EX-4(E) SECURITY



 






Exhibit No. 4(E)




(FACE OF SECURITY)



Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”) to the Issuer or its agent for registration of transfer,
exchange or payment, and such certificate is registered in the name of Cede & Co., or in such other
name as requested by an authorized representative of DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, inasmuch as the registered owner hereof,
Cede & Co., has an interest herein.




	 	 	 
	REGISTERED
	 	REGISTERED
	NO. R-001
	 	$100,000,000






CUSIP No. 743315 AH 6

SEE REVERSE FOR CERTAIN DEFINITIONS

THE PROGRESSIVE CORPORATION

7.30% NOTE DUE 2006




     THE PROGRESSIVE CORPORATION, an Ohio corporation (the “Issuer”), for value received, hereby
promises to pay to CEDE & Co., c/o The Depository Trust Company, 55 Water Street, New York, New
York 10041 or registered assigns, at the office or agency of the Issuer at the office of the
Trustee in Boston, Massachusetts, the principal sum of ONE HUNDRED MILLION DOLLARS ($100,000,000)
on June 1, 2006, in such coin or currency of the United States of America as at the time of payment
shall be legal tender for the payment of public and private debts, and to pay interest semiannually
on June 1 and December 1 of each year, commencing on December 1, 1996, on said principal sum at
said office or agency, in like coin or currency, at the rate per annum specified in the title of
this Note, from the June 1 or the December 1, as the case may be, next preceding the date of this
Note to which interest has been paid, unless the date hereof is a date to which interest has been
paid, in which case from the date of this Note, or unless no interest has been paid on the Notes,
in which case from May 28, 1996, until payment of said principal sum has been made or duly provided
for; provided, that payment of interest may be made at the option of the Issuer by check mailed to
the address of the person entitled thereto as such address shall appear on the Security Register.
Notwithstanding the foregoing, if the date hereof is after the fifteenth day of May or November, as
the case may be, and before the following June 1 or December 1, this Note shall bear interest from
such June 1 or December 1; provided, that if the Issuer shall default in the payment of interest
due on such June 1 or December 1, then this Note shall bear interest from the next preceding June 1
or December 1, to which interest has been paid or, if no interest has been paid on this Note, from
May 28, 1996. The interest so payable on any June 1 or December 1 will, subject to certain
exceptions provided in the Indenture referred to on the reverse hereof, be paid to the person in
whose name this Note



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is registered at the close of business on May 15 or November 15, as the case
may be, next preceding such June 1 or December 1.



     Reference is made to the further provisions of this Note set forth on the reverse hereof. Such
further provisions shall for all purposes have the same effect as though fully set forth at this
place.



     This Note shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed by the Trustee under the Indenture referred to on the
reverse hereof.



     IN WITNESS WHEREOF, The Progressive Corporation has caused this instrument to be signed by its
duly authorized officers and has caused its corporate seal to be affixed hereto or imprinted
hereon.



THE PROGRESSIVE CORPORATION




[CORPORATE SEAL]




	 	 	 
	 

	 	By: /s/ Charles B. Chokel
	 

	 	Charles B. Chokel
	 

	 	Treasurer






	 	 	 
	Attest: /s/ David M. Schneider
	           David M. Schneider

	           Secretary
	 	 
	 
	 	 
	Dated: May 28, 1996






TRUSTEE’S CERTIFICATE OF AUTHENTICATION



This is one of the Securities, of the series designated herein, referred to in the within-mentioned
Indenture.




STATE STREET BANK AND TRUST COMPANY




	 	 	 	 	 	 	 
	 

	 	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Authorized Signatory	 	 






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(BACK OF SECURITY)



THE PROGRESSIVE CORPORATION



7.30% NOTE DUE 2006




     This Note is one of a duly authorized issue of debentures, notes, bonds or other evidences of
indebtedness of the Issuer (hereinafter called the “Securities”) of the series hereinafter
specified, all issued or to be issued under and pursuant to an indenture dated as of September 15,
1993, as heretofore supplemented and amended (herein called the “Indenture”), between the Issuer
and State Street Bank and Trust Company, as Trustee (herein called the “Trustee”), to which
Indenture and all indentures supplemental thereto reference is hereby made for a description of the
rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the
Issuer and the Holders of the Securities. The Securities may be issued in one or more series, which
different series may be issued in various aggregate principal amounts, may mature at different
times, may bear interest (if any) at different rates, may be subject to different redemption
provisions (if any), may be subject to different sinking, purchase or analogous funds (if any) and
may otherwise vary as in the Indenture provided. This Note is one of a series designated as the
7.30% Notes Due 2006 of the Issuer, limited in aggregate principal amount to $100,000,000.



     In case an Event of Default, as defined in the Indenture, with respect to the 7.30% Notes Due
2006 shall have occurred and be continuing, the principal hereof may be declared, and upon such
declaration shall become, due and payable, in the manner, with the effect and subject to the
conditions provided in the Indenture.



     The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of
the Holders of not less than 66-2/3% in aggregate principal amount of the Securities at the time
Outstanding (as defined in the Indenture) of all series to be affected (voting as one class),
evidenced as in the Indenture provided, to execute supplemental indentures adding any provisions to
or changing in any manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the Holders of the Securities of
each such series; provided, however, that no such supplemental indenture shall (i) extend the final
maturity of any Security, or reduce the principal amount thereof, or reduce the rate or extend the
time of payment of any interest thereon, or impair or affect the rights of any Holder to institute
suit for the payment thereof, without the consent of the Holder of each Security so affected or
(ii) reduce the aforesaid percentage of Securities, the Holders of which are required to consent to
any such supplemental indenture, without the consent of the Holder of each Security so affected. It
is also provided in the Indenture that, with respect to certain defaults or Events of Default
regarding the Securities of any series, prior to any declaration accelerating the maturity of such
Securities, the Holders of a majority in aggregate principal amount Outstanding of the Securities
of such series may on behalf of the Holders of all the Securities of such series waive any such
past default or Event of Default and its consequences. The preceding sentence shall not, however,
apply to a default in the payment of the principal of or premium, if any, or interest on any of the



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Securities. Any such consent or waiver by the Holder of this Note (unless revoked as provided in
the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and
owners of this Note and any Note which may be issued in exchange or substitution herefor, irrespective of whether or not any notation thereof is made upon
this Note or such other Note.



     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note in the manner, at the respective times, at the rate and in
the coin or currency herein prescribed.



     The Notes are issuable in registered form without coupons in denominations of $1,000 and any
integral multiple of $1,000 at the office or agency of the Issuer at the office of the Trustee in
Boston, Massachusetts, and in the manner and subject to the limitations provided in the Indenture,
but without the payment of any service charge. Notes may be exchanged for a like aggregate
principal amount of Notes of other authorized denominations.



     The Notes are not subject to redemption at the option of the Issuer or through the operation
of a sinking fund.



     Upon due presentment for registration of transfer of this Note at the office or agency of the
Issuer at the office of the Trustee in Boston, Massachusetts, a new Note or Notes of authorized
denominations for an equal aggregate principal amount will be issued to the transferee in exchange
therefor, subject to the limitations provided in the Indenture, without charge except for any tax
or other governmental charge imposed in connection therewith.



     The Issuer, the Trustee and any authorized agent of the Issuer or the Trustee may deem and
treat the registered Holder hereof as the absolute owner of this Note (whether or not this Note
shall be overdue and notwithstanding any notation of ownership or other writing hereon), for the
purpose of receiving payment of, or on account of, the principal hereof and, subject to the
provisions on the face hereof, interest hereon, and for all other purposes, and neither the Issuer
nor the Trustee nor any authorized agent of the Issuer or the Trustee shall be affected by notice
to the contrary.



     No recourse under or upon any obligation, covenant or agreement of the Issuer in the Indenture
or any indenture supplemental thereto or in any Note, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator, shareholder, officer or
director, as such, of the Issuer or of any successor corporation, either directly or through the
Issuer or any successor corporation, under any rule of law, statute or constitutional provision or
by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such
liability being expressly waived and released by the acceptance hereof and as part of the
consideration for the issue hereof.



     Terms used herein which are defined in the Indenture shall have the respective meanings
assigned thereto in the Indenture.



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ABBREVIATIONS




     The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations:



TEN COM — as tenants in common


TEN ENT — as tenants by the entireties


CUST — Custodian


JT TEN — as joint tenants with right of survivorship and not as tenants in common


UNIF GIFT MIN ACT — Uniform Gifts to Minors Act




______________

(State)




Additional abbreviations may also be used though not in the above list.





 







FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) unto



PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE-



 




Please print or typewrite name and address including postal zip code of assignee



 




the within Note and all rights thereunder, hereby irrevocably constituting and appointing



 




attorney to transfer said Note on the books of the Issuer, with full power of substitution in the
premises.




	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 







NOTICE: The signature to this assignment must correspond with the name as written upon the face
of the within instrument in every particular, without alteration or enlargement or any change
whatever.



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