Document:

Insurance Company Member Addendum to Blanket Security Agreement

 Exhibit 10.03 
 FEDERAL HOME LOAN BANK OF CINCINNATI 
 Insurance Company Member
Addendum to 
 Blanket Security Agreement 

Cincinnati, Ohio 

February 15, 2013 
 State Auto Property & Casualty Insurance Company, the principal place of business of which is located at 518 East Broad St., Columbus, Ohio 43215 (hereinafter called the “Insurance
Company”), in consideration of advances or other financial accommodations heretofore or at anytime hereafter made or granted to Insurance Company and any affiliate of Insurance Company by the FEDERAL HOME LOAN BANK OF CINCINNATI (hereinafter
called the “Bank”) and the Bank hereby enter into this Insurance Company Member Addendum (the “Addendum”) in order to supplement that certain Blanket Security Agreement (the “Blanket Agreement”) between Insurance
Company and the Bank dated February 15, 2013. In the Blanket Agreement, the term “Borrower” refers to Insurance Company. 
 1. DEFINITIONS. Each term used in this Addendum and not defined in this Addendum shall have the meaning ascribed to it in the Blanket Agreement. 

2. WARRANTIES AND FURTHER COVENANTS. 
 (a) Insurance Company and Bank acknowledge and agree that neither of them intend any of the Obligations (including any obligation of Insurance Company to Bank to repay any advances or interest accrued on
them, as the same may be evidenced by a funding agreement issued by Insurance Company to Bank) to constitute an advance that Section 3901.72, Ohio Revised Code (i) requires the Ohio Superintendent of Insurance to approve and
(ii) limits the liability of Insurance Company to repay. Instead, the Obligations include only Insurance Company’s obligation to repay advances that laws other than Section 3901.72, Ohio Revised Code permit Insurance Company to obtain
and agree to repay with interest. 
 (b) Without limitation of the representations and warranties in the Blanket Agreement,
Insurance Company represents and warrants to Bank that none of the secured property does or will consist of any assets or items of property that at any time Insurance Company held or holds in a “separate account,” as that term is used in
Section 3907.15, Ohio Revised Code. 

 (c) Insurance Company and Bank acknowledge and agree that: (i) the relationship between
them is that of the obtainer and the maker of an advance that the Act authorizes Bank to make to Insurance Company; (iii) Insurance Company is obliged as an Obligation to repay each such advance with interest as provided in the Credit Policy
and in each Funding Agreement that Insurance Company may issue from time to time and that Bank may accept; (iii) each such Funding Agreement shall evidence Insurance Company’s Obligation to repay the applicable advance with interest in
accordance with the Credit Policy; and (iv) neither Insurance Company nor Bank intend that such relationship be characterized as any different sort of relationship with the purpose or effect of impairing Insurance Company’s liability for
the performance of any of its Obligations or the Bank’s remedies against Insurance Company or the secured property in the event of the nonperformance of any of the Obligations when due. 

3. DURATION. The term of this Addendum shall commence with the date hereof and end on the termination date of the
Blanket Agreement. 
 4. NOTICE. Any written notice, approval, or direction provided for in this
Addendum is to be given by the parties as provided in the Blanket Agreement. 
 5. GENERAL. All
rights and liabilities hereunder shall be governed and limited by and construed in accordance with the Act and the laws of the State of Ohio (except that matters related to eligibility for advances and the rate of interest assessed by the Bank on
advances or other Obligations shall be governed solely by the Act). This Addendum shall inure to the benefit of and bind the Bank and Insurance Company and their respective successors and assigns. Any provision hereof which may prove limited or
unenforceable under any laws or judicial rulings shall not affect the validity or enforcement of the remainder of the provision or of any other provision. 
 IN WITNESS WHEREOF, Insurance Company and the Bank have caused the respective duly authorized representatives of each to execute this Addendum, effective as of the date first written above. 

FEDERAL HOME LOAN BANK 
 OF CINCINNATI

  

			
	By:	 	 /s/ R. Kyle Lawler

			
	Printed name:	 	 R. Kyle Lawler

			
	Title:	 	 EVP

		
	By:	 	 /s/ David Eastland

			
	Printed name:	 	 David Eastland

			
	Title:	 	 Vice President

  
 2 

 Witnesses to Signature of 
 Insurance Company’s Officers: 
 Signed and acknowledged in the presence of: 

 

	
	/s/ Carolyn A.
Turner                                        

	Printed name: Carolyn A. Turner
	
	/s/Jane A.
Kopp                                         
   
	 Printed name: Jane A. Kopp

 Insurance Company: State Auto Property & Casualty Insurance Company 

(Name of Insurance Company) 
  

	
	By: /s/ Steven E.
English                            
	 [Signature of Officer Authorized by Insurance Company’s Board

to Execute This Agreement]

 Steven E. English, Vice President & CFO 
 Type Name of such Authorized Officer and Title 
 And 

 

	
	By: /s/ James A. Yano
	 [Signature of Officer Authorized By Insurance Company’s Board

to Execute This Agreement]

 James A. Yano, Vice President, Secretary & General Counsel 

Type Name of such Authorized Officer and Title 

  
 3 

					
	STATE OF Ohio	  	)	  	
		  	 ) SS:
	  	
	 COUNTY OF Franklin
	  	 )
	  	

 On this February 18, 2013, before me appeared Steven E. English, to me personally known, who being
by me duly sworn, did say that he or she is VP, CFO of the above-named Insurance Company, a corporation; that the seal affixed to the foregoing instrument is the seal of said corporation; that said instrument was signed and sealed on behalf of said
corporation by authority of its Board of Directors; and such VP/CFO acknowledged said instrument to be the free act and deed of said corporation and his or her free act and deed as such officer, for the uses and purposes in said instrument
mentioned. 
 My commission expires 10-26-14 
  

					
	

	  	 /s/ Susan E.
Barrett                                        

 Notary Public, Franklin

County, State of Ohio

	  		  	
	[IMPRESS NOTARY SEAL HERE]	  		  	

  

					
	STATE OF Ohio	  	)	  	
		  	 ) SS:
	  	
	 COUNTY OF Franklin
	  	 )
	  	

 On this February 18, 2013, before me appeared James A. Yano, to me personally known, who being by me
duly sworn, did say that he or she is General Counsel of the above-named Insurance Company, a corporation; that the seal affixed to the foregoing instrument is the seal of said corporation; that said instrument was signed and sealed on behalf of
said corporation by authority of its Board of Directors; and such VP, General Counsel acknowledged said instrument to be the free act and deed of said corporation and his or her free act and deed as such officer, for the uses and purposes in said
instrument mentioned. 
 My commission expires 10-26-14 
  

					
	

	  	 /s/ Susan E.
Barrett                                        
    
 Notary Public, Franklin
 County, State of Ohio

	  		  	

 [IMPRESS NOTARY SEAL HERE] 

  
 4Application for Callable Advance

 Exhibit 10.04 

 

							
		 	 APPLICATION FOR CALLABLE ADVANCE
	 		  	
		 		 	For FHLB use only	  	 
		 	FEDERAL HOME LOAN BANK OF CINCINNATI	 	Commitment #
                                     
		 	P. O. BOX 598	 	Commencement
                                  
		 	CINCINNATI, OHIO 45201	 	Expiration
                                        
     
		 	Credit Operations fax: 513-852-5747	 	Rate
                                        
                 
		 		 	 

 D.D.A. # 389001              Date July 10, 2013

 Pursuant to the BLANKET AGREEMENT FOR ADVANCES AND SECURITY AGREEMENT (“Agreement”) and the RESOLUTION FOR ADVANCES
(“Resolution”) currently on file with the Federal Home Loan Bank of Cincinnati, the undersigned, who by the authority of the Member’s Board of Directors are authorized to borrow from time to time under the “Agreement”,
hereby apply for a Callable Advance for $85,000,000.00 under the following terms and conditions.  
 PROVIDED, however, that if the
Member is in default under the terms of the “Agreement” or any other agreement with the Bank, which default is not waived by the Bank, such funds need not be made available by the Bank hereunder. In addition, the Bank will not be obligated
to fund commitments for advances previously made to Members who become tangible capital insolvent or if the Bank is notified by the Members primary federal regulator or insurer that the Member has been restricted from using Federal
Home Loan Bank advances. 
 FUNDING OPTIONS. No fee, guaranteed rate, total amount of application to be disbursed. (Mandatory takedown
if next or skip business day.) 
  

	 ̈	SAME DAY FUNDING x NEXT DAY FUNDING
 ̈ SKIP DAY FUNDING 

  

	 ̈	COMMITMENT OPTION 1: GUARANTEE FUNDS ONLY, OPTIONAL TAKEDOWN: No fee charged for a 90 day commitment. The Bank will offer extended commitment
periods from 91 days to 365 days for a flat fee of 10 basis points based on the commitment amount and payable on the date of commitment. 

  

	 ̈	COMMITMENT OPTION 2: GUARANTEE FUNDS AND RATE, MANDATORY TAKEDOWN (FLAT FEE): The fee will be 2.0 percent of the advance commitment amount for a
365 day period. The fee will be charged at the time of takedown of funds and prorated for the actual number of days that the commitment was outstanding. Funds will be automatically credited to the member’s DDA on the last day of the commitment
if not drawn prior to that date. 

  

	 ̈	COMMITMENT OPTION 3: GUARANTEE FUNDS AND RATE, MANDATORY TAKEDOWN (FORMULA BASED FEE): The fee is payable at the time of commitment and is
non-refundable if the funds are drawn down prior to the expiration of the commitment. Funds will be automatically credited to the member’s DDA on the last day of the commitment if not drawn prior to that date. The fee is calculated using the
following:  

 Fee = Advance Amount * (Advance rate for term closest to, but greater than, or
equal to, the advance term plus commitment period— FHLB Deposit Rate for Term of Commitment) * (Commitment Term/365) ***Minimum Fee of $25.00***
                     Commitment Expiration Date
                    . 
 COMMITMENTS
REQUESTED UNDER OPTIONS 2 AND 3 HAVE A MAXIMUM COMMITMENT AMOUNT OF $5.0 MILLION AND A LIMIT OF $10.0 MILLION IN AGGREGATE COMMITMENTS OUTSTANDING AT ANY ONE TIME. OPTION 4 BELOW, WILL BE APPLIED TO INDIVIDUAL COMMITMENTS GREATER THAN $5.0 MILLION
OR AGGREGATE GFR ADVANCE COMMITMENTS TO ANY ONE MEMBER IN EXCESS OF $10.0 MILLION. CERTAIN ADVANCE STRUCTURES MAY NOT BE AVAILABLE UNDER THE MARKET FEE OPTION. IN SUCH A SITUATION, FUNDING WILL ONLY BE AVAILABLE FOR THOSE PROGRAMS UNDER IMMEDIATE
FUNDING (SAME/NEXT/SKIP). 
  

	 ̈	COMMITMENT OPTION 4: GUARANTEE FUNDS AND RATE, MANDATORY TAKEDOWN (MARKET FEE): The fees charged for the commitments are based upon the cost in the
open market of an option of similar term and strike price of an instrument of similar maturity. Commitments are available for any period up to 365 days. The fee is payable at the time of commitment and is non-refundable if the funds are drawn down
prior to the expiration of the commitment. To receive funding prior to commitment expiration date, member must provide the Bank with notification by 10:00 A.M.. Eastern Standard Time, two London and New York business days prior to the desired
disbursement date. Commitment Expiration Date                    . 

 

	 ̈	COMMITMENT OPTION 5: GUARANTEE FUNDS AND RATE, OPTIONAL TAKEDOWN: The fees charged for the commitments are based upon the cost in the open market of an
option of similar term and strike price of an instrument of similar maturity. Commitments are available for any period up to 365 days with no takedown restrictions. The non-refundable fee is payable at the time of commitment. To receive funding
prior to commitment expiration date, member must provide the Bank with notification by 10:00 A.M.. Eastern Standard Time, two London and New York business days prior to the desired disbursement date. Commitment Expiration Date
                    . 

 The Bank reserves the right to suspend or modify the advance commitment fee programs at any time. On the above commitments, immediate funding may be available if application is received prior to 3:00
P.M., Eastern Standard Time. 

  
 PAGE 1 OF 2

 APPLICATION FOR CALLABLE ADVANCE 

FEDERAL HOME LOAN BANK OF CINCINNATI 
 P. O. BOX 598 
 CINCINNATI, OHIO 45201 

 

	1.	The maturity term of the callable advance is 20 years. 

  

	2.	The advance may be “called” (prepaid) by the association without a prepayment fee on the 3rd anniversary date of the advance, and each of the
succeeding six (6) month anniversary dates thereafter. THE MEMBER MUST GIVE THE BANK NOTICE OF THE INTENT TO “CALL” (PREPAY) THE ADVANCE WITHOUT A PREPAYMENT FEE AT LEAST TWENTY (20) DAYS PRIOR TO ANY
ANNIVERSARY DATE AS DESCRIBED ABOVE. If the anniversary date falls on a Saturday, Sunday, or holiday, the anniversary date will be considered to be the business day prior to the actual anniversary date. 

 

	3.	Callable advances are prepayable at any time. If a callable advance is prepaid on any date other than a “call” date as outlined above, the fee will be 100% of
the lesser of the following two values: 

  

	 	a.	The present value of the lost cash flow to the Bank based on the difference between the contract rate on the advance and the current yield for a noncallable Federal
Home Loan Bank security with the same final maturity as that of the original advance (the discount rate for calculating the present value will be the current yield for such a noncallable Federal Home Loan Bank security) or 

 

	 	b.	The present value of the lost cash flow to the Bank based on the difference between the contract rate on the advance and the current yield for a noncallable Federal
Home Loan Bank security with a final maturity equal to the call date of the original advance (the discount rate for calculating the present value will be the current yield for such a noncallable Federal Home Loan Bank security).

  

	4.	Interest Calculation: The interest on the advance is calculated on the opening balance on an actual/actual basis, using the effective rate at the time of disbursement.

  

	5.	This loan is subject to the Bank’s current Credit Policy, in effect at the time of issuance of the commitment, and which the Borrower acknowledges he is fully
familiar with, as well as any subsequent amendments of such Credit Policy. 

  

					
	State Auto Property & Casualty Insurance Co.	 		 	Columbus, Ohio
	(Name of FHLBank member)	 		 	(City, State)
			
	/s/ Steven E. English	 		 	/s/ James A. Yano
	(Authorized Signature)	 		 	(Authorized Signature)
			
	Steven E. English	 		 	James A. Yano
	(Typed Name of Authorized Signature)	 		 	(Typed Name of Authorized Signature)

 This application must be signed by two persons authorized by your “Resolution” currently on file with the Bank.
By Signing above, the member certifies, (A. That this application has not been modified from its original terms as provided by the Bank) and (B. This application complies with and is subject to the Bank’s Credit Policy terms in effect at the
time of application). (Revised 4/20/12) 

  
 PAGE 2 OF 2

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