service, deferrals under the
provisions of Sections 4.2 and/or 4.3 shall cease as of the date of such Separation from Service or
such earlier date on which the Participant no longer receives Compensation. If during a calendar
year a Participant ceases to satisfy the criteria that qualified him for Plan participation, as
determined by the Committee, (including, for this purpose, the requirement that a Participant be
classified within a select group of management and highly compensated employees), the Participant’s
deferrals under the provisions of Sections 4.2 and/or 4.3 shall continue for the remainder of such
calendar year and shall thereafter cease until such time as the Committee determines the individual
again satisfies the criteria for Plan participation. Such individual shall remain a Participant,
however, until the amounts represented by the Vested Deferred Compensation Account maintained on
his behalf under the Plan are distributed.

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ARTICLE FOUR

COMPENSATION DEFERRED

	4.1	 	DEFERRED COMPENSATION ELECTION

	 	a)	 	Initial Deferral Election. An Employee who is eligible to participate
in the Plan under the provisions of Section 3.1 may elect to defer an annual bonus
and/or Compensation for a given calendar year by delivering a properly completed and
executed Election Form to the Administrator as provided in Sections 3.2, 3.3, or 3.5.
Except as provided in Section 3.5(b), a properly completed and executed Election Form
shall be considered to be delivered on a timely basis if it is provided to the
Administrator by the last day of the last full pay period ending in the calendar year
which immediately precedes the calendar year for which the deferral election is
effective and the annual bonus and/or Compensation is to be earned. Except as provided
in paragraphs (c) or (d) below, any such deferral election shall be irrevocable as of
the last day of the last full pay period ending in the calendar year that immediately
precedes the calendar year to which the election applies. Such deferral election shall
automatically terminate as to any annual bonus or Compensation attributable to services
after such calendar year.
	 
	 	b)	 	Subsequent Deferral Elections. With respect to any calendar years
beginning after the year an Employee first becomes eligible to participate under
Section 3.1, the Employee may elect to defer an annual bonus and/or Compensation
attributable to services performed in such year by delivering a properly completed and
executed Election Form to the Administrator by the last day of the last full pay period
ending in the calendar year which immediately precedes the calendar year for which the
deferral election is to be effective and the annual bonus and/or Compensation is to be
earned. Except as provided in paragraphs (c) or (d) below, any such deferral election
shall be irrevocable as of the last day of the last full pay period ending in the
calendar year that immediately precedes the calendar year to which the election
applies. Such deferral election shall automatically terminate as to any annual bonus
or Compensation attributable to services after such calendar year.
	 
	 	c)	 	If a Participant makes a withdrawal due to an unforeseeable emergency under
Section 5.6 all remaining deferrals of annual bonus and/or Compensation under the Plan
for the calendar year in which such a withdrawal is made shall be cancelled. Such
Participant shall not be permitted to make any further deferral of Compensation until
the Participant satisfies the procedures set forth in paragraph (b) above.
	 
	 	d)	 	Participant deferrals of annual bonus and/or Compensation under the Plan shall
be cancelled in such other events or conditions as the Commissioner of Internal Revenue
may prescribe in generally applicable guidance published in the Internal Revenue
Bulletin which the Administrator, in its discretion, chooses to apply under the Plan;
provided, however, that a Participant shall have no direct or indirect election to the
application of such events or conditions to his individual circumstances.

	4.2	 	AMOUNT OF BONUS DEFERRAL

Subject to Section 3.5(b), an Employee who is eligible to participate under the provisions of this
Section 4.2 may elect to defer receipt of up to 100% of any annual bonus to be payable by the
Company or an Affiliate. Compensation deferred under this Section 4.2 is credited to the
Participant’s Deferred Compensation Account as of the date such compensation would otherwise be
payable to the Participant.

	4.3	 	AMOUNT OF SUPPLEMENTAL 401(k) CONTRIBUTIONS

	 	a)	 	An Employee who is eligible to participate under the provisions of this Section
4.3 may elect to defer receipt of up to 100% of his Compensation attributable to
services performed after the election is delivered to the Administrator. Deferrals
under this paragraph (a) shall be designated as Supplemental Employee Contributions and
shall be made within such times and in accordance with such means as

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	 	 	 	are designated by the Administrator. The election under this paragraph (a) shall be
independent of and unaffected by any deferral election under the Qualified Plan.
	 
	 	b)	 	In the event that (i) the allocation of employer matching contributions under
the Qualified Plan on behalf of a Participant is limited for any given Plan Year due to
the limitation on elective contributions made on such Participant’s behalf under the
Qualified Plan under Section 402(g) of the Code, and (ii) the Participant is making
Supplemental Employee Contributions for the given year at or above such level required
by the Administrator for the given year, the amount by which such employer matching
contributions are limited, as determined by the Administrator in its discretion, shall
be credited under the Plan as restored matching contributions and shall be designated
as Supplemental Company Contributions.
	 
	 	c)	 	Compensation deferred under paragraph (a) above shall be credited to the
Participant’s Deferred Compensation Account as of the date such Compensation would
otherwise be payable to the Participant. Compensation deferred under paragraph (b)
above shall be credited to Participant’s Deferred Compensation Account as of the date
such compensation would otherwise have been treated as a contribution allocation under
the Qualified Plan.

	4.4	 	DEFERRED COMPENSATION ACCOUNT

A Deferred Compensation Account shall be established for each Employee who properly completes,
executes and delivers an Election Form under Section 3.2 and/or Section 3.3. Any bonus a
Participant defers for calendar years beginning on and after January 1, 2005 under Section 4.2
and/or any Supplemental Employee Contributions and Supplemental Company Contributions credited on
the Participant’s behalf for calendar years beginning on and after January 1, 2005 under Section
4.3, as well as Hypothetical Interest earned on all such deferred compensation, shall be credited
to this Deferred Compensation Account. A Participant’s Deferred Compensation Account shall be kept
only for bookkeeping and accounting purposes and no Company funds shall be transferred or
designated to this account. A Participant’s interest in the Deferred Compensation Account
maintained on his behalf shall be Vested at all times.

	4.5	 	HYPOTHETICAL INTEREST

The Deferred Compensation Account maintained on behalf of a Participant under this Appendix B shall
be credited with Hypothetical Interest. The Hypothetical Interest shall be credited as of each
Valuation Date on the amount credited to the Participant’s Deferred Compensation Account on such
Valuation Date in accordance with the valuation procedure adopted by the Administrator. The
Hypothetical Interest credited to each Deferred Compensation Account is determined by the
Administrator and computed in reference to the appreciation or depreciation experienced since the
immediately preceding Valuation Date by the hypothetical investment funds which the Administrator
may offer to Participants under Section 4.6. For any given period, Hypothetical Interest may be a
positive or a negative figure. The crediting of Hypothetical Interest shall occur so long as there
is a balance in the Participant’s Deferred Compensation Account regardless of whether the
Participant has incurred a Separation from Service. The Administrator may prescribe any reasonable
method or procedure for the accounting of Hypothetical Interest.

	4.6	 	PARTICIPANT INVESTMENT DESIGNATION

	 	a)	 	A Participant (and any eligible Employee first electing to participate in the
Plan) may designate, within such time and in accordance with such means as are
designated by the Administrator, that portion of his future deferred compensation under
Sections 4.2 and 4.3, and separately, that portion of any existing Deferred
Compensation Account maintained on his behalf which shall be credited with Hypothetical
Interest in reference to each of the hypothetical investment funds that may be offered
by the Administrator, in the discretion of the Administrator. Such designations may
specify, in 1% increments, the percentages to be credited in reference to each of the
hypothetical investment funds offered. Such designations may remain in effect until
the Participant submits a new designation within such times and in accordance with such
means as are designated by the Administrator. New designations shall be effective as
of a given date specified by the Administrator. In the event a Participant fails to
make an effective designation under this paragraph (a), the Administrator, acting in

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	 	 	 	its discretion, shall make such designation on behalf of the Participant.
	 
	 	b)	 	In accepting participation in the Plan, a Participant agrees on behalf of
himself and his Beneficiary to assume all risk in connection with any decrease in value
of the hypothetical investment funds in reference to which Hypothetical Interest is
credited to the Participant’s Deferred Compensation Account. The Company, the
Affiliates and the Administrator shall not be liable to any Participant or Beneficiary
for the under-performance of any hypothetical investment fund offered under the Plan.
	 
	 	c)	 	The Administrator may, in its discretion, offer additional hypothetical
investment funds to Participants and may cease to offer any such fund at such time as
it deems appropriate. In the event the Administrator decides to discontinue offering a
hypothetical investment fund under the Plan, those Participants on whose behalf
Hypothetical Interest is then being credited on the basis of the discontinued
hypothetical investment fund may be required, at the discretion of the Administrator,
to have affected amounts consolidated with (or “mapped” to) a replacement hypothetical
investment fund selected by the Administrator or may be required to designate, from
such selection of hypothetical funds as may be offered by the Administrator, a
hypothetical fund or funds as a replacement for the hypothetical investment fund being
discontinued. Any such designation by a Participant shall be made in accordance with
paragraph (a) above. Hypothetical Interest credited on behalf of any Participant who
is affected by the discontinuation of a hypothetical investment fund but who fails to
make any replacement designation offered in this paragraph (c) shall mirror, to the
extent of the Participant’s interest in such discontinued fund, such hypothetical
investment fund or funds as the Administrator may choose in its discretion. Any
changes under this paragraph (c) shall take effect as of such times and under such
rules as shall be established by the Administrator.
	 
	 	d)	 	Notwithstanding any provision of the Plan to the contrary, the eligibility of a
Participant to make any designation under this Section 4.6 shall not be construed as to
provide any Participant or other person with a beneficial ownership interest in any
assets of the Company or an Affiliate. Title to and beneficial ownership of any assets
which the Company or any Affiliate may earmark to pay the contingent deferred
compensation hereunder shall at all times remain in the Company or Affiliate. The
Participant, his Beneficiary and any heirs, successors or assigns shall not have any
legal or equitable right, interest or control over or any property interest whatsoever
in any specific assets of the Company or any Affiliate or related entity on account of
having an interest under the Plan. Any and all of the Company’s assets, and any life
insurance policies, annuity contracts or the proceeds therefrom which may be acquired
by the Company shall be, and remain, the general unpledged, unrestricted assets of the
Company. In no event shall the Company or any Affiliate be required to purchase any
specific shares or interest in any investment fund.

	4.7	 	STATEMENTS

Statements will be sent to each Participant as to the balance of his Deferred Compensation Account
at least once each calendar year.

ARTICLE FIVE

PAYMENT OF DEFERRED COMPENSATION

	5.1.	 	PAYMENT 

Except as otherwise provided in this Article Five, payment of the amounts represented by all or a
portion of a Participant’s Vested Deferred Compensation Account shall be made according to the
method and at the time(s) permitted under Section 5.2 and elected by the Participant in his
Election Form(s) or, if applicable, in the most recent, properly completed and effective Amendment
Form(s) which the Participant has delivered to the Administrator prior to the Participant’s
Separation from Service. If a Participant has not delivered to the Administrator a properly
completed and effective Election Form or, if for any reason the Administrator determines that any
Election Form(s) or Amendment Form(s) is materially deficient, payment of the amounts represented
by that portion of the Vested Deferred Compensation Account for which the election is undelivered
or materially

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deficient shall be made in a lump sum during the month next following the month of the
Participant’s Separation from Service except as otherwise provided in this Article Five. For all
purposes of the Plan and effective until such time as the Participant delivers to the Administrator
a properly completed and effective Election Form or Amendment Form that includes a method and time
of payment election, such default method and time of payment shall be treated as the Participant’s
elected method and time of payment with respect to any given portion of a Deferred Compensation
Account to which the default applies.

	5.2.	 	METHODS AND TIMES OF PAYMENT

	 	a)	 	A Participant may elect any one of the following methods of payment with
respect to each separate deferral election made in regard to any amounts attributable
to the Participant’s bonus deferral in accordance with Section 4.2 and/or the
Participant’s deferral of Supplemental Employee Contributions under Section 4.3(a). In
accordance with the coordination of elections under Section 3.4, such elected method of
payment shall apply to all such amounts deferred for the calendar year to which the
election applies (including Hypothetical Interest on such deferrals):

	 	(i)	 	A lump sum distribution;
	 
	 	(ii)	 	Payment in approximately equal annual installments for a period not to
exceed 10 years; or
	 
	 	(iii)	 	Payment in approximately equal monthly installments for a period not
to
exceed 10 years.

	 	 	 	A Participant may separately elect any of the above methods of payment for amounts
represented by those credits to the Participant’s Vested Deferred Contribution Account
which are attributable to the Supplemental Company Contributions made on the
Participant’s behalf (including Hypothetical Interest on such credits).
	 
	 	 	 	Payments of the distributable amount represented by all or a portion of the balance in
the Participant’s Vested Deferred Compensation Account shall be made in cash.

	 	b)	 	A Participant may elect, with respect to each separate deferral election made
in regard to any amounts attributable to the Participant’s bonus deferral in accordance
with Section 4.2 and/or the Participant’s deferral of Supplemental Employee
Contributions under Section 4.3(a), to have such amounts distributed to him (or, in the
case of an installment distribution, commence to be distributed to him) as of the month
next following the month of the Participant’s Separation from Service, as of a given
future month and year, or as of the earlier of these, as such Participant has elected
in accordance with Section 3.2(d) and/or Section 3.3(d); provided, however, that any
given future month/year for payment must be at least five years from the effective date
of such deferral. In accordance with the coordination of elections under Section 3.4,
such elected time of payment shall apply to all such amounts deferred for the calendar
year to which the election applies (including Hypothetical Interest on such deferrals).
	 
	 	 	 	With respect to amounts represented by those credits to a Participant’s Vested Deferred
Compensation Account which are attributable to the Supplemental Company Contributions
made on the Participant’s behalf (including Hypothetical Interest on such credits), the
Participant may separately elect to have such amounts distributed to him (or, in the
case of an installment distribution, commence to be distributed to him) as of the month
next following the month of the Participant’s Separation from Service or as of any given
month and year, provided such given month and year follows the Participant’s Separation
from Service, as such Participant has elected in accordance with Section 3.3(f).
	 
	 	 	 	Except as provided in this Article Five, no distribution shall commence before or after
the elected distribution date(s) provided in this paragraph (b). For purposes of this
Section 5.2, if the Company makes a distribution within the permitted distribution
period (as defined below) and the actual date of such distribution is not within the
direct or indirect control of the Participant, such distribution shall be treated as
having been made on such elected distribution date. The “permitted distribution period”
for this purpose shall begin on the thirtieth day before the Participant’s elected
distribution date and shall

161

 

	 	 	 	end on the later of (i) the last day of the calendar year that includes the
Participant’s elected distribution date, and (ii) the fifteenth day of the third month
following the Participant’s elected distribution date.
	 
	 	c)	 	In the event the Participant dies before receiving the entire distribution to
which he is entitled under the Plan, the provisions of Section 5.8 shall apply.

	5.3.	 	ACCELERATION OF PAYMENTS 

Notwithstanding the provisions of Sections 5.1 and 5.2 and any Participant election thereunder, the
Company may pay a Participant the amounts represented by all or a portion of the balances credited
to a Participant’s Vested Deferred Compensation Account in a lump sum as of the first Valuation
Date that is administratively reasonable following the occurrence of any of the events or
conditions identified below. Such lump sum payment shall be equal to the amount, as determined by
the Administrator, as is reasonably estimated to be required to satisfy the purpose of the
accelerated payment. The events or conditions to which this Section 5.3 applies are:

	 	a)	 	The Participant needs to avoid a violation of an applicable federal, state,
local, or foreign ethics law or conflicts of interest law.
	 
	 	b)	 	The Participant incurs state, local, or foreign tax obligations arising from
participation in the Plan that apply to a Plan interest before such interest is
otherwise payable from the Plan.
	 
	 	c)	 	The Participant incurs federal employment tax obligations under Sections 3101,
3121(a), or 3121(v)(2) of the Code with respect to a Vested Deferred Compensation
Account and any federal, state, local, or foreign tax obligations arising from such
employment tax obligations.
	 
	 	d)	 	The Plan is terminated and liquidated in accordance with generally applicable
guidance prescribed by the Commissioner of Internal Revenue and published in the
Internal Revenue Bulletin.
	 
	 	e)	 	Such other events or conditions as the Commissioner of Internal Revenue may
prescribe in generally applicable guidance published in the Internal Revenue Bulletin
which the Administrator, in its discretion, chooses to apply under the Plan; provided,
however, that a Participant shall have no direct or indirect election as to the
application of such events or conditions to his individual circumstances.

Any payment under this Section 5.3 shall be contingent upon the Administrator’s decision that a
Participant has satisfied all material elements of an applicable event or condition and that the
Participant produces evidence to that effect that is satisfactory to the Administrator. If any
payment under this Section 5.3 is made and such payment is less than an amount that represents the
entire Vested Deferred Compensation Account maintained on the Participant’s behalf, the amount of
such payment shall offset any future payment from the Plan to the Participant or any Beneficiary or
other person who claims through the Participant.

	5.4.	 	DELAY OF PAYMENTS

Notwithstanding the provisions of Sections 5.1 and 5.2 and any Participant election thereunder, the
Company may delay the payment of amounts represented by all or a portion of the balances credited
to a Participant’s Vested Deferred Compensation Account in connection with any of the events or
conditions identified below; provided, however that, with respect to any given event or condition,
the Administrator shall treat Plan payments to all similarly-situated Participants in a reasonably
consistent manner:

	 	a)	 	The Administrator reasonably anticipates that if Plan payments were to be made
as scheduled, the Company’s deduction with respect to such payments would not be
permitted under Section 162(m) of the Code; provided such scheduled payments are then
made during the Participant’s first taxable year in which the Administrator reasonably
anticipates that the Company’s deduction will not be barred by application of Section
162(m) of the Code.
	 
	 	b)	 	The Administrator reasonably anticipates that making scheduled Plan payments
will violate federal securities laws or other applicable law; provided that the
scheduled payments are then made at the

162

 

	 	 	 	earliest date at which the Administrator reasonably contemplates that making the
scheduled payments will not cause such a violation.
	 
	 	c)	 	Such other events or conditions as the Commissioner of Internal Revenue may
prescribe in generally applicable guidance published in the Internal Revenue Bulletin
which the Administrator, in its discretion, chooses to apply under the Plan; provided,
however, that a Participant shall have no direct or indirect election as to the
application of such events or conditions to his individual circumstances.

	 	5.5.	 	DELAY OF PAYMENTS TO SPECIFIED EMPLOYEES

Notwithstanding the foregoing provision of this Article Five, if a payment is being made to a
Participant on account of such Participant’s Separation from Service and such Participant is a
Specified Employee as of the date of such Separation from Service, such payment shall not be made
(or commence, in the case of an installment distribution) until the first Valuation Date that is
administratively reasonable following the date that is six months after the Participant’s
Separation from Service.

	5.6.	 	EMERGENCY CIRCUMSTANCES

Notwithstanding any other provision of this Plan, if the Administrator determines, after
consideration of a Participant’s application, that the Participant has incurred a severe financial
hardship (as defined below) the Administrator may in its sole and absolute discretion direct that
all or a portion of the Participant’s Vested Deferred Compensation Account balance be paid to him.
The payment shall be made in the manner and at the times specified by the Administrator for
payment; provided, however, such payment shall not be in excess of that amount which is, in the
discretion of the Administrator, reasonably necessary to satisfy the financial hardship.

For purposes of this Section 5.6, a “severe financial hardship” shall mean a financial hardship
resulting from (i) an illness or accident of the Participant, the Participant’s spouse, beneficiary
or dependent, (ii) the Participant’s loss of property due to casualty, or (iii) any other similar
extraordinary and unforeseeable circumstances arising as a result of events beyond the control of
the Participant; provided, however, that such financial hardship is not or may not be relieved
through reimbursement or compensation from insurance or otherwise, by cessation of deferrals of
Compensation in future years, or by liquidation of the Participant’s assets to the extent such
liquidation would not cause severe financial hardship.

	5.7.	 	AMENDMENT TO PAYMENT ELECTION

	 	a)	 	A Participant who is an Employee who has not incurred a Separation from Service
may elect to defer the date at which payment of an amount otherwise payable under the
Plan will occur (or commence) and may elect a change in his elected method of payment
(or the default form of payment under Section 5.1) by submitting a properly completed
and executed Amendment Form to the Administrator which indicates the period of
additional deferral and/or the desired method of payment; provided that:

	 	(i)	 	Such election shall not be effective until 12 months after it is
submitted to the Administrator.
	 
	 	(ii)	 	Such election shall require that the payment with respect to which the
election is made shall be delayed for a period of not less than five years from the
date payment would have been made (or commence) absent the elected change.
	 
	 	(iii)	 	If the election pertains to a delay in the payment of a Vested
Deferred Compensation Account from a specific year and month that the Participant
previously elected in his Election Form or a subsequent Amendment Form (or to which
the Participant has defaulted under Section 5.1) such election cannot be made less
than 12 months before the date the payment was otherwise scheduled to be made (or
commence).
	 
	 	 	 	For purposes of this Article Five, installment payments shall be treated as a
single payment.

	 	b)	 	A Participant may at any time elect to change his Beneficiary in accordance
with Article Two of the Basic Plan document, subject to the provisions of Section 3.4.

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	5.8.	 	PAYMENT UPON DEATH OF PARTICIPANT

	 	a)	 	In the event of a Participant’s death before payment is made (or commences)
under this Article Five, the amount represented by the Participant’s Vested Deferred
Compensation Account shall be paid by the Company to the Participant’s Beneficiary in
the form of a lump sum during the month next following the month of the Participant’s
death. Except as provided in Sections 5.3 or 5.4, no payment to a Beneficiary under
this paragraph (a) shall be made before or after such identified payment date;
provided, however, that if the Company makes a payment within the permitted payment
period (as defined below) and the actual date of payment is not within the direct or
indirect control of the Beneficiary, such payment shall be treated as having been made
on such identified payment date. The “permitted payment period” for this purpose shall
begin on the first day of the month next following the month of the Participant’s death
and shall end on the later of (i) the last day of the calendar year that includes the
identified payment date, and (ii) the fifteenth day of the third month following the
identified payment date.
	 
	 	b)	 	In the event of a Participant’s death after payment commences under this
Article Five, the amount represented by the remaining balance of the Participant’s
Vested Deferred Compensation Account shall be paid by the Company to the Participant’s
Beneficiary in the form of a lump sum during the month next following the month of the
Participant’s death. Except as provided in Sections 5.3 or 5.4, no payment to a
Beneficiary under this paragraph (b) shall be made before or after such identified
payment date; provided, however, that if the Company makes a payment within the
permitted payment period identified in paragraph (a) above and the actual date of
payment is not within the direct or indirect control of the Beneficiary, such payment
shall be treated as having been made on such identified payment date.

	5.9	 	REHIRED PARTICIPANT

If a Participant incurs a Separation from Service and payment of the amounts represented by the
Participant’s Vested Deferred Compensation Account have begun under a method providing for
installment payments, such installment payments shall not be suspended if the Participant is
subsequently reemployed by the Company or an Affiliate.

ARTICLE SIX

CONSTRUCTION

This Appendix B is intended to memorialize the provisions of the Plan as it pertains to amounts
other than grandfathered amounts within the meaning of guidance promulgated by the Internal Revenue
Service pursuant to Section 409A of the Code. As a result, the Administrator shall interpret and
construe the terms of this Appendix B so as to be consistent with such Internal Revenue Service
guidance. References or cross references to an identified Article, Section or specific part
thereof, shall refer to such Article, Section (or part) of this Appendix B, unless otherwise
qualified by the context.

164EX-10.105

Exhibit 10.105

ERIE INDEMNITY COMPANY

DEFERRED COMPENSATION PLAN

FOR OUTSIDE DIRECTORS

(As Amended and Restated as of January 1, 2009)

BASIC PLAN DOCUMENT

APPENDIX A

APPENDIX B

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ERIE INDEMNITY COMPANY

DEFERRED COMPENSATION PLAN

FOR OUTSIDE DIRECTORS

(As Amended and Restated as of January 1, 2009)

BASIC PLAN DOCUMENT

ARTICLE ONE

INTRODUCTION

This Erie Indemnity Company Deferred Compensation Plan for Outside Directors (the “Plan”) is an
unfunded, non-qualified, deferred compensation arrangement created for outside directors of Erie
Indemnity Company (the “Company”). It is intended that the Plan will aid in retaining and
attracting outside directors of exceptional ability by providing such directors with a vehicle for
deferring director’s compensation and accumulating credits denominated in the Class A shares of the
Company until retirement or other separation from service from the Board of Directors of Erie
Indemnity Company.

The Plan was effective as of May 1, 1997 and has been amended thereafter. This amendment and
restatement of the Plan shall constitute an amendment, restatement and continuation of the Plan and
is generally effective as of January 1, 2009. However, certain provisions of this amendment and
restatement are effective as of some other date. 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.

This amendment and restatement of the Plan consists of three primary documents: (i) this Basic Plan
Document, which principally addresses definitions and procedural matters that apply to all amounts
that accumulate under the Plan, (ii) Appendix A, which incorporates provisions of the Plan relating
to Plan accounts that were earned and vested on or before December 31, 2004, and (iii) Appendix B,
which incorporates provisions of the Plan relating to those portions of Plan accounts that are
earned or become vested on or after January 1, 2005.

ARTICLE TWO

DEFINITIONS

When the following words or phrases are used in the Plan document with initial capital letters,
they shall have the following meanings, except where otherwise modified in Appendix A or Appendix
B:

2.1 “Administrator” shall mean the person or committee, appointed by the Board, who shall
be responsible for the administrative functions assigned to it under the Plan.

2.2 “Beneficiary” shall mean the individual(s) or trust(s) selected by a Participant to
receive payment of amounts credited under the Plan in the event of the Participant’s death, as
evidenced by the most recent, properly completed and executed, Beneficiary designation which the
Participant has delivered to the Administrator prior to the Participant’s death. A Participant may
make a single Beneficiary designation to govern the distribution of the Participant’s entire
interest under the Plan (including the total balance of all accounts maintained under both Appendix
A and Appendix B) that shall apply in the event of the Participant’s death before commencement of
payments. Furthermore, the Participant may make a single, but separate, Beneficiary designation to
govern the distribution of any remaining interest under the Plan (including the total balance of
all accounts maintained under both Appendix A and Appendix B) that shall apply in the event of the
Participant’s death after payments have commenced but before all scheduled payments have been made.
A Participant may change either or both of these Beneficiary designations at any time by
delivering a new designation of Beneficiary to the Administrator on such form or forms as may be
satisfactory to the Administrator. A new designation of Beneficiary shall be effective upon
receipt by the Administrator of the completed and executed designation. As of such effective date,
the new designation shall divest any Beneficiary named in a prior designation in that interest
indicated in the prior designation. If no effective Beneficiary designation is in effect on the
death of the Participant, or if all designated

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Beneficiaries have predeceased the Participant, any payments to be made under the Plan on account
of the Participant’s death shall be paid to the estate of the Participant.

2.3 “Board” shall mean the Board of Directors of the Erie Indemnity Company.

2.4 “Code” shall mean the Internal Revenue Code of 1986, as amended.

2.5 “Company” shall mean the Erie Indemnity Company, a Pennsylvania business corporation.

2.6 “Deferred Compensation Account” shall mean such account as defined in Appendix A and/or
Appendix B, as applicable.

2.7 “Deferred Stock Account” shall mean such account as defined in Appendix A and/or
Appendix B, as applicable.

2.8 “Director” shall mean a member of the Board.

2.9 “Employee” shall mean a person engaged in performing services for the Company, or its
affiliates or subsidiaries, as an exempt or non-exempt full-time employee, as defined by the
Company’s Corporate Personnel Manual, as in existence at the time of determination, and not as an
independent contractor.

2.10 “Outside Director” shall mean a Director who is not an Employee or officer of the
Company, its affiliates or subsidiaries.

2.11 “Participant” shall mean each Outside Director who participates in the Plan in
accordance with the terms and conditions of the Plan.

2.12 “Plan” shall mean the Erie Indemnity Company Deferred Compensation Plan for Outside
Directors, as set forth in the provisions of the Basic Plan Document, Appendix A, Appendix B, and
including any amendments, appendices and exhibits to these documents.

2.13 “Retirement Plan Transfer Account” shall mean such account as defined in Appendix A
and/or Appendix B, as applicable.

2.14 “Total Deferred Cash Account” shall mean such account as defined in Appendix A and/or
Appendix B, as applicable.

2.15 “Vested” shall mean, as of any given date, the portion of the Deferred Stock Account
and/or the Total Deferred Cash Account maintained on behalf of a Participant which is then 100%
vested and nonforfeitable, as determined under Appendix A and/or Appendix B, as applicable.

ARTICLE THREE

ADMINISTRATION

	3.1	 	   GENERAL ADMINISTRATION

The Administrator shall be charged with the administration of the Plan. The Administrator shall
have all such powers as may be necessary to discharge its duties relative to the administration of
the Plan, including by way of illustration and not limitation, discretionary authority to interpret
and construe the Plan, to determine and decide all questions of fact, and all disputes arising
under the Plan including, but not limited to, the validity of any election or designation as may be
necessary or appropriate hereunder and the right of any Participant or Beneficiary to receive
payment of all or any portion of amounts represented by a Deferred Compensation Account, Deferred
Stock Account and/or Retirement Plan Transfer Account maintained hereunder. The Administrator
shall have all power necessary to adopt, alter and repeal such administrative rules, regulations
and practices governing the operation of the Plan as it, in its sole discretion, may from time to
time deem advisable and shall have the power to make equitable adjustments to remedy any mistakes
or errors in the administration of the Plan. The Administrator shall

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not be liable to any person for any action taken or omitted in connection with the interpretation
and administration of the Plan unless attributable to willful misconduct. The Administrator shall
be entitled to conclusively rely upon all tables, valuations, certificates, opinions and reports
furnished by any actuary, accountant, controller, counsel or other person employed or engaged by
the Company with respect to the Plan. Any individual serving as Administrator shall not
participate in any action or determination regarding solely his own benefits payable hereunder.
Decisions of the Administrator made in good faith shall be final, conclusive and binding upon all
parties. Until modified by the Administrator, the claims and review procedures set forth in
Sections 3.2 and 3.3 shall be the exclusive procedures for the disposition of claims for benefits
arising under the Plan.

	3.2	 	   CLAIMS PROCEDURE

Except as otherwise provided in the Plan, payment to a Participant or Beneficiary of any amount
determined under the Plan shall be made by the Company at the time and in the method of payment
elected by the Participant under the terms of the Plan. If the Administrator denies, in whole or
in part, a claim for benefits filed by any person (hereinafter referred to as a “Claimant”), the
Administrator shall transmit a written notice setting forth (i) the specific reasons for the denial
of the claim, (ii) references to the specific provisions of the Plan on which the denial is based,
(iii) a description of any additional material or information that is needed to perfect the claim
and why such material or information is necessary, and (iv) further steps which the Claimant can
take in order to have his claim reviewed (including a statement that the Claimant or his duly
authorized representative may review the Plan document and submit issues and comments regarding the
claim to the Administrator). In addition, the written notice shall contain the date on which the
notice was sent and a statement advising the Claimant that, within ninety (90) days of the date on
which such notice is received, he may request a review of the Administrator’s decision.

	3.3.	 	   CLAIMS REVIEW

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

	 	a)	 	The date on which the notice of denial of claim was received by the
Claimant;	 
	 
	 	b)	 	The date on which the Claimant’s request was filed with the
Administrator; provided, however, that the date on which the Claimant’s
request for review was in fact filed with the Administrator shall control
in the event that the date of the actual filing is later than the date
stated by the Claimant pursuant to this paragraph (b);
	 
	 	c)	 	The specific portions of the claim denial which the Claimant requests
the Administrator to review;
	 
	 	d)	 	A statement by the Claimant setting forth the basis upon which he
believes the Administrator should reverse its previous denial of his claim
for benefits and accept his claim as made;
	 
	 	e)	 	Whether the Claimant desires a hearing on the claim; and
	 
	 	f)	 	Any written material (included as exhibits) which the Claimant desires
the Administrator to examine in its consideration of his position as stated
pursuant to paragraph (d) above.

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

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ARTICLE FOUR

AMENDMENT AND TERMINATION

The Company expects to continue the Plan indefinitely, but reserves the right to amend or terminate
the Plan at any time, if, in its sole judgment, such amendment or termination is necessary or
desirable. Any such amendment or termination shall be made pursuant to a resolution of the Board
and shall be effective as of the date specified in such resolution. Without consent of the
Participant, no amendment or termination of the Plan shall reduce the balance of a Participant’s
Deferred Compensation Account, Deferred Stock Account, or Retirement Plan Transfer Account at the
time of amendment or termination. Except as may otherwise be provided by the Company, or as
provided in Appendix B, in the event of a termination of the Plan, the Company (or any transferee,
or successor entity of the Company) shall be obligated to pay amounts represented by Vested
Deferred Stock Account balances and Vested Total Deferred Cash Account balances to Participants and
Beneficiaries at such time or times and in such forms as provided under the terms of the Plan.
Nothing herein shall limit the Company’s reserved right to terminate and liquidate the Plan in
accordance with generally applicable guidance prescribed by the Commissioner of Internal Revenue
and published in the Internal Revenue Bulletin.

ARTICLE FIVE

GENERAL PROVISIONS

	5.1.	 	   GENERAL CONTRACTUAL OBLIGATION

It is the intent of this Plan, and each Participant understands, that no trust has been created for
his or her benefit in connection with this Plan and that eligibility and participation in this Plan
does not grant any Participant or Beneficiary any interest in any asset of the Company or any
affiliated company. The Company’s obligation to pay to the Participant or Beneficiary the amounts
credited hereunder is a general contract obligation and shall be satisfied solely from the general
assets of the Company. Nothing contained in the Plan shall constitute a guaranty by the Company,
any affiliated company, or any other entity or person that the assets of the Company will be
sufficient to pay amounts determined in accordance with the Plan. The obligation of the Company
under the Plan shall be merely that of an unfunded and unsecured promise of the Company to pay
amounts in the future. In each case in which amounts represented by the balances credited to a
Participant’s Vested Deferred Compensation Account, Vested Deferred Stock Account and Vested
Retirement Plan Transfer Account have been distributed to the Participant, Beneficiary, or other
person entitled to receipt thereof and which purports to cover in full the benefits hereunder, such
Participant, Beneficiary or other person shall have no further right or interest in the other
assets of the Company on account of participation in the Plan. Notwithstanding a Participant’s
entitlement to Vested amounts under the terms of the Plan, the status of the Participant, or any
person claiming by or through the Participant, is that of an unsecured general creditor to the
extent of his entire interest under the Plan as herein described.

	5.2.	 	   SPENDTHRIFT PROVISIONS

The interest of a Participant or Beneficiary under the Plan shall not be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, either
voluntarily or involuntarily, prior to the Participant’s or Beneficiary’s actual receipt of amounts
represented by the balances credited under the Plan on his behalf; any attempt to anticipate,
alienate, sell, transfer, assign, pledge, encumber or charge any such interest prior to such
receipt shall be void. Amounts credited hereunder and not paid to a Participant or Beneficiary
shall not be subject to garnishment, attachment or other legal or equitable process nor shall they
be an asset in bankruptcy. Notwithstanding the preceding sentence, no amount shall be payable from
this Plan to a Participant, or any person claiming by or through a Participant, unless and until
any and all amounts representing debts or other obligations owed to the Company or any affiliated
company by the Participant have been fully paid and satisfied; provided, however, that any such
offset, as applicable to a person’s Plan interest under Appendix B, shall not exceed such offset as
is permitted under Section 409A of the Code. Neither the Company nor any affiliate or subsidiary
of the Company shall be liable in any manner for or subject to the debts, contracts, liabilities,
torts or engagements of any person who has a Deferred Stock Account or a Total Deferred Cash
Account maintained on his behalf under the Plan.

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	5.3.	 	   NO SPOUSAL RIGHTS

Except as required by law or specifically provided by the Plan, no spouse or surviving spouse of a
Participant and no person designated to be a Beneficiary shall have any rights or interest in the
accounts accumulated under the Plan including, but not limited to, the right to be the sole
Beneficiary or to consent to the Participant’s designation of Beneficiary.

	5.4.	 	   INCAPACITY OF RECIPIENT

In the event a Participant or Beneficiary is declared incompetent and a guardian, conservator or
other person legally charged with the care of his person or of his estate is appointed, any Vested
Deferred Stock Account and any Vested Total Deferred Cash Account under the Plan to which such
Participant, or Beneficiary is entitled shall be paid to such guardian, conservator or other person
legally charged with the care of his person or his estate. Except as provided in the preceding
sentence, when the Administrator, in its sole discretion, determines that a Participant or
Beneficiary is unable to manage his financial affairs, the Administrator may direct the Company to
make distribution(s) from the Vested Deferred Stock Account and any Vested Total Deferred Cash
Account maintained on behalf of such Participant or Beneficiary to any one or more of the spouse,
lineal ascendants or descendants or other closest living relatives of such Participant or
Beneficiary who demonstrates to the satisfaction of the Administrator the propriety of making such
distribution(s). Any payment so made shall not exceed such amount as is permitted under Section
409A of the Code and shall be in complete discharge of any liability of the Company and
Administrator under the Plan for such payment. The Administrator shall not be required to see to
the application of any such distribution made as provided above.

	5.5.	 	   INFORMATION FURNISHED BY PARTICIPANTS AND BENEFICIARIES

Neither the Company nor the Administrator shall be liable or responsible for any error in the
computation of a Participant’s or Beneficiary’s interest under the Plan resulting from any
misstatement of fact made by the Participant or Beneficiary, directly or indirectly, to the Company
or to the Administrator and used by it in determining the Participant’s or Beneficiary’s Plan
interest. Neither the Company nor the Administrator shall be obligated or required to increase the
Plan interest of any such Participant or Beneficiary which, on discovery of the misstatement, is
found to be understated as a result of such misstatement. However, the Plan interest of any
Participant or Beneficiary which is overstated by reason of any such misstatement shall be reduced
to the amount appropriate in view of accurate facts.

	5.6.	 	   OVERPAYMENTS

If a payment or a series of payments made from the Plan is found to be greater than the payment(s)
to which a Participant or Beneficiary is entitled due to factual errors, mathematical errors or
otherwise, the Administrator may, in its discretion and to the extent consistent with Section 409A
of the Code, suspend or reduce future payments to such Participant or Beneficiary or exercise such
legal or equitable remedies as it deems appropriate to correct the overpayment.

	5.7.	 	   UNCLAIMED BENEFIT

In the event that any amount determined to be payable to a Participant or Beneficiary hereunder
remains unclaimed by such Participant or Beneficiary for a period of four years after the
whereabouts or existence of such person was last known to the Administrator, the Administrator may
direct that all rights of such person to such amounts be terminated absolutely; provided, however,
that if such Participant or Beneficiary subsequently appears and files a claim for payment in
accordance with Article Three and such claim is fully or partially successful, the liability under
the Plan for an amount equal to the successful claim shall be reinstated.

	5.8.	 	   ELECTIONS, APPLICATIONS, NOTICES

Every designation, direction, election, revocation or notice authorized or required under the Plan
which is to be delivered to the Company or the Administrator shall be deemed delivered to the
Company or the Administrator as the case may be: (a) on the date it is personally delivered to the
Administrator at the Company’s executive offices at 100 Erie Insurance Place, Erie, Pennsylvania
16530 or (b) three business days after it is sent by registered or

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certified mail, postage prepaid, addressed to the Administrator at the offices indicated above.
Every such item which is to be delivered to a person or entity designated by the Administrator to
perform recordkeeping and other administrative services on behalf of the Plan shall be deemed
delivered to such person or entity when it is actually received (either physically or through
interactive electronic communication) by such person or entity. Every designation, direction,
election, revocation or notice authorized or required which is to be delivered to a Participant or
Beneficiary shall be deemed delivered to a Participant or Beneficiary: (a) on the date it is
personally delivered to such individual (either physically or through interactive electronic
communication), or (b) three business days after it is sent by registered or certified mail,
postage prepaid, addressed to such individual at the last address shown for him on the Company’s
records. Any notice required under the Plan may be waived by the person entitled thereto.

	5.9.	 	     COUNTERPARTS

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

	5.10.	 	   SEVERABILITY

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

	5.11.	 	   GOVERNING LAW

The Plan is established under and will be construed according to the laws of the Commonwealth of
Pennsylvania.

	5.12.	 	   HEADINGS

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

	5.13.	 	   CONSTRUCTION

The masculine gender, where appearing in this Plan, shall be deemed to also include the feminine
gender. The singular shall also include the plural, where appropriate.

Executed at Erie, Pennsylvania this 23rd day of December, 2008, effective as of January 1,
2009.

	 	 	 	 	 	 	 
	 	 	ERIE INDEMNITY COMPANY	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James J. Tanous
 

	 	 
	 
	 	 	 	 	 	 
	 	 	Title: Executive Vice President, Secretary and General
	 

	 	 	 	    Counsel	 	 

ATTEST:

	 	 	 
	 
	   /s/ Brian Bolash
 

	 	 

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APPENDIX A

ERIE INDEMNITY COMPANY

DEFERRED COMPENSATION PLAN

FOR OUTSIDE DIRECTORS

Accounts Earned and Vested On or Before December 31, 2004

ARTICLE ONE

INTRODUCTION

This Appendix A incorporates the provisions of the Plan as it relates to Deferred Stock Accounts
and Total Deferred Cash Accounts that were earned and vested on or before December 31, 2004,
without material modifications to the terms of the Plan after October 3, 2004. The provisions of
this Appendix A shall apply in determining the rights and features of such accounts.

ARTICLE TWO

DEFINITIONS

When the following words or phrases are used in this Appendix A with initial capital letters, they
shall have the following meanings:

2.1 “Administrator” is a term that is defined in Article Two of the Basic Plan Document.

2.2 “Amendment Form” shall mean the Amendment Form described in Section 8.3.

2.3 “Annual Share Credit” shall mean the Share Credit addition determined under Section 7.2.

2.4 “Beneficiary” is a term that is defined in Article Two of the Basic Plan Document.

2.5 “Board” is a term that is defined in Article Two of the Basic Plan Document.

2.6 “Board Compensation” shall mean the remuneration, expressed in terms of a cash amount,
earned by a Director for service on the Board including, without limitation, a retainer, meeting
fees and chairperson’s fees.

2.7 “Board Tenure Year” shall mean the period which, in reference to any given calendar
year, begins on the date of the Company’s annual shareholder meeting held in such year and ends on
the day before the Company’s annual shareholder meeting held in the immediately following calendar
year.

2.8 “Committee” shall mean the Executive Compensation and Development Committee of the
Board or its successor, as designated by the Board.

2.9 “Common Stock” shall mean the Class A common stock of the Company.

2.10 “Company” is a term that is defined in Article Two of the Basic Plan Document.

2.11 “Deferred Compensation Account” shall mean the bookkeeping account described in Section 4.2.

2.12 “Deferred Stock Account” shall mean the bookkeeping account described in Article Seven.

2.13 “Director” is a term that is defined in Article Two of the Basic Plan Document.

2.14 “Dividend Equivalent Credit” shall mean the Share Credit addition determined under Section 7.3.

2.15 “Election Form” shall mean the Participation Election Form described in Section 3.2.

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2.16 “Employee” is a term that is defined in Article Two of the Basic Plan Document.

2.17 “Hypothetical Interest” shall mean the gains and losses credited to a Participant’s
Deferred Compensation Account and/or Retirement Plan Transfer Account in accordance with Article
Six.

2.18 “Outside Director” shall mean a Director who was not an Employee or officer of the
Company, its affiliates or subsidiaries.

2.19 “Participant” shall mean each Outside Director who participated in the Plan in
accordance with the terms and conditions of this Appendix A. Participant shall also include a
former Outside Director who had become a Participant during his period of active Board service and
on whose behalf the Administrator is maintaining a Deferred Stock Account and/or a Total Deferred
Cash Account pursuant to the terms of this Appendix A.

2.20 “Plan” is a term that is defined in Article Two of the Basic Plan Document.

2.21 “Retirement Plan” shall mean the Erie Indemnity Company Retirement Plan for Outside
Directors, effective as of January 1, 1991 and as amended thereafter.

2.22 “Retirement Plan Transfer Account” shall mean the bookkeeping account described in
Section 5.3.

2.23 “Retirement Plan Transfer Credit” shall mean the contribution credit determined under
Section 5.1.

2.24 “Retirement Plan Transfer Vesting Date” shall mean the date on which a Participant
officially stops serving on the Board for reasons other than the Participant’s death, provided such
date follows the Participant’s attainment of age 65 and completion of five Years of Board Service.

2.25 “Share Credit” shall mean the separate, identifiable units accumulated within a
Participant’s Deferred Stock Account attributable to Annual Share Credits and Dividend Equivalent
Credits.

2.26 “Share Credit Allocation Date” shall mean, with respect to any Board Tenure Year, the
business day next following the first day of such Board Tenure Year; provided, however, that in
reference to any individual who became an Outside Director on any day other than the first day of a
given Board Tenure year, the Share Credit Allocation Date relative to such year shall mean the
business day next following the day on which the individual became an Outside Director.

2.27 “Total Deferred Cash Account” shall mean the sum of the amounts credited under any
Deferred Compensation Account and any Retirement Plan Transfer Account maintained on behalf of a
Participant.

2.28 “Valuation Date” shall mean the close of business as of each business day.

2.29 “Vested” shall mean, as of any given date, the portion of the Deferred Stock Account
and/or the Total Deferred Cash Account maintained on behalf of a Participant which is then 100%
vested and nonforfeitable, as determined under Sections 4.2, 5.3, and Article Seven.

2.30 “Year of Board Service” shall mean each Board Tenure Year during which a Director has
served on the Board, including, for Directors on the Board as of May 1, 1997, all Years of Board
Service prior to the adoption of the Plan.

ARTICLE THREE

PARTICIPATION

	3.1	 	ELIGIBILITY AND PARTICIPATION

	 	a)	 	Effective as of May 1, 2002, all Outside Directors then in Board service who were not
yet Participants became Participants in the Plan. Any individual who became an Outside
Director after May 1, 2002 and before January 1, 2005 began participation in the Plan as of
the Share Credit Allocation Date next

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	 	 	 	following the date as of which the individual became an Outside Director. As a condition of
participation, each Outside Director delivered to the Administrator properly completed and
executed elections as described in Section 3.2.
	 
	 	b)	 	Each Outside Director was eligible to participate in the Board Compensation deferral
provisions of the Plan and may have chosen to defer Board Compensation in accordance with
the provisions of Section 4.1.

	3.2	 	PARTICIPATION ELECTION FORM

An Outside Director delivered to the Administrator the following elections, to the extent
applicable to such Director, made on such Election Form or Forms as the Administrator, in its
discretion, prescribed:

	 	a)	 	The method by which amounts credited to the Participant’s
Deferred Stock Account and, separately, any Total Deferred Cash Account
are to be paid;	 
	 
	 	b)	 	The date, following the Participant’s official termination of
service on the Board, as of which payment of amounts credited to the
Participant’s Deferred Stock Account and, separately, any Total
Deferred Cash Account is to occur (in the event of a lump sum
distribution) or commence (in the event of distribution in
installments); and
	 
	 	c)	 	The Beneficiary to whom payments of amounts credited to the
Participant’s Deferred Stock Account and any Total Deferred Cash
Account will be made in the event of the Participant’s death.

In addition, an Outside Director on whose behalf a Total Deferred Cash Account is being maintained
also completed and delivered to the Administrator the investment designation described in
Section 6.2.

The elections under paragraphs (a) and (b) shall be irrevocable except as provided in Section 8.3.
The election under paragraph (c) may be changed as provided in Section 2.2 of the Basic Plan
Document.

ARTICLE FOUR

BOARD COMPENSATION DEFERRED

	4.1	 	DEFERRED COMPENSATION ELECTION

A Participant who is an Outside Director may have elected to defer Board Compensation for a given
calendar year beginning before January 1, 2005 by delivering a properly completed and executed
Election Form to the Administrator by the end of the calendar year which precedes the given
calendar year in which the election is to be effective. Such Election Form stated, in 10%
increments from 10% to 100%, the percentage of Board Compensation to be deferred. Such deferral
election was irrevocable as of the January 1 of the calendar year to which the election applies.
Such deferral election terminated as to all Board Compensation earned after such calendar year.

	4.2	 	DEFERRED COMPENSATION ACCOUNT

A Deferred Compensation Account was established for each Outside Director who properly completed,
executed, and delivered an Election Form on which he elected to defer Board Compensation. The
Board Compensation which each Participant deferred for calendar years beginning before January 1,
2005 and Hypothetical Interest earned on such Board Compensation (as provided in Section 6.1) is
credited to this Deferred Compensation Account. Board Compensation deferred under this Section 4.2
was credited to the Participant’s Deferred Compensation Account as of the date such compensation
would otherwise have been payable to the Participant. A Participant’s Deferred Compensation
Account shall be kept only for bookkeeping and accounting purposes and no Company funds shall be
transferred or designated to this account. A Participant’s interest in the Deferred Compensation
Account maintained on his behalf shall be Vested at all times.

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ARTICLE FIVE

TRANSFER OF RETIREMENT PLAN CREDIT

	5.1	 	RETIREMENT PLAN TRANSFER ELECTION

	 	a)	 	The Company has recorded a contribution credit under the Plan on behalf of each Outside
Director who satisfied the criteria set forth in paragraph (b) of this Section 5.1. Such
contribution credit is referred to herein as the Retirement Plan Transfer Credit, was
recorded as of December 31, 1997 and, except as provided in Section 6.1(b), was equal to
the amount individually determined under Section 5.2.
	 
	 	b)	 	An Outside Director was entitled to a Retirement Plan Transfer Credit if:

	 	(i)	 	The Outside Director was an Outside Director on May 1, 1997; and
	 
	 	(ii)	 	During the period beginning June 17, 1997 and ending August 1, 1997, the
Outside Director elected to have the Retirement Plan Transfer Credit recorded on his
behalf under the Plan in lieu of any continuing interest under the Retirement Plan.

	5.2	 	RETIREMENT PLAN TRANSFER CREDIT

	 	a)	 	The Retirement Plan Transfer Credit with respect to an Outside Director who satisfied
the criteria set forth in Section 5.1 was the actuarial present value (as defined in
paragraph (b) below) of the retirement benefit accrued by the Outside Director under the
Retirement Plan as of May 1, 1997.
	 
	 	b)	 	For purposes of this Section 5.2, “actuarial present value” shall mean the single sum
value of a retirement benefit, determined as of May 1, 1997, by using the 1983 Group
Annuity Mortality Table (50% male/50% female) and an interest rate of seven percent.

	5.3	 	RETIREMENT PLAN TRANSFER ACCOUNT

A Retirement Plan Transfer Account has been established for each Outside Director described in
Section 5.1(b). The Retirement Plan Transfer Credit and Hypothetical Interest earned on such
Retirement Plan Transfer Credit shall be recorded in this Retirement Plan Transfer Account. A
Participant’s Retirement Plan Transfer Account shall be kept only for bookkeeping and accounting
purposes and no Company funds shall be transferred or designated to this account. Notwithstanding
any provision of the Plan to the contrary, a Participant’s interest in the Retirement Plan Transfer
Account maintained on his behalf shall be forfeited in its entirety in the event the Participant’s
service as a Director is terminated for any reason (including death) prior to the Participant’s
attainment of his Retirement Plan Transfer Vesting Date. Upon attainment of his Retirement Plan
Transfer Vesting Date, a Participant’s interest in such Retirement Plan Transfer Account shall
become Vested. For purposes of this Appendix A, a Retirement Plan Transfer Account shall be
maintained hereunder with respect to any Outside Director described in Section 5.1 who has also
attained his Retirement Plan Transfer Vesting Date on or before December 31, 2004. With respect to
any other Outside Director described in Section 5.1, the Retirement Plan Transfer Account shall be
maintained pursuant to the provisions of Appendix B.

ARTICLE SIX

CREDITS TO PARTICIPANT TOTAL DEFERRED CASH ACCOUNTS

EARNED AND VESTED ON OR BEFORE DECEMBER 31, 2004

	6.1	 	HYPOTHETICAL INTEREST

	 	a)	 	The Total Deferred Cash Account maintained on behalf of a Participant under this
Appendix A is credited with Hypothetical Interest. The Hypothetical Interest is credited
as of each Valuation Date on the amount credited to the Participant’s Total Deferred Cash
Account on such Valuation Date in accordance with the valuation procedure adopted by the
Administrator. The Hypothetical Interest credited to each Total

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	 	 	 	Deferred Cash Account is determined by the Administrator and computed in reference to the
appreciation or depreciation experienced since the immediately preceding Valuation Date by
the hypothetical investment funds which the Administrator may offer to Participants under
Section 6.2. For any given period, Hypothetical Interest may be a positive or a negative
figure. The crediting of Hypothetical Interest shall occur so long as there is a balance in
the Participant’s Total Deferred Cash Account regardless of whether the Participant has
terminated service with the Board or has died. The Administrator may prescribe any
reasonable method or procedure for the accounting of Hypothetical Interest.
	 
	 	b)	 	Notwithstanding any provision of this Article Six to the contrary:

	 	(i)	 	The Retirement Plan Transfer Credit, determined under Section 5.2 and recorded
as of December 31, 1997 on behalf of an Outside Director described in Section 5.1(b),
was increased with Hypothetical Interest for the period beginning on May 1, 1997 and
ending on December 31, 1997; and
	 
	 	(ii)	 	For purposes of subparagraph (i) above, “Hypothetical Interest” was in
reference to the interest, compounded on a daily basis, at the rate or rates in effect
during the period beginning on May 1, 1997 and ending December 31, 1997, as declared by
the Board of Directors of Erie Family Life Insurance Company on the Erie Family Life
Insurance Company deposit administration group annuity contract held by the trustee of
the Erie Insurance Group Employee Savings Plan.

	6.2	 	PARTICIPANT INVESTMENT DESIGNATION

	 	a)	 	A Participant (and any Outside Director first electing to participate in the Plan) may
have designated on such form or forms satisfactory to the Administrator, that portion of
his future deferred compensation and, separately, that portion of any existing Total
Deferred Cash Account maintained on his behalf which were to be credited with Hypothetical
Interest in reference to each of the hypothetical investment funds that were offered by the
Administrator, in the discretion of the Administrator. Such designations specified, in 1%
increments, the percentages to be credited in reference to each of the hypothetical
investment funds offered. Such designations may remain in effect until the Participant
submits a new designation within such times and in accordance with such means as are
designated by the Administrator. New designations are made as to (i) future deferred
compensation and/or (ii) any existing Total Deferred Cash Account, provided that separate
designations as to the crediting of a Deferred Compensation Account and a Retirement Plan
Transfer Account are not available. All new designations are effective as of a given date
specified by the Administrator. In the event a Participant fails to make an effective
designation under this paragraph (a), the Administrator, acting in its discretion, shall
make such designation on behalf of the Participant.
	 
	 	b)	 	In accepting participation in the Plan, a Participant agreed on behalf of himself and
his Beneficiary to assume all risk in connection with any decrease in value of the
hypothetical investment funds in reference to which Hypothetical Interest is credited to
the Participant’s Total Deferred Cash Account. The Company and the Administrator shall not
be liable to any Participant or Beneficiary for the under-performance of any hypothetical
investment fund offered under the Plan.
	 
	 	c)	 	The Administrator may, in its discretion, offer additional hypothetical investment
funds to Participants and may cease to offer any such fund at such time as it deems
appropriate. In the event the Administrator decides to discontinue offering a hypothetical
investment fund under the Plan, those Participants on whose behalf Hypothetical Interest is
then being credited on the basis of the discontinued hypothetical investment fund may be
required, at the discretion of the Administrator, to have affected amounts consolidated
with (or “mapped” to) a replacement hypothetical investment fund selected by the
Administrator or may be required to designate, from such selection of hypothetical funds as
may be offered by the Administrator, a hypothetical fund or funds as a replacement for the
hypothetical investment fund being discontinued. Any such designation by a Participant
shall be made in accordance with paragraph (a) above. Hypothetical Interest credited on
behalf of any Participant who is affected by the discontinuation of a hypothetical
investment fund but who fails to make any replacement designation offered in this paragraph
(c) shall mirror, to the extent of the Participant’s interest in such discontinued fund,
such hypothetical investment fund or funds as the Administrator may choose in its
discretion. Any changes under this paragraph (c) shall take effect at such times and under
such rules as shall be established by the Administrator.

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	 	d)	 	Notwithstanding any provision of the Plan to the contrary, the eligibility of a
Participant to make any designation under this Section 6.2 shall not be construed as to
provide any Participant or any other person with a beneficial ownership interest in any
assets of the Company or an affiliated company or subsidiary. Title to and beneficial
ownership of any assets which the Company may earmark to pay the contingent deferred
compensation hereunder shall at all times remain in the Company, affiliated company or
subsidiary. The Participant, his Beneficiary and any heirs, successors or assigns shall
not have any legal or equitable right, interest or control over or any property interest
whatsoever in any specific assets of the Company or any affiliated company or subsidiary on
account of having an interest under the Plan. Any and all of the Company’s assets, and any
life insurance policies, annuity contracts or the proceeds therefrom which may be acquired
by the Company shall be, and remain, the general unpledged, unrestricted assets of the
Company. In no event shall the Company be required to purchase any specific shares or
interest in any investment fund.

	6.3	 	STATEMENTS

Statements will be sent to each Participant as to the balance of his Total Deferred Cash Account at
least once each calendar year.

ARTICLE SEVEN

CREDITING OF DEFERRED STOCK

	7.1	 	DEFERRED STOCK ACCOUNT

A Deferred Stock Account shall be maintained under the terms of this Appendix on behalf of any
applicable Outside Director to reflect the amounts credited on such Director’s behalf under
Sections 7.2 and 7.3 that were earned and vested on or before December 31, 2004, and the future
earnings on such amounts. With respect to amounts credited to an Outside Director that are earned
or become vested on or after January 1, 2005, a Deferred Stock Account shall be maintained pursuant
to the provisions of Appendix B. A Participant’s Deferred Stock Account shall be kept only for
bookkeeping and accounting purposes and no Company funds or property shall be transferred or
designated to this account. Statements will be sent to each Participant as to the balance of his
Deferred Stock Account at least once each calendar year.

	7.2	 	ANNUAL SHARE CREDIT

With respect to each Board Tenure Year during which the Director is an Outside Director, the
Deferred Stock Account maintained on such Participant’s behalf was credited with an Annual Share
Credit, effective as of the Share Credit Allocation Date. For any given Board Tenure Year, the
Annual Share Credit made to an Outside Director’s Deferred Stock Account was equal to the quotient
obtained by dividing a cash amount determined by the Board for the given year by the closing price
of Common Stock on the Share Credit Allocation Date. A Participant’s interest in the Annual Share
Credit attributable to any given Board Tenure Year vested in accordance with the following
schedule:

	 	 	 	 	 	 	 
	 	 	 	 	Vested Percentage in that
	 	 	Date of Retirement or	 	Year’s Annual Share
	 	 	Termination of Board Service	 	Credit
	 
	 	 	 	 	 	 
	 

	 	Before last day of third full month of given Board Tenure Year
	 	 	0	%
	 
	 	 	 	 	 	 
	 

	 	After last day of third full month of given Board Tenure Year
but before last day of sixth full month of given Board Tenure
Year
	 	 	25	%
	 
	 	 	 	 	 	 
	 

	 	After last day of sixth full month of given Board Tenure Year
but before last day of ninth full month of given Board Tenure
Year
	 	 	50	%
	 
	 	 	 	 	 	 
	 

	 	After last day of ninth full month of given Board Tenure Year
but before the earlier of (i) the twelfth full month of given
Board Tenure Year or (ii) the date
	 	 	75	%

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	 	 	 	 	Vested Percentage in that
	 	 	Date of Retirement or	 	Year’s Annual Share
	 	 	Termination of Board Service	 	Credit
	 
	 	 	 	 	 	 
	 

	 	on which begins the
immediately following Board Tenure Year.	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	On or after the earlier of (i) the twelfth full month of
given Board Tenure Year or (ii) the date on which begins the
immediately following Board Tenure Year.
	 	 	100	%

	7.3	 	DIVIDEND EQUIVALENT CREDIT

For each quarterly period (i) with respect to which a dividend is paid on Common Stock, and (ii) in
which there is a balance in the Deferred Stock Account maintained on behalf of a Participant as of
the record date applicable to the dividend paid on Common Stock (regardless of whether the
Participant has terminated service with the Board or has died), a Participant’s Deferred Stock
Account shall be credited with a Dividend Equivalent Credit. The Dividend Equivalent Credit for
any such quarterly period shall be credited as of the date on which the dividend is paid on Common
Stock for such quarterly period. For any such applicable quarterly period, the Dividend Equivalent
Credit made to a Participant’s Deferred Stock Account shall be determined as follows:

	 	a)	 	A dividend credit is determined, expressed in cash, equal to the product of:

	 	(i)	 	The dividend payable by the Company on one share of Common Stock for such
quarterly period; and
	 
	 	(ii)	 	The number of accumulated Share Credits credited to the Participant’s Deferred
Stock Account as of the Common Stock dividend record date applicable to such quarterly
period.

	 	b)	 	The dividend credit determined in paragraph (a) above will immediately be converted
into a Share Credit by dividing such cash dividend credit by the closing price of Common
Stock on the date on which the dividend is paid on Common Stock for such quarterly
period.

A Participant’s interest in the Share Credits attributable to Dividend Equivalent Credits shall be
Vested at all times.

	7.4	 	AGGREGATION OF PARTIAL SHARE CREDITS

Effective as of each Share Credit Allocation Date and each Common Stock dividend record date with
respect to which Dividend Equivalent Credits are made, any partial Share Credits then credited to a
Participant’s Deferred Stock Account shall be aggregated in such manner as the Administrator shall
provide to constitute full Share Credits.

	7.5	 	ADJUSTMENT TO SHARE CREDITS

Share Credits maintained on behalf of a Participant hereunder shall be subject to appropriate
adjustment by the Administrator in the event of changes in the outstanding Common Stock by reason
of stock dividends, stock splits, recapitalizations, reorganizations, mergers, consolidations,
combinations, exchanges, or other relevant changes in capitalization occurring after the date Share
Credits are credited hereunder.

ARTICLE EIGHT

PAYMENT OF DEFERRED STOCK ACCOUNT AND

TOTAL DEFERRED CASH ACCOUNT

	8.1	 	PAYMENT 

The Company shall pay a Participant the amounts represented by the balances credited to the
Participant’s Vested Deferred Stock Account and Vested Total Deferred Cash Account after the
Participant’s termination of services with the Board. Except as otherwise provided in this Article
Eight, such payment shall be made according to the method and at the times selected by the
Participant in his Election Form or, if applicable, in the most recent, properly executed and
effective Amendment Form(s) which the Participant has delivered to the Administrator prior to the
Participant’s termination of Board service. A Participant may make independent elections under
this Article Eight

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applicable to (i) the Vested Deferred Stock Account maintained on his behalf and (ii) the Vested
Total Deferred Cash Account maintained on his behalf.

	8.2	 	METHODS OF PAYMENT

	 	a)	 	A Participant may elect one of the following methods of payment for the amounts
represented by his Vested Deferred Stock Account:

	 	(i)	 	A lump sum distribution; or
	 
	 	(ii)	 	Payments in approximately equal annual installments for a period not
to exceed 10 years.

	 	 	 	Payments of the distributable amount represented by all or a portion of the balance in the
Participant’s Vested Deferred Stock Account will be made in shares of Common Stock equal to
the number of full Share Credits comprising the distributable amount that are then credited
to the Participant’s Vested Deferred Stock Account, with fractional Share Credits comprising
the distributable amount payable in cash.
	 
	 	b)	 	A Participant may elect any one of the following methods of payment for the amounts
represented by his Vested Total Deferred Cash Account:

	 	(i)	 	A lump sum distribution;
	 
	 	(ii)	 	Payment in approximately equal annual installments for a period not to
exceed 10 years; or
	 
	 	(iii)	 	Payment in approximately equal monthly installments for a period not
to exceed 10 years.

	 	 	 	Payments of the distributable amount represented by all or a portion of the balance
in the Participant’s Vested Total Deferred Cash Account shall be made in cash.
	 
	 	c)	 	In the event the Participant dies before receiving the entire distribution to which he
is entitled under the Plan, the provisions of Section 8.4 shall apply.

	8.3	 	AMENDMENT TO PAYMENT ELECTION

A Participant who is an active Director may request to defer the date at which payment of the
amount represented by his Vested Deferred Stock Account and/or Vested Total Deferred Cash Account
will occur (or commence) and may request a change in his elected method of payment by submitting a
properly completed and executed Amendment Form to the Administrator which indicates the period of
additional deferral and/or the desired method of payment; provided, however:

	 	a)	 	Such request of additional deferral or alternative method of payment shall
be subject to the Administrator’s power, to be exercised at the Administrator’s
discretion, to direct that payment of the amount represented by the
Participant’s Vested Deferred Stock Account and/or Vested Total Deferred Cash
Account will occur or commence, or will be paid under a method, in accordance
with the Participant’s election(s) on a previously delivered Amendment Form or
on the Participant’s Election Form; and
	 
	 	b)	 	In no event shall any requested additional deferral or alternative method
of payment become effective unless the Amendment Form evidencing such request
is submitted to, and approved by, the Administrator at least twelve months
prior to the date payment of the amount represented by the Vested Deferred
Stock Account and/or Vested Total Deferred Cash Account would otherwise have
occurred or commenced under the Election Form or Amendment Form in effect on
the date the Participant requests the additional deferral or alternative method
of payment.

179

 

	 	 	A Participant may make separate requests under this Section 8.3 applicable to the Vested
Deferred Stock Account maintained on his behalf and to any Total Deferred Cash Account
maintained on his behalf.
	 
	8.4	 	PAYMENT UPON DEATH OF PARTICIPANT

	 	a)	 	In the event of a Participant’s death prior to his Retirement Plan Transfer Vesting
Date, the amount represented by the Participant’s Deferred Compensation Account and the
amount represented by the Participant’s Vested Deferred Stock Account (or, if the
Participant had begun payment prior to death, the remaining balance of such accounts) shall
be paid by the Company to the Participant’s Beneficiary or Beneficiaries as soon as
practicable in the form of a lump sum. Any amount represented by the balance credited to
the Participant’s Retirement Plan Transfer Account shall be forfeited upon the
Participant’s death.
	 
	 	b)	 	In the event of a Participant’s death on or after his Retirement Plan Transfer Vesting
Date, the amount represented by the Participant’s Vested Deferred Stock Account and the
amount represented by the Participant’s Vested Total Deferred Cash Account (or, if the
Participant had begun payment prior to death, the remaining balance of such accounts) shall
be paid by the Company to the Participant’s Beneficiary or Beneficiaries as soon as
practicable in the form of a lump sum.
	 
	 	c)	 	Payment of the distributable amount represented by the deceased Participant’s Vested
Deferred Stock Account will be made in shares of Common Stock equal to the number of full
Share Credits credited to such account as of the payment date, with fractional Share
Credits payable in cash.

	8.5	 	EMERGENCY CIRCUMSTANCES

Notwithstanding any other provision of this Plan, if the Committee determines, after consideration
of a Participant’s application, that the Participant has a financial necessity of such a
substantial nature that a current payment of compensation deferred under this Plan is warranted,
the Committee may in its sole and absolute discretion direct that all or a portion of the
Participant’s Vested Deferred Compensation Account balance be paid to him. The payment shall be
made in the manner and at the times specified by the Committee for payment; provided, however, such
payment shall not be in excess of that amount which is, in the discretion of the Committee,
required to satisfy the financial necessity. In making determinations under this Section 8.5, no
member of the Committee shall vote with respect to any application made by the Committee member
under this Section.

ARTICLE NINE

CONSTRUCTION

This Appendix A is intended to memorialize the provisions of the Plan as it pertains to
grandfathered amounts within the meaning of guidance promulgated by the Internal Revenue Service
pursuant to Section 409A of the Internal Revenue Code of 1986, as amended. As a result, the
Administrator shall interpret and construe the terms of this Appendix A so as to preserve the
status of these amounts as grandfathered amounts under such guidance. References, or cross
references to an identified Article, Section, or specific part thereof, shall refer to such
Article, Section (or part) of this Appendix A, unless otherwise qualified by the context.

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APPENDIX B

ERIE INDEMNITY COMPANY

DEFERRED COMPENSATION PLAN

FOR OUTSIDE DIRECTORS

Accounts Not Earned and Vested On or Before December 31, 2004

ARTICLE ONE

INTRODUCTION

This Appendix B incorporates the provisions of the Plan as it relates to Deferred Stock Accounts
and Total Deferred Cash Accounts other than such accounts that were earned and vested on or before
December 31, 2004, without material modifications to the terms of the Plan after October 3, 2004.
The provisions of this Appendix B shall apply in determining the rights and features of such
accounts and is generally effective as of January 1, 2009.

ARTICLE TWO

DEFINITIONS

When the following words or phrases are used in this Appendix B with initial capital letters, they
shall have the following meanings:

2.1 “Administrator” is a term that is defined in Article Two of the Basic Plan Document.

2.2 “Affiliate” shall mean any organization which, together with the Company, is a member
of a controlled group of corporations under Sections 414(b), 414(c) and 1563(a) of the Code,
applying an 80% test for purposes of Section 1563(a).

2.3 “Amendment Form” shall mean the Amendment Form described in Section 8.6. An Amendment
Form may be in paper and/or electronic form, as designated by the Administrator.

2.4 “Annual Share Credit” shall mean the Share Credit addition determined under Section 7.2.

2.5 “Beneficiary” is a term that is defined in Article Two of the Basic Plan Document.

2.6 “Board” is a term that is defined in Article Two of the Basic Plan Document.

2.7 “Board Compensation” shall mean the remuneration, expressed in terms of a cash amount,
earned by a Director for service on the Board including, without limitation, a retainer, meeting
fees and chairperson’s fees.

2.8 “Board Tenure Year” shall mean the period which, in reference to any given calendar
year, begins on the date of the Company’s annual shareholder meeting held in such year and ends on
the day before the Company’s annual shareholder meeting held in the immediately following calendar
year.

2.9 “Committee” shall mean the Executive Compensation and Development Committee of the
Board, or its successor, as designated by the Board.

2.10 “Common Stock” shall mean the Class A common stock of the Company.

2.11“Company” is a term that is defined in Article Two of the Basic Plan Document.

2.12 “Deferred Compensation Account” shall mean the bookkeeping account described in Section 4.2.

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2.13 “Deferred Stock Account” shall mean the bookkeeping account described in Article Seven.

2.14 “Director” is a term that is defined in Article Two of the Basic Plan Document.

2.15 “Dividend Equivalent Credit” shall mean the Share Credit addition determined under Section 7.3.

2.16 “Election Form” shall mean the Participation Election Form described in Section 3.2.
An Election Form may be in paper and/or electronic form, as designated by the Administrator.

2.17 “Employee” is a term that is defined in Article Two of the Basic Plan Document.

2.18 “Hypothetical Interest” shall mean the gains and losses credited to a Participant’s
Deferred Compensation Account and/or Retirement Plan Transfer Account in accordance with Article
Six.

2.19 “Outside Director” shall mean a Director who is not an Employee or officer of the
Company or an Affiliate.

2.20 “Participant” shall mean each Outside Director who participates in the Plan in
accordance with the terms and conditions of this Appendix B. Participant shall also include a
former Outside Director who had become a Participant during his period of active Board service and
on whose behalf the Administrator is maintaining a Deferred Stock Account and/or a Total Deferred
Cash Account pursuant to the terms of this Appendix B.

2.21 “Plan” is a term that is defined in Article Two of the Basic Plan Document.

2.22 “Retirement Plan” shall mean the Erie Indemnity Company Retirement Plan for Outside
Directors, effective as of January 1, 1991 and as amended thereafter.

2.23 “Retirement Plan Transfer Account” shall mean the bookkeeping account described in
Section 5.3.

2.24 “Retirement Plan Transfer Credit” shall mean the contribution credit determined under
Section 5.1.

2.25 “Retirement Plan Transfer Vesting Date” shall mean the date on which a Participant
officially stops serving on the Board for reasons other than the Participant’s death, provided such
date follows the Participant’s attainment of age 65 and completion of five Years of Board Service.

2.26 “Separation from Board Service” shall mean the complete cessation of services as a
member of the Board and of the board of directors of any Affiliate.

2.27 “Share Credit” shall mean the separate, identifiable units accumulated within a
Participant’s Deferred Stock Account attributable to Annual Share Credits and Dividend Equivalent
Credits.

2.28 “Share Credit Allocation Date” shall mean, with respect to any Board Tenure Year, the
business day next following the first day of such Board Tenure Year; provided, however, that in
reference to any individual who becomes an Outside Director on any day other than the first day of
a given Board Tenure year, the Share Credit Allocation Date relative to such year shall mean the
business day next following the day on which the individual becomes an Outside Director.

2.29 “Total Deferred Cash Account” shall mean the sum of the amounts credited under any
Deferred Compensation Account and any Retirement Plan Transfer Account maintained on behalf of a
Participant.

2.30 “Valuation Date” shall mean the close of business as of each business day.

2.31 “Vested” shall mean, as of any given date, the portion of the Deferred Stock Account
and/or the Total Deferred Cash Account maintained on behalf of a Participant which is then 100%
vested and nonforfeitable, as determined under Sections 4.2, 5.3, and Article Seven.

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2.32 “Year of Board Service” shall mean each Board Tenure Year during which a Director has
served on the Board, including, for Directors on the Board as of May 1, 1997, all Years of Board
Service prior to the adoption of the Plan.

ARTICLE THREE

PARTICIPATION

	3.1	 	ELIGIBILITY AND PARTICIPATION

	 	a)	 	Any individual who becomes an Outside Director shall participate in the Plan as of the
Share Credit Allocation Date next following the date as of which the individual becomes an
Outside Director. As a condition of participation, each Outside Director shall deliver to
the Administrator properly completed and executed elections as described in Section 3.2.
	 
	 	b)	 	Each Outside Director is eligible to participate in the Board Compensation deferral
provisions of the Plan and may choose to defer Board Compensation in accordance with the
provisions of Section 4.1.

	3.2	 	PARTICIPATION ELECTION FORM

An Outside Director shall deliver to the Administrator the following elections, to the extent
applicable to such Director, to be made on such Election Form or Forms as the Administrator, in its
discretion, shall prescribe:

	 	a)	 	The method by which amounts credited to the Participant’s Deferred
Stock Account are to be paid;	 
	 
	 	b)	 	The date, following the Participant’s Separation from Board Service, as
of which payment of amounts credited to the Participant’s Deferred Stock
Account is to occur (in the event of a lump sum distribution) or commence
(in the event of distribution in installments);
	 
	 	c)	 	The Beneficiary to whom payments of amounts credited to the
Participant’s Deferred Stock Account will be made in the event of the
Participant’s death; and
	 
	 	d)	 	If the Outside Director chooses to defer Board Compensation in
accordance with the provisions of Section 4.1:

	 	(i)	 	The percentage of Board Compensation to be deferred for
the calendar year to which the election applies;	 
	 
	 	(ii)	 	The method by which amounts credited to the
Participant’s Total Deferred Cash Account are to be paid;
	 
	 	(iii)	 	The date, following the Participant’s Separation from
Board Service, as of which payment of amounts credited to the
Participant’s Total Deferred Cash Account is to occur (in the event
of a lump sum distribution) or commence (in the event of a
distribution in installments);
	 
	 	(iv)	 	The Beneficiary to whom payments of amounts credited to
the Participant’s Total Deferred Cash Account will be made in the
event of the Participant’s death; and
	 
	 	(v)	 	The investment designation described in Section 6.2.

The elections under paragraphs (a) and (b) above shall be delivered to the Administrator within 30
days after first becoming a Participant under Section 3.1(a) and shall be irrevocable except as
provided in Section 8.6. The elections under paragraph (c) and subparagraph (d)(iv) above are
subject to the provisions of Section 2.2 of the

183

 

Basic Plan Document. The election under subparagraph (d)(i) shall be delivered to the
Administrator within 30 days after first becoming a Participant under Section 3.1(a) and shall be
irrevocable for the calendar year of the election, except as provided in Section 4.1(c) or 4.1(d).
The elections under subparagraphs (d)(ii) and (d)(iii) above shall be delivered to the
Administrator within 30 days after first becoming a Participant under Section 3.1(a) and shall be
irrevocable except as provided in Section 8.6. The election under subparagraph (d)(v) above may be
made and changed as provided in Section 6.2.

ARTICLE FOUR

BOARD COMPENSATION DEFERRED

	4.1	 	DEFERRED COMPENSATION ELECTION

	 	a)	 	Initial Deferral Election. A Participant who is an Outside Director may
elect to defer Board Compensation for a given calendar year by delivering a properly
completed and executed Election Form to the Administrator as provided in Section
3.2(d)(i). Such Election Form shall state, in 10% increments from 0% to 100%, the
percentage of Board Compensation the Outside Director chooses to defer that is
attributable to services performed after the election is delivered. Except as provided in
paragraphs (c) and (d) below, such deferral election shall be irrevocable as of the date
the election is delivered to the Administrator, as applicable to such future Board
Compensation attributable to the calendar year to which the election applies. Such
deferral election shall automatically terminate as to all Board Compensation after such
calendar year.
	 
	 	b)	 	Subsequent Deferral Elections. With respect to any calendar years beginning
after the year an Outside Director first becomes a Participant under Section 3.1(a), the
Participant may elect to defer Board Compensation attributable to services performed in
such year by delivering a properly completed and executed Election Form to the
Administrator by the end of the calendar year which immediately precedes the calendar year
for which the election is to be effective. Such Election Form shall state, in 10%
increments from 0% to 100%, the percentage of Board Compensation the Outside Director
chooses to defer that is attributable to services performed in the calendar year for which
the election is to be effective. Except as provided in paragraphs (c) or (d) below, such
deferral election shall be irrevocable as of the December 31 of the calendar year that
immediately precedes the calendar year to which the election applies. Such deferral
election shall automatically terminate as to all Board Compensation attributable to
services after such calendar year.
	 
	 	c)	 	If a Participant makes a withdrawal due to an unforeseeable emergency under Section
8.5, all remaining deferrals of Board Compensation under the Plan for the calendar year in
which such withdrawal is made shall be cancelled. Such Participant shall not be permitted
to make any further deferral of Board Compensation until the Participant again satisfies
the procedures set forth in paragraph (b) above.
	 
	 	d)	 	Participant deferrals of Board Compensation under the Plan shall be cancelled in such
other events or conditions as the Commissioner of Internal Revenue may prescribe in
generally applicable guidance published in the Internal Revenue Bulletin which the
Administrator, in its discretion, chooses to apply under the Plan; provided, however, that
a Participant shall have no direct or indirect election to the application of such events
or conditions to his individual circumstances.

	4.2	 	DEFERRED COMPENSATION ACCOUNT

A Deferred Compensation Account shall be established for each Outside Director who properly
completes, executes and delivers an Election Form on which he elects to defer Board Compensation.
The Board Compensation which each Participant defers for calendar years beginning on and after
January 1, 2005 and Hypothetical Interest earned on such Board Compensation (as provided in Section
6.1) shall be credited to this Deferred Compensation Account. Board Compensation deferred under
this Section 4.2 shall be credited to the Participant’s Deferred Compensation Account as of the
date such compensation would otherwise have been payable to the Participant. A Participant’s
Deferred Compensation Account shall be kept only for bookkeeping and accounting purposes and no
Company

184

 

funds shall be transferred or designated to this account. A Participant’s interest in the Deferred
Compensation Account maintained on his behalf shall be Vested at all times.

ARTICLE FIVE

TRANSFER OF RETIREMENT PLAN CREDIT

	5.1	 	RETIREMENT PLAN TRANSFER ELECTION

	 	a)	 	The Company has recorded a contribution credit under the Plan on behalf of each Outside
Director who satisfied the criteria set forth in paragraph (b) of this Section 5.1. Such
contribution credit is referred to herein as the Retirement Plan Transfer Credit, was
recorded as of December 31, 1997 and, except as provided in Section 6.1(b), was equal to
the amount individually determined under Section 5.2.
	 
	 	b)	 	An Outside Director was entitled to a Retirement Plan Transfer Credit if:

	 	(i)	 	The Outside Director was an Outside Director on May 1, 1997; and
	 
	 	(ii)	 	During the period beginning June 17, 1997 and ending August 1, 1997, the
Outside Director elected to have the Retirement Plan Transfer Credit recorded on his
behalf under the Plan in lieu of any continuing interest under the Retirement Plan.

	5.2	 	RETIREMENT PLAN TRANSFER CREDIT

	 	a)	 	The Retirement Plan Transfer Credit with respect to an Outside Director who satisfied
the criteria set forth in Section 5.1 was the actuarial present value (as defined in
paragraph (b) below) of the retirement benefit accrued by the Outside Director under the
Retirement Plan as of May 1, 1997.
	 
	 	b)	 	For purposes of this Section 5.2, “actuarial present value” shall mean the single sum
value of a retirement benefit, determined as of May 1, 1997, by using the 1983 Group
Annuity Mortality Table (50% male/50% female) and an interest rate of seven percent.

	5.3	 	RETIREMENT PLAN TRANSFER ACCOUNT

A Retirement Plan Transfer Account has been established for each Outside Director described in
Section 5.1(b). The Retirement Plan Transfer Credit and Hypothetical Interest earned on such
Retirement Plan Transfer Credit shall be recorded in this Retirement Plan Transfer Account. A
Participant’s Retirement Plan Transfer Account shall be kept only for bookkeeping and accounting
purposes and no Company funds shall be transferred or designated to this account. Notwithstanding
any provision of the Plan to the contrary, a Participant’s interest in the Retirement Plan Transfer
Account maintained on his behalf shall be forfeited in its entirety in the event the Participant’s
service as a Director ends for any reason (including death) prior to the Participant’s attainment
of his Retirement Plan Transfer Vesting Date. Upon attainment of his Retirement Plan Transfer
Vesting Date, a Participant’s interest in such Retirement Plan Transfer Account shall become
Vested. A Retirement Plan Transfer Account shall be maintained under the terms of this Appendix B
on behalf of any Outside Director described in Section 5.1 who had not attained his Retirement Plan
Transfer Vesting Date on or before December 31, 2004. With respect to an Outside Director who had
attained his Retirement Plan Transfer Vesting Date on or before December 31, 2004, a Retirement
Plan Transfer Account shall be maintained pursuant to the provisions of Appendix A.

ARTICLE SIX

CREDITS TO PARTICIPANT TOTAL DEFERRED CASH ACCOUNTS

NOT EARNED AND VESTED ON OR BEFORE DECEMBER 31, 2004

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	6.1	 	HYPOTHETICAL INTEREST

	 	a)	 	The Total Deferred Cash Account maintained on behalf of a Participant under this
Appendix B will be credited with Hypothetical Interest. The Hypothetical Interest shall be
credited as of each Valuation Date on the amount credited to the Participant’s Total
Deferred Cash Account on such Valuation Date in accordance with the valuation procedure
adopted by the Administrator. The Hypothetical Interest to be credited to each Total
Deferred Cash Account shall be determined by the Administrator and computed in reference to
the appreciation or depreciation experienced since the immediately preceding Valuation Date
by the hypothetical investment funds which the Administrator may offer to Participants
under Section 6.2. For any given period, Hypothetical Interest may be a positive or a
negative figure. The crediting of Hypothetical Interest shall occur so long as there is a
balance in the Participant’s Total Deferred Cash Account regardless of whether the
Participant has terminated service with the Board or has died. The Administrator may
prescribe any reasonable method or procedure for the accounting of Hypothetical Interest.
	 
	 	b)	 	Notwithstanding any provision of this Article Six to the contrary:

	 	(i)	 	The Retirement Plan Transfer Credit, determined under Section 5.2 and recorded
as of December 31, 1997 on behalf of an Outside Director described in Section 5.1(b),
was increased with Hypothetical Interest for the period beginning on May 1, 1997 and
ending on December 31, 1997; and
	 
	 	(ii)	 	For purposes of subparagraph (i) above, “Hypothetical Interest” was in
reference to the interest, compounded on a daily basis, at the rate or rates in effect
during the period beginning on May 1, 1997 and ending December 31, 1997, as declared by
the Board of Directors of Erie Family Life Insurance Company on the Erie Family Life
Insurance Company deposit administration group annuity contract held by the trustee of
the Erie Insurance Group Employee Savings Plan.

	6.2	 	PARTICIPANT INVESTMENT DESIGNATION

	 	a)	 	A Participant (and any Outside Director first electing to participate in the Plan) may
designate, within such times and in accordance with such means as are designated by the
Administrator, that portion of his future deferred compensation under Section 4.1 and,
separately, that portion of any existing Total Deferred Cash Account maintained on his
behalf which shall be credited with Hypothetical Interest in reference to each of the
hypothetical investment funds that may be offered by the Administrator, in the discretion
of the Administrator. Such designations may specify, in 1% increments, the percentages to
be credited in reference to each of the hypothetical investment funds offered. Such
designations may remain in effect until the Participant submits a new designation within
such time and in accordance with such means as are designated by the Administrator. New
designations may be made as to (i) future deferrals of Board Compensation and/or (ii) any
existing Total Deferred Cash Account, provided that separate designations as to the
crediting of a Deferred Compensation Account and a Retirement Plan Transfer Account shall
not be available. All new designations shall be effective as of a given date specified by
the Administrator. In the event a Participant fails to make an effective designation under
this paragraph (a), the Administrator, acting in its discretion, shall make such
designation on behalf of the Participant.
	 
	 	b)	 	In accepting participation in the Plan, a Participant agrees on behalf of himself and
his Beneficiary to assume all risk in connection with any decrease in value of the
hypothetical investment funds in reference to which Hypothetical Interest is credited to
the Participant’s Total Deferred Cash Account. The Company, the Affiliates and the
Administrator shall not be liable to any Participant or Beneficiary for the
under-performance of any hypothetical investment fund offered under the Plan.
	 
	 	c)	 	The Administrator may, in its discretion, offer additional hypothetical investment
funds to Participants and may cease to offer any such fund at such time as it deems
appropriate. In the event the Administrator decides to discontinue offering a hypothetical
investment fund under the Plan, those Participants on whose behalf Hypothetical Interest is
then being credited on the basis of the discontinued hypothetical investment fund may be
required, at the discretion of the Administrator, to have affected amounts consolidated
with (or “mapped” to) a replacement hypothetical investment fund selected by the
Administrator or may be required to designate, from such selection of hypothetical funds as
may be offered by the Administrator, a

186

 

	 	 	 	hypothetical fund or funds as a replacement for the hypothetical investment fund being
discontinued. Any such designation by a Participant shall be made in accordance with
paragraph (a) above. Hypothetical Interest credited on behalf of any Participant who is
affected by the discontinuation of a hypothetical investment fund but who fails to make any
replacement designation offered in this paragraph (c) shall mirror, to the extent of the
Participant’s interest in such discontinued fund, such hypothetical investment fund or funds
as the Administrator may choose in its discretion. Any changes under this paragraph (c)
shall take effect at such times and under such rules as shall be established by the
Administrator.
	 
	 	d)	 	Notwithstanding any provision of the Plan to the contrary, the eligibility of a
Participant to make any designation under this Section 6.2 shall not be construed as to
provide any Participant or any other person with a beneficial ownership interest in any
assets of the Company or an Affiliate. Title to and beneficial ownership of any assets
which the Company or an Affiliate may earmark to pay the contingent deferred compensation
hereunder shall at all times remain in the Company or Affiliate. The Participant, his
Beneficiary and any heirs, successors or assigns shall not have any legal or equitable
right, interest or control over or any property interest whatsoever in any specific assets
of the Company or any Affiliate or related entity on account of having an interest under
the Plan. Any and all of the Company’s assets, and any life insurance policies, annuity
contracts or the proceeds therefrom which may be acquired by the Company shall be, and
remain, the general unpledged, unrestricted assets of the Company. In no event shall the
Company or any Affiliate be required to purchase any specific shares or interest in any
investment fund.

	6.3	 	STATEMENTS

Statements will be sent to each Participant as to the balance of his Total Deferred Cash Account at
least once each calendar year.

ARTICLE SEVEN

CREDITING OF DEFERRED STOCK

	7.1	 	DEFERRED STOCK ACCOUNT

A Deferred Stock Account shall be maintained under the terms of this Appendix B on behalf of any
applicable Outside Director to reflect the amounts credited on such Director’s behalf under Article
Seven other than such amounts, if any, that were earned and vested on or before December 31, 2004
and the future earnings on such amounts. With respect to amounts credited to an Outside Director
that were earned and vested on or before December 31, 2004, and applicable earnings on such
amounts, a Deferred Stock Account shall be maintained pursuant to the provisions of Appendix A. A
Participant’s Deferred Stock Account shall be kept only for bookkeeping and accounting purposes and
no Company funds or property shall be transferred or designated to this account. Statements will
be sent to each Participant as to the balance of his Deferred Stock Account at least once each
calendar year.

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	7.2	 	ANNUAL SHARE CREDIT

With respect to each Board Tenure Year during which the Director is an Outside Director, the
Deferred Stock Account maintained on such Participant’s behalf shall be credited with an Annual
Share Credit, effective as of the Share Credit Allocation Date. For any given Board Tenure Year,
the Annual Share Credit made to an Outside Director’s Deferred Stock Account shall be equal to the
quotient obtained by dividing a cash amount determined by the Board for the given year by the
closing price of Common Stock on the Share Credit Allocation Date. A Participant’s interest in the
Annual Share Credit attributable to any given Board Tenure Year shall vest in accordance with the
following schedule:

 

	 	 	 	 	 
	 	 	Vested Percentage in that
	Date of Retirement or	 	Year’s Annual Share
	Termination of Board Service	 	Credit
	 
	 	 	 	 
	Before last day of third full month of given Board Tenure Year

	 	 	0	%
	 
	 	 	 	 
	After last day of third full month of given Board Tenure Year
but before last day of sixth full month of given Board Tenure
Year

	 	 	25	%
	 
	 	 	 	 
	After last day of sixth full month of given Board Tenure Year
but before last day of ninth full month of given Board Tenure
Year

	 	 	50	%
	 
	 	 	 	 
	After last day of ninth full month of given Board Tenure Year
but before the earlier of (i) the twelfth full month of given
Board Tenure Year or (ii) the date on which begins the
immediately following Board Tenure Year

	 	 	75	%
	 
	 	 	 	 
	On or after the earlier of (i) the twelfth full month of
given Board Tenure Year or (ii) the date on which begins the
immediately following Board Tenure Year

	 	 	100	%

	7.3	 	DIVIDEND EQUIVALENT CREDIT

For each quarterly period (i) with respect to which a dividend is paid on Common Stock, and (ii) in
which there is a balance in the Deferred Stock Account maintained on behalf of a Participant as of
the record date applicable to the dividend paid on Common Stock (regardless of whether the
Participant has terminated service with the Board or has died), a Participant’s Deferred Stock
Account shall be credited with a Dividend Equivalent Credit. The Dividend Equivalent Credit for
any such quarterly period shall be credited as of the date on which the dividend is paid on Common
Stock for such quarterly period. For any such applicable quarterly period, the Dividend Equivalent
Credit made to a Participant’s Deferred Stock Account shall be determined as follows:

	 	a)	 	A dividend credit is determined, expressed in cash, equal to the product of:

	 	(i)	 	The dividend payable by the Company on one share of Common Stock for such
quarterly period; and
	 
	 	(ii)	 	The number of accumulated Share Credits credited to the Participant’s Deferred
Stock Account as of the Common Stock dividend record date applicable to such quarterly
period.

	 	b)	 	The dividend credit determined in paragraph (a) above will immediately be converted
into a Share Credit by dividing such cash dividend credit by the closing price of Common
Stock on the date on which the dividend is paid on Common Stock for such quarterly period.

A Participant’s interest in the Share Credits attributable to Dividend Equivalent Credits shall be
Vested at all times.

188

 

	7.4	 	AGGREGATION OF PARTIAL SHARE CREDITS

Effective as of each Share Credit Allocation Date and each Common Stock dividend record date with
respect to which Dividend Equivalent Credits are made, any partial Share Credits then credited to a
Participant’s Deferred Stock Account shall be aggregated in such manner as the Administrator shall
provide to constitute full Share Credits.

	7.5	 	ADJUSTMENT TO SHARE CREDITS

Share Credits maintained on behalf of a Participant hereunder shall be subject to appropriate
adjustment by the Administrator in the event of changes in the outstanding Common Stock by reason
of stock dividends, stock splits, recapitalizations, reorganizations, mergers, consolidations,
combinations, exchanges, or other relevant changes in capitalization occurring after the date Share
Credits are credited hereunder.

ARTICLE EIGHT

PAYMENT OF DEFERRED STOCK ACCOUNT AND

TOTAL DEFERRED CASH ACCOUNT

	8.1	 	PAYMENT 

Except as otherwise provided in this Article Eight, the Company shall pay a Participant the amounts
represented by the balances credited to the Participant’s Vested Deferred Stock Account and Vested
Total Deferred Cash Account after the Participant’s Separation from Board Service and such payment
shall be made according to the method and at the time(s) permitted under Section 8.2 and elected by
the Participant in his Election Form or, if applicable, in the most recent, properly executed and
effective Amendment Form(s) which the Participant has delivered to the Administrator prior to the
Participant’s Separation from Board Service. If a Participant has not delivered to the
Administrator a properly completed and effective Election Form with respect to a Deferred Stock
Account and/or a Total Deferred Cash Account or, if for any reason the Administrator determines
that any Election Form or Amendment Form is materially deficient, payment of the affected Vested
accounts shall be made in a lump sum during the month next following the month of the Participant’s
Separation from Board Service except as otherwise provided in this Article Eight. For all purposes
of the Plan and effective until such time as the Participant delivers to the Administrator a
properly completed and effective Election Form or Amendment Form that includes a method and time of
payment election, such default method and time of payment shall be treated as the Participant’s
elected method and time of payment with respect to any Deferred Stock Account and/or Total Deferred
Cash Account to which the default applies.

	8.2	 	METHODS AND TIMES OF PAYMENT

	 	a)	 	A Participant may elect one of the following methods of payment for the amounts
represented by his Vested Deferred Stock Account:

	 	(i)	 	A lump sum distribution; or
	 
	 	(ii)	 	Payments in approximately equal annual installments for a period not
to exceed 10 years.

	 	 	 	Payments of the distributable amount represented by all or a portion of the balance in the
Participant’s Vested Deferred Stock Account will be made in shares of Common Stock equal to
the number of full Share Credits comprising the distributable amount that are then credited
to the Participant’s Vested Deferred Stock Account, with fractional Share Credits comprising
the distributable amount payable in cash.
	 
	 	b)	 	A Participant may elect any one of the following methods of payment for the amounts
represented by his Vested Total Deferred Cash Account:

	 	(i)	 	A lump sum distribution;

189

 

	 	(ii)	 	Payment in approximately equal annual installments for a period not to
exceed 10 years; or
	 
	 	(iii)	 	Payment in approximately equal monthly installments for a period not
to exceed 10 years.

	 	 	 	Payments of the distributable amount represented by all or a portion of the balance
in the Participant’s Vested Total Deferred Cash Account shall be made in cash.
	 
	 	c)	 	A Participant may elect to have the amount represented by his Vested Deferred Stock
Account, and separately, the amount represented by his Vested Total Deferred Cash Account
distributed to him (or, in the case of an installment distribution, commence to be
distributed to him) as of the month next following the month of the Participant’s
Separation from Board Service or as of any later month that follows his Separation from
Board Service. Except as provided in Sections 8.3, 8.4 or 8.5, no distribution shall
commence before or after such elected distribution date; provided, however, that if the
Company makes a distribution within the permitted distribution period (as defined below)
and the actual date of distribution is not within the direct or indirect control of the
Participant, such distribution shall be treated as having been made on such elected
distribution date. The “permitted distribution period” for this purpose shall begin on the
thirtieth day before the Participant’s elected distribution date and shall end on the later
of (i) the last day of the calendar year that includes the Participant’s elected
distribution date, and (ii) the fifteenth day of the third month following the
Participant’s elected distribution date.
	 
	 	d)	 	In the event the Participant dies before receiving the entire distribution to which he
is entitled under the Plan, the provisions of Section 8.7 shall apply.

	8.3	 	ACCELERATION OF PAYMENTS

Notwithstanding the provisions of Sections 8.1 and 8.2 and any Participant election thereunder, the
Company shall pay a Participant the amounts represented by the balances credited to a Participant’s
Vested Deferred Stock Account and Vested Total Deferred Cash Account in a lump sum as of the first
Valuation Date that is administratively reasonable following the occurrence of any of the events or
conditions identified below. Such lump sum payment shall be equal to the amount, as determined by
the Administrator, as is reasonably estimated to be required to satisfy the purpose of the
accelerated payment. Payments shall draw from, and exhaust, amounts represented by the balance of
the Participant’s Vested Total Deferred Cash Account before any amounts that are represented by the
Participant’s Vested Deferred Stock Account. The events or conditions to which this Section 8.3
applies are:

	 	a)	 	The Participant needs to avoid a violation of an applicable federal, state, local, or
foreign ethics law or conflicts of interest law.
	 
	 	b)	 	The Participant incurs state, local, or foreign tax obligations arising from
participation in the Plan that apply to a Plan interest before such interest is otherwise
payable from the Plan.
	 
	 	c)	 	The Plan is terminated and liquidated in accordance with generally applicable guidance
prescribed by the Commissioner of Internal Revenue and published in the Internal Revenue
Bulletin.
	 
	 	d)	 	Such other events or conditions as the Commissioner of Internal Revenue may prescribe
in generally applicable guidance published in the Internal Revenue Bulletin which the
Administrator, in its discretion, chooses to apply under the Plan; provided, however, that
a Participant shall have no direct or indirect election as to the application of such
events or conditions to his individual circumstances.

Any payment under this Section 8.3 shall be contingent upon the Administrator’s decision that a
Participant has satisfied all material elements of an applicable event or condition and that the
Participant produces evidence to that effect that is satisfactory to the Administrator. If any
payment under this Section 8.3 is made and such payment is less than an amount that represents the
entire Vested Deferred Stock Account and Vested Total Deferred Cash Account maintained on the
Participant’s behalf, the amount of such payment shall offset any future payment from the Plan to
the Participant or any Beneficiary or other person who claims through the Participant.

190

 

	8.4	 	DELAY OF PAYMENTS

Notwithstanding the provisions of Sections 8.1 and 8.2 and any Participant election thereunder, the
Company may delay the payment of amounts represented by the balances credited to a Participant’s
Vested Deferred Stock Account and Vested Total Deferred Cash Account in connection with any of the
events or conditions identified below; provided, however that, with respect to any given event or
condition, the Administrator shall treat Plan payments to all similarly-situated Participants in a
reasonably consistent manner:

	 	a)	 	The Administrator reasonably anticipates that making scheduled Plan payments will
violate federal securities laws or other applicable law; provided that the scheduled
payments are then made at the earliest date at which the Administrator reasonably
contemplates that making the scheduled payments will not cause such a violation.
	 
	 	b)	 	Such other events or conditions as the Commissioner of Internal Revenue may prescribe
in generally applicable guidance published in the Internal Revenue Bulletin which the
Administrator, in its discretion, chooses to apply under the Plan; provided, however, that
a Participant shall have no direct or indirect election as to the application of such
events or conditions to his individual circumstances.

	8.5	 	EMERGENCY CIRCUMSTANCES

Notwithstanding any other provision of this Plan, if the Administrator determines, after
consideration of a Participant’s application, that the Participant has incurred a severe financial
hardship (as defined below) the Administrator may in its sole and absolute discretion direct that
all or a portion of the Participant’s Vested Deferred Compensation Account balance be paid to him.
The payment shall be made in the manner and at the times specified by the Administrator for
payment; provided, however, such payment shall not be in excess of that amount which is, in the
discretion of the Administrator, reasonably necessary to satisfy the financial hardship.

For purposes of this Section 8.5, a “severe financial hardship” shall mean a financial hardship
resulting from (i) an illness or accident of the Participant, the Participant’s spouse, beneficiary
or dependent, (ii) the Participant’s loss of property due to casualty, or (iii) any other similar
extraordinary and unforeseeable circumstances arising as a result of events beyond the control of
the Participant; provided, however, that such financial hardship is not or may not be relieved
through reimbursement or compensation from insurance or otherwise, by cessation of deferrals of
Board Compensation in future years, or by liquidation of the Participant’s assets to the extent
such liquidation would not cause severe financial hardship.

	8.6	 	AMENDMENT TO PAYMENT ELECTION

	 	a)	 	A Participant who is a Director who has not incurred a Separation from Board Service
may elect to defer the date at which payment of the amount represented by his Vested
Deferred Stock Account and/or Vested Total Deferred Cash Account will occur (or commence)
and may elect a change in his elected method of payment (or the default form of payment
under Section 8.1) by submitting a properly completed and executed Amendment Form to the
Administrator which indicates the period of additional deferral and/or the desired method
of payment; provided that:

	 	(i)	 	Such election shall not be effective until 12 months after it is
submitted to the Administrator;
	 
	 	(ii)	 	Such election shall require that the payment with respect to which
the election is made shall be delayed for a period of not less than five
years from the date payment would have been made (or commence) absent the
elected change; and
	 
	 	(iii)	 	If the election pertains to a delay in the payment of a Vested
Deferred Stock Account or Vested Total Deferred Cash Account from a
specific year and month that the Participant previously elected in his
Election Form or a subsequent Amendment Form (or to which the Participant
has defaulted under Section 8.1) such election cannot be made less than 12
months before the date the payment was otherwise scheduled to be made (or
commence).

191

 

	 	 	 	For purposes of this Article Eight, installment payments shall be treated as a
single payment.

	 	b)	 	A Participant may make separate requests under this Section 8.6 applicable to the
Vested Deferred Stock Account maintained on his behalf and to any Total Deferred Cash
Account maintained on his behalf.

	8.7	 	PAYMENT UPON DEATH OF PARTICIPANT

	 	a)	 	In the event of a Participant’s death prior to his Retirement Plan Transfer Vesting
Date, the amount represented by the Participant’s Vested Deferred Compensation Account and
the amount represented by the Participant’s Vested Deferred Stock Account (or, if the
Participant began payment prior to death, the remaining balance of such accounts) shall be
paid by the Company to the Participant’s Beneficiary in the form of a lump sum during the
month next following the month of the Participant’s death. Any amount represented by the
balance credited to the Participant’s Retirement Plan Transfer Account shall be forfeited
upon the Participant’s death. Except as provided in Sections 8.3 or 8.4, no payment to a
Beneficiary under this paragraph (a) shall be made before or after such identified payment
date; provided, however, that if the Company makes a payment within the permitted payment
period (as defined below) and the actual date of payment is not within the direct or
indirect control of the Beneficiary, such payment shall be treated as having been made on
such identified payment date. The “permitted payment period” for this purpose shall begin
on the day of the Participant’s death and shall end on the later of (i) the last day of the
calendar year that includes the identified payment date, and (ii) the fifteenth day of the
third month following the identified payment date.
	 
	 	b)	 	In the event of a Participant’s death on or after his Retirement Plan Transfer Vesting
Date, the amount represented by the Participant’s Vested Deferred Stock Account and the
amount represented by the Participant’s Vested Total Deferred Cash Account (or, if the
Participant began payment prior to death, the remaining balance of such accounts) shall be
paid by the Company to the Participant’s Beneficiary in the form of a lump sum during the
month next following the month of the Participant’s death. Except as provided in Sections
8.3 or 8.4, no payment to a Beneficiary under this paragraph (b) shall be made before or
after such identified payment date; provided, however, that if the Company makes a payment
within the permitted payment period identified in paragraph (a) above and the actual date
of payment is not within the direct or indirect control of the Beneficiary, such payment
shall be treated as having been made on such identified payment date.
	 
	 	c)	 	Payment of the distributable amount represented by the deceased Participant’s Vested
Deferred Stock Account will be made in shares of Common Stock equal to the number of full
Share Credits credited to such account as of the payment date, with fractional Share
Credits payable in cash.

ARTICLE NINE

CONSTRUCTION

This Appendix B is intended to memorialize the provisions of the Plan as it pertains to amounts
other than grandfathered amounts within the meaning of guidance promulgated by the Internal Revenue
Service pursuant to Section 409A of the Code. As a result, the Administrator shall interpret and
construe the terms of this Appendix B so as to be consistent with such Internal Revenue Service
guidance. References or cross references to an identified Article, Section or specific part
thereof, shall refer to such Article, Section (or part) of this Appendix B, unless otherwise
qualified by the context.

192

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