Document:

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                                                                   EXIBIT 10(EE)

                                 THIRD AMENDMENT
                                       TO
                        STATE AUTO FINANCIAL CORPORATION
                        2000 DIRECTORS STOCK OPTION PLAN

The State Auto Financial Corporation 2000 Directors Stock Option Plan (the
"Plan") is hereby amended in the following particulars:

     1.   The first paragraph of Section 1 Purpose; Definitions is hereby
          deleted in its entirety and replaced by the following:

               The 2000 Directors Stock Option Plan (the "Plan") of State Auto
               Financial Corporation, an Ohio corporation (the "Company"), is
               intended to encourage directors of the Company who are not
               full-time employees of the Company, its Subsidiaries or its
               Parent corporation to acquire or increase and retain a financial
               interest in the Company and to strengthen the mutuality of
               interests between such directors and the Company's shareholders
               by offering such directors options to purchase Common Shares of
               the Company.

     2.   Section 3. Stock Options. Subsection (a) Grant and Eligibility is
          hereby deleted in its entirety and replaced by the following:

          (a)  Grant and Eligibility. All directors of the Company who are not
               full-time employees of the Company or its Parent or Subsidiary
               corporations and who are in compliance with the Company's stock
               ownership guidelines as applicable to such directors are eligible
               to be granted Awards under the Plan. Promptly following each
               annual meeting of the shareholders of the Company on or after the
               effective date of the Plan, each person who is then a director of
               the Company and not a full-time employee of the Company or its
               Parent or Subsidiary corporations shall be granted an Option to
               purchase 1,500 shares of Stock.

     3.   The effective date of this Third Amendment is March 1, 2002 and this
          Third Amendment shall be deemed to be a part of the Plan as of such
          date. In the event of any inconsistencies between the provisions of
          the Plan and this Third Amendment, the provisions of this Third
          Amendment shall control. Except as modified by the Third Amendment,
          the Second Amendment and the First Amendment, the Plan shall continue
          in full force and effect.

The Third Amendment was approved and adopted by the Board of Directors of State
Auto Financial Corporation on March 1, 2002.<PAGE>
                                                                  EXHIBIT 10(FF)

                             THIRD AMENDMENT TO THE
                          REINSURANCE POOLING AGREEMENT
                           AMENDED AND RESTATED AS OF
                                 JANUARY 1, 2000

This Third Amendment (this "Third Amendment") to the Reinsurance Pooling
Agreement, Amended and Restated as of January 1, 2000 as heretofore amended (the
"2000 Pooling Agreement") by and among State Automobile Mutual Insurance Company
("State Auto Mutual"), State Auto Property and Casualty Insurance Company
("State Auto P&C"), Milbank Insurance Company ("Milbank"), Midwest Security
Insurance Company ("Midwest"), Farmers Casualty Insurance Company ("Farmers
Casualty") and State Auto Insurance Company ("State Auto IC") (collectively, the
"Pooled Companies") is made this 24th day of October 2001, but is effective as
of 12:01 am Columbus, Ohio time October 1, 2001.

                             BACKGROUND INFORMATION
                             ----------------------

Meridian Mutual Insurance Company ("Meridian Mutual") entered into an Agreement
to Merge dated October 25, 2000, (the "Merger Agreement") with State Auto Mutual
pursuant to which Meridian Mutual merged with and into State Auto Mutual, with
State Auto Mutual being the surviving corporation resulting from the merger (the
"Merger").

The Merger was effective June 1, 2001 and it affected the business operations of
the parties to the 2000 Pooling Agreement as of July 1, 2001, as a result of the
Second Amendment thereto.

The purpose of this Third Amendment is to amend the Respective Percentage (as
defined in the 2000 Pooling Agreement) of certain parties to the 2000 Pooling
Agreement and to amend the definitions of "Net Liabilities" and "Net Premiums"
therein.

                             STATEMENT OF AGREEMENT
                             ----------------------

       In consideration of the mutual covenants set forth herein and INTENDING
TO BE LEGALLY BOUND HEREBY, the Pooled Companies agree to amend the 2000 Pooling
Agreement as follows:

       1. Capitalized terms used in this Third Amendment (including the
          Background Information) which are not otherwise defined herein shall
          be defined as in the 2000 Pooling Agreement, and those definitions
          shall apply in this Third Amendment.

       2. Section 1 a. of the 2000 Pooling Agreement is hereby amended by the
          addition of the following:

          It is understood and agreed that "Net Liabilities" excludes any
          amounts received or receivable under that certain Stop Loss
          Reinsurance Agreement dated October 1, 2001 among State Auto Mutual,
          State Auto P&C, Farmers Casualty, Milbank, and State Auto IC (the
          "Stop Loss Agreement") from any party to the Stop Loss Agreement.

                                       1
<PAGE>

       3. Section 1 b. of the 2000 Pooling Agreement is hereby amended by the
          addition of the following:

          "Net Premiums" excludes any amounts received or receivable under the
          Stop Loss Agreement by any party to the Stop Loss Agreement.

       4. Section 1c. of the 2000 Pooling Agreement is hereby amended in its
          entirety to read as follows:

                "Respective Percentage" shall be
                      As to State Auto IC         1%
                      As to Farmers Casualty      3%
                      As to Midwest Security      1%
                      As to Milbank              17%
                      As to State Auto P&C       59%
                      As to State Auto Mutual    19%

       5. The Third Amendment is effective as of 12:01 am Columbus, Ohio time
          October 1, 2001, provided that Amendment No. 2 to the Management and
          Operations Agreement dated January 1, 2000 by and among the parties
          hereto, and the Stop Loss Agreement has become effective concurrently
          with the effective date and time of this Third Amendment. If such
          Amendment No. 2 or the Stop Loss Agreement does not become
          concurrently effective as of October 1, 2001 at 12:01 am, Columbus,
          Ohio time, then this Third Amendment shall be deemed null and void and
          shall not be deemed to have amended the 2000 Pooling Agreement in any
          manner whatsoever. This Third Amendment shall terminate when the 2000
          Pooling Agreement terminates, absent the earlier termination hereof by
          the written consent of all parties hereto.

       Except as expressly amended hereby, the 2000 Pooling Agreement shall
continue in full force and effect for the balance of the term thereof.

       IN WITNESS WHEREOF, by their signatures hereon the parties hereto hereby
agree to the foregoing Third Amendment as of the foregoing effective date and
time.

State Automobile Mutual Insurance Company

By: /s/ Steven J. Johnston
    ----------------------------------------------
    Steven J. Johnston, Senior Vice President

State Auto Property and Casualty Insurance Company

By: /s/ Steven J. Johnston
    ----------------------------------------------
    Steven J. Johnston, Senior Vice President

Milbank Insurance Company

                                       2
<PAGE>

By: /s/ Steven J. Johnston
    ----------------------------------------------
    Steven J. Johnston, Senior Vice President

Midwest Security Insurance Company

By: /s/ Steven J. Johnston
    ----------------------------------------------
    Steven J. Johnston, Senior Vice President

Farmers Casualty Insurance Company

By: /s/ Steven J. Johnston
    ----------------------------------------------
    Steven J. Johnston, Senior Vice President

State Auto Insurance Company

By: /s/ Steven J. Johnston
    ----------------------------------------------
    Steven J. Johnston, Senior Vice President

                                       3<PAGE>
                                                                  EXHIBIT 10(GG)

                         STOP LOSS REINSURANCE AGREEMENT
                         -------------------------------
                  (HEREINAFTER REFERRED TO AS THE "AGREEMENT")

                                     BETWEEN

               STATE AUTO PROPERTY AND CASUALTY INSURANCE COMPANY
                            MILBANK INSURANCE COMPANY
                       FARMERS CASUALTY INSURANCE COMPANY
                                       AND
                          STATE AUTO INSURANCE COMPANY

             (HEREINAFTER COLLECTIVELY REFERRED TO AS THE "COMPANY")

                                       AND

                    STATE AUTOMOBILE MUTUAL INSURANCE COMPANY
            (HEREINAFTER COLLECTIVELY REFERRED TO AS THE "REINSURER")

                                  PAGE 1 OF 10
<PAGE>

                                    ARTICLE I
                                    ---------

BUSINESS COVERED:
-----------------

            The Reinsurer shall indemnify the Company for the amounts incurred
            by the Company as set forth in the Reinsuring Clause under any and
            all policies, contracts, binders and other evidence of insurance and
            reinsurance, oral or written (hereinafter referred to as "Policies")
            that are in force as of the inception date hereof or issued or
            renewed thereafter by the Company. However, the reinsurance provided
            herein shall apply only to the net business written by the Company
            which is reinsured through the Reinsurance Pooling Agreement amended
            and restated as of January 1, 2000, and as may be amended from time
            to time (the "State Auto Pooling Agreement"), among the foregoing
            insurers and State Automobile Mutual Insurance Company ("State Auto
            Mutual" or the Reinsurer) and Midwest Security Insurance Company
            ("Midwest Security"). The business written by State Auto Mutual,
            Midwest Security and the Company that is reinsured under the State
            Auto Pooling Agreement is sometimes hereafter referred to as the
            "State Auto Pooled Business".

                                   ARTICLE II
                                   ----------

EXCLUSIONS:
-----------

            This Agreement shall not reinsure the Company's liability from any
            of the following:

            1. Insolvency Fund Exclusion Clause (see Exhibit A attached and
               incorporated).

            2. War Risk Exclusion Clause (see Exhibit B attached and
               incorporated).

            3. Nuclear Incident Exclusion Clauses - Physical Damage -
               Reinsurance - U.S.A. and Canada (see Exhibits C and D attached
               and incorporated).

                                   ARTICLE III
                                   -----------

TERM:
-----

            The term of this Agreement commences at 12:01 a.m. Eastern Time,
            October 1, 2001 and shall expire at 12:01 a.m. Eastern Time,
            January 1, 2004.

                                  PAGE 2 OF 10
<PAGE>

                                   ARTICLE IV
                                   ----------

REINSURING CLAUSE:
------------------

            In the event the Incurred Loss Ratio (as defined below) of the State
            Auto Pooled Business in the calendar quarter during the term of this
            Agreement for which the computation is being made exceeds 70.75%,
            after the application of the State Auto Pooling Agreement and any
            other applicable reinsurance, that amount in excess of 70.75%
            multiplied by Earned Premium shall be deemed a Net Underwriting Loss
            for the State Auto Pooled Business, for such calendar quarter. In
            the event of a Net Underwriting Loss for the State Auto Pooled
            Business, then the Reinsurer shall be obligated to pay to the
            Company an amount equal to 27% of the Net Underwriting Loss.
            Notwithstanding the foregoing, the Reinsurer's obligation ceases
            when the Incurred Loss Ratio of the State Auto Pooled Business,
            after the application of the State Auto Pooling Agreement and any
            other applicable reinsurance, exceeds 80% for the calendar quarter
            for which the computation is being made and in such case, the
            Reinsurer's payment obligation shall be limited to 27% of the Net
            Underwriting Loss which would have resulted if the Incurred Loss
            Ratio of the State Auto Pooled Business for such calendar quarter
            had been 80%.

            It is understood and agreed that the Incurred Loss Ratio means the
            figure resulting from the following calculation: paid losses plus
            paid loss adjustment expense of every kind and nature, plus
            (outstanding losses at the end of the calendar quarter minus
            outstanding losses at the beginning of the calendar quarter) divided
            by Earned Premium during that calendar quarter. It is further
            understood and agreed that outstanding losses, as used above, means
            all case and IBNR Bulk Reserves relating to the State Auto Pooled
            Business. It is understood and agreed that Earned Premium means
            written premium plus (unearned premium at the beginning of the
            calendar quarter minus unearned premium at the end of the quarter).

                                    ARTICLE V
                                    ---------

CLAW BACK PROVISION:
--------------------

            In the event the Incurred Loss Ratio for the State Auto Pooled
            Business in the calendar quarter during the term of this Agreement
            for which the computation is being made is less than 69.25%, after
            the application of the State Auto Pooling Agreement and any other
            applicable reinsurance, that amount less than 69.25% multiplied by
            Earned Premium shall be deemed a Net Underwriting Gain for such
            calendar quarter. In the event of a Net Underwriting Gain, the
            Company shall be obligated to pay to the Reinsurer an amount equal
            to 27% of the Net Underwriting Gain. Notwithstanding the foregoing,
            the Company's obligation to pay the Reinsurer

                                  PAGE 3 OF 10
<PAGE>

            ceases when the Incurred Loss Ratio of the State Auto Pooled
            Business, after the application of the State Auto Pooling Agreement
            and any other applicable reinsurance, is less than 60% for the
            calendar quarter for which the computation is being made and in such
            case the Company's payment obligation shall be limited to 27% of the
            Net Underwriting Gain which would have resulted if the Incurred Loss
            Ratio for the State Auto Pooled Business for such calendar quarter
            had been 60%.

                                   ARTICLE VI
                                   ----------

NET RETAINED LINES:
-------------------

            This Agreement applies to only that portion of any Policy which the
            Company retains net for its own account and in calculating the
            amount of any loss hereunder. In computing the amount or amounts in
            excess of which this Agreement attaches, only loss or losses in
            respect of that portion of any Policy which the Company retains net
            for its own account shall be included.

            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 VII
                                   -----------

REPORTS AND REMITTANCES
-----------------------

            Company shall provide the Reinsurer with all necessary data
            respecting premiums and losses, including reserves thereon, on forms
            mutually acceptable to the Company and the Reinsurer.

            Within 30 days following the end of each calendar quarter, the
            Company shall provide the Reinsurer with detailed report showing the
            amount of each of the following, for the calendar quarter.

            1. Incurred Loss Ratio for the State Auto Pooled Business, after the
               application of the State Auto Pooling Agreement and any other
               applicable reinsurance.

            2. Calculation of the Net Underwriting Loss or the Net Underwriting
               Gain, as the case may be.

                                  PAGE 4 OF 10
<PAGE>

            3. Computation of amounts due to or from the Reinsurer as per
               Article IV and Article V of this Agreement.

            The debtor party shall pay amounts due from the account within 15
            days after receipt of the account. State Auto Property and Casualty
            Insurance Company shall apportion among the Company in accordance
            with each such company's Respective Percentage (as defined in the
            State Auto Pooling Agreement) the amounts paid to the Company by the
            Reinsurer or paid by the Company to the Reinsurer.

                                  ARTICLE VIII
                                  ------------

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 Agreement; 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.

                                   ARTICLE IX
                                   ----------

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
            Agreement and thereafter, all books, records and papers of the
            Company in connection with any reinsurance hereunder, or the subject
            matter hereof.

                                    ARTICLE X
                                    ---------

ERRORS ANDS 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 XI
                                   ----------

                                  PAGE 5 OF 10
<PAGE>

TAXES:
------

            In consideration of the terms under which this Agreement is issued,
            the Company undertakes not to claim any deduction of the premium
            hereon when making Canadian tax returns, or when making tax returns,
            other than income or profits tax returns, to any state or territory
            of the United States of America or to the District of Columbia.

                                   ARTICLE XII
                                   -----------

INSOLVENCY:
-----------

            The reinsurance under this Agreement 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
            Agreement as though such expense had been incurred by the
            Company(ies).

            In the event of the insolvency of one or more of the Companies
            reinsured, the reinsurance under this Agreement 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 Agreement specifies another payee of such
            Reinsurance in the

                                  PAGE 6 OF 10
<PAGE>

            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 XIII
                                  ------------

ARBITRATION:
------------

            If any irreconcilable differences shall arise between the parties to
            this Agreement, either before or after its termination, with
            reference to the interpretation of this Agreement or the rights of
            either party with respect to any transactions under this Agreement,
            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 Agreement. 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 Agreement 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.

                                  PAGE 7 OF 10
<PAGE>

            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.

                                   ARTICLE XIV
                                   -----------

GOVERNING LAW:
--------------

            This Agreement shall be governed as to performance, administration
            and interpretation by the laws of the State of Ohio, exclusive of
            the rules with respect to conflicts of law.

                                   ARTICLE XV
                                   ----------

SEVERABILITY
------------

            If any provision of this Agreement should be invalid under
            applicable laws, the latter shall control but only to the extent of
            the conflict without affecting the remaining provisions of this
            Agreement.

                                   ARTICLE XVI
                                   -----------

CONDITIONS PRECEDENT
--------------------

                  This Agreement shall be deemed effective as of October 1, 2001
            upon receipt (or deemed receipt) of all necessary regulatory
            approvals, the approval of the Special Independent Committee of the
            Board of Directors of State Auto Mutual and the approval of the
            Special Independent Committee of the Board of Directors of State
            Auto Financial Corporation and the effectiveness (including the
            receipt or deemed receipt of any required regulatory approvals) of
            the Third Amendment to the State Auto Pooling Agreement and
            Amendment No. 2 to the Management and Operations Agreement dated
            January 1, 2000. Unless and until all such regulatory approvals are
            received or deemed received, this Agreement shall not bind the
            parties hereto. If such Amendment No. 2 or the Third Amendment does
            not become concurrently effective

                                  PAGE 8 OF 10
<PAGE>

            as of October 1, 2001 at 12:00 am, Columbus, Ohio time, then this
            Agreement shall be deemed null and void.

            In Witness Whereof, by their signatures hereon, the parties hereto
            do hereby confirm their agreement to the foregoing.

                     STATE AUTOMOBILE MUTUAL INSURANCE COMPANY

                     By: /s/ Robert H. Moone
                         -------------------------------------------------------
                         Robert H. Moone, President

                     STATE AUTO PROPERTY AND CASUALTY INSURANCE COMPANY

                     By: /s/ Robert H. Moone
                         -------------------------------------------------------
                         Robert H. Moone, President

                     STATE AUTO INSURANCE COMPANY

                     By: /s/ Robert H. Moone
                         -------------------------------------------------------
                         Robert H. Moone, President

                     MILBANK INSURANCE COMPANY

                     By: /s/ Robert H. Moone
                         -------------------------------------------------------
                         Robert H. Moone, President

                     FARMERS CASUALTY INSURANCE COMPANY

                     By  /s/ Robert H. Moone
                         -------------------------------------------------------
                         Robert H. Moone, Chairman

                                  PAGE 9 OF 10

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