Document:

Form of Executive Agreement

 Exhibit 10.29 
 EXECUTIVE AGREEMENT 
 This Executive Agreement (this “Agreement”) is made as of March 2,
2006, by and among State Auto Financial Corporation, an Ohio corporation (“State Auto Financial”), State Automobile Mutual Insurance Company, an Ohio domiciled mutual insurance company (“State Auto Mutual”), and Robert P.
Restrepo, Jr. (the “Executive”). 
 BACKGROUND INFORMATION 
 State Auto Financial is a majority controlled, publicly traded holding company subsidiary of State Auto Mutual, which is the ultimate controlling person of the State Auto holding company system
and, together with their respective operating subsidiaries and affiliates, State Auto Financial and State Auto Mutual engage in the property casualty insurance business. Each of State Auto Financial and State Auto Mutual (collectively, the
“Companies”) considers the establishment and maintenance of a sound and vital management to be an important part of their overall corporate strategy and to be essential to protecting and enhancing the interests of the Companies and their
respective owners. As part of this corporate strategy, the Companies wish to act to retain their well-qualified executive officers notwithstanding any actual or threatened change in control of State Auto Financial or State Auto Mutual. 

Executive is a party to an Employment Agreement with the Companies dated as of March 2, 2006, as it may be amended from time to
time (the “Employment Agreement”). The Employment Agreement does not address the impact of a Change in Control (as defined below), except to incorporate by reference the provisions of this Agreement. 
 Executive is the Chairman and Chief Executive Officer and will be President, as of March 3, 2006, of State Auto Financial and State
Auto Mutual and their respective wholly owned subsidiaries and insurer affiliates, and the Executive’s services, experience and knowledge of the business of the Companies, and reputation and contacts in the industry are extremely valuable to
the Companies. The Executive’s continued dedication, availability, advice, and counsel to the Companies are deemed important to the Companies, the Boards of Directors of State Auto Financial and State Auto Mutual (collectively, the
“Board”), and their shareholders and policyholders, respectively. It is, therefore, in the best interests of the Companies to secure the continued services of the Executive notwithstanding any actual or threatened change in control of the
Companies. Accordingly, the Board of State Auto Financial and State Auto Mutual, acting by and through the Executive Compensation Committee and Nominating and Governance Committee, respectively, has approved this Agreement with the Executive and
authorized its execution and delivery on behalf of the Companies. 
 STATEMENT OF AGREEMENT 
 In consideration of the mutual covenants set forth herein and INTENDING TO BE LEGALLY BOUND HEREBY, the Companies and Executive hereby
agree as follows: 
 1. Term of Agreement. This Agreement will begin on the date entered above and will continue in effect through
March 1, 2009. The Agreement may be extended for additional one-year terms upon the written consent of the parties,; provided that this Agreement shall terminate concurrent with the termination of the Employment Agreement. Notwithstanding the
above, if a 

 
“Change of Control” (as defined herein) of the Companies occurs during the term of this Agreement, the term of this Agreement will be extended for
thirty-six (36) months beyond the end of the month in which any such Change of Control occurs. 
 2. Definitions. The following
defined terms shall have the meanings set forth below, for purposes of this Agreement: 
 (a) Annual Award.
“Annual Award” means the cash payment paid or payable to the Executive with respect to a fiscal year under the Companies’ Incentive Bonus Arrangement with Executive. 
 (b) Annual Base Salary. “Annual Base Salary” means the greater of (1) the highest annual rate of base salary in
effect for the Executive during the 12 month period immediately prior to a Change of Control or, (2) the annual rate of base salary in effect at the time Notice of Termination is given (or on the date employment is terminated if no Notice of
Termination is required). 
 (c) Cause. “Cause” shall be given the meaning used in the Employment Agreement.

 (d) Change of Control. 
 “Change of Control” means the occurrence of any of the following: 
 (1) Any
“person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of State Auto Financial representing 25% or more of the combined voting power of State Auto Financial’s then outstanding securities, excluding (i) any acquisition by State Auto Financial or any
Subsidiary; (ii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by State Auto Financial, a Subsidiary or State Auto Mutual or any such acquisition by State Auto Mutual; or 
 (2) A majority of the Board of Directors of State Auto Financial at any time is comprised of other than Continuing Directors (for purposes
of this Agreement, the term “Continuing Director” means a director who was either (A) first elected or appointed as a Director prior to the date of this Agreement; or (B) subsequently elected or appointed as a director if such
director was nominated by the Nominating and Governance Committee or appointed by at least two thirds of the then Continuing Directors); or 
 (3) Any event or transaction if State Auto Financial would be required to report it in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Exchange Act; or 
 (4) Any of the following occurs: 
 (A) a merger or consolidation of State Auto Financial, other than a merger or consolidation in which the voting securities of State Auto Financial immediately prior to the merger or consolidation continue to represent
(either by remaining outstanding or being converted into 

  

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securities of the surviving entity) 51% or more of the combined voting power of State Auto Financial or surviving entity immediately after the merger or
consolidation with another entity; 
 (B) a sale, exchange, lease, mortgage, pledge, transfer, or other disposition (in a
single transaction or a series of related transactions) of all or substantially all of the assets of State Auto Financial which shall include, without limitation, the sale of assets or earning power aggregating more than 50% of the assets or earning
power of State Auto Financial on a consolidated basis; 
 (C) a reorganization, reverse stock split, or recapitalization of
State Auto Financial which would result in any of the foregoing; or 
 (D) a transaction or series of related transactions
having, directly or indirectly, the same effect as any of the foregoing. 
 (5) As respects State Auto Mutual, any of the
following occurs: 
 (A) State Auto Mutual affiliates with or is merged into or consolidated with a third party and as a
result, a majority of the Board of Directors of State Auto Mutual or its successor is comprised of other than Continuing Directors (as defined above). 
 (B) State Auto Mutual completes a conversion to a stock insurance company and as a result of which a majority of the Board of Directors of State Auto Mutual or its successor is comprised of other than Continuing
Directors (as defined above). 
 (C) State Auto Mutual is subject to an order of rehabilitation or liquidation entered by the
insurance commissioner of the state of domicile of State Auto Mutual, provide that such order must be entered prior to February 9, 2008 for such order to constitute a change in control. 
 (e) Change Year. “Change Year” means the fiscal year in which a Change of Control occurs. 
 (f) Disability. “Disability” shall be given the meaning used in the Employment Agreement. 
 (g) Employee Benefits. “Employee Benefits” means the perquisites, benefits, and service credit for benefits as provided
under any and all employee retirement income and welfare benefit policies, plans, programs, or arrangements in which the Executive is entitled to participate, including without limitation any stock option, stock purchase, stock appreciation,
savings, pension, supplemental executive retirement, or other retirement income or welfare benefit, deferred compensation, incentive compensation, group or other life, health, medical/hospital, or other insurance (whether funded by actual insurance
or self-insured by the Companies), disability, salary continuation, expense reimbursement, and other employee benefit policies, plans, programs, or arrangements that may now exist or any equivalent successor policies, plans, programs, or 

  

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arrangements that may be adopted hereafter, providing perquisites and benefits at least as great in a monetary equivalent as are payable thereunder prior to
a Change in Control. 
 (h) Employment Agreement. “Employment Agreement” means as described above.

 (i) Good Reason. “Good Reason” means the occurrence of any one or more of the following: 
 (1) The assignment to the Executive of duties which are materially and adversely different from or inconsistent with the duties,
responsibilities, and status of the Executive’s position at any time during the 12 month period prior to such Change of Control, or which result in a significant change in the Executive’s authority and responsibility as the Chief Executive
Officer of the Companies; 
 (2) A reduction by the Companies in the Executive’s Annual Base Salary in place as of the
day immediately prior to a Change of Control, or the failure to grant salary increases and bonus payments on a basis comparable to those granted to other executives of the Companies, or a reduction of the Executive’s most recent highest
incentive bonus potential under the Executive’s Incentive Bonus Arrangement prior to such Change of Control, or any successor to such arrangement; 
 (3) A demand by the Companies that the Executive relocate to a location in excess of 35 miles from the location where the Executive is currently based, or in the event of any such relocation with the Executive’s
express written consent, the failure of the Companies or a Subsidiary to pay (or reimburse the Executive for) all reasonable moving expenses incurred by the Executive relating to a change of principal residence in connection with such relocation and
to indemnify the Executive against any loss in the sale of the Executive’s principal residence in connection with any such change of residence and any expenses incurred by Executive that are directly attributable to such sale (for purposes of
this provision, “loss” is understood to mean a sale of such principal residence at a price less than the adjusted basis in such residence); 
 (4) The failure of the Companies to obtain a satisfactory agreement from any successor to the Companies to assume and agree to perform this Agreement, as contemplated in Section 16 of this Agreement; 

(5) The failure of the Companies to provide the Executive with substantially the same Employee Benefits that were provided to him
immediately prior to the Change in Control, or with a package of Employee Benefits that, though one or more of such benefits may vary from those in effect immediately prior to such Change in Control, is substantially comparable in all material
respects to such Employee Benefits taken as a whole; or 
 (6) Any reduction in the Executive’s compensation or benefits
or adverse change in the Executive’s location or duties, if such reduction or adverse change occurs at any time after the commencement of any discussion with a third party relating to a possible Change of Control of the Companies involving such
third 

  

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party, if such reduction or adverse change is in contemplation of such possible Change of Control and such Change of Control is actually consummated within
12 months after the date of such reduction or adverse change. 
 The existence of Good Reason shall not be affected by the
Executive’s incapacity due to physical or mental illness. The Executive’s continued employment shall not constitute a waiver of the Executive’s rights with respect to any circumstance constituting Good Reason under this Agreement. The
Executive’s determination of Good Reason shall be conclusive and binding upon the parties to this Agreement provided such determination has been made in good faith. 
 (j) Highest Incentive Bonus. “Highest Incentive Bonus” means the greater of the Executive’s Potential Annual Award for (a) the Change Year or (b) the year
immediately preceding the Change Year. 
 (k) Incentive Bonus Arrangement. “Incentive Bonus Arrangement”
means the Companies’ Incentive Bonus Arrangement (including the “Arrangement” as defined in the Employment Agreement and the payment due under the Long Term Plan as defined in the Employment Agreement) for the Executive in effect for
any calendar year(s) during the period this Agreement is in force. 
 (l) Notice of Termination. “Notice of
Termination” means a written notice indicating the specific termination provision in this Agreement relied upon and setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the employment
under the provision so indicated. 
 (m) Potential Annual Award. “Potential Annual Award” means the maximum
possible Annual Award the Executive could receive according to his or her Incentive Bonus Arrangement for the calendar year immediately preceding the Change Year or the calendar year that is the Change Year, whichever is higher, assuming that
(1) the parameters for the maximum Annual Award, under the Executive’s Incentive Bonus Arrangement were met (whether or not such parameters for such maximum Annual Award actually were or could be met) and (2) the Executive’s
Annual Base Salary is used to determine the Potential Annual Award. 
 (n) Retirement. “Retirement” means
having reached normal retirement age as defined in the State Auto Insurance Companies Employee Retirement Plan (“State Auto Pension Plan”) or taking early retirement in accordance with the terms of the State Auto Pension Plan. 

(o) Severance Benefits. “Severance Benefits” means the benefits described in Section 4 of this Agreement, as
adjusted by the applicable provisions of Section 5 of this Agreement. 
 (p) Subsidiary. “Subsidiary”
means any corporation, insurance company, or other entity a majority of the voting control of which is directly or indirectly owned or controlled at the time by State Auto Financial. 
  

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 3. Eligibility for Severance Benefits. The Companies or their successor shall pay or provide to
the Executive the Severance Benefits if the Executive’s employment is terminated voluntarily or involuntarily during the term of this Agreement, either: 
 (a) by the Companies at any time within 24 months after a Change of Control; or 
 (b) by the Executive for Good Reason at any time within 24 months after a Change of Control or; 
 (c) By the Companies at any time after an agreement has been reached with an unaffiliated third party, the performance of which agreement would result in a Change of Control involving such third party, if such Change of Control is actually
consummated within 12 months after the date of such termination. 
 4. Severance Benefits. The Executive, if eligible under
Section 3, shall receive the following Severance Benefits, adjusted by the applicable provisions of Section 5 (in addition to accrued compensation, bonuses, and vested benefits and other equity based awards); 
 (a) Annual Base Salary. In addition to any accrued compensation payable as of the Executive’s termination of employment
(either by reason of Executive’s Employment Agreement or otherwise), a lump sum cash amount equal to the Executive’s Annual Base Salary, multiplied by 3, unless at the time of such employment termination the Executive is within three years
of mandatory retirement at age 65, in which case the benefit due under this Section 4(a) shall not exceed Executive’s Annual Base Salary multiplied by a factor equal to the number of months remaining until the Executive attains age 65
presented a whole integer and a fraction of a partial year (e.g., 15 months equals 1.25). 
 (b) Annual Incentive
Compensation. In addition to any compensation otherwise payable pursuant to the Executive’s Incentive Bonus Arrangement and the bonus payable under the Companies’ Quality Performance Bonus Plan (“QPB Plan”), a lump sum cash
amount equal to the Executive’s Highest Incentive Bonus and the total bonus under the QPB Plan paid to Executive during the calendar year immediately preceding the Change Year, multiplied by 3 unless at the time of such employment termination
the Executive is within three years of mandatory retirement at age 65, in which case the benefit due under this Section 4(b) shall not exceed the Executive’s Highest Incentive Bonus and total bonus under the QPB Plan, as aforesaid
multiplied by a factor equal to the number of months remaining until the Executive attains age 65 presented a whole integer and a fraction of a partial year (e.g., 15 months equals 1.25). In order to be entitled to a payment pursuant to this
Section 4(b), the Executive must have been a party to Incentive Bonus Arrangement at some time during the 12 month period immediately preceding the Change of Control. 
 (c) Insurance Benefits. For a three year period, commencing on the date the employment is terminated, the Companies will arrange to provide to the Executive at the Companies’ expense,
subject to the then current employee contribution being paid by Executive, with: 
 (1) Health Care. Health care
coverage comparable to that in effect for the Executive immediately prior to the termination (or, if more favorable to the 

  

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Executive, that furnished generally to salaried employees of the Companies on the date immediately preceding the Change in Control), including, but not
limited to, hospital, surgical, medical, dental, prescription, and dependent coverage. In complete fulfillment of its obligations under this paragraph, the Companies shall pay Executive an amount equal to the Companies’ then current monthly per
employee cost of providing State Auto’s health insurance benefit multiplied by 36, plus such additional amount that represents a gross up of the taxes due for that particular amount of income. 
 (2) Life Insurance. Life and accidental death and dismemberment insurance coverage (including any supplemental coverage, purchase
opportunity, and double indemnity for accidental death that was available to the Executive) equal (including policy terms) to that in effect at the time Notice of Termination is given (or on the date the employment is terminated if no Notice of
Termination is required) or, if more favorable to the Executive, equal to that in effect at the date immediately prior to the Change of Control. 
 (3) Disability Insurance. Disability insurance coverage (including policy terms) equal to that in effect at the time Notice of Termination is given (or on the date employment is terminated if no Notice of
Termination is required) or, if more favorable to the Executive, equal to that in effect immediately prior to the Change of Control; provided, however, that no income replacement benefits will be payable under such disability policy with regard to
the three year period following a termination of employment provided that the payments payable under Sections 4(a) and (b) above have been made. 
 In the event the Executive’s participation in any such plan or program is not permitted, the Companies will directly provide, at no after-tax cost to the Executive, the benefits to which the
Executive would be entitled under such plans and programs. 
 (d) Retirement Benefits. The Executive will be entitled
to receive retirement benefits as provided herein, so that the total retirement benefits the Executive receives from the Companies will approximate the total retirement benefits the Executive would have received under the Companies’ defined
benefit (qualified and nonqualified) retirement plans (which shall include the Supplemental Executive Retirement Plan (“SERP”), but not include any severance plans) of the Companies in which the Executive participates were the Executive
fully vested under such retirement plans and had the Executive continued in the employ of the Companies for 36 months following the date of the Executive’s termination or until the Executive’s Retirement, if earlier (provided that such
additional period shall be inclusive of and shall not be in addition to any period of service credited under any severance plan of the Companies). The benefits specified in this subsection will be paid under the SERP or other similar nonqualified
arrangement designated by the Companies according to its terms and conditions. The benefits specified in this subsection will include all ancillary benefits, such as early retirement and survivor rights and benefits available at retirement. The
amount payable to the Executive or the Executive’s beneficiaries under this subsection shall equal the excess of (1) the retirement benefits that would be paid to the Executive or the Executive’s beneficiaries, under such defined
benefit retirement plans of the Companies in which the Executive participates if (A) the Executive were fully vested under such plans, (B) the 36-month period (or the period until the Executive’s Retirement, if less) following the

  

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date of the Executive’s termination were added to the Executive’s credited service under such plans, (C) the terms of such plans were those
most favorable to the Executive in effect at any time during the period commencing prior to the Change of Control and ending on the date of Notice of Termination (or on the date employment is terminated if no Notice of Termination is required), and
(D) the Executive’s highest average annual compensation as defined under such defined benefit retirement plans and was calculated as if the Executive had been employed by the Companies for a 36-month period (or the period until the
Executive’s Retirement, if earlier) following the date of the Executive’s termination and had the Executive’s compensation during such period been equal to the Executive’s compensation used to calculate the Executive’s
benefit under Sections 4(a), and 4(b); over (2) the retirement benefits that are payable to the Executive or the Executive’s beneficiaries under such defined benefit retirement plans of the Companies in which the Executive participates.

 (e) Outplacement. The Companies shall pay all reasonable fees Executive actually incurs for appropriate outplacement
services up to a maximum equal to 15% of the Executive’s Annual Base Salary used to calculate the Executive’s benefit under Section 4(a), plus provide a travel expense account of up to $5,000 to reimburse job search travel. Such
reimbursements shall be limited to those amounts paid within 24 months of the Executive’s date of termination of employment from the Companies. 
 (f) Stock Options. Stock Options or other Equity based awards held by the Executive become exercisable upon a Change of Control according to the terms of the Companies’ equity compensation plans and any
option agreements effecting outstanding option grants or other equity based awards, as interpreted by State Auto Financial’s Compensation Committee as such Committee existed immediately prior to the Change of Control. 
 In computing and determining Severance Benefits under Sections 4(a), (b), (c), (d), (e), and (f) above, a decrease in the
Executive’s salary, incentive bonus potential, or insurance benefits shall be disregarded if such decrease occurs within six months before a Change of Control, is in contemplation of such Change of Control, and is taken to avoid the effect of
this Agreement should such action be taken after such Change of Control. In such event, the salary, incentive bonus potential, and/or insurance benefits used to determine Severance Benefits shall be that in effect immediately before the decrease
that is disregarded pursuant to this Section 4. 
 The Severance Benefits provided in Sections 4(a), and (b) above
shall be paid not later than 45 business days following the date the Executive’s employment terminates. 
 5. Tax Gross-Up. If
any Severance Benefit or other benefit paid or provided under Section 4, or the acceleration of stock option vesting, or the payment or distribution of any Employee Benefit or similar benefit is subject to excise tax pursuant to
Section 4999 of the Internal Revenue of 1986, as amended (the “Code”) (or any similar federal or state excise tax), the Companies shall pay to the Executive such additional compensation as is necessary (after taking into account all
federal, state and local income taxes payable by the Executive as a result of the receipt of such additional compensation) to place the Executive in the same after-tax position he would have been in had no such excise tax (or any interest or
penalties thereon) been paid or incurred with respect to any of such amounts (the “Tax Gross-Up”). The Companies shall pay such additional compensation at the time when the Companies withholds such excise tax from any payments to the
Executive. The calculation of the Tax Gross-Up shall 

  

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be approved by the Companies’ independent certified public accounting firm engaged by the Companies immediately prior to the Change in Control and the
calculation shall be provided to the Executive in writing. The Executive shall then be given 15 days, or such longer period as the Executive reasonably requests, to accept or reject the calculation of the Tax Gross-Up. If the Executive rejects the
Tax Gross-Up calculation and the parties are thereafter unable to agree within an additional 45 days, the arbitration provisions of Section 12 shall control. The Companies shall reimburse the Executive for all reasonable legal and accounting
fees incurred with respect to the calculation of the Tax Gross-Up and any disputes related thereto. 
 For purposes of
determining the amount of the Tax Gross-Up, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation in the calendar year in which the Tax Gross-Up is to be made and state and local income
taxes at the highest marginal rates of taxation in the state and locality of the Executive’s residence on the date of termination. 
 Notwithstanding anything to the contrary in this Section 5, if any Severance Benefit or other benefit paid or provided under Section 4, or the acceleration of stock option vesting, or the payment or
distribution of any Employee Benefits or similar benefits would be subject to excise tax pursuant to Section 4999 of the Code (or any similar federal or state excise tax), but would not be so subject if the total of such payments would be
reduced by 10% or less, then such payment shall be reduced by the minimum amount necessary so as not to cause Companies to have paid an Excess Severance Payment as defined in Section 280G(b)(1) of the Code and so the Executive will not be
subject to Excise Tax pursuant to Section 4999 of the Code. The calculation of any potential reduction pursuant to this paragraph or any disputes related thereto shall be resolved as described above with respect to the calculation of the Tax
Gross-Up. In the event that the amount of any Severance payments that would be payable to or for the benefit of Executive under this Agreement must be modified or reduced to comply with this provision, they shall be modified or reduced]on a pro-rata
basis. In no event shall the total payments be reduced by more than 10% in order to avoid treatment as an Excess Severance Payment. 
 6.
Withholding of Taxes. The Companies may withhold from any amounts not subject to Section 409A of the Code and payable under this Agreement all federal, state, city or other taxes as required by law. The Companies may withhold from any
amounts subject to Section 409A of the Code and payable under this Agreement all federal employment tax withholding obligations (FICA). In the event Section 409A of the Code is amended or revised to permit withholding of other federal,
state or city taxes required by law, this provision of the Agreement shall be interpreted to permit the same. 
 7. Payments of
Employment Taxes and Upon Violation of Code Section 409A. In accordance with Code Section 409A and the regulations issued thereunder, this Agreement shall permit the payment of amounts necessary to (a) satisfy the employment tax
withholding obligations that arise under this Agreement prior to the date that payment may otherwise be made under this Agreement and/or (b) satisfy the excise tax or underpayment penalties owed under Section 409A of the Code in the event
of a violation of Section 409A of the Code under this Agreement. 
 8. Delayed Payments. In the event of a genuine dispute
between the Companies or any Subsidiary and the Executive regarding the amount or timing of benefits under this Agreement, a delay in the payment of amounts under this Agreement shall not cause the Executive to 

  

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violate Section 409A of the Code to the extent that such delay satisfies the conditions set forth in Section 409A of the Code and applicable
regulations thereunder. 
 9. Acknowledgement. The Companies hereby acknowledges that it will be difficult and may be impossible for
the Executive to find reasonably comparable employment, or to measure the amount of damages which the Executive may suffer as a result of termination of employment hereunder. Accordingly, the payment of the Severance Benefits by the Companies to the
Executive in accordance with the terms of this Agreement is hereby acknowledged by the Companies to be reasonable and will be liquidated damages, and the Executive will not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise, nor will any profits, income, earnings, or other benefits from any source whatsoever create any mitigation, offset, reduction, or any other obligation on the part of the Executive hereunder or
otherwise, except for a reduction in health insurance coverage as provided in Section 4(c)(1). The Companies shall not be entitled to set off or counterclaim against amounts payable hereunder with respect to any claim, debt, or obligation of
the Executive. 
 10. Enforcement Costs; Interest. The Companies is aware that, upon the occurrence of a Change in Control, the Board
or a stockholder of the Companies may then cause or attempt to cause the Companies to refuse to comply with their obligations under this Agreement, or may cause or attempt to cause the Companies to institute, or may institute, litigation,
arbitration, or other legal action seeking to have this Agreement declared unenforceable, or may take, or attempt to take, other action to deny the Executive the benefits intended under this Agreement. In these circumstances, the purpose of this
Agreement could be frustrated. It is the intent of the Companies that the Executive not be required to incur the expenses associated with the enforcement of the Executive’s rights under this Agreement by litigation, arbitration, or other legal
action nor be bound to negotiate any settlement of the Executive’s rights hereunder under threat of incurring such expenses because the cost and expense thereof would substantially detract from the benefits intended to be extended to the
Executive under this Agreement. Accordingly, if following a Change in Control it should appear to the Executive that the Companies has failed to comply with any of their obligations under this Agreement, including the proper calculation of the Tax
Gross-Up, or in the event that the Companies or any other person takes any action to declare this Agreement void or unenforceable, or institute any litigation or other legal action designed to deny, diminish or to recover from the Executive, the
benefits intended to be provided to the Executive hereunder, the Companies irrevocably authorizes the Executive from time to time to retain counsel (legal and accounting) of the Executive’s choice at the expense of the Companies as provided in
this Section 10 to represent the Executive in connection with the calculation of the Tax Gross-Up, or the initiation or defense of any litigation or other legal action, whether by or against the Companies or any director, officer, stockholder,
or other person affiliated with the Companies. Notwithstanding any existing or prior attorney-client relationship between the Companies and such counsel, the Companies irrevocably consents to the Executive entering into an attorney-client
relationship with such counsel, and in that connection the Companies and the Executive agree that a confidential relationship shall exist between the Executive and such counsel. The reasonable fees and expenses of counsel selected from time to time
by the Executive as provided in this Section 10 shall be paid or reimbursed to the Executive by the Companies on a regular, periodic basis upon presentation by the Executive of a statement or statements prepared by such counsel in accordance
with their customary practices. In any action involving this Agreement, the Executive shall be entitled to prejudgment interest on any amounts found to be due him from the date such amounts would have been payable to the Executive pursuant to this
Agreement at an annual 

  

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rate of interest equal to the prime commercial rate in effect at the corporation’s principal bank or their successor from time to time during the
prejudgment period plus 4 percent. 
 11. Indemnification. From and after the earliest to occur of a Change of Control or termination
of employment, the Companies shall (a) for a period of five years after such occurrence, provide the Executive (including the Executive’s heirs, executors, and administrators) with coverage under a standard directors’ and
officers’ liability insurance policy at the Companies’ expense, and (b) indemnify and hold harmless the Executive, to the fullest extent permitted or authorized by the law of the State of Ohio as it may from time to time be
amended, if the Executive is (whether before or after the Change of Control) made or threatened to be made a party to any threatened, pending or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, by
reason of the fact that the Executive is or was a director, officer, or employee of the Companies or any Subsidiary, or is or was serving at the request of the Companies or any Subsidiary, as a director, trustee, officer, or employee of an insurance
company, corporation, partnership, joint venture, trust, or other enterprise. The indemnification provided by this Section 11 shall not be deemed exclusive of any other rights to which the Executive may be entitled under the charter or bylaws
of the Companies or of any Subsidiary, or any agreement, vote of shareholders or disinterested directors, or otherwise, both as to action in the Executive’s official capacity and as to action in another capacity while holding such office, and
shall continue as to the Executive after the Executive has ceased to be a director, trustee, officer, or employee and shall inure to the benefit of the heirs, executors, and administrators of the Executive. 
 12. Arbitration. The initial method for resolving any dispute arising out of this Agreement shall be nonbinding arbitration in accordance with
this Section. Except as provided otherwise in this Section, arbitration pursuant to this Section shall be governed by the Commercial Arbitration Rules of the American Arbitration Association. A party wishing to obtain arbitration of an issue shall
deliver written notice to the other party, including a description of the issue to be arbitrated. Within 15 days after either party demands arbitration, the Companies and the Executive shall each appoint an arbitrator. Within 15 additional days,
these two arbitrators shall appoint the third arbitrator by mutual agreement; if they fail to agree within this 15 day period, then the third arbitrator shall be selected promptly pursuant to the rules of the American Arbitration Association for
Commercial Arbitration. The arbitration panel shall hold a hearing in Columbus, Ohio, within 90 days after the appointment of the third arbitrator. The fees and expenses of the arbitrator, and any American Arbitration Association fees, shall be paid
by the Companies. Both the Companies and the Executive may be represented by counsel (legal and accounting) and may present testimony and other evidence at the hearing. Within 90 days after commencement of the hearing, the arbitration panel will
issue a written decision; the majority vote of two of the three arbitrators shall control. The majority decision of the arbitrators shall not be binding on the parties, and the parties may pursue other available legal remedies if the parties are not
satisfied with the majority decision of the arbitrator, however, the Companies are no longer obligated to reimburse Executive’s legal expenses if the arbitration award is appealed by the Executive, as described in this sentence. The Executive
shall be entitled to seek specific performances of the executive’s rights under this Agreement during the pendency of any dispute or controversy arising under or in connection with this Agreement. 
 13. Employment Rights. This Agreement sets forth the Severance Benefits payable to the Executive in the event the Executive’s employment with
the Companies is terminated under certain conditions specified in Section 3. This Agreement is not an employment contract nor shall it confer upon the Executive any right to continue in the employ of the Companies or their 

  

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Subsidiaries and shall not in any way affect the right of the Companies or their Subsidiaries to dismiss or otherwise terminate the Executive’s
employment at any time with or without cause. 
 14. Arrangements Not Exclusive. The specific benefit arrangements referred to in this
Agreement are not intended to exclude the Executive from participation in or from other benefits available to executive personnel generally or to preclude the Executive’s right to other compensation or benefits as may be authorized by the Board
at any time. The provisions of this Agreement and any payments provided for hereunder shall not reduce any amounts otherwise payable, or in any way diminish the Executive’s existing rights, or rights which would accrue solely as the result of
the passage of time under any compensation plan, benefit plan, incentive plan, stock option plan, employment agreement, or other contract, plan, or arrangement except as may be specified in such contract, plan or arrangement. Notwithstanding
anything to the contrary in this Section 14, the Severance Benefits provided in Section 4 are in lieu of any benefits to which the Executive would be entitled following the termination of his or her employment pursuant to any Employment
Agreement with the Companies, if the termination is due to a Change in Control. 
 15. Termination. This Agreement shall terminate if
the employment of the Executive with the Companies shall terminate prior to a Change of Control. 
 16. Successors; Binding Agreements.
This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal and legal representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees. The Executive’s rights and
benefits under this Agreement may not be assigned, except that if the Executive dies while any amount would still be payable to the Executive hereunder if the Executive had continued to live, all such amounts, unless otherwise provided herein, shall
be paid in accordance with the terms of this Agreement, to the beneficiaries designated by the Executive to receive benefits under this Agreement in a writing on file with the Companies at the time of the Executive’s death or, if there is no
such beneficiary, to the Executive’s estate. The Companies will require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business and/or assets of the Companies (or
of any division or Subsidiary thereof employing the Executive) to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Companies would be required to perform it if no such succession had taken
place. Failure of the Companies to obtain such assumption and agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle the Executive to compensation from the Companies in the same amount and
on the same terms to which the Executive would be entitled hereunder if the Executive terminated employment for Good Reason following a Change of Control. 
 17. No Vested Interest. Neither the Executive nor the Executive’s beneficiaries shall have any right, title, or interest in any benefit under this Agreement prior to the occurrence of the right to the
payment of such benefit. 
 18. Notice. For the purpose of this Agreement, notices and all other communications provided for in this
Agreement shall be in writing and shall be deemed to have been duly given when delivered personally or mailed by United States registered mail, return receipt requested, postage prepaid, addressed to such addresses as each party may designate from
time to time to the other party in writing in the manner provided herein. Unless designated otherwise, notices to the Companies should be sent to the Companies at: 
 State Auto Financial Corporation 
 518 East Broad Street 
 Columbus, Ohio 43215 
 Attention: John R. Lowther, Secretary 
  

 12 

 Until designated otherwise, notices shall be sent to the employee at the address indicated on the
Beneficiary Designation and Notice form attached hereto as Exhibit A. If the parties by mutual agreement supply each other with telecopier numbers for the purposes of providing notice by facsimile, such notice shall also be proper notice under this
Agreement. Notice sent by certified or registered mail shall be effective two days after deposit by delivery to the U.S. Post Office. 
 19.
Savings Clause. If any payments otherwise payable to the Executive under this Agreement are prohibited or limited by any statute or regulation in effect at the time the payments would otherwise be payable (any such limiting statute or
regulation a “Limiting Rule”): 
 (a) Companies will use their best efforts to obtain the consent of the appropriate
governmental agency to the payment by Companies to the Executive of the maximum amount that is permitted (up to the amounts that would be due to the Executive absent the Limiting Rule); and 
 (b) the Executive will be entitled to elect to have apply, and therefore to receive benefits directly under, either (i) this
Agreement (as limited by the Limiting Rule) or (ii) any generally applicable Companies severance, separation pay, and/or salary continuation plan that may be in effect at the time of the Executive’s termination. 
 Following any such election, the Executive will be entitled to receive benefits under this Agreement or plan elected only if and to the extent the
Agreement or plan is applicable and subject to their specific terms. 
 20. Amendment; Waiver. This Agreement may not be amended or
modified and no provision may be waived unless such amendment, modification, or waiver is agreed to in writing and signed by the Executive and the Companies; provided, however, that this Agreement shall be amended and/or modified as necessary to
comply with Section 409A of the Code or regulations issued thereunder. 
 21. Validity. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 
 22. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. 
 23. Governing Law. Except as otherwise provided, this Agreement shall be governed by the laws of the State of Ohio, without giving effect to any
conflict of law provisions. 
  

 13 

 IN WITNESS WHEREOF, the parties have signed this Agreement as of the day and year written above.

  

			
	 State Auto Financial Corporation:

		
	By:	 	 /s/ David J. D’Antoni

		 	     David J. D’Antoni, Chair of
     Compensation Committee

  

			
	 State Automobile Mutual Insurance Company

		
	By:	 	 /s/ Marsha P. Ryan

		 	     Marsha P. Ryan, Chair of
     Nominating and Governance Committee

  

	
	 Executive:

	
	 /s/ Robert P. Restrepo, Jr.

	     Robert P. Restrepo, Jr.

  

 14 

 Exhibit A 
 Beneficiary Designation and Notice Form 
 Beneficiary Designation 
 In the event of my death, I direct that any amounts due me under this Agreement to which this Beneficiary Designation is attached shall be
distributed to the person designated below. If no beneficiary shall be living to receive such assets they shall be paid to the administrator or executive or my estate. 
 Notice 
 Until notified otherwise, pursuant to Section 18 of this Agreement, notices should be sent to
me at the following address: 
  

					
			
	  	 		 	
			
	  	 		 	
			
	  	 		 	
			
	 __________________________
	 		 	   
	 Date
	 		 	 Executive

			
	 	 		 	   
		 		 	 Print Name

			
	 	 		 	   
		 		 	 Beneficiary Name

			
	 	 		 	   
		 		 	 Relationship to Executive

  

 15Property Catastrophe Overlying Excess of Loss Reinsurance Contract

 Exhibit 10.33 
 PROPERTY CATASTROPHE OVERLYING EXCESS OF LOSS 
 REINSURANCE CONTRACT 
 ISSUED TO 
 STATE AUTOMOBILE MUTUAL INSURANCE COMPANY 
 MILBANK INSURANCE COMPANY 
 STATE AUTO NATIONAL INSURANCE
COMPANY 
 STATE AUTO INSURANCE COMPANY OF WISCONSIN 
 FARMERS CASUALTY INSURANCE COMPANY 
 STATE AUTO INSURANCE COMPANY OF OHIO 
 MERIDIAN SECURITY INSURANCE COMPANY 
 MERIDIAN CITIZENS MUTUAL INSURANCE COMPANY 
 STATE AUTO FLORIDA INSURANCE COMPANY 
 BY 

STATE AUTO PROPERTY AND CASUALTY INSURANCE COMPANY 

 STATE AUTOMOBILE MUTUAL INSURANCE COMPANY 
 MILBANK INSURANCE COMPANY 
 STATE AUTO NATIONAL INSURANCE COMPANY 
 STATE AUTO INSURANCE COMPANY OF WISCONSIN 
 FARMERS
CASUALTY INSURANCE COMPANY 
 STATE AUTO INSURANCE COMPANY OF OHIO 
 MERIDIAN SECURITY INSURANCE COMPANY 
 MERIDIAN CITIZENS MUTUAL INSURANCE COMPANY 
 STATE AUTO FLORIDA INSURANCE COMPANY 
 PROPERTY
CATASTROPHE OVERLYING EXCESS OF LOSS 
 REINSURANCE CONTRACT 
 TABLE OF CONTENTS 
  

					
	 ARTICLE NO.
	  	 TITLE
	  	PAGE
			
	 ARTICLE I
	  	 BUSINESS COVERED
	  	1
			
	 ARTICLE II
	  	 EXCLUSIONS
	  	1-3
			
	 ARTICLE III
	  	 TERM
	  	3
			
	 ARTICLE IV
	  	 TERRITORY
	  	3
			
	 ARTICLE V
	  	 AMOUNT OF LIMIT AND RETENTION
	  	4
			
	 ARTICLE VI
	  	 ULTIMATE NET LOSS
	  	4
			
	 ARTICLE VII
	  	 NET RETAINED LINES
	  	5
			
	 ARTICLE VIII
	  	 UNDERLYING EXCESS
	  	5
			
	 ARTICLE IX
	  	 DEFINITION OF LOSS OCCURRENCE
	  	5-6
			
	 ARTICLE X
	  	 NOTICE OF LOSS AND LOSS SETTLEMENT
	  	7
			
	 ARTICLE XI
	  	 PREMIUM
	  	7
			
	 ARTICLE XII
	  	 CURRENCY
	  	7
			
	 ARTICLE XIII
	  	 OFFSET
	  	7
			
	 ARTICLE XIV
	  	 ACCESS TO RECORDS
	  	8
			
	 ARTICLE XV
	  	 ERRORS AND OMISSIONS
	  	8
			
	 ARTICLE XVI
	  	 TAXES
	  	8
			
	 ARTICLE XVII
	  	 INSOLVENCY
	  	8-9
			
	 ARTICLE XVIII
	  	 ARBITRATION
	  	9

 Exhibit A 
 War Exclusion Clause 
 Pools, Associations & Syndicates Exclusion Clause 
 Nuclear Incident Exclusion Clause – Physical Damage – Reinsurance – U.S.A. 
 Nuclear Incident Exclusion Clause – Physical Damage – Reinsurance – CANADA 

 PROPERTY CATASTROPHE OVERLYING EXCESS OF LOSS 
 REINSURANCE CONTRACT 
 between 
 STATE AUTOMOBILE MUTUAL INSURANCE COMPANY 
 MILBANK INSURANCE COMPANY 
 STATE AUTO NATIONAL INSURANCE COMPANY 
 STATE AUTO
INSURANCE COMPANY OF WISCONSIN 
 FARMERS CASUALTY INSURANCE COMPANY 
 STATE AUTO INSURANCE COMPANY OF OHIO 
 MERIDIAN SECURITY INSURANCE COMPANY 
 MERIDIAN CITIZENS MUTUAL INSURANCE COMPANY 
 STATE AUTO
FLORIDA INSURANCE COMPANY 
 (hereinafter collectively referred to as the “Company”) 
 and 
 STATE AUTO PROPERTY AND CASUALTY INSURANCE COMPANY

 (hereinafter referred to as the Subscribing “Reinsurer”) 
 ARTICLE I 
 BUSINESS COVERED: 
 The Reinsurer shall indemnify the Company for the net excess liability as hereinafter provided and specified, which may accrue to the
Company as a result of any loss or losses which may occur during the currency of the Contract under any and all policies, contracts, binders and other evidence of insurance and reinsurance, oral or written (hereinafter referred to as
“Policies”) heretofore or hereafter issued or entered into by or on behalf of the Company and classified by the Company as Fire, Allied Lines, Homeowners (property coverages), Farmowners (property coverages), Commercial Multiple Peril
policies (property coverages), Ocean Marine, Inland Marine and Automobile Physical Damage. 
 ARTICLE II 
 EXCLUSIONS: 
 The following shall be
excluded from the scope of this Contract: 
  

	 	1.	 Business written and classified by the Company as: 

  

	 	a)	 Aviation Insurance; 

  

	 	b)	 Casualty Insurance (i.e. Accident, Health, Third Party Liability, Workers’ Compensation and Employers’ Liability, Fidelity, Plate Glass and Burglary
and Theft when written as such); 

  

	 	c)	 Credit Insurance; 

  

	 	d)	 Financial Guarantee Insurance; 

  

	 	e)	 Insolvency Insurance; 

  

	 	f)	 Life Insurance; 

  

	 	g)	 Mortgage Impairment Insurance; 

  

 1 

	 	h)	 Title Insurance; 

  

	 	i)	 Surety; 

  

	 	j)	 Flood Insurance when written as such; 

  

	 	k)	 Earthquake Insurance when written as such; 

  

	 	1)	 Difference in Conditions Insurance when written as such; 

  

	 	m)	 Ocean Marine Insurance when written as such, except yachts; 

  

	 	n)	 Boiler and Machinery; 

  

	 	o)	 Multiple Peril policies other than the Property coverages as included in the Business Covered Section, hereof; 

  

	 	p)	 Reinsurance assumed, but not to exclude so-called agency reinsurance, reinsurance of an individual risk or policy, or any intercompany pooling arrangements.

  

	 	2.	 Wind and Hail on growing and standing crops. 

  

	 	3.	 Manufacture, processing, storage, filling or breaking down of explosives. 

  

	 	4.	 Oil and petrochemical refineries and pipelines and oil or gas drilling rigs. 

  

	 	5.	 Excess of Loss insurance or reinsurance where the deductible exceeds $500,000. 

  

	 	6.	 Bridges and Tunnels where the Total Insured Value over all interests exceeds $300,000,000. 

  

	 	7.	 Extra Contractual Obligations and Losses in Excess of Policy Limits as per the following definitions: 

  

	 	a)	 Extra contractual obligations, which shall mean any punitive, exemplary, compensatory or consequential damages, other than loss in excess of policy limits, paid
or payable by the Company as a result of an action against it by its insured, its insured’s assignee or a third party claimant, by reason of alleged or actual negligence, fraud or bad faith on the part of the Company in handling a claim under a
Policy subject to this Contract. 

  

	 	b)	 Loss in excess of policy limits, which shall mean an amount that the Company would have been contractually liable to pay had it not been for the limit of the
original Policy as a result of an action against it by its insured or its insured’s assignee. Such loss in excess of the limit shall have been incurred because of failure by the Company to settle within the Policy limit, or by reason of alleged
or actual negligence, fraud, or bad faith in rejecting an offer of settlement or in the preparation of the defense or in the trial of any action against its insured or in the preparation or prosecution of an appeal consequent upon such action.

  

	 	8.	 Loss/or Damage/or Costs/or Expenses arising from seepage and/or Pollution and/or Contamination, other than Contamination from Smoke Damage. Nevertheless, this
exclusion does not preclude payment of the cost of removal of debris of property damaged by a loss otherwise covered hereunder, but subject always to a limit of 25% of the Company’s property loss under the original Policy.

  

	 	9.	 Loss in respect of overhead transmission and distribution lines and their supporting structure other than those on or within 150 meters (or 500 feet) of the
insured premises. It is understood and agreed that public utilities extension and/or suppliers extension and/or contingent business interruption coverages are not subject to this exclusion, provided that these are not part of a transmitters’ or
distributors’ Policy. 

  

 2 

	 	10.	 Liability of the Company arising by contract, operation of law, or otherwise, from its participation or membership, whether voluntary or involuntary, in any
insolvency fund. “Insolvency Fund” includes any guaranty fund, insolvency fund, plan, pool, association, fund or other arrangement, howsoever denominated, established or governed, which provides for any assessment of or payment or
assumption by the Company of part or all of any claim, debt, charge, fee, or other obligation of an insurer, or its successors or assigns, which has been declared by any competent authority to be insolvent, or which is otherwise deemed unable to
meet any claim, debt, charge, fee or other obligation in whole or in part. 

  

	 	11.	 War Risk as per the “War Exclusion Clause” attached hereto. 

  

	 	12.	 Pools, Associations and Syndicates as per the “Pools, Associations & Syndicates Exclusion Clause” attached hereto.

  

	 	13.	 Nuclear Incident as per the “Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance - U.S.A.” (NMA 1119) attached hereto.

  

	 	14.	 Nuclear Incident as per the “Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance - CANADA” (NMA 1980a) attached hereto.

  

	 	15.	 Loss, damage, costs, and/or expenses resulting from: i) the release or dispersion of or contamination from harmful micro-organisms or other biological contagion;
ii) the release or dispersion of or contamination from harmful chemical agents or contaminants; iii) the use of any nuclear device or release or dispersion of radioactive contamination. 

  

	 	16.	 Loss, damage, costs, and/or expenses resulting from an act of terrorism. 

 ARTICLE III 
 TERM: 
 The term of this Contract shall be from 12:01 A.M., Eastern Time, July 1, 2005 to 12:01 A.M., Eastern Time, July 1, 2006. 
 If this Contract expires while a Loss Occurrence covered hereunder is in progress, the Reinsurer’s liability hereunder shall, subject
to the other terms and conditions of this Contract, be determined as if the entire Loss Occurrence had occurred prior to the expiration of this Contract, provided that no part of such Loss Occurrence is claimed against any renewal or replacement of
this Contract. 
 ARTICLE IV 
 TERRITORY:

 This Contract shall cover wherever the Company’s Policies cover. 
  

 3 

 ARTICLE V 
 AMOUNT OF LIMIT AND RETENTION: 
 No claim shall be made hereunder unless and until the Company, on a
pooled basis where applicable, shall have first sustained an Ultimate Net Loss (as defined below) in excess of $120,000,000, regardless of the number of Policies under which such loss is payable or the number of interests insured. The Reinsurer
shall then be liable for the amount of Ultimate Net Loss for the Company in excess of $120,000,000 per occurrence, but the sum recoverable from the Reinsurer in respect of each such Loss Occurrence shall not exceed the Cat Cover Cap (as defined
below), nor more than the Cat Cover Cap, in respect of all Loss Occurrences during the term of this Contract. The Cat Cover Cap is such amount as is available to the Reinsurer from State Auto Financial Corporation (“STFC”), the
Reinsurer’s immediate parent, following STFC’s sale of its class A Preferred Stock to SAF Funding Corporation (“SAF”), an independent special purpose Delaware corporation, pursuant to the terms of a Standby Purchase Agreement
between STFC and SAF dated November 16, 2001 and any amendments thereto or replacements thereof, which is part of a structured contingent financing arrangement effected through: x) the then current Credit Agreement between SAF and one or more
financial institutions (the “Lenders”); y) the aforesaid Standby Purchase Agreement; and z) the then current Put Agreement among STFC, State Automobile Mutual Insurance Company, and the Lenders (it being understood and agreed that as of
the date hereof the Cat Cover Cap shall not exceed $ 100,000,000). 
 The applicability of coverage under this Contract is
subject to at least two risks being involved in the same Loss Occurrence. 
 ARTICLE VI 
 ULTIMATE NET LOSS: 
 The term
“Ultimate Net Loss” shall mean the amount that the Company pays as insured losses. Ultimate Net Loss also includes, but is not limited to, all expenses incurred by the Company in connection with the settlement of losses or resistance to or
negotiations concerning a loss, including salaries and expenses of employees of the Company while diverted from their normal duties to the service of field adjustment but shall not include any office expenses of the Company. However, nothing in this
Article shall be construed to prevent the Company from including all such amounts defined as Ultimate Net Loss attributable to the Group (as defined below), on a pooled basis where applicable, for the first $120,000,000 of Ultimate Net Loss. The
Group shall mean, collectively, the Company and State Auto Property and Casualty Insurance Company. 
 Subject to Article
VIII, all salvages and recoveries and payments (net of the cost of obtaining any salvage, recovery or payment), whether recovered or received prior or subsequent to loss settlement under this Contract, including amounts recoverable under other
reinsurance, whether collected or not, shall be applied as if recovered or received prior to the aforesaid settlement and shall be deducted from the actual loss incurred to arrive at the amount of Ultimate Net Loss. Nothing in this Article shall be
construed to mean losses are not recoverable until the Ultimate Net Loss to the Company has been ascertained. 
  

 4 

 ARTICLE VII 
 NET RETAINED LINES: 
 This Contract applies to only that portion of any Policy which the Company and
the other members of the Group, on a pooled basis where applicable, retains net for its own account. 
 The amount of the
Reinsurer’s liability hereunder in respect of any loss shall not be increased by reason of the inability of the Company to collect from any other reinsurer, whether specific or general, any amounts which may have become due whether such
inability arises from the insolvency of such other reinsurer or otherwise. 
 ARTICLE VIII 
 UNDERLYING EXCESS: 
 The Company has in
force underlying catastrophe excess of loss reinsurance and recoveries thereunder shall be disregarded for all purposes of this Contract and shall inure to the sole benefit of the Company. 
 ARTICLE IX 
 DEFINITION OF LOSS OCCURRENCE: 
 The term “Loss Occurrence” shall mean the sum of all individual losses directly occasioned by any one disaster, accident or loss
or series of disasters, accidents or losses arising out of one event which occurs within the area of one state of the United States or province of Canada and states or provinces contiguous thereto and to one another. However, the duration and extent
of any one “Loss Occurrence” shall be limited to all individual losses sustained by the Company occurring during any period of one hundred sixty-eight (168) consecutive hours arising out of and directly occasioned by the same event
except that the term “Loss Occurrence” shall be further defined as follows: 
  

	 	A.	As regards windstorm, hail, tornado, hurricane, cyclone, including ensuing collapse and water damage, all individual losses sustained by the Company occurring during any period of seventy-two
(72) consecutive hours arising out of and directly occasioned by the same event. However, the event need not be limited to one state or province or states or provinces contiguous thereto. 

  

	 	B.	As regards riot, riot attending a strike, civil commotion, vandalism and malicious mischief, all individual losses sustained by the Company occurring during any period of seventy-two
(72) consecutive hours within the area of one municipality or county and the municipalities or counties contiguous thereto arising out of and directly occasioned by the same event. The maximum duration of seventy-two (72) consecutive hours
may be extended in respect of individual losses which occur beyond such seventy-two (72) consecutive hours during the continued occupation of an assured’s premises by strikers, provided such occupation commenced during the aforesaid
period. 

  

	 	C.	 As regards earthquake (the epicentre of which need not necessarily be within the territorial confines referred to in the opening paragraph of this Article) and fire 

  

 5 

	 	 
following directly occasioned by the earthquake, only those individual fire losses which commence during the period of one hundred and sixty-eight
(168) consecutive hours may be included in the Company’s “Loss Occurrence.” 

  

	 	D.	 As regards “freeze”, only individual losses directly occasioned by collapse, breakage of glass and water damage (caused by bursting of frozen pipes and
tanks) may be included in the Company’s “Loss Occurrence.” 

 For all “Loss
Occurrences” except as referred to under sub-paragraph B, the Company may choose the date and time when any such period of consecutive hours commences, provided that it is not earlier than the date and time of the occurrence of the first
recorded individual loss sustained by the Company arising out of that disaster, accident, or loss and provided that only one such period of one hundred and sixty-eight (168) consecutive hours shall apply with respect to one event, except for
those “Loss Occurrences” referred to in sub-paragraph A above, where only one such period of seventy-two (72) consecutive hours shall apply with respect to one event, regardless of the duration of the event. 
 As respect those “Loss Occurrences” referred to in sub-paragraph B above, if the disaster, accident or loss occasioned by the
event is of greater duration than seventy-two (72) consecutive hours, then the Company may divide that disaster, accident or loss into two or more “Loss Occurrences” provided no two periods overlap and no individual loss is included
in more than one such period and provided that no period commences earlier than the date and time of the occurrence of the first recorded individual loss sustained by the Company arising out of that disaster, accident or loss. 
 No individual losses occasioned by an event that would be covered by seventy-two (72) hours clauses may be included in any “Loss
Occurrence” claimed under the one hundred and sixty-eight (168) hours provision. 
 Losses directly or indirectly
occasioned by: 
  

	 	a.	 loss of, alteration of, or damage to 

 or 
  

	 	b.	 a reduction in the functionality, availability or operation of: 

 a computer system, hardware, program, software, data, information repository, microchip, integrated circuit or similar device in computer equipment or non-computer equipment, whether the property
of the policyholder of the Company or not, do not in and of themselves constitute an event unless arising out of one or more of the following perils: 
 fire, lightning, explosion, aircraft, or vehicle impact, falling objects, windstorm, hail, tornado, cyclone, hurricane, earthquake, volcano, tsunami, flood, freeze or weight of snow. 
  

 6 

 ARTICLE X 
 NOTICE OF LOSS AND LOSS SETTLEMENT: 
 The Company shall adjust, settle, or compromise all claims and
losses hereunder. 
 All loss settlements by the Company which comply with the terms hereof shall be unconditionally binding
upon the Reinsurer. 
 The Company shall advise the Reinsurer promptly of all claims and any subsequent developments
pertaining thereto, which may, in the Company’s opinion, develop into losses involving Reinsurance hereunder. Inadvertent omission or oversight in dispatching such advices shall in no way affect the liability of the Reinsurer under this
Contract provided the Company informs the Reinsurer of such omission or oversight promptly upon its discovery. 
 The
Reinsurer shall tender all loss payments as soon as practicable after receipt of any proof of loss. 
 ARTICLE XI 
 PREMIUM: 
 The premium to be paid to the
Reinsurer shall be $3,250,000, payable in four equal quarterly installments. Each company shall pay a percentage of the premium based on its share of subject premium, as shown in Exhibit A. 
 ARTICLE XII 
 CURRENCY: 
 All retentions, limits and premiums referenced in this Contract are expressed in United States Dollars and all payments made by either party shall be made in United States Dollars. 
 Amounts paid or received by the Company in any other currency shall be converted to United States Dollars at the rate of exchange at the
date such transaction is entered on the books of the Company. 
 ARTICLE XIII 
 OFFSET: 
 The Company and the Reinsurer,
each at its option, may offset any balance or balances, whether on account of premiums, claims and losses, loss expenses or salvages due from one party to the other under this Contract; provided, however, that in the event of the insolvency of a
party hereto, offsets shall only be allowed in accordance with applicable statutes and regulations. 
  

 7 

 ARTICLE XIV 
 ACCESS TO RECORDS: 
 The Company shall place at the disposal of the Reinsurer at all reasonable times,
and the Reinsurer shall have the right to inspect through its designated representatives, during the term of this Contract and thereafter, all books, records and papers of the Company in connection with any reinsurance hereunder, or the subject
matter hereof. 
 ARTICLE XV 
 ERRORS AND
OMISSIONS: 
 Any inadvertent delay, omission or error shall not be held to relieve either party hereto from any
liability which would attach to either party if such delay, omission or error had not been made, provided such delay, omission or error is rectified as soon as practicable after discovery. 
 ARTICLE XVI 
 TAXES: 
 In consideration of the terms under which this Contract is issued, the Company will not claim a deduction in respect of the premium hereon when making tax returns, other than income or profits
tax returns, to any state or territory of the United States of America, the District of Columbia or Canada. 
 ARTICLE XVII 
 INSOLVENCY: 
 The reinsurance under this
Contract shall be payable by the Reinsurer on the basis of the liability of one or more of the Companies under the Policy or Policies reinsured without diminution because of the insolvency of one or more of the Companies reinsured or because the
liquidator, receiver, conservator or statutory successor of the Company(ies) has failed to pay all or a portion of any claim. 
 In the event of the insolvency of one or more of the Companies reinsured, the liquidator, receiver, conservator or statutory successor of the Company(ies) shall give written notice to the Reinsurer of the pendency of a claim against the
insolvent Company(ies) on the Policy or Policies reinsured within a reasonable time after such claim is filed in the insolvency proceeding and during the pendency of such claim the Reinsurer may investigate such claim and interpose, at its own
expense, in the proceeding where such claim is to be adjudicated any defense or defenses which it may deem available to the Company(ies) or its liquidator, receiver, conservator or statutory successor. The expense thus incurred by the Reinsurer
shall be chargeable subject to court approval against the insolvent Company(ies) as part of the expense of liquidation to the extent of a proportionate share of the benefit which may accrue to the Company(ies) solely as a result of the defense
undertaken by the Reinsurer. 
 Where two or more Reinsurers are involved in the same claim and a majority in interest elect
to interpose defense to such claim, the expense shall be apportioned in accordance with the terms of this Contract as though such expense had been incurred by the Company(ies). 
  

 8 

 In the event of the insolvency of one or more of the Companies reinsured, the reinsurance
under this Contract shall be payable by the Reinsurer directly to the Company(ies) or to the liquidator, receiver, conservator or statutory successor, except as provided by subsection (A) of section 4118 of the Insurance Law of New York or
except where (I) the Contract specifies another payee of such Reinsurance in the event of the insolvency of the Company(ies) and (II) the Reinsurer with the consent of the direct insureds and, with the prior approval of the Superintendent of
Insurance of New York to the certificate of assumption issued to New York direct insureds, has assumed such Policy obligations of the Company(ies) as its direct obligations to the payees under such Policies, in substitution for the obligations of
the Company(ies) to such payees. 
 ARTICLE XVIII 
 ARBITRATION: 
 If any dispute shall arise between the parties to this Contract, either before or after
its termination, with reference to the interpretation of this Contract or the rights of either party with respect to any transactions under this Contract, including the formation or validity thereof, the dispute shall be referred to three
(3) arbitrators as a condition precedent to any right of action arising under this Contract. The arbitrators shall be active or retired disinterested officers of insurance or reinsurance companies or Lloyd’s Underwriters other than the
parties or their affiliates. One arbitrator shall be chosen by each party and the third by the two so chosen. If either party refuses or neglects to appoint an arbitrator within thirty (30) days after the receipt of written notice from the
other party requesting it to do so, the requesting party may nominate two (2) arbitrators who shall choose the third. 
 In the event the arbitrators do not agree on the selection of the third arbitrator within thirty (30) days after both arbitrators have been named, the Company shall petition the American Arbitration Association to appoint the third
arbitrator. If the American Arbitration Association fails to appoint the third arbitrator within thirty (30) days after it has been requested to do so, either party may request a justice of a court of general jurisdiction of the state in which
the arbitration is to be held, to appoint an officer or retired officer of an insurance or reinsurance company or Lloyd’s Underwriter as the third arbitrator. In the event both parties request the appointment of the third arbitrator, the third
arbitrator shall be the soonest named in writing by the justice of the court. 
 Each party shall submit its case to the
arbitrators within thirty (30) days of the appointment of the arbitrators. The arbitrators shall consider this Contract an honorable engagement rather than merely a legal obligation; they are relieved of all judicial formalities and may abstain
from following the strict rules of law. The decision of a majority of the arbitrators shall be final and binding on both the Company and the Reinsurer. Judgment may be entered upon the award of the arbitrators in any court having jurisdiction.

 Each party shall bear the fee and expenses of its own arbitrator, one half of the fee and the expenses of the third
arbitrator and one half of the other expenses of the arbitration. In the event both arbitrators are chosen by one party, the fees of the arbitrators shall be equally divided between the parties. 
 Any such arbitration shall take place in Columbus, Ohio unless some other location is mutually agreed upon by the parties. 
  

 9 

 EXHIBIT A 
 State Automobile Mutual Insurance Company 
 Milbank Insurance Company 
 State Auto National Insurance Company 
 State Auto Insurance Company of Wisconsin 
 Farmers Casualty Insurance Company 
 State Auto Insurance Company of
Ohio 
 Meridian Security Insurance Company 
 Meridian
Citizens Mutual Insurance Company 
 State Auto Florida Insurance Company 
 PROPERTY CATASTROPHE OVERLYING EXCESS OF LOSS REINSURANCE CONTRACT 
 FOR THE PERIOD 
 12:01 A.M., EASTERN TIME, JULY 1, 2005 
 THROUGH 
 12:01 A.M., EASTERN TIME, JULY 1, 2006 
 PREMIUM CALCULATION

 Subject Premium Basis - July 1, 2004 through March 31, 2005 
  

																															
	Annual
Statement Line	  	Mutual	 	 	Milbank	 	 	National	 	 	SAIC of
Wisconsin	 	 	Farmers	 	 	SAIC of
Ohio	 	 	Meridian
Security	 	 	Meridian
Citizens
Mutual	 	 	State Auto
Florida	 	 	Total	 
	  1.0 @ 100%	  	23,431,452	 	 	725,979	 	 	0	 	 	187,732	 	 	350,355	 	 	961,974	 	 	2,825,997	 	 	513,605	 	 	301,411	 	 	29,298,505	 
	  2.1 @ 100%	  	14,362,274	 	 	478,650	 	 	0	 	 	104,969	 	 	293,172	 	 	577,083	 	 	1,235,435	 	 	2,630	 	 	628,263	 	 	17,682,476	 
	  3.0 @  65%	  	0	 	 	217,035	 	 	0	 	 	0	 	 	0	 	 	0	 	 	1,007,947	 	 	8,749,267	 	 	0	 	 	9,974,249	 
	  4.0 @  65%	  	35,936,171	 	 	8,877,812	 	 	0	 	 	4,035,990	 	 	1,279,863	 	 	570,576	 	 	4,665,008	 	 	0	 	 	0	 	 	55,365,421	 
	  5.0 @  50%	  	11,156,865	 	 	939,999	 	 	0	 	 	0	 	 	369,538	 	 	0	 	 	843,641	 	 	0	 	 	839,141	 	 	14,149,184	 
	  8.0 @  90%	  	236,267	 	 	875	 	 	0	 	 	469	 	 	1,123	 	 	162,362	 	 	29,573	 	 	0	 	 	0	 	 	430,668	 
	  9.0 @100%	  	9,416,302	 	 	856,202	 	 	0	 	 	380,414	 	 	93,429	 	 	78,014	 	 	624,473	 	 	90,076	 	 	124,931	 	 	11,663,841	 
	12.0 @100%	  	1,803,455	 	 	7,682	 	 	0	 	 	1,181	 	 	12,565	 	 	17,198	 	 	275,263	 	 	136,097	 	 	419	 	 	2,253,859	 
	  21.1 @  50%	  	26,700,718	 	 	7,620,398	 	 	6,493,753	 	 	4,035,609	 	 	2,923,499	 	 	578,875	 	 	2,987,421	 	 	(34	)	 	0	 	 	51,340,239	 
	  21.2 @  50%	  	6,023,854	 	 	183,777	 	 	0	 	 	0	 	 	57,154	 	 	0	 	 	388,678	 	 	378,743	 	 	25	 	 	7,032,230	 
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
		  	129,067,356	 	 	19,908,410	 	 	6,493,753	 	 	8,746,364	 	 	5,380,696	 	 	2,946,083	 	 	14,883,437	 	 	9,870,384	 	 	1,894,190	 	 	199,190,673	 
	Percent of Total	  	64.80	%	 	9.99	%	 	3.26	%	 	4.39	%	 	2.70	%	 	1.48	%	 	7.47	%	 	4.96	%	 	0.95	%	 	100.00	%
	Annual Premium	  	2,105,868	 	 	324,828	 	 	105,952	 	 	142,704	 	 	87,792	 	 	48,068	 	 	242,840	 	 	161,044	 	 	30,904	 	 	3,250,000	 
	Quarterly Installment	  	526,467	 	 	81,207	 	 	26,488	 	 	35,676	 	 	21,948	 	 	12,017	 	 	60,710	 	 	40,261	 	 	7,726	 	 	812,500	 

 WAR EXCLUSION CLAUSE 
 As regards interests which at time of loss or damage are on shore, no liability shall attach hereto in respect of any loss or damage which is occasioned by war, invasion, hostilities, acts of foreign enemies, civil
war, rebellion, insurrection, military or usurped power, or martial law or confiscation by order of any government or public authority. 
 This War Exclusion Clause shall not, however, apply to interests which at time of loss or damage are within the territorial limits of the United States of America (comprising the fifty States of the Union and the District of Columbia, its
territories and possessions, including the Commonwealth of Puerto Rico and including Bridges between the United States of America and Mexico provided they are under United States ownership), Canada, St. Pierre and Miquelon, provided such interests
are insured under policies, endorsements or binders containing a standard war or hostilities or warlike operations exclusion clause. 
 Nevertheless, this Clause shall not be construed to apply to loss or damage occasioned by riots, strikes, civil commotion, vandalism, and malicious damage. 

 POOLS, ASSOCIATIONS & SYNDICATES EXCLUSION CLAUSE 

SECTION A: 
 EXCLUDING: 
  

	 	(a)	 All Business derived directly or indirectly from any Pool, Association or Syndicate which maintains its own reinsurance facilities. 

 

	 	(b)	 Any Pool or Scheme (whether voluntary or mandatory) formed after March 1,1968 for the purpose of insuring Property whether on a country-wide basis or in
respect of designated areas. This exclusion shall not apply to so-called Automobile Insurance Plans or other Pools formed to provide coverage for Automobile Physical Damage. 

 SECTION B: 
 It is agreed that business written by the
Company for the same perils, which is known at the time to be insured by, or in excess of underlying amounts placed in the following Pools, Associations, or Syndicates, whether by way of insurance or reinsurance, is excluded hereunder: 

Industrial Risk Insurers, 
 Associated Factory Mutuals, 
 Improved Risk Mutuals, 
 Any Pool, Association or Syndicate formed for the purpose of writing Oil, Gas or Petro-Chemical Plants and/or Oil or Gas Drilling Rigs,

 United States Aircraft Insurance Group, 
 Canadian Aircraft Insurance Group, 
 Associated Aviation Underwriters,

 American Aviation Underwriters. 
 SECTION B does not apply: 
  

	 	(a)	 Where the Total Insured Value over all interests of the risk in question is less than $300,000,000. 

  

	 	(b)	 To interests traditionally underwritten as Inland Marine or Stock and/or Contents written on a Blanket basis. 

  

	 	(c)	 To Contingent Business Interruption, except when the Company is aware that the key location is known at the time to be insured in any Pool, Association or
Syndicate named above, other than as provided for under Section B (a). 

  

	 	(d)	 To risks as follows: 

 Offices, Hotels, Apartments, Hospitals, Educational Establishments, Public Utilities (other than Railroad Schedules) and Builder’s Risks on the classes of risks specified in this subsection (d) only. 
  

 Page 1 of 3 

 SECTION C: 
 NEVERTHELESS the Reinsurer specifically agrees that liability accruing to the Company from its participation in residual market mechanisms including but not limited to: 
  

	 	(1)	 The following so-called “Coastal Pools”: 

 ALABAMA INSURANCE UNDERWRITING ASSOCIATION 
 MISSISSIPPI WINDSTORM
UNDERWRITING ASSOCIATION 
 NORTH CAROLINA INSURANCE UNDERWRITING ASSOCIATION 
 SOUTH CAROLINA WINDSTORM AND HAIL UNDERWRITING ASSOCIATION 
 TEXAS WINDSTORM INSURANCE ASSOCIATION 
 AND 
  

	 	(2)	 All “FAIR Plan” and “Rural Risk Plan” business 

 AND 
  

	 	(3)	 The Louisiana Citizens Property Insurance Corporation, the Citizens Property Insurance Corporation (“CPIC”) and the California Earthquake Authority
(“CEA”) 

 for all perils otherwise protected hereunder shall not be excluded, except, however, that this
reinsurance does not include any increase in such liability resulting from: 
  

	 	(i)	 The inability of any other participant in such “Coastal Pool” and/or “FAIR Plan” and/or “Rural Risk Plan” and/or Residual Market
Mechanisms to meet its liability. 

  

	 	(ii)	 Any claim against such “Coastal Pool” and/or “FAIR Plan” and/or “Rural Risk Plan” and/or Residual Market Mechanisms, or any
participant therein, including the Company, whether by way of subrogation or otherwise, brought by or on behalf of any Insolvency Fund (as defined in the Insolvency Fund Exclusion Clause incorporated in this Contract). 

SECTION D: 
  

	 	(1)	 Notwithstanding Section C above, in respect of the CEA, where an assessment is made against the Company by the CEA, the Company may include in the Ultimate Net
Loss only that assessment directly attributable to each separate loss occurrence covered hereunder. The Company’s initial capital contribution to the CEA shall not be included in the Ultimate Net Loss. 

  

	 	(2)	 Notwithstanding Section C above, in respect of the CPIC, where an assessment is made against the Company by the CPIC, the maximum loss that the Company may
include in the Ultimate Net Loss in respect of any loss occurrence hereunder shall not exceed the lesser of: 

  

	 	a)	 The Company’s assessment from the CPIC for the accounting year in which the loss occurrence commenced, or 

  

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	 	b)	 The product of the following: 

  

	 	(i)	 The Company’s percentage participation in the CPIC for the accounting year in which the loss occurrence commenced; and 

  

	 	(ii)	 The CPIC’s total losses in such loss occurrence. 

 Any assessments for accounting years subsequent to that in which the loss occurrence commenced may not be included in the Ultimate Net Loss hereunder. Moreover, notwithstanding Section C above, in respect of the CPIC,
the Ultimate Net Loss hereunder shall not include any monies expended to purchase or retire bonds as a consequence of being a member of the CPIC. For the purposes of this Contract, the Company may not include in the Ultimate Net Loss any assessment
or any percentage assessment levied by the CPIC to meet the obligations of an insolvent insurer member or other party, or to meet any obligations arising from the deferment by the CPIC of the collection of monies. 
  

 Page 3 of 3 

 NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE - REINSURANCE - U.S.A. 
  

	1)	 This Agreement does not cover any loss or liability accruing to the Reinsured, directly or indirectly, and whether as Insurer or Reinsurer, from any Pool of
Insurers or Reinsurers formed for the purpose of covering Atomic or Nuclear Energy risks. 

  

	2)	 Without in any way restricting the operation of paragraph 1) of this Clause, this Agreement does not cover any loss or liability accruing to the Reinsured,
directly or indirectly, and whether as Insurer or Reinsurer, from any insurance against Physical Damage (including business interruption or consequential loss arising out of such Physical Damage) to: 

  

	 	I.	 Nuclear reactor power plants including all auxiliary property on the site, or 

  

	 	II.	 Any other nuclear reactor installation, including laboratories handling radioactive materials in connection with reactor installations, and “critical
facilities” as such, or 

  

	 	III.	 Installations for fabricating complete fuel elements or for processing substantial quantities of “special nuclear material,” and for reprocessing,
salvaging, chemically separating, storing or disposing of “spent” nuclear fuel or waste materials, or 

  

	 	IV.	 Installations other than those listed in paragraph 2) III above using substantial quantities of radioactive isotopes or other products of nuclear fission.

  

	3)	 Without in any way restricting the operations of paragraphs 1) and 2) hereof, this Agreement does not cover any loss or liability by radioactive contamination
accruing to the Reinsured, directly or indirectly, and whether as Insurer or Reinsurer, from any insurance on property which is on the same site as a nuclear reactor power plant or other nuclear installation and which normally would be insured
therewith except that this paragraph 3) shall not operate: 

  

	 	a)	 where the Reinsured does not have knowledge of such nuclear reactor power plant or nuclear installation, or 

  

	 	b)	 where said insurance contains a provision excluding coverage for damage to property caused by or resulting from radioactive contamination, however caused.
However, on and after 1st, January 1960 this sub-paragraph b) shall only apply provided the said radioactive
contamination exclusion provision has been approved by the Governmental Authority having jurisdiction thereof. 

  

	4)	 Without in any way restricting the operations of paragraphs 1), 2) and 3) hereof, this Agreement does not cover any loss or liability by radioactive
contamination accruing to the Reinsured, directly or indirectly, and whether as Insurer or Reinsurer, when such radioactive contamination is a named hazard specifically insured against. 

  

	5)	 It is understood and agreed that this Clause shall not extend to risks using radioactive isotopes in any form where the nuclear exposure is not considered by the
Reinsured to be the primary hazard. 

  

	6)	 The term “special nuclear material” shall have the meaning given it in the Atomic Energy Act of 1954, or by any law amendatory thereof.

  

	7)	 Reinsured to be sole judge of what constitutes: 

  

	 	a)	 substantial quantities, and 

  

	 	b)	 the extent of installation, plant or site. 

 NOTE: Without in any way restricting the operation of paragraph 1) hereof, it is understood and agreed that: 
  

	 	a)	 all policies issued by the Reinsured on or before 31st, December 1957, shall be free from the application of the other provision of this Clause until expiry date or 31st, December 1960, whichever first occurs whereupon all the provisions of this Clause shall apply, 

  

	 	b)	 with respect to any risk located in Canada policies issued by the Reinsured on or before 31st, December 1958, shall be free from the application of the other provisions of this Clause until expiry date or 31sl, December 1960, whichever first occurs whereupon all the provisions of this Clause shall apply. 

 NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE - REINSURANCE - CANADA 
  

	1)	 This Agreement does not cover any loss or liability accruing to the Reinsured, directly or indirectly, and whether as Insurer or Reinsurer, from any Pool of
Insurers or Reinsurers formed for the purpose of covering Atomic or Nuclear Energy risks. 

  

	2)	 Without in any way restricting the operation of paragraph 1) of this Clause, this Agreement does not cover any loss or liability accruing to the Reinsured,
directly or indirectly, and whether as Insurer or Reinsurer, from any insurance against Physical Damage (including business interruption or consequential loss arising out of such Physical Damage) to: 

  

	 	(a)	 Nuclear reactor power plants including all auxiliary property on the site, or 

  

	 	(b)	 Any other nuclear reactor installation, including laboratories handling radioactive materials in connection with reactor installations, and critical facilities
as such, or 

  

	 	(c)	 Installations for fabricating complete fuel elements or for processing substantial quantities of prescribed substances, and for reprocessing, salvaging,
chemically separating, storing or disposing of spent nuclear fuel or waste materials, or 

  

	 	(d)	 Installations other than those listed in (c) above using substantial quantities of radioactive isotopes or other products of nuclear fission.

  

	3)	 Without in any way restricting the operations of paragraphs 1) and 2) of this Clause, this Agreement does not cover any loss or liability by radioactive
contamination accruing to the Reinsured, directly or indirectly, and whether as Insurer or Reinsurer, from any insurance on property which is on the same site as a nuclear reactor power plant or other nuclear installation and which normally would be
insured therewith, except that this paragraph 3) shall not operate: 

  

	 	(a)	 where the Reinsured does not have knowledge of such nuclear reactor power plant or nuclear installation, or 

  

	 	(b)	 where said insurance contains a provision excluding coverage for damage to property caused by or resulting from radioactive contamination, however caused.

  

	4)	 Without in any way restricting the operations of paragraphs 1), 2) and 3) of this Clause, this Agreement does not cover any loss or liability by radioactive
contamination accruing to the Reinsured, directly or indirectly, and whether as Insurer or Reinsurer, when such radioactive contamination is a named hazard specifically insured against. 

  

	5)	 This Clause shall not extend to risks using radioactive isotopes in any form where the nuclear exposure is not considered by the Reinsured to be the primary
hazard. 

  

	6)	 The term “radioactive material” means uranium, thorium, plutonium, neptunium, their derivatives and compounds, radioactive isotopes of other elements
and any other substances which may be designated by or pursuant to any law, act or statute, or any law amendatory thereof as being prescribed substances capable of releasing atomic energy, or as being requisite for the production, use or application
of atomic energy. 

  

	7)	 Reinsured to be sole judge of what constitutes: 

  

	 	a)	 substantial quantities, and 

  

	 	b)	 the extent of installation, plant or site. 

  

	8)	 Without in any way restricting the operation of paragraphs 1), 2), 3) and 4) of this Clause, this Agreement does not cover any loss or liability accruing to the
Reinsured, directly or indirectly, and whether as Insurer or Reinsurer caused: 

  

	 	a)	 by any nuclear incident as defined by The Nuclear Liability Act or any other nuclear liability act, law or statute, or any law amendatory thereof or nuclear
explosion, except for ensuing loss or damage which results directly from fire, lightning or explosion of natural, coal or manufactured gas; 

  

	 	b)	 by contamination by radioactive material. 

 NOTE: Without in any way restricting the operation of paragraphs 1), 2), 3) and 4) of this Clause, paragraph 8) of this Clause shall only apply to all original contracts of the Reinsured whether new, renewal or replacement which become
effective on or after December 31, 1992. 

 INTERESTS AND LIABILITIES AGREEMENT 
 between 
 STATE AUTOMOBILE MUTUAL INSURANCE COMPANY 
 MILBANK INSURANCE COMPANY 
 STATE AUTO NATIONAL INSURANCE
COMPANY 
 STATE AUTO INSURANCE COMPANY OF WISCONSIN 
 FARMERS CASUALTY INSURANCE COMPANY 
 STATE AUTO INSURANCE COMPANY OF OHIO 
 MERIDIAN SECURITY INSURANCE COMPANY 
 MERIDIAN CITIZENS MUTUAL INSURANCE COMPANY 
 STATE AUTO FLORIDA INSURANCE COMPANY 
 (the
“Company”) 
 and 
 STATE AUTO
PROPERTY AND CASUALTY INSURANCE COMPANY 
 (the Subscribing “Reinsurer”) 
 It is hereby mutually agreed by and between the Company on the one part, and the Subscribing Reinsurer on the other part that effective July 1, 2005, the Subscribing Reinsurer’s share
of the Interests and Liabilities of the PROPERTY CATASTROPHE OVERLYING EXCESS OF LOSS REINSURANCE CONTRACT attached hereto and forming part of this Agreement, shall be for one hundred percent (100%). 
 IN WITNESS WHEREOF, the parties hereto by their authorized representative have executed this Agreement as of the date specified below: 
 Signed in Columbus, Ohio this 30th day of June, 2005. 
  

			
	STATE AUTO PROPERTY AND CASUALTY INSURANCE COMPANY
		
	By	 	 /s/ John R. Lowther

		 	 John R. Lowther

	 Title
	 	 Senior Vice President, Secretary and General Counsel

  

 Page 1 of 2 

 Signed in Columbus, Ohio this 30th day of June, 2005. 
 STATE AUTOMOBILE MUTUAL INSURANCE COMPANY

 MILBANK INSURANCE COMPANY 
 STATE AUTO NATIONAL INSURANCE COMPANY

 STATE AUTO INSURANCE COMPANY OF WISCONSIN 
 FARMERS CASUALTY
INSURANCE COMPANY 
 STATE AUTO INSURANCE COMPANY OF OHIO 
 MERIDIAN
SECURITY INSURANCE COMPANY 
 MERIDIAN CITIZENS MUTUAL INSURANCE COMPANY 
 STATE AUTO FLORIDA INSURANCE COMPANY 

			
		
	By	 	 /s/ John R. Lowther

		 	 John R. Lowther

	 Title
	 	 Senior Vice President and General Counsel

  

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