Document:

Investment Management Agreement

 Exhibit 10.28 
 INVESTMENT MANAGEMENT AGREEMENT 
 This
Investment Management Agreement (the “Agreement”) dated this 1st day of October 2010 is by and between Stateco Financial Services, Inc. (aka Stateco, Inc.) (“Stateco”), 518 East Broad Street, Columbus, Ohio 43215 and American Compensation Insurance Company
and Bloomington Compensation Insurance Company, both located at 8500 Normandale Lake Blvd., Ste. 1400, Bloomington MN 55437 (each the “Company”). 
 Recitals 
 The Company is engaged in the property-casualty insurance
underwriting business. 
 In the ordinary course of its business it is charged with the responsibility of managing and investing
policyholder premiums. 
 Stateco, an Ohio-domiciled corporation, is engaged in the business of providing financial services
pertinent to an insurance business including, without limitation, investment management services. 
 The Company desires to
retain the services of Stateco as the investment manager for its investable assets, and Stateco is willing to serve in such capacity. 
 Therefore, in consideration of the mutual covenants set forth herein and INTENDING TO BE LEGALLY BOUND HEREBY, the parties hereto agree as follows: 

1. TERM 
 a.
This Agreement shall be for a one year term. It shall automatically renew for additional twelve month terms unless either party hereto gives written notice of its intention to terminate this Agreement, which notice must be given at least ninety days
prior to the annual anniversary date of the Agreement. 
 2. AUTHORITY GRANTED TO STATECO 

a. The Company understands and agrees that as its investment manager, Stateco shall have full discretion as to investment
decisions which are consistent with the investment policy set by the Investment Committee of the Board of Directors of the Company. The Investment Committee agrees to keep Stateco advised of any changes to investment policy adopted by the committee.

 b. Stateco agrees to attend all Investment Committee meetings to review with the committee members the
investment activities undertaken in the prior quarter, to respond to questions from committee members and to communicate with the 

  
 1 

 
Investment Committee with respect to investment plans, strategies and policies to be pursued by Stateco. 
 c. The Company understands and agrees the discretion granted to Stateco herein empowers Stateco (within the policy constraints noted) to select investments to purchase, to allocate investable funds
between tax free and taxable investments and to make decisions with respect to the sale of investments and the timing of such sale. Stateco is also authorized to give instructions to Company’s custodian(s), with respect to the purchase, sale,
exchange and delivery of securities for Company’s account and disbursements relating thereto. 
 d. Stateco
is also authorized to place brokerage orders for Company’s account through such brokerage firms as Stateco, in its sole discretion, may determine. 
 3. STATECO’S OBLIGATIONS 
 a. Stateco agrees to maintain
records of transactions in which it engages on Company’s behalf in such form and format as Company requires to comply with legal requirements applicable to it. 

b. Stateco also agrees to act in good faith and exercise due care in carrying out its responsibilities hereunder. Stateco
will not be liable for any error of judgment with respect to its investment decisions providing Stateco has acted in good faith and has exercised due care. 
 c. Stateco agrees to maintain strict confidence with respect to Company’s financial affairs. Company will maintain confidentiality of investment advice and investment decisions, except to the extent
disclosure is mandated by law or disclosure is made to an affiliate of Company. 
 d. In consideration for the
foregoing services provided and responsibilities to be accepted, Company agrees to pay Stateco based on the total investable assets of Company under its management, as per the Fee Schedule attached as Exhibit A. The fee will be paid withing
forty-five (45) days after the end of each calendar quarter. It will be reviewed annually and may be amended by mutual agreement, which shall be confirmed in a revised Fee Schedule to be executed by the parties. 

4. ARBITRATION 

a. In the event of a dispute arising out of any party’s performance under this Agreement, the parties hereby
understand and agree that if the dispute cannot be amicably resolved by the parties, they will arbitrate the dispute in accordance with the rules and procedures set forth in the Ohio Uniform Arbitration Act, which is hereby incorporated by
reference. 

  
 2 

 5. GOVERNING LAW 
 a. This Agreement shall be governed by Ohio law. 
 6. AMENDMENT 

This Agreement may be amended by mutual consent of Stateco and the Company. Except as provided herein, no alteration or
variation of the terms of this Agreement shall be valid unless made in writing and signed by both Stateco and the Company. Furthermore, no alteration or variation of the terms of this Agreement shall be valid unless prior approval for such
alteration or variation has been received from the Commissioner of the Department of Insurance for the Company’s domiciliary state. 
 7.
COMPLETE AGREEMENT 
 This document, together with such amendments hereto as may from time to time be validly
executed in writing by the parties, constitutes the entire agreement between the parties and supersedes all prior or contemporaneous discussions, negotiations, representations, or agreements relating to the subject matter of this Agreement.

 8. EFFECTIVENESS 
 This Agreement shall be effective (the “Effective Date”) as of October 1, 2010. Notwithstanding the foregoing, the effectiveness of this Agreement is subject to the receipt of all
regulatory consents required to implement the terms of this Agreement. Until such time as all such regulatory consents have been obtained, this Agreement shall not become operative in any manner whatsoever and shall be of no force or effect.

 [SIGNATURE PAGE TO FOLLOW] 

  
 3 

			
	 Stateco Financial Services, Inc.

		
	 By
	 	 /s/ Robert P Restrepo, Jr.

		 	 Robert P Restrepo, Jr., President

	
	 American Compensation Insurance Company

		
	 By
	 	 /s/ Robert P Restrepo, Jr.

		 	 Robert P Restrepo, Jr., President

	
	 Bloomington Compensation Insurance Company

		
	 By
	 	 /s/ Robert P Restrepo, Jr.

		 	 Robert P Restrepo, Jr., President

 Agreement – ACIC BCIC 

  
 4 

 EXHIBIT A 
 FEE SCHEDULE 
 Except as amended or modified by mutual agreement
of the parties hereto, Stateco shall be paid an investment management fee every quarter based on a percentage of the average asset value of invested assets which average shall be calculated by adding the market value of invested assets at the
beginning of the quarter and at the end of the quarter, dividing that sum by two. 
 The annual fee for fixed
instruments including bonds, (taxable and tax-free) invested cash and preferred stock is 40 basis points or .004 times the average asset value of that category of invested asset. 

The annual fee for all common stock portfolios is 50 basis points or .005 times the average asset value of that category
of invested assets. 
 In addition, as respects the common stock portfolios, Stateco shall be entitled to a
performance bonus based on the performance of the common stock portfolios determined in the following manner. 

In the event the total return on any common stock portfolio exceeds for a particular quarter the total return for the
S&P 500 for the same quarter, Stateco shall be paid an annual bonus of 10 basis points or .001 times the portion of the average asset value of the particular portfolio which exceeds the asset value of the same portfolio calculated based on the
actual total performance of the S&P 500 for the quarter in question. 

  
 5Third Amendment to the Management and Operations Agreement

 Exhibit 10.36 
 THIRD AMENDMENT 
 to 

MANAGEMENT AND OPERATIONS AGREEMENT 
 AMENDED AND RESTATED 
 As of January 1, 2005 

This Third Amendment (the “Third Amendment”) to the Management and Operations Agreement Amended and Restated as
of January 1, 2005 (the “A&R Management Agreement”), as amended by the First Amendment to A&R Management Agreement dated as of April 1, 2007 (the “First Amendment”) and the Second Amendment to A&R Management
Agreement dated as of December 31, 2008 (the “Second Amendment”) (the A&R Management Agreement, the First Amendment and the Second Amendment are collectively referred to as the “2005 Management Agreement”) is effective
as of the Closing Date (as defined below), by and among State Automobile Mutual Insurance Company (“State Auto Mutual”), State Auto Financial Corporation (“STFC”), State Auto Property & Casualty Insurance Company
(“State Auto P&C”), Milbank Insurance Company (“Milbank”), State Auto Insurance Company of Ohio (“SA OH”), Meridian Security Insurance Company (“Meridian Security”), Meridian Citizens Mutual Insurance
Company (“Meridian Citizens Mutual”), Meridian Insurance Group, Inc. (“MIGI”), Farmers Casualty Insurance Company (“Farmers Casualty”), Stateco Financial Services, Inc. (“Stateco”), SA Software Shelf, Inc.
(“SA Software,” formerly known as Strategic Insurance Software, Inc.), 518 Property Management and Leasing, LLC (“518 PML”), State Auto Florida Insurance Company (“SA FL”), Beacon National Insurance Company
(“Beacon”), Beacon Lloyds, Inc. (“BLI”), Beacon Lloyds Insurance Company (“Beacon Lloyds”) (Beacon, BLI and Beacon Lloyds are collectively referred to herein as the “Beacon Insurers”), Patrons Mutual Insurance
Company of Connecticut (“Patrons”) and Litchfield Mutual Fire Insurance Company (“Litchfield”) (Patrons and Litchfield are collectively referred to herein as the “Patrons insurers”). This Third Amendment shall be
effective and operative as set forth in Section 2 of this Third Amendment. 
 Background Information 

The 2005 Management Agreement describes the operating relationship among substantially all of the affiliates of State
Auto Mutual and State Auto Mutual, the ultimate controlling person in the State Auto Mutual insurance holding company system. 
 Pursuant to the terms of the First Amendment, the parties (i) added SA FL as a party to the 2005 Management Agreement and (ii) added the Beacon Insurers as parties to the 2005 Management
Agreement, provided that the arrangements between the Beacon Insurers, State Auto P&C and State Auto Mutual recognized that Beacon had its own employee force performing services for it and the other Beacon Insurers. 

Pursuant to the terms of the Second Amendment, the parties (i) amended the 2005 Management Agreement as necessary to
reflect the fact that Beacon employees became employees of State Auto P&C effective January 1, 2008; (ii) added the Patrons Insurers as parties to the 2005 Management Agreement; and (iii) authorized the State Auto Mutual Board of
Directors to appoint a member of its Nominating and Governance Committee as a non-voting member of the Compensation Committee of the Board of Directors of STFC. Not listed among 

 
the Patrons Insurers is Provision State Insurance Company which was dissolved effective December 30, 2008. 

For purposes of the 2005 Management Agreement and this Third Amendment, the “Mutual Group” or the “State
Auto Mutual Group” shall mean State Auto Mutual, Meridian Security, Citizen, MIGI, SA FL, the Beacon Insurers and the Patrons Insurers, and the “State Auto Financial Group” shall mean STFC, State Auto P&C, Milbank, SA OH, Farmers
Casualty, Stateco, SA Software and 518 PML. 
 With this Third Amendment, the parties hereto intend to amend the
2005 Management Agreement as necessary to remove all references to State Auto National Insurance Company (“State Auto National”) as a party to the 2005 Management Agreement. All issued and outstanding stock of State Auto National is being
sold to Hallmark Insurance Company (“Hallmark”) under a Stock Purchase Agreement dated August 9, 2010, between STFC as Seller and Hallmark as Buyer (“Stock Purchase Agreement”). As a result thereof, State Auto National will
cease to be affiliated with any of the State Auto Insurance Companies, and thus will no longer qualify to be a party to the 2005 Management Agreement as of the Closing Date (as defined in the Stock Purchase Agreement). 

In response to a recommendation from each of their Independent Committees, the Boards of Directors of the State Auto
Financial Group and the State Auto Mutual Group have each approved this Third Amendment. 
 Statement of Agreement

 In consideration of the mutual covenants set forth herein and INTENDING TO BE LEGALLY BOUND HEREBY, the
parties to this Third Amendment agree to amend the 2005 Management Agreement as follows: 
 1. Capitalized terms used in this
Third Amendment (including the Background Information) which are not otherwise defined herein shall have the meanings ascribed such terms in the 2005 Management Agreement. 
 2. Concurrently with the Closing Date of the Stock Purchase Agreement, State Auto National will be removed as a party to the 2005 Management Agreement, and each provision of the 2005 Management Agreement
will be deemed amended or deleted as necessary to remove any and all references to State Auto National effective as of the Closing Date of the Stock Purchase Agreement. Notwithstanding the foregoing, this Third Amendment shall only become operative
if and when it has been approved, or deemed approved, by all insurance regulators whose approval is necessary to implement the terms of this Third Amendment with respect to State Auto National. If this Third Amendment is not approved as described in
this section, this Third Amendment shall be deemed null and void and shall not become operative to amend the 2005 Management Agreement in any manner whatsoever. 

  
 2 

 3. This document is an amendment to the 2005 Management Agreement, and in the event of any
inconsistencies between the provisions of the 2005 Management Agreement and this Third Amendment, the provisions of this Third Amendment shall control. Except as expressly amended hereby, the 2005 Management Agreement shall continue in full force
and effect without change for the balance of the term thereof. 
 IN WITNESS WHEREOF, the parties hereto have
entered into this Third Amendment. 
  

			
	STATE AUTOMOBILE MUTUAL INSURANCE COMPANY
	STATE AUTO FINANCIAL CORPORATION
	STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
	STATE AUTO INSURANCE COMPANY OF OHIO
	FARMERS CASUALTY INSURANCE COMPANY
	MERIDIAN SECURITY INSURANCE COMPANY
	MERIDIAN CITIZENS MUTUAL INSURANCE COMPANY
	STATE AUTO FLORIDA INSURANCE COMPANY
	BEACON NATIONAL INSURANCE COMPANY
	BEACON LLOYDS, INC.
	BEACON LLOYDS INSURANCE COMPANY
	PATRONS MUTUAL INSURANCE COMPANY OF CONNECTICUT
	LITCHFIELD MUTUAL FIRE INSURANCE COMPANY
	MERIDIAN INSURANCE GROUP, INC.
	STATECO FINANCIAL SERVICES, INC.
	MILBANK INSURANCE COMPANY
	SA SOFTWARE SHELF, INC.
	518 PROPERTY AND MANAGEMENT LEASING, LLC
		
	 By:
	 	 /s/ Robert P. Restrepo, Jr.

		 	 Robert P. Restrepo, Jr., President

  
 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00185-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00185-of-00352.parquet"}]]