Document:

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Exhibit No. 10(J)

                           THE PROGRESSIVE CORPORATION
                            2004 EXECUTIVE BONUS PLAN

1.       The Progressive Corporation and its subsidiaries ("Progressive") have
         designed an executive compensation program consisting of three
         components: salary, annual bonus and equity-based incentives. These
         components have been structured to reflect the market for executive
         compensation and to promote both the achievement of corporate goals and
         performance that is in the long-term interest of shareholders. The
         annual bonus component of this program is performance-based and focuses
         on current results.

2.       The 2004 Executive Bonus Plan (the "Plan") provides, in whole or in
         part, the annual bonus component of Progressive's executive
         compensation program for Plan participants. The Plan shall be
         administered by or under the direction of the Compensation Committee
         (the "Committee") of the Board of Directors of The Progressive
         Corporation. Executive officers of Progressive may be selected by the
         Committee to participate in the Plan for one or more Plan years. Plan
         participants may also be eligible to participate in other Progressive
         bonus or gainsharing plans, as determined by the Committee. Plan years
         shall coincide with Progressive's fiscal years.

3.       Subject to the following sentence, the amount of the annual bonus
         earned by any participant under the Plan for any Plan year ("Annual
         Bonus") will be determined by application of the following formula:

       Annual Bonus = Paid Salary x Target Percentage x Performance Factor

         The Annual Bonus payable to any participant with respect to any Plan
         year shall not exceed $5,000,000.00.

4.       The salary rate of each Plan participant for any Plan year shall be
         established by the Committee no later than ninety (90) days after
         commencement of such Plan year. For purposes of the Plan, "salary" and
         "Paid Salary" shall include regular, used Earned Time Benefit, sick,
         holiday and funeral pay received by the participant during the Plan
         year for work or services performed by the participant as an officer or
         employee of Progressive, but shall not include any (a) short-term or
         long-term disability payments, (b) lump sum merit adjustments, (c)
         discretionary or other bonus or incentive payments, (d) unused Earned
         Time Benefit, or (e) the earnings replacement component of any worker's
         compensation award.

5.       The Target Percentages for the participants in the Plan shall be
         determined by the Committee, but will not exceed 200% for any
         participant. Target Percentages may vary among Plan participants and
         may be changed from year to year by the Committee.

                                        1

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6.       The Performance Factor

         A.       General

                  The Performance Factor shall consist of one or more of the
                  following components: a Core Business Profitability and Growth
                  Component, one or more Business Segment Performance
                  Components, a Cost Structure Improvement Component and an
                  Investment Performance Component (the "Bonus Components" or
                  "Components"). An appropriate combination of Bonus Components
                  will be designated for each participant, and the designated
                  Bonus Components will be weighted, based on such participant's
                  assigned responsibilities, as determined by the Committee.

                  The relative weighting of the Bonus Components may vary among
                  Plan participants and may be changed from year to year by the
                  Committee.

                  For purposes of computing the amount of the Annual Bonus for
                  any Plan year, a Performance Score will be calculated for each
                  of the designated Bonus Components, based on the performance
                  of the business(es), product(s) or function(s) being measured
                  by that Component, as described below. The Performance Score
                  will equal 1.0 if specified performance goals are met, and can
                  vary from 0 to 2.0, based on actual performance versus the
                  pre-established objectives. The Performance Score achieved for
                  each of the designated Bonus Components will then be
                  multiplied by the applicable weighting factor to produce a
                  Weighted Performance Score for that Component. The sum of the
                  Weighted Performance Scores for the applicable Bonus
                  Components will equal the Performance Factor, which can
                  likewise vary from 0 to 2.0. The Performance Factor cannot
                  exceed 2.0, regardless of results.

                  Actual performance results achieved for any Plan year, which
                  will be used to calculate the Performance Score achieved for
                  each of the applicable Bonus Components, must be certified by
                  the Committee prior to payment of the Annual Bonus.

         B.       Core Business Profitability and Growth Component

                  The Core Business Profitability and Growth Component measures
                  the overall operating performance of Progressive's Core
                  Business for the Plan year for which an Annual Bonus payment
                  is to be made. The Core Business will consist of the Agency
                  Business Segment, the Direct Business Segment, the Commercial
                  Auto Business Segment and/or such other Business Segment(s)
                  (as defined below), if any, as shall be designated and defined
                  by the Committee for the Plan year. The Performance Score for
                  this Component is based on weighted operating performance
                  results for each of the Business Segments included in the Core
                  Business (the "Core Business Segments"). Each Plan year, a
                  separate

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                  Performance Matrix for each Core Business Segment will be
                  established by or under the direction of the Committee. Each
                  such Performance Matrix will assign a Performance Score to
                  various combinations of profitability and growth outcomes for
                  the applicable Business Segment, based on the following
                  criteria:

                  -   profitability will be measured by one of the following, as
                      designated by the Committee: combined ratio, weighted
                      combined ratio, variation in combined ratio from a
                      targeted combined ratio, return on equity or return on
                      revenue; and

                  -   growth will be measured by changes in one of the
                      following, as designated by the Committee: net earned
                      premium, net written premium or lifetime earned premium
                      (i.e., the amount of earned premium expected to be
                      generated over time with respect to policies written
                      during a Plan year, including any subsequent renewals
                      thereof, as determined by a formula approved by the
                      Committee).

                  Profitability and growth will be separately determined for
                  each of the Core Business Segments, using the performance
                  criteria designated by the Committee for the Plan year, and
                  will then be matched using the applicable Performance Matrix,
                  to determine a Performance Score for each Core Business
                  Segment.

                  The resulting Performance Scores for each Core Business
                  Segment will then be multiplied by a weighting factor (based
                  on the percentage of net earned premiums generated by such
                  Core Business Segment during the Plan year or such other
                  factor(s) as shall be approved by the Committee), the weighted
                  Performance Scores will be combined and the sum of the
                  weighted Performance Scores will be the Performance Score for
                  the Core Business Profitability and Growth Component.

         C.       Business Segment Performance Component

                  The Business Segment Performance Component measures the
                  performance of one or more designated Business Segments (as
                  defined below) in terms of any one or more of the following
                  criteria selected by the Committee:

                  -   profitability -- measured by the combined ratio, weighted
                      combined ratio, variation in combined ratio from a
                      targeted combined ratio, return on equity or return on
                      revenue;

                  -   growth -- measured by changes in net written premium, net
                      earned premium or lifetime earned premium, as described
                      above; or

                  -   operating effectiveness -- measured by systems
                      availability or timeliness of response.

                  A Business Segment may consist of a distribution channel,
                  business unit, product, class or type of business (e.g.,
                  designated types of policies written in a distribution

                                        3

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                  channel or by a business unit), function, process or other
                  business category, such as new or renewal business.

                  The Committee may designate one or more Business Segment
                  Performance Components for an individual Plan participant for
                  any Plan year and, for each such Component, will determine the
                  applicable criteria by which performance will be measured, the
                  goals to be achieved and the Performance Scores that will
                  result from various levels of performance, and the relative
                  weighting thereof. The applicable performance criteria,
                  related goals and resulting Performance Scores may be set
                  forth in a Business Segment Performance Matrix or other format
                  approved by the Committee. Business Segment Performance
                  Components, performance criteria, goals, resulting Performance
                  Scores and relative weightings may vary among participants and
                  may be changed from year to year by the Committee.

         D.       Cost Structure Improvement Component

                  The Cost Structure Improvement Component measures success in
                  achieving cost structure improvement for the Core Business, as
                  a whole, or for an assigned Business Segment, if applicable.
                  Results are reflected in a Cost Structure Improvement Score.
                  For purposes of computing the Cost Structure Improvement
                  Score, cost structure improvement is measured by comparing the
                  sum of the GAAP Underwriting Expense Ratio ("Underwriting
                  Expense Ratio") and Loss Adjustment Expense Ratio ("LAE
                  Ratio") achieved for the Plan year (collectively, "Actual
                  Expense Ratio") against defined expense objectives for that
                  year, as established by or under the direction of the
                  Committee ("Target Expense Ratio"). The Target Expense Ratio,
                  including its individual components, may vary by Business
                  Segment and/or for the Core Business as a whole, and may be
                  changed from year to year by or under the direction of the
                  Committee.

                  The Cost Structure Improvement Score will be computed in
                  accordance with the following formula:

    Cost Structure Improvement = 1 + [Target Expense Ratio-Actual Expense Ratio]
                                      -----------------------------------------
                  Score                                   3

         E.       Investment Performance Component

                  The Investment Performance Component compares the investment
                  performance of individual segments of Progressive's investment
                  portfolio ("Portfolio Segments") against the performance of
                  selected groups of comparable investment funds, indexes or
                  other benchmarks ("Investment Benchmarks") over such period or
                  periods as shall be determined by the Committee. Such
                  Investment Benchmarks may be risk-adjusted in accordance with
                  such formula or other method as may be determined by the
                  Committee. Investment results are marked

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                  to market in order to calculate total return, which is then
                  compared against the designated Investment Benchmarks to
                  produce a Performance Score, pursuant to a formula or other
                  criteria determined by the Committee, for each Portfolio
                  Segment.

                  The applicable Portfolio Segments will be identified, and the
                  related Investment Benchmarks will be determined, by the
                  Committee and may be changed from year to year by the
                  Committee.

                  In the event that any participant's Annual Bonus is to be
                  determined by the performance of two or more Portfolio
                  Segments, the Performance Scores for each of the Portfolio
                  Segments will be weighted, based on the average amounts
                  invested from time to time in each of such Portfolio Segments
                  during the Plan year, and the weighted Performance Scores for
                  the applicable Portfolio Segments will be then combined to
                  produce the Investment Performance Score. Investment expense
                  is not included in determining investment performance vs.
                  benchmark.

7.       The Annual Bonus for any Plan year will be paid to participants as soon
         as practicable after the Committee has certified performance results
         for the Plan year, but no later than March 15 of the immediately
         following year. The provisions of this Paragraph shall be subject to
         Paragraph 8 hereof.

         Any Plan participant who is eligible to participate in The Progressive
         Corporation Executive Deferred Compensation Plan ("Deferral Plan") may
         elect to defer all or a portion of the Annual Bonus otherwise payable
         under this Plan, subject to and in accordance with the terms of the
         Deferral Plan.

8.       Unless otherwise determined by the Committee, in order to be entitled
         to receive an Annual Bonus for any Plan year, the participant must be
         employed by Progressive on the date designated for payment thereof
         ("Qualification Date"); provided, however, that if any participant who
         is employed by Progressive on the last day of any Plan year shall die
         at any time between the end of such Plan year and the Qualification
         Date, his or her estate shall be entitled to receive the Annual Bonus
         that would have been payable to such deceased participant had he or she
         lived until and been employed by Progressive on the Qualification Date.

         Any participant who is on a leave of absence covered by the Family and
         Medical Leave Act of 1993, personal leave of absence with the approval
         of the Company, military leave or short or long-term disability on the
         Qualification Date with respect to any Plan year will be entitled to
         receive an Annual Bonus payment for such Plan year, calculated as
         provided in Paragraphs 3 through 6 above and based on the amount of
         Paid Earnings received by such participant during the Plan year.

         Annual Bonus payments made to participants will be net of any legally
         required deductions for federal, state and local taxes and other items.

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<PAGE>

9.       The right to any of the Annual Bonuses hereunder may not be
         transferred, assigned or encumbered by any participant. Nothing herein
         shall prevent any participant's interest hereunder from being subject
         to involuntary attachment, levy or other legal process.

10.      The Plan will be administered by or under the direction of the
         Committee. The Committee will have the authority to adopt, amend,
         revise and repeal such rules, guidelines, procedures and practices
         governing the Plan as it, from time to time, in its sole discretion
         deems advisable.

         The Committee will have full authority to determine the manner in which
         the Plan will operate, to interpret the provisions of the Plan and to
         make all determinations hereunder. All such interpretations and
         determinations will be final and binding on Progressive, all Plan
         participants and all other parties. No such interpretation or
         determination may be relied on as a precedent for any similar action or
         decision.

         The Plan will be administered by the Committee in accordance with the
         requirements of Section 162(m) of the Internal Revenue Code, as
         amended, and the rules and regulations promulgated thereunder (the
         "Code").

11.      The Plan is subject to approval by the holders of The Progressive
         Corporation's Common Shares, $1.00 par value ("shareholders") in
         accordance with the requirements of Section 162(m) of the Code and no
         Annual Bonus will be paid hereunder unless the Plan has been so
         approved.

12.      The Plan may be terminated, amended or revised, in whole or in part, at
         any time and from time to time by the Committee, in its sole
         discretion; provided that the Committee may not increase the amount of
         compensation payable hereunder to any participant above the amount that
         would otherwise be payable upon attainment of the applicable
         performance goals, or accelerate the payment of any portion of the
         Annual Bonus due to any participant under the Plan without discounting
         the amount of such payment in accordance with Section 162(m) of the
         Code, and further provided that any amendment or revision of the Plan
         required to be approved by shareholders pursuant to Section 162(m) of
         the Code will not be effective until approved by The Progressive
         Corporation's shareholders in accordance with the requirements of
         Section 162(m).

13.      The Plan will be unfunded and all payments due under the Plan will be
         made from Progressive's general assets.

14.      Nothing in the Plan shall be construed as conferring upon any person
         the right to remain a participant in the Plan or to remain employed by
         Progressive, nor shall the Plan limit Progressive's right to discipline
         or discharge any of its officers or employees or change any of their
         job titles, positions, duties or compensation.

                                        6

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15.      Progressive shall have the unrestricted right to set off against or
         recover out of any bonuses or other sums owed to any participant under
         the Plan any amounts owed by such participant to Progressive.

16.      This Plan supersedes all prior plans, agreements, understandings and
         arrangements regarding bonuses or other cash incentive compensation
         payable or due to any participant from Progressive. Without limiting
         the generality of the foregoing, this Plan supersedes and replaces The
         Progressive Corporation 1999 Executive Bonus Plan, as heretofore in
         effect (the "Prior Plan"), which is and shall be deemed to be
         terminated as of December 27, 2003 (the "Termination Date"); provided,
         that any bonuses or other sums earned under the Prior Plan with respect
         to any period ended on or prior to the Termination Date shall be
         unaffected by such termination and shall be paid to the appropriate
         participants when and as provided thereunder.

17.      This Plan is adopted and, subject to the provisions of Paragraph 11
         hereof, is to be effective, as of December 28, 2003, which is the
         commencement of Progressive's 2004 fiscal year. Subject to the
         provisions of Paragraph 11, this Plan shall be effective for the 2004
         Plan year (which coincides with Progressive's 2004 fiscal year) and for
         each Plan year thereafter unless and until terminated by the Committee.

18.      This Plan shall be interpreted and construed in accordance with the
         laws of the State of Ohio.

                                        7<PAGE>

Exhibit No. 10(K)

                           THE PROGRESSIVE CORPORATION
                   2004 INFORMATION TECHNOLOGY INCENTIVE PLAN

1.       The Progressive Corporation and its subsidiaries ("Progressive" or the
"Company") have adopted The Progressive Corporation 2004 Information Technology
Incentive Plan (the "Plan") as part of their overall compensation program for
employees assigned to the Company's Information Technology Organization ("IT
Organization").

2.       There is a strong correlation between computer systems availability and
the economic performance of the Company. All 3 sales channels, customer service
and claims handling are dependent on electronic systems. When systems are down,
Progressive incurs lost productivity costs and, in some cases, may forfeit
revenue opportunities. The Plan is designed to incent employees within the IT
Organization to find creative ways to eliminate scheduled and unscheduled system
downtime, and shift the risk associated with technology changes away from times
when downtime is most costly to the business.

3.       A significant aspect of the Plan is that it encourages continuous
improvement. Each year, the complexity of the Progressive computing environment
increases, as we introduce new applications and increasingly target systems to
the end consumer. The target payout for the Plan will be set at the amount of
"up time points" earned the previous year (adjusted proportionately for any
change in the duration of the current Plan year). In order to receive a payout
above the target, the performance achieved needs to exceed the previous year's
performance level (as so adjusted) in a more complex environment. Plan years
will coincide with Progressive's fiscal years.

4.       All regular employees of Progressive (including managers) who are
assigned primarily to the IT Organization are eligible to be selected for
participation in the Plan. The Chief Executive Officer, after consulting with
the Chief Human Resource Officer, ("Designated Officers") shall have the
authority to select Plan participants for any given Plan year.

5.       Annual payments under the Plan will be determined by application of the
following formula:

      Annual IT Incentive Payment = Paid Earnings x Target Percentage x IT
                               Performance Factor.

         The Annual IT Incentive Payment payable to any participant with respect
to any given Plan year will not exceed $75,000.00.

6.       Paid Earnings for any Plan year means the following items paid to a
participant during

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the Plan year: (a) regular, used Earned Time Benefit, sick, holiday, funeral and
overtime pay, and (b) retroactive payments of any of the foregoing items
relating to the same Plan year.

         For purposes of the Plan, Paid Earnings shall not include any
short-term or long-term disability payments made to the participant, the
earnings replacement component of any worker's compensation award, any lump sum
merit awards, payments from the merit cash pool, any bonus or incentive
compensation awards or any unused Earned Time Benefit.

         Notwithstanding the foregoing, if the sum of the regular, used Earned
Time Benefit, sick, holiday and funeral pay received by a participant for a Plan
year exceeds his/her salary range maximum for that Plan year (determined as of
the end of the 24th pay period), then his/her Paid Earnings for that Plan year
shall equal his/her salary range maximum, plus any of the following items
received by such participant for that Plan year: (a) overtime pay and (b)
retroactive payments of regular, used Earned Time Benefit, sick, holiday,
overtime and funeral pay.

7.       Target Percentages vary by position and shall be determined on an
annual basis by the Designated Officers.

8.       In the discretion of the Designated Officers, participants in this Plan
may also participate in The Progressive Corporation 2004 Gainsharing Plan, or
any successors thereto.

9.       The IT Performance Factor

         The IT Performance Factor is based on application availability and
accuracy measured on a point system, and may vary from 0 to 2.0. Points are
awarded for every day that production systems, both mainframe and client/server,
are outage free. If there is an outage in any production system, all of the
points relating to that application are lost for that day. Measured
applications, measured hours, outage definitions, point values and
administrative guidelines will be defined on an annual basis by or under the
direction of the Designated Officers. A Performance Matrix approved by the
Designated Officers will assign a Performance Score to various point levels that
may be achieved.

         For 2004, and for each Plan year thereafter until otherwise determined
by the Designated Officers, the applicable Plan rules shall be as set forth in
Schedule I attached hereto.

         The best possible score in any given week is 10 points per application
(or a total of 200 points). Attached hereto as Schedule II is the 2004
Performance Matrix with the breakdown of scores and related outcomes. For 2004,
a target of 1.00 will be achieved by earning between 10,204 and 10,240 points
out of a possible 10,600 points. The Designated Officers will establish the
applicable performance targets, the performance

                                        2

<PAGE>

scores that will be awarded for various point levels achieved and the maximum
potential points that may be earned and the resulting performance score, for
subsequent Plan years.

10.      Subject to Paragraph 11 below, no later than December 31 of each Plan
year, each participant will receive an initial payment in respect of his or her
Annual IT Incentive Payment for that Plan year equal to 75% of an amount
calculated on the basis of Paid Earnings for the first 24 pay periods of the
Plan year, estimated earnings for the remainder of the Plan year, performance
data through the first 24 pay periods of the Plan year and forecasted
performance results for the remainder of the Plan year. No later than February
15 of the following year, each participant shall receive the balance of his or
her Annual IT Incentive Payment, if any, for such Plan year, based on his or her
Paid Earnings and performance data for the entire Plan year.

11.      Unless otherwise determined by the Committee, and except as expressly
provided herein, in order to be entitled to receive an Annual IT Incentive
Payment for any Plan year, the participant must be assigned to the IT
Organization and be an active employee of the Company on November 30 of that
Plan year ("Qualification Date"). Individuals who are hired on or after December
1 of any Plan year are not entitled to receive an Annual IT Incentive Payment
for that Plan year.

         Any participant who is on a leave of absence covered by the Family and
Medical Leave Act of 1993, personal leave of absence approved by the Company,
military leave or short or long-term disability on the Qualification Date with
respect to any Plan year will be entitled to receive an Annual IT Incentive
Payment for that Plan year, calculated as provided in Paragraphs 5 and 10 above
and based on the amount of Paid Earnings received by such participant for the
Plan year.

         Annual IT Incentive Payments will be net of any legally required
deductions for federal, state and local taxes and other items.

12.      The right to any Annual IT Incentive Payment hereunder may not be sold,
transferred, assigned or encumbered by any participant. Nothing herein shall
prevent any participant's interest hereunder from being subject to involuntary
attachment, levy or other legal process.

13.      The Plan shall be administered by or under the direction of the
Compensation Committee of the Board of Directors of The Progressive Corporation
("Committee"). The Committee shall have the authority to adopt, alter, modify,
amend and repeal such rules, guidelines, procedures and practices governing the
Plan as it shall, from time to time, in its sole discretion, deem advisable.

         The Committee shall have full authority to determine the manner in
which the Plan will operate, to interpret the provisions of the Plan and to make
all determinations hereunder. All such interpretations and determinations shall
be final and binding on Progressive, all Plan participants and all other
parties. No such interpretation or determination shall be relied on as a
precedent for any similar action or decision.

                                        3

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         Unless otherwise determined by the Committee, all of the authority of
the Committee hereunder (including, without limitation, the authority to
administer the Plan, interpret the provisions hereof, waive any of the
requirements specified herein and make determinations hereunder and to
establish, change or modify performance targets and measures) may be exercised
by the Designated Officers. In the event of a dispute or conflict, the
determination of the Committee will govern.

14.      The Plan may be terminated, amended or revised, in whole or in part, at
any time and from time to time by the Committee, in its sole discretion.

15.      The Plan will be unfunded and all payments due under the Plan shall be
made from Progressive's general assets.

16.      Nothing in the Plan shall be construed as conferring upon any person
the right to remain a participant in the Plan or to remain employed by
Progressive, nor shall the Plan limit Progressive's right to discipline or
discharge any of its employees or change any of their job titles, duties or
compensation.

17.      Progressive shall have the unrestricted right to set off against or
recover out of any Annual IT Incentive Payment or other sums owed to any
participant under the Plan any amounts owed by such participant to Progressive.

18.      This Plan supersedes any and all prior plans, agreements,
understandings and arrangements regarding bonuses or other cash incentive
compensation payable to participants by or due from Progressive and relating to
the availability of computer systems. Without limiting the generality of the
foregoing, this Plan supersedes and replaces The Progressive Corporation 2003
Information Technology Incentive Plan (the "Prior Plan"), which is and shall be
deemed to be terminated as of December 27, 2003 (the "Termination Date");
provided, that any bonuses or other sums earned and payable under the Prior Plan
with respect to any Plan year ended on or prior to the Termination Date shall be
unaffected by such termination and shall be paid to the appropriate participants
when and as provided thereunder.

19.      This Plan is adopted, and is to be effective, as of December 28, 2003,
which is the commencement of Progressive's 2004 fiscal year. This Plan shall be
effective for the 2004 Plan year (which coincides with Progressive's 2004 fiscal
year) and for each Plan year thereafter unless and until terminated by the
Committee.

20.      This Plan shall be interpreted and construed in accordance with the
laws of the State of Ohio.

                                        4

<PAGE>

                                                                      SCHEDULE I

                      Information Technology Incentive Plan
                                   2004 RULES

1. System Measurements

The intent of this program is to ensure that incidents that have major business
impact are counted as an outage. An outage is defined as an event (excluding a
telecommunication failure) that prevents 100 or more customers from using the
application for more than 15 minutes. We define a customer as an agent, policy
holder or internal user.

The measured hours are 24 hours a day, Monday through Saturday. All day Sunday
is measured with the exception of our weekly system maintenance window which is
from 3:30am until 8:00am EST and, also, one(1) Sunday a quarter from Midnight to
8:00am EST.

Individual application service level agreements (SLAs) will take precedent over
these time frames. See chart below:

<TABLE>
<CAPTION>
       SYSTEM                     ADDITIONAL OUTAGE CLARIFICATIONS
--------------------------------------------------------------------------------
<S>                   <C>
Buy Button
--------------------------------------------------------------------------------
Cash
Disbursements         An outage is defined for Monday through Friday. An
(CDS)                 exception would be any requested Saturday or Sunday access
                      requested by the system owner 24 hours in advance.
--------------------------------------------------------------------------------
Claims CARS
--------------------------------------------------------------------------------
Claims PACMan         An outage for the start of day is defined as anytime
                      PACMan is not available by 6:00am Monday through Saturday.
--------------------------------------------------------------------------------
Claims Web
Tracker
--------------------------------------------------------------------------------
Claims Workbench
(CWB)
--------------------------------------------------------------------------------
Commercial Auto
(PRAT/WFC)
--------------------------------------------------------------------------------
DirectPro             An outage is defined as an event (excluding call routing
                      licensing issues) preventing quoting and/or selling. An
                      exception would be one (1) Sunday a month (Sunday before
                      Month End) from 3:30am until 5:30am EST.

                      We recognize at times, an individual state or states may
                      not be available for quoting or selling. There is not a
                      clear cut method to measure the business impact. In these
                      cases, the business will be consulted to determine the
                      impact.
--------------------------------------------------------------------------------
FAO
--------------------------------------------------------------------------------
Internet Progressive
Quote
--------------------------------------------------------------------------------
</TABLE>

                                        5

<PAGE>

<TABLE>
<S>                   <C>
--------------------------------------------------------------------------------
Internet Quotes
(E5)
--------------------------------------------------------------------------------
Personal
Progressive
--------------------------------------------------------------------------------
OPSS (Online
Underwriting
Guidelines)
--------------------------------------------------------------------------------
Ownership Work
Bench (OWB)
--------------------------------------------------------------------------------
POLARIS Billing       An outage for the start of day is defined as anytime the
System                POLARIS transactions are not available by 6:00am Monday
                      through Friday. On Saturday, Agent Bank (S6) and Common
                      EFT (S7) perform weekly file maintenance. An outage on
                      Saturday will be defined as anytime either of these 2
                      transactions are not available by 8:00am.
--------------------------------------------------------------------------------
Policy Services       An outage is defined as anytime their scanning system is
Work Flow (POWR)      totally unavailable (both locations down) for more than 30
                      minutes excluding their daily batch window between
                      midnight and 4:00am EST.
--------------------------------------------------------------------------------
ProRater Uploads
--------------------------------------------------------------------------------
PROTEUS (Atlantic,    An outage for start of day is defined as anytime the 30
Gulf, Midwest,        minute back-up occurs after 6:00am, or causes the
Pacific)              application to be unavailable over 30 minutes.
--------------------------------------------------------------------------------
Server Based
Rating (SBR)
--------------------------------------------------------------------------------
Telecom
--------------------------------------------------------------------------------
</TABLE>

* ProBill will be baselined in 2004 for inclusion in 2005. We may also baseline
the General Ledger application.

2. Customer Retention

An outage impacting 100 or more customers is defined as:

[ ]  E-mails are sent multiple times to the same person

[ ]  EFT (electronic fund transfers) incorrectly occur multiple times

[ ]  Bills are sent to the wrong person

[ ]  Billing is incorrect by more than $ 1.00

[ ]  Documents are retransmitted (post office, fax or email) because print was
     incorrect, forms were missing or forms were sent in error.

[ ]  Policyholder personal information is compromised by sharing or sending
     forms with the wrong person or agent.

3. Telecommunications

An outage is defined as anytime service (Data / Voice) is not available within
15 minutes of the failure. The measurement includes any outage at the offices
listed

                                        6

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below:

Direct (Strategic Alliance, DirectPro and Internet), Policy Services, Commercial
Vehicle and Claims Call Centers at the following locations:

Cleveland Campus I                  Colorado Springs, CO (Research Parkway)
Cleveland Campus II                 Colorado Springs, CO (Chapel Hills)
Brooklyn, OH                        Austin, TX
Tampa, FL (Sable Park)              Mentor, OH
Tampa, FL (Riverview)               Rancho Cordova, CA (Sacramento)
Tempe, AZ

In addition, a call routing outage is defined as anytime 100 unique customers
calls are not successfully completed to Progressive (i.e., fast busy,
non-working number recording) within a 15 minute period.

                                        7

<PAGE>

4. Availability of an Application

There can be times when an application is available but a particular transaction
could be out of service or malfunctioning. For our measurement purposes, this
would typically be counted as an outage.

We recognize there could be an occasion where the unavailable transaction
represents insignificant lost functionality (less than 1% of the days
transactions) to our customers. These transactions being unavailable would not
be counted as an outage.

5. Vendor Service Outages

Vendors are a critical component to our service delivery. We deal with 2 types
of vendors, Transaction Service Vendors (Equifax, Choicepoint, Discover, State
MVR Centers, etc.) and Infrastructure Vendors (IBM, MCI, Microsoft, Oracle,
etc.). It is the responsibility of the appropriate I/T group to manage and
evaluate the quality of service received from these vendors.

For purposes of this program, service disruptions caused by a Transaction
Service Vendor site not being available that is totally a vendor issue will not
be counted as an outage. However, we have several arrangements for failover to
an alternate vendor or alternate vendor site during an outage. If we are unable
to do the failover because of a Progressive related issue, this would be counted
as an outage.

For purposes of this program, service disruptions caused by an Infrastructure
Vendor will be counted as an outage.

6. Slow Response Time

Occasionally an application is available but the response time is poor. Slow
response time will not be counted as an outage.

7. Scheduled Maintenance

Occasionally, system or facility work needs to be performed that can not be
completed during our normal maintenance hours (see rule #1 for maintenance
hours). In spite of this downtime being scheduled in advance with our customers,
it will be counted as an outage.

8. IT Performance and Retention Point Values

                                 IT PERFORMANCE

Any day without an outage will be awarded points. Point values are weighted to
correspond with the value to the business based upon the volume of transactions.
The maximum number of points earned per week is 10 points per application
defined in Rule #1. The point value by workday is as follows:

                                        8

<PAGE>

<TABLE>
<CAPTION>
           DAY                      POINTS
------------------------------------------
<S>                                 <C>
Monday                              2.0
------------------------------------------
Tuesday                             2.0
------------------------------------------
Wednesday, Thursday, Friday         1.5
------------------------------------------
Saturday                            1.0
------------------------------------------
Sunday                              0.5
------------------------------------------
</TABLE>

                                        9

<PAGE>

Point values will not be adjusted for holidays. In other words, if a holiday is
celebrated on a Monday it will be given a 2 point value.

                              IT CUSTOMER RETENTION

Outages that negatively affect customers will be assessed a .5 point loss per
incident defined in Rule #2.

9. Communications of Status

On a daily basis, we will communicate any outage in the Morning Status Report
issued Monday through Friday by ETG. The outage will be highlighted in red.

Each Monday, ETG will distribute to all IT staff, the "Weekly IT Performance
Report", indicating the previous week's results as well as the annualized point
factor. In addition, a monthly report with year-to-date information will be
distributed to all IT staff by the first Friday of the fiscal month.

10. Appeal Process

Anyone within the organization has the right to appeal an outage. All appeals
should be made by a Lotus Note to Ed Locker. Ed will make sure the appeal is
presented in the Post Mortem review of the incident. If the outage was
misrepresented, a reversal will be carried in the Weekly IT Performance Report
and all associated status reports.

If the outage requires a judgment call, it will be reviewed by Jerry Winchell,
Tom Cunningham and Scott McPherson, who will act as the Ruling Committee. All
judgments made by the Ruling Committee are final.

11. 2004 Earned Points Chart

The attached 2004 Earned Points Chart correlates annual points earned to the IT
Performance Factor.

12. Scoring Rule Clarifications.

With the conversion to the new points distribution system for the Information
Technology Incentive Plan, we will be making some new decisions to support
scoring. Often there is not a right or wrong answer. However, it is extremely
important that we are consistent and wanted to publish our current assumptions.
All changes must be approved by the Ruling Committee.

[ ]  Points will not be charged against an application if all offices are closed
     that use the application. For example, CA's system is down on a Sunday
     outside of their work hours. No points charged to CA.

[ ]  The total population using the system at the time of the outage will always
     be used

                                       10

<PAGE>

     to determine if it is a performance loss. This is exactly what we do today.
     The point losses distributed amongst applications will be given no matter
     how many people are working on that application. In other words, we assess
     a point loss to the application even though there were less than 100 people
     using it. For example, we have 100 or more people down during a 20 minute
     production system outage. It is a point loss because it is over 15 minutes
     and impacted 100 people. If CA only had 1 person working, their system
     would still incur a point loss.

                                       11

<PAGE>

                                                                     SCHEDULE II

                     INFORMATION TECHNOLOGY INCENTIVE PLAN
                            2004 EARNED POINTS CHART

<TABLE>
<CAPTION>
      ANNUAL POINTS EARNED
---------------------------------
MINIMUM                   MAXIMUM             IT PERFORMANCE FACTOR
-------------------------------------------------------------------
<S>                       <C>                 <C>
 10,591                   10,600                      2.00
-------------------------------------------------------------------
 10,588                   10,590                      1.97
-------------------------------------------------------------------
 10,584                   10,587                      1.96
-------------------------------------------------------------------
 10,581                   10,583                      1.95
-------------------------------------------------------------------
 10,577                   10,580                      1.94
-------------------------------------------------------------------
 10,573                   10,576                      1.93
-------------------------------------------------------------------
 10,570                   10,572                      1.92
-------------------------------------------------------------------
 10,566                   10,569                      1.91
-------------------------------------------------------------------
 10,563                   10,565                      1.90
-------------------------------------------------------------------
 10,559                   10,562                      1.89
-------------------------------------------------------------------
 10,555                   10,558                      1.88
-------------------------------------------------------------------
 10,552                   10,554                      1.87
-------------------------------------------------------------------
 10,548                   10,551                      1.86
-------------------------------------------------------------------
 10,545                   10,547                      1.85
-------------------------------------------------------------------
 10,541                   10,544                      1.84
-------------------------------------------------------------------
 10,537                   10,540                      1.83
-------------------------------------------------------------------
 10,534                   10,536                      1.82
-------------------------------------------------------------------
 10,530                   10,533                      1.81
-------------------------------------------------------------------
 10,526                   10,529                      1.80
-------------------------------------------------------------------
 10,523                   10,525                      1.79
-------------------------------------------------------------------
 10,519                   10,522                      1.78
-------------------------------------------------------------------
 10,516                   10,518                      1.77
-------------------------------------------------------------------
 10,512                   10,515                      1.76
-------------------------------------------------------------------
 10,508                   10,511                      1.75
-------------------------------------------------------------------
 10,505                   10,507                      1.74
-------------------------------------------------------------------
 10,501                   10,504                      1.73
-------------------------------------------------------------------
 10,498                   10,500                      1.72
-------------------------------------------------------------------
 10,494                   10,497                      1.71
-------------------------------------------------------------------
 10,490                   10,493                      1.70
-------------------------------------------------------------------
 10,487                   10,489                      1.69
-------------------------------------------------------------------
 10,483                   10,486                      1.68
-------------------------------------------------------------------
 10,480                   10,482                      1.67
-------------------------------------------------------------------
 10,476                   10,479                      1.66
-------------------------------------------------------------------
 10,472                   10,475                      1.65
-------------------------------------------------------------------
 10,469                   10,471                      1.64
-------------------------------------------------------------------
 10,465                   10,468                      1.63
-------------------------------------------------------------------
 10,462                   10,464                      1.62
-------------------------------------------------------------------
</TABLE>

                                       12

<PAGE>

<TABLE>
<S>                       <C>                         <C>
 10,458                   10,461                      1.61
-------------------------------------------------------------------
 10,454                   10,457                      1.60
-------------------------------------------------------------------
 10,451                   10,453                      1.59
-------------------------------------------------------------------
 10,447                   10,450                      1.58
-------------------------------------------------------------------
 10,443                   10,446                      1.57
-------------------------------------------------------------------
 10,440                   10,442                      1.56
-------------------------------------------------------------------
 10,436                   10,439                      1.55
-------------------------------------------------------------------
 10,433                   10,435                      1.54
-------------------------------------------------------------------
 10,429                   10,432                      1.53
-------------------------------------------------------------------
 10,425                   10,428                      1.52
-------------------------------------------------------------------
 10,422                   10,424                      1.51
-------------------------------------------------------------------
 10,418                   10,421                      1.50
-------------------------------------------------------------------
 10,415                   10,417                      1.49
-------------------------------------------------------------------
 10,411                   10,414                      1.48
-------------------------------------------------------------------
 10,407                   10,410                      1.47
-------------------------------------------------------------------
 10,404                   10,406                      1.46
-------------------------------------------------------------------
 10,400                   10,403                      1.45
-------------------------------------------------------------------
 10,397                   10,399                      1.44
-------------------------------------------------------------------
 10,393                   10,396                      1.43
-------------------------------------------------------------------
 10,389                   10,392                      1.42
-------------------------------------------------------------------
 10,386                   10,388                      1.41
-------------------------------------------------------------------
 10,382                   10,385                      1.40
-------------------------------------------------------------------
 10,378                   10,381                      1.39
-------------------------------------------------------------------
 10,375                   10,377                      1.38
-------------------------------------------------------------------
 10,371                   10,374                      1.37
-------------------------------------------------------------------
 10,368                   10,370                      1.36
-------------------------------------------------------------------
 10,364                   10,367                      1.35
-------------------------------------------------------------------
 10,360                   10,363                      1.34
-------------------------------------------------------------------
 10,357                   10,359                      1.33
-------------------------------------------------------------------
 10,353                   10,356                      1.32
-------------------------------------------------------------------
 10,350                   10,352                      1.31
-------------------------------------------------------------------
 10,346                   10,349                      1.30
-------------------------------------------------------------------
 10,342                   10,345                      1.29
-------------------------------------------------------------------
 10,339                   10,341                      1.28
-------------------------------------------------------------------
 10,335                   10,338                      1.27
-------------------------------------------------------------------
 10,332                   10,334                      1.26
-------------------------------------------------------------------
 10,328                   10,331                      1.25
-------------------------------------------------------------------
 10,324                   10,327                      1.24
-------------------------------------------------------------------
 10,321                   10,323                      1.23
-------------------------------------------------------------------
 10,317                   10,320                      1.22
-------------------------------------------------------------------
 10,314                   10,316                      1.21
-------------------------------------------------------------------
 10,310                   10,313                      1.20
-------------------------------------------------------------------
 10,306                   10,309                      1.19
-------------------------------------------------------------------
 10,303                   10,305                      1.18
-------------------------------------------------------------------
 10,299                   10,302                      1.17
-------------------------------------------------------------------
 10,295                   10,298                      1.16
-------------------------------------------------------------------
 10,292                   10,294                      1.15
-------------------------------------------------------------------
 10,288                   10,291                      1.14
-------------------------------------------------------------------
</TABLE>

                                       13

<PAGE>

<TABLE>
<S>                       <C>                         <C>
 10,285                   10,287                      1.13
-------------------------------------------------------------------
 10,281                   10,284                      1.12
-------------------------------------------------------------------
 10,277                   10,280                      1.11
-------------------------------------------------------------------
 10,274                   10,276                      1.10
-------------------------------------------------------------------
 10,270                   10,273                      1.09
-------------------------------------------------------------------
 10,267                   10,269                      1.08
-------------------------------------------------------------------
 10,263                   10,266                      1.07
-------------------------------------------------------------------
 10,259                   10,262                      1.06
-------------------------------------------------------------------
 10,256                   10,258                      1.05
-------------------------------------------------------------------
 10,252                   10,255                      1.04
-------------------------------------------------------------------
 10,249                   10,251                      1.03
-------------------------------------------------------------------
 10,245                   10,248                      1.02
-------------------------------------------------------------------
 10,241                   10,244                      1.01
-------------------------------------------------------------------
 10,204                   10,240                      1.00
-------------------------------------------------------------------
 10,134                   10,203                      0.99
-------------------------------------------------------------------
 10,063                   10,133                      0.98
-------------------------------------------------------------------
 9,992                    10,062                      0.97
-------------------------------------------------------------------
 9,922                     9,991                      0.96
-------------------------------------------------------------------
 9,851                     9,921                      0.95
-------------------------------------------------------------------
 9,781                     9,850                      0.94
-------------------------------------------------------------------
 9,710                     9,780                      0.93
-------------------------------------------------------------------
 9,639                     9,709                      0.92
-------------------------------------------------------------------
 9,569                     9,638                      0.91
-------------------------------------------------------------------
 9,498                     9,568                      0.90
-------------------------------------------------------------------
 9,428                     9,497                      0.89
-------------------------------------------------------------------
 9,357                     9,427                      0.88
-------------------------------------------------------------------
 9,287                     9,356                      0.87
-------------------------------------------------------------------
 9,216                     9,286                      0.86
-------------------------------------------------------------------
 9,145                     9,215                      0.85
-------------------------------------------------------------------
 9,075                     9,144                      0.84
-------------------------------------------------------------------
 9,004                     9,074                      0.83
-------------------------------------------------------------------
 8,934                     9,003                      0.82
-------------------------------------------------------------------
 8,863                     8,933                      0.81
-------------------------------------------------------------------
 8,792                     8,862                      0.80
-------------------------------------------------------------------
 8,722                     8,791                      0.79
-------------------------------------------------------------------
 8,651                     8,721                      0.78
-------------------------------------------------------------------
 8,581                     8,650                      0.77
-------------------------------------------------------------------
 8,510                     8,580                      0.76
-------------------------------------------------------------------
 8,439                     8,509                      0.75
-------------------------------------------------------------------
 8,369                     8,438                      0.74
-------------------------------------------------------------------
 8,298                     8,368                      0.73
-------------------------------------------------------------------
 8,228                     8,297                      0.72
-------------------------------------------------------------------
 8,157                     8,227                      0.71
-------------------------------------------------------------------
 8,087                     8,156                      0.70
-------------------------------------------------------------------
 8,016                     8,086                      0.69
-------------------------------------------------------------------
 7,945                     8,015                      0.68
-------------------------------------------------------------------
 7,875                     7,944                      0.67
-------------------------------------------------------------------
 7,804                     7,874                      0.66
-------------------------------------------------------------------
</TABLE>

                                       14

<PAGE>

<TABLE>
<S>                        <C>                        <C>
 7,734                     7,803                      0.65
-------------------------------------------------------------------
 7,663                     7,733                      0.64
-------------------------------------------------------------------
 7,592                     7,662                      0.63
-------------------------------------------------------------------
 7,522                     7,591                      0.62
-------------------------------------------------------------------
 7,451                     7,521                      0.61
-------------------------------------------------------------------
 7,381                     7,450                      0.60
-------------------------------------------------------------------
 7,310                     7,380                      0.59
-------------------------------------------------------------------
 7,239                     7,309                      0.58
-------------------------------------------------------------------
 7,169                     7,238                      0.57
-------------------------------------------------------------------
 7,098                     7,168                      0.56
-------------------------------------------------------------------
 7,028                     7,097                      0.55
-------------------------------------------------------------------
 6,957                     7,027                      0.54
-------------------------------------------------------------------
 6,886                     6,956                      0.53
-------------------------------------------------------------------
 6,816                     6,885                      0.52
-------------------------------------------------------------------
 6,745                     6,815                      0.51
-------------------------------------------------------------------
 6,675                     6,744                      0.50
-------------------------------------------------------------------
 6,604                     6,674                      0.49
-------------------------------------------------------------------
 6,534                     6,603                      0.48
-------------------------------------------------------------------
 6,463                     6,533                      0.47
-------------------------------------------------------------------
 6,392                     6,462                      0.46
-------------------------------------------------------------------
 6,322                     6,391                      0.45
-------------------------------------------------------------------
 6,251                     6,321                      0.44
-------------------------------------------------------------------
 6,181                     6,250                      0.43
-------------------------------------------------------------------
 6,110                     6,180                      0.42
-------------------------------------------------------------------
 6,039                     6,109                      0.41
-------------------------------------------------------------------
 5,969                     6,038                      0.40
-------------------------------------------------------------------
 5,898                     5,968                      0.39
-------------------------------------------------------------------
 5,828                     5,897                      0.38
-------------------------------------------------------------------
 5,757                     5,827                      0.37
-------------------------------------------------------------------
 5,686                     5,756                      0.36
-------------------------------------------------------------------
 5,616                     5,685                      0.35
-------------------------------------------------------------------
 5,545                     5,615                      0.34
-------------------------------------------------------------------
 5,475                     5,544                      0.33
-------------------------------------------------------------------
 5,404                     5,474                      0.32
-------------------------------------------------------------------
 5,333                     5,403                      0.31
-------------------------------------------------------------------
 5,263                     5,332                      0.30
-------------------------------------------------------------------
 5,192                     5,262                      0.29
-------------------------------------------------------------------
 5,122                     5,191                      0.28
-------------------------------------------------------------------
 5,051                     5,121                      0.27
-------------------------------------------------------------------
 4,981                     5,050                      0.26
-------------------------------------------------------------------
 4,910                     4,980                      0.25
-------------------------------------------------------------------
 4,839                     4,909                      0.24
-------------------------------------------------------------------
 4,769                     4,838                      0.23
-------------------------------------------------------------------
 4,698                     4,768                      0.22
-------------------------------------------------------------------
 4,628                     4,697                      0.21
-------------------------------------------------------------------
 4,557                     4,627                      0.20
-------------------------------------------------------------------
 4,486                     4,556                      0.19
-------------------------------------------------------------------
 4,416                     4,485                      0.18
-------------------------------------------------------------------
</TABLE>

                                       15

<PAGE>

<TABLE>
<S>                        <C>                        <C>
 4,345                     4,415                      0.17
-------------------------------------------------------------------
 4,275                     4,344                      0.16
-------------------------------------------------------------------
 4,204                     4,274                      0.15
-------------------------------------------------------------------
 4,133                     4,203                      0.14
-------------------------------------------------------------------
 4,063                     4,132                      0.13
-------------------------------------------------------------------
 3,992                     4,062                      0.12
-------------------------------------------------------------------
 3,922                     3,991                      0.11
-------------------------------------------------------------------
 3,851                     3,921                      0.10
-------------------------------------------------------------------
 3,781                     3,850                      0.09
-------------------------------------------------------------------
 3,710                     3,780                      0.08
-------------------------------------------------------------------
 3,639                     3,709                      0.07
-------------------------------------------------------------------
 3,569                     3,638                      0.06
-------------------------------------------------------------------
 3,498                     3,568                      0.05
-------------------------------------------------------------------
 3,428                     3,497                      0.04
-------------------------------------------------------------------
 3,357                     3,427                      0.03
-------------------------------------------------------------------
 3,286                     3,356                      0.02
-------------------------------------------------------------------
 3,216                     3,285                      0.01
-------------------------------------------------------------------
   0                       3,215                      0.00
-------------------------------------------------------------------
</TABLE>

                                       16

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