Form of Restricted Stock Unit Award Agreement for Time-Based Awards



 Exhibit 10.1 
 RESTRICTED STOCK UNIT AWARD AGREEMENT 
 (<Year of Grant> Time-Based Award) 
 This Agreement (“Agreement”) is made this <Grant
Date> by and between <Participant Name> (“Participant”) and The Progressive Corporation (the “Company”). 
 1. Definitions. Unless otherwise defined in this Agreement, each capitalized term in this Agreement shall have the meaning given to it in The Progressive Corporation 2003 Incentive Plan, as amended (collectively, the
“Plan”). 
 2. Award of Restricted Stock Units. The Company grants to Participant an award (the
“Award”) consisting of <# of Units> restricted stock units (the “Restricted Stock Units” or “Units”), pursuant and subject to the Plan. 
 3. Condition to Participant’s Rights under this Agreement. This Agreement shall not become effective, and Participant shall have
no rights with respect to the Award or the Restricted Stock Units, unless and until Participant has fully executed this Agreement and delivered it to the Company. In the Company’s discretion, such execution and delivery may be accomplished
through electronic means. 
 4. Restrictions; Vesting. Subject to the terms and conditions of the Plan and this
Agreement, Participant’s rights in and to the Units shall vest according to the following schedule: 
  

	 	a.	One-third of the Units shall vest on <Vesting Date>; 

  

	 	b.	One-third of the Units shall vest on <Vesting Date>; and 

  

	 	c.	One-third of the Units shall vest on <Vesting Date>. 

 The Restricted Stock Units awarded under this Agreement shall vest in accordance with the schedule set forth above unless, prior to the vesting date set forth above, the Award and the applicable Units are
forfeited or have become subject to accelerated vesting under the terms and conditions of the Plan. 
 5. Dividend
Equivalents. Participant shall be credited with Dividend Equivalents with respect to outstanding Restricted Stock Units prior to the applicable vesting date, including any Units resulting from prior reinvestments of Dividend Equivalents as
provided in this Paragraph. Subject to the immediately following sentence, all Dividend Equivalents so credited will be deemed to be reinvested in Restricted Stock Units on the date that the applicable dividend or distribution is made to the
Company’s shareholders, in the number of Units determined by dividing the value of the Dividend Equivalent by the Fair Market Value of the Company’s Stock on such date (rounded to the nearest ten-thousandth of a whole Unit). In the event
that Dividend Equivalents cannot be reinvested in Units due to the operation of Section 10(f) of the Plan, such Dividend Equivalents will be credited to Participant as a cash value, which shall be held by the Company (without interest) subject
hereto. The Units and, if applicable, cash value resulting from the reinvestment of such Dividend Equivalents shall be subject to the same terms and conditions, and shall vest or be forfeited (if applicable) at the same time, as the Restricted Stock
Units to which they relate. 
  

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 6. Units Non-Transferable. No Restricted Stock Units shall be transferable by
Participant other than by will or by the laws of descent and distribution. In the event any Award is transferred or assigned pursuant to a court order, such transfer or assignment shall be without liability to the Company, and the Company shall have
the right to offset against such Award any expenses (including attorneys’ fees) incurred by the Company in connection with such transfer or assignment. 
 7. Executive Deferred Compensation Plan. If Participant is eligible, and has made the appropriate election, to defer the Award into The Progressive Corporation Executive Deferred Compensation Plan
(the “Deferral Plan”), upon vesting, the Award shall be considered to be deferred pursuant to the Deferral Plan, subject to and in accordance with the terms and conditions of the Deferral Plan and any deferral agreement entered into by
Participant under the Deferral Plan. 
 8. Termination of Employment. Except as otherwise provided in the Plan or as
determined by the Committee, if Participant’s employment with the Company is terminated for any reason other than death or RSU Qualified Retirement, all Restricted Stock Units held by Participant which are unvested or subject to restriction at
the time of such termination shall be automatically forfeited. 
 9. Taxes. No later than the date as of which an amount
relating to the Award first becomes taxable, Participant shall pay to the Company, or make arrangements satisfactory to the Committee regarding the payment of, any federal, state and local taxes and other items of any kind required by law to be
withheld with respect to such amount. The obligations of the Company under the Plan shall be conditional on such payment or arrangements and the Company and its Subsidiaries and Affiliates, to the extent permitted by law, shall have the right to
deduct any such taxes from any payment of any kind otherwise due to Participant. At vesting, Restricted Stock Units awarded under this Agreement will be valued at the Fair Market Value of the Company’s Stock on such date. 
 Participant must satisfy the minimum statutory tax withholding obligations resulting from the vesting of Restricted Stock Units
(“Minimum Withholding Obligations”) either (a) by surrendering to the Company Restricted Stock Units which are then vesting with a value sufficient to satisfy the Minimum Withholding Obligations, or (b) by paying to the Company
the appropriate amount in cash or, if acceptable to the Company, by check or other instrument. Unless Participant advises the Company of his or her election to use an alternative payment method, Participant shall be deemed to have elected to
surrender to the Company Restricted Stock Units which are then vesting with a value sufficient to satisfy the Minimum Withholding Obligations. If Participant requests that the Company withhold taxes in addition to the Minimum Withholding
Obligations, such additional withholding must be satisfied by Participant either (x) by paying to the Company the appropriate amount in cash or, if acceptable to the Company, by check or other instrument, or (y) provided that Participant
has obtained the approval of either the Company or the Committee (as required under rules adopted by the Committee) prior to the date of vesting, by surrendering unrestricted shares of the Company’s Stock which are not being distributed to
Participant as a result of the vesting event and which have then been owned by Participant in unrestricted form for more than six (6) months. 
 Under no circumstances will Participant be entitled to satisfy any such additional withholding by surrendering Restricted Stock Units, shares of the Company’s Stock that are being distributed to
Participant as a result of the vesting event, or other shares of Stock which have then been owned by Participant in unrestricted form for six (6) months or less. In addition, under no circumstances will Participant be entitled to satisfy any
Minimum Withholding Obligations or additional withholding by surrendering Restricted Stock Units which are not then vesting or any Restricted Stock Units which Participant has elected to defer under Paragraph 7 above. All payments, surrenders of
Units or shares, elections or requests for approval must be made by Participant in accordance with such procedures as may

  

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be adopted by the Company in connection therewith, and subject to such rules as have been or may be adopted by the Committee. 
 10. Distribution at Vesting. Subject to the provisions of the Plan and this Agreement, upon vesting of all or part of the Award, the
Company shall distribute to the Participant one share of the Company’s Stock in exchange for each such vested Restricted Stock Unit, and the applicable Restricted Stock Units shall be cancelled. Unless determined otherwise by the Company at any
time prior to the applicable distribution, each fractional Restricted Stock Unit shall vest and be settled in an equal fraction of a share of the Company’s Stock. 
 11. Non-Solicitation. In consideration of the Award made to Participant under this Agreement, for a period of twelve (12) months immediately following Participant’s Separation Date,
Participant shall not directly or indirectly recruit or solicit for hire, or hire, or assist in any manner in the recruitment, solicitation for hire or hiring of any employee or officer of the Company or its subsidiaries, or in any way induce any
such employee or officer to terminate his or her employment with the Company or its subsidiaries. For purposes of this Paragraph, “Separation Date” means the date on which Participant’s employment with the Company or its subsidiaries
is terminated for any reason. 
 12. Entire Agreement. This Agreement constitutes the entire agreement between the
parties and supersedes and cancels any other agreement, representation or communication, whether oral or in writing, between the parties relating to the Award, provided that the Agreement shall be at all times subject to the Plan. 
 13. Amendment. The Committee, in its sole discretion, may amend the terms of this Award, but no such amendment shall be made which
would impair the rights of Participant, without Participant’s consent. 
 14. Acknowledgments. Participant:
(i) acknowledges receiving a copy of the Plan Description relating to the Plan, and represents that he or she is familiar with all of the material provisions of the Plan, as set forth in such Plan Description; (ii) accepts this Agreement
and the Award subject to all provisions of the Plan and this Agreement; and (iii) agrees to accept as binding, conclusive and final all decisions and interpretations of the Committee relating to the Plan, this Agreement or the Award.

 Participant evidences his or her agreement with the terms and conditions of this Agreement, and his or her intention to be
bound by this Agreement, by electronically accepting the Award pursuant to the procedures adopted by the Company. Upon such acceptance by Participant, this Agreement will be immediately binding and enforceable against Participant and the
Company.  
  

			
	 THE PROGRESSIVE CORPORATION

		
	 By:
	 	 /s/ Charles E. Jarrett

		 	Vice President & Secretary


  

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