Wayne L. Patrick - Page 4

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               The summary plan description provides for discretionary                
          loans made from the Plan to participants and beneficiaries.1                
          According to section VIII of the summary plan description, a                
          participant had to apply for a loan on forms provided by the Plan           
          administrator.  The Plan administrator would then decide whether            
          a participant qualified for the loan and inform the trustee of              
          this decision.  The trustee would review the administrator's                
          decision and make an independent decision on whether to approve             
          the loan.  Also, according to the summary plan description, Plan            
          loan requirements included the following:  (1) Loans must be made           
          available to all participants and their beneficiaries on a                  
          uniform and nondiscriminatory basis; (2) loans must be adequately           
          secured, with up to one-half of a participant's vested account              
          balance as security for the loan; (3) loans must bear a                     
          reasonable rate of interest; (4) loans must have a definite                 
          repayment period which provides for payments to be made not less            
          frequently than quarterly, and for the loan to be amortized on a            
          level basis over a reasonable period of time, not to exceed                 
          5 years;2 (5) loans must be limited by the rules of the Internal            

               1  At trial, petitioners submitted Exhibit 7-G entitled                
          "Erie Industries, Inc. Employees' Profit Sharing Trust Summary              
          Plan Description", and the Court allowed the exhibit into                   
          evidence as a summary plan description and not as a                         
          representative copy of the Plan itself.  Petitioners failed to              
          locate and produce a copy of the Plan.                                      
               2  The 5-year amortization period could be extended if the             
                                                             (continued...)           




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