Document:

EX 10.29 (10K 2013)

EXHIBIT 10.29

THE NEW YORK TIMES COMPANIES
SUPPLEMENTAL RETIREMENT AND INVESTMENT PLAN

AMENDMENT NO. 3
THIS INSTRUMENT made as of the 14th day of November 2013, by the ERISA Management Committee (the “Committee”) of The New York Times Company (the “Company”).
W I T N E S S E T H
WHEREAS, the Company maintains The New York Times Companies Supplemental Retirement and Investment Plan, as amended from time to time (the “Plan”) for the benefit of its eligible employees, and
WHEREAS, pursuant to Section 12.01 of the Plan, the Committee has the authority to amend the Plan; and
WHEREAS, the Committee desires to amend the Plan effective January 1, 2014, to replace the stock match with a payroll based cash match, to increase the Safe Harbor Matching Contribution to 100% of the first 6% of Earnings contributed by the Participant as Before-Tax Contributions, After-Tax Contributions, Catch-up Contributions, and/or Roth Contributions, to change the definition of Earnings, to eliminate the 3% Employer Basic Contribution and to add a discretionary Profit Sharing Contribution. 
NOW, THEREFORE, the Plan is hereby amended effective as of January 1, 2014, as follows:
1.Section 1.01 of the Plan is hereby amended by deleting the phrase “Account and Employer Basic Account ” and by adding the phrase “Account, Employer Basic Account and Profit Sharing Account”.
2.The definition of Earnings in Section 1.19 of the Plan is hereby amended by adding the following new paragraph after the first two paragraphs in Section 1.19:

“Notwithstanding the preceding paragraphs, effective January 1, 2014, “Earnings” means the sum of the wages, tips, and other compensation from the Employer subject to federal income tax withholding (as described in Section 6051 of the Code) and amounts which the Employer contributes to a plan on behalf of an Employee pursuant to a salary reduction agreement which are not includible in the Employee’s gross income under Section 125, 132(f)(4), 402(g)(3), 403(b), or 457(b) of the Code but are required to be reported by the Employer on Form W-2 under Sections 6041 and 6051 of the Code.”
3.Section 1.24 of the Plan is hereby deleted in its entirety and in its place is substituted the following:
“1.24    “Employer Basic Account” means the Account to which is credited the Employer Basic Contributions made on a Participant’s behalf attributable to Plan Years beginning from January 1, 2009 through December 31, 2013 and any earnings or losses on those contributions.”
4.Section 1.25 of the Plan is hereby deleted in its entirety and in its place is substituted the following:
“1.25    “Employer Basic Contributions” means the contributions made by an Employer on behalf of a Participant attributable to Plan Years from January 1, 2009 through December 31, 2013.”
5.New definitions are added to Article 1 of the Plan as Section 1.44 and 1.45 and the existing Sections 1.44 through 1.54 are re-numbered as Sections 1.46 through 1.56.  Sections 1.44 and 1.45 shall read as follows:
“1.28    “Profit Sharing Account” means the Account to which is credited the discretionary Profit Sharing Contributions made on a Participant’s behalf pursuant to Section 3.02 of the Plan and any earnings or losses on those contributions.”
“1.29    “Profit Sharing Contributions” means the discretionary contributions made by an Employer on behalf of a Participant pursuant to Section 3.02 of the Plan.
6.The first sentence Section 1.54 (renumbered Section 1.56) of the Plan is hereby amended by replacing  the phrase “Employer Matching Account and Employer Basic Account” with the phrase “Employer Matching Account, Employer Basic Account and Profit Sharing Account”.

7.Section 2.01(c) of the Plan is hereby amended by adding the following to the end thereof:
“Notwithstanding the foregoing, effective for Plan Years beginning on or after January 1, 2014, no Employees will no eligible to receive the Employer Basic Contributions.”
8.Section 2.01(d) of the Plan is hereby amended by replacing the phrase “Safe Harbor Matching Contribution and Employer Basic Contribution, if applicable” with the phrase “Safe Harbor Matching Contribution and Profit Sharing Contribution, if applicable.”
9.Section 2.01 of the Plan is hereby amended by adding the following new subsection (d) and renumbering the existing subsection (d) as subsection (e):
“(d)    With respect to the Profit Sharing Contribution, only Employees who have completed one year of Eligibility Service shall be eligible to receive the discretionary Profit Sharing Contribution for Plan Years commencing after December 31, 2013.  For purposes of the Profit Sharing Contribution, following completion of one year of Eligibility Service, an Employee shall become a Participant in the Plan as of the first day of the month coincident with or next following his or her completion of one year of Eligibility Service.”
10.The first sentence Section 2.05 of the Plan is hereby amended by replacing  the phrase “Safe Harbor Matching Contributions or Employer Basic Contributions” with the phrase “Safe Harbor Matching Contributions, Employer Basic Contributions and Profit Sharing Contributions”.
11.The first sentence Section 2.06 of the Plan is hereby amended by replacing  the phrase “Safe Harbor Matching Contributions or Employer Basic Contributions” with the phrase “Safe Harbor Matching Contributions, Employer Basic Contributions and Profit Sharing Contributions”.
12.The first sentence Section 2.07 of the Plan is hereby amended by replacing  the phrase “Safe Harbor Matching Contributions or Employer Basic Contributions” with the phrase “Safe Harbor Matching Contributions, Employer Basic Contributions and Profit Sharing Contributions”.

13.Section 3.02 of the Plan is hereby amended by renaming such section from “Employer Basic Contributions” to “Employer Contributions” and by redefining the existing Section 3.02 as Section 3.02(a).
14.Section 3.02(a) of the Plan is hereby amended by adding the following to the end thereof:
“Notwithstanding the foregoing, effective for Plan Years beginning on or after January 1, 2014, Employer Basic Contributions will no longer be made.”
15.Section 3.02 of the Plan is hereby further amended by adding the following new subsection (b) to the end thereof:
“3.02(b)    “Profit Sharing Contributions”  An Employer shall within the time permitted by Section 404(a)(6) of the Code, contribute a discretionary Profit Sharing Contribution for each eligible Participant’s Earnings (taking into account only such Earnings as are paid after the date the Employee becomes a Participant) for those Participants who have satisfied the eligibility requirements of Section 2.01(c)].  Such amounts shall be allocated to the Profit Sharing Account of each Participant who is employed by the Employer on the last day of the Plan Year; provided, however, that any Participant who terminates employment prior to the last day of the Plan Year on account of death, disability or retirement, shall be entitled to the discretionary Profit Sharing Contribution if a contribution is allocated for the year during which his/her employment terminated.”
16.Section 3.03(b) of the Plan is hereby deleted in its entirety and in its place is substituted the following:
“3.03 (b)    The Employer will contribute to the Plan Year a Safe Harbor Matching Contribution for the Plan Year on behalf of each Eligible Employee equal to 100% of the amount of the Employee’s Before-Tax Contributions, After-Tax Contributions, Catch-up Contributions, and/or Roth Contributions up to 6% of the Employee’s Earnings for the Plan Year.”
17.Section 3.03(c) of the Plan is hereby deleted in its entirety and in its place is substituted the following:
“3.03(c)    The Safe Harbor Matching Contribution shall be made by the Employer in cash and allocated to the Participant’s Safe Harbor Matching Contribution Account on a pay period basis.”
18.Section 3.07(b)(i) of the Plan is hereby deleted in its entirety and in its place is substituted the following:

“(i)    the total of all Before-Tax Contributions, After-Tax Contributions,  Employer Matching Contributions, Roth Contributions, Employer Basic Contributions, Safe Harbor Matching Contributions, Profit Sharing Contribution, and forfeitures;"
19.Section 4.01(d) of the Plan is hereby deleted in its entirety and in its place is substituted the following:
“(d)    Safe Harbor Matching Contributions made in Company Stock prior to January 1, 2014  shall be automatically invested in the Company Stock fund.”
20.The first sentence Section 4.02 of the Plan is hereby amended by replacing  the phrase “Employer Basic Account, and Safe Harbor Matching Account” with the phrase Employer Basic Account, Safe Harbor Matching Account and Profit Sharing Account”.  The third and fourth sentences of Section 4.02 of the Plan are hereby deleted in their entireties.  The amended Section 4.02 shall read as follows:
“A Participant shall elect to invest all amounts in such Participant’s Before-Tax Account, Employer Matching Account, After-Tax Account, Rollover Account, Roth Account, Employer Basic Account, Safe Harbor Matching Account, and Profit Sharing Account in one or more of the Funds in increments of 1%.  If the Participant does not make an election with respect to investment of such Participant’s Account, the Participant’s Account will be invested in the age-appropriate Target Retirement Fund appropriate for such Participant based on his or her age at such time.  The portion of a Participant’s Account invested in the Company Stock fund shall not exceed 10%, which limitation shall be implemented in accordance with procedures established by the Plan Administrator.”
21.The first sentence Section 4.05 of the Plan is hereby amended by replacing  the phrase “Employer Basic Account, and Safe Harbor Matching Account” with the phrase Employer Basic Account, Safe Harbor Matching Account and Profit Sharing Account”.
22.The last sentence of Section 4.05 is hereby amended by adding the phrase “prior to January 1, 2014” after the phrase “contributed in Company Stock”.  The amended sentence shall read as follows:
“The Participant may transfer all or part of the Safe Harbor Matching Account contributed in Company Stock prior to January 1, 2014 in the same manner as cash contributions; provided, however, that the portion of a Participant’s Account invested in the Company Stock fund shall not exceed 10%, which limitation shall 

be implemented in accordance with procedures established by the Plan Administrator.”
23.Section 5.03 is hereby amended by adding a new subsection (g) to the end thereof.  The new subsection (g) shall read as follows:
“(g)    The portion of an Profit Sharing Account that is invested in each Fund shall be credited on each Valuation Date with the number of units or shares, as applicable, determined by dividing the Profit Sharing Contributions made by the Employer to that Fund on behalf of the Participant since the previous Valuation Date, if applicable, by the unit or share value for that Fund as determined on that Valuation Date.”
24.Section 6.02 of the Plan is hereby amended by replacing the phrase “Employer Matching Account and Employer Basic Account” with the phrase “Employer Matching Account, Employer Basic Account and Profit Sharing Account” each of the four times it is noted in this Section.
25.Section 6.02 of the Plan is hereby further amended by replacing the phrase “Employer Matching and Basic Accounts” with the phrase “Employer Matching, Basic and Profit Sharing Accounts”.
26.Section 6.06(a) is hereby deleted in its entirety and in its place is substituted the following:
“(a)    Upon severance from employment of a Participant who was not fully vested in the Employer Matching Account, Employer Basic Account, and/or Profit Sharing Account, the non-vested percentage of such Employer Matching Account,  Employer Basic Account, and/or Profit Sharing Account shall be forfeited as of the Valuation Date coincident with or next following the severance from employment, and shall be applied to reduce Employer contributions to the Plan.”
27.The first sentence Section 6.06(b) of the Plan is hereby amended by replacing the phrase “Employer Matching Account and Employer Basic Account” with the phrase “Employer Matching Account, Employer Basic Account and Profit Sharing Account” both times it is noted in such section.
28.The second sentence Section 12.04 of the Plan is hereby deleted in its entirety and in its place is substituted the following:

“In the case of the termination or partial termination of the Plan, or of the complete discontinuance of Employer Matching Contributions, prior to January 1, 2009, Employer Basic Contribution or Profit Sharing Contributions to the Plan, affected Participants shall be 100% vested in, and have a nonforfeitable right to, the total amount in all of their Accounts under the Plan as of the date of the termination or discontinuance.”
IN WITNESS WHEREOF, the ERISA Management Committee of The New York Times Company has caused this amendment to be executed by a duly authorized member as of November 14, 2013.

ERISA MANAGEMENT COMMITTEE
/s/ R. Anthony Benten                
R. Anthony Benten
ChairmanExhibit 10.7

Exhibit 10.7
THE PROGRESSIVE CORPORATION
2014 GAINSHARING PLAN

1.    The Plan.  The Progressive Corporation and its subsidiaries and mutual insurance company affiliate (collectively, "Progressive" or the "Company") have adopted The Progressive Corporation 2014 Gainsharing Plan (the "Plan") as part of their overall compensation program.  The Plan is performance-based and is administered under the direction of the Compensation Committee of the Board of Directors of The Progressive Corporation (the “Committee”).  Plan years will coincide with Progressive’s fiscal years.

2.    Participants.  Plan participants for each Plan year shall include all officers and regular employees of Progressive, unless determined otherwise by the Committee.  Temporary employees are not eligible to participate in the Plan.  The Gainsharing opportunity, if any, for those executive officers who participate in The Progressive Corporation 2007 Executive Bonus Plan (the “Executive Bonus Plan”) will be provided by the Executive Bonus Plan, although participants in that plan may also participate in this Plan if and to the extent determined by the Committee.  Throughout this Plan, references to “executive officers” refer to executive officers within the meaning of any Securities and Exchange Commission (“SEC”) or New York Stock Exchange rule applicable to the Company.  

3.    Gainsharing Formula.  Annual Gainsharing Payments under the Plan will be determined by application of the following formula:

Annual Gainsharing   =    Paid Eligible Earnings x  Target Percentage  x  Performance Factor
     Payment

4.    Paid Eligible Earnings.  Paid Eligible Earnings for any Plan year shall mean and include the following: regular, Earned Time Benefit pay (excluding the payout of unused Earned Time Benefit pay at termination), sick pay, holiday pay, funeral pay, overtime pay, military make-up pay, shift differential, and retroactive payments of any of the foregoing items, received by the participant during the Plan year for work or services performed as an officer or employee of Progressive.

For purposes of the Plan, Paid Eligible Earnings shall exclude all other types of compensation, including, without limitation, any short-term or long-term disability payments made to the participant, the earnings replacement component of any workers’ compensation award, any bonus, Gainsharing or other incentive compensation or equity-based awards, including, without limitation, payments from any discretionary cash fund, any dividend payments and any unused Earned Time Benefit.

5.    Target Percentages.  Target Percentages vary by position.  Target Percentages for Plan participants typically are as follows:

	
		
	POSITION
	TARGET %

	Senior Executives and Executive Level Managers
	60 - 150%

	Business Leaders
	35 - 60%

	Directors and Senior Directors
	20 - 35%

	Middle Managers and Senior Managers
	15 - 20%

	Senior Professionals and Entry Level Managers
	8 - 20%

	Administrative Support and Entry Level Professionals
	0 - 8%

1

Target Percentages will be established within the above ranges by, and may be changed with the approval of, the following officers of The Progressive Corporation (collectively, the “Designated Executives”): (a) the Chief Executive Officer, and (b) either the Chief Human Resource Officer or the Chief Financial Officer; provided that the Chief Human Resource Officer may establish appropriate procedures to evaluate the need for, and if appropriate, implement individual exceptions to the foregoing ranges.  Target Percentages may be changed from year to year by the Designated Executives.  Notwithstanding anything herein to the contrary, only the Committee may establish or modify the Target Percentages for the Company’s executive officers.

If a participant’s Target Percentage changes during a Plan year, the Target Percentages used to calculate such participant’s Annual Gainsharing Payment hereunder shall be weighted appropriately to reflect such participant’s tenure in each such position during the Plan year.

		
	6.
	The Performance Factor.

A.    Core Business Defined

The Performance Factor shall be determined by the performance of the Core Business during the Plan year, pursuant to the procedures and calculations described below.  The “Core Business” shall be comprised of the following:
		
	•
	The Agency Auto business unit, consisting of the auto business produced by independent agents or brokers, including Strategic Alliances Agency auto, but excluding all Agency Special Lines businesses;

		
	•
	The Direct Auto business unit, consisting of the personal auto business produced by phone, over the Internet, or via a mobile device, but excluding all Direct Special Lines businesses; 

		
	•
	The Special Lines business unit, consisting of Special Lines business generated by agents and brokers or directly by phone, over the Internet, or via a mobile device, but excluding umbrella policies; and

		
	•
	The Commercial Lines business unit.  

Each of the Agency Auto, Direct Auto, Special Lines and Commercial Lines business units is referred to herein as a “Business Unit” or “Unit.”  For all purposes under this Plan, the results of the Professional Liability business, the Midland Financial Group, Inc.,  other businesses in run-off, the CAIP Servicing Group, the Company’s Australia operations and umbrella policies are excluded from the Core Business results.  

Notwithstanding the foregoing, net operating results from any business that is not included in and is not specifically excluded from the descriptions above, if any, will be apportioned among the appropriate Business Units in accordance with the respective amount(s) of net earned premiums generated by each such Business Unit, and the apportioned net operating results will be included in the calculation of the combined ratio (calculated by reference to the Company’s GAAP financial results) (the “GAAP Combined Ratio”) for such Business Unit(s).  Assigned risk business is not included in determining the growth of any Business Unit, but the net operating gains/losses for such assigned risk business will be included in determining the GAAP Combined Ratio for the applicable Business Unit.

B.    Matrices

For purposes of computing a performance score for the Core Business, operating performance results for each Business Unit are evaluated using a performance matrix for the Plan year.  Each matrix assigns performance scores to various combinations of profitability and growth outcomes for the applicable Business Unit.  

2

For 2014, and for each Plan year thereafter until otherwise determined by the Committee, each Business Unit will be evaluated according to the performance of the Business Unit as a whole. Therefore, separate Gainsharing matrices will be established by the Committee for the following:

		
	•
	Agency Auto;

		
	•
	Direct Auto;

		
	•
	Special Lines; and

		
	•
	Commercial Lines. 

C.    Performance Measures

Growth.  The growth measure for the Plan year under all matrices will be based on policies in force (“PIFs”).  

For all matrices, growth will be measured by the percentage change in average PIFs for the Plan year compared to the average PIFs of the immediately preceding fiscal year.  Average PIFs for the Plan year and for the immediately preceding fiscal year will be determined by adding the fiscal-month-end number of PIFs for each month during such year and dividing the total by twelve.   

Profitability.  For all Business Unit matrices, the measurement of profitability will be the GAAP Combined Ratio for the Plan year for the applicable Unit. 

D.    Calculation of Performance Factor 

Performance Scores

Using the actual performance results and the Gainsharing matrix for each Business Unit, the GAAP Combined Ratio for each such Unit will be matched with the growth levels achieved by such Unit, to determine the performance score for each such Unit.  The performance score for each Business Unit, which will be used to calculate the Performance Factor as described further below, can vary from 0 to 2.0.  

Performance Factor

The resulting performance scores for each of the Agency Auto, Direct Auto, Commercial Lines and Special Lines Business Units will then be multiplied by a weighting factor, which shall be a fraction or decimal equivalent, determined by dividing the net earned premiums generated by such Business Unit during the Plan year by the net earned premiums generated by all of the Business Units comprising the Core Business in the aggregate.  The sum of these weighted performance scores will be the Performance Factor for the Plan year.

E.    Limitations

The final Performance Factor cannot exceed 2.0.

7.    Payment Procedures; Deferral.  Subject to Paragraph 9 below, no later than December 31 of each Plan year, each participant will receive an initial payment in respect of his or her Annual Gainsharing Payment for that Plan year, if any, equal to 75% of an amount calculated on the basis of Paid Eligible Earnings for the first 24 pay periods of the Plan year, estimated earnings for the remainder of the Plan year, and an estimated performance factor determined using the performance data for each Business Unit through the first 11 months of the Plan year (estimated, if necessary), the applicable Gainsharing matrix and the calculations described above.  No later than February 28 of the following year, each participant will receive the balance of his or her Annual Gainsharing Payment, if any, for such Plan year, based on his or her Paid Eligible Earnings and performance data for the entire Plan year.

3

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

8.    Other Plans.  If, for any Plan year, an employee has been selected to participate in both this Plan and another cash incentive plan offered by the Company, then with respect to such employee, the Gainsharing formula set forth in Paragraph 3 hereof shall be appropriately adjusted by applying a weighting factor to reflect the proportion of the employee’s total annual incentive opportunity that is being provided by this Plan.  The Committee shall have full authority to determine the incentive plan or plans in which any employee will participate during any plan year and, if an employee is selected to participate in more than one plan, the weighting factor that will apply to each such plan.  

9.    Qualification Date; Leave of Absence; Withholding.  Unless otherwise determined by the Committee, and except as expressly provided herein, in order to be entitled to receive an Annual Gainsharing Payment for any Plan year, the participant must be an active officer or regular employee of the Company on November 30 of the Plan year (“Qualification Date”).  Individuals who are hired on or after December 1 of any Plan year are not entitled to an Annual Gainsharing Payment for that Plan year. 

Any participant who is on a leave of absence covered by the Family and Medical Leave Act of 1993, as amended, personal leave of absence with the approval of the Company, military leave or short or long-term disability (provided that, in the case of a long-term disability, the participant is still an employee of the Company) on the Qualification Date with respect to any Plan year will be entitled to receive an Annual Gainsharing Payment for such Plan year, calculated as provided in Paragraphs 3 through 6 above, based on the amount of Paid Eligible Earnings received by such participant during the Plan year and paid in the manner and at the times as are described in Paragraph 7 above. 

All payments made hereunder will be net of any legally required deductions for federal, state and local taxes and other items.

10.    Non-Transferability.  The right to any Annual Gainsharing 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.

11.    Administration.  The Plan shall be administered by or under the direction of the Committee.  The Committee shall have the authority to adopt, amend, revise 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.

Unless otherwise determined by the Committee, all of the authority of the Committee hereunder (including, without limitation, the authority to administer the Plan, select the persons entitled to participate herein, interpret the provisions thereof, waive any of the requirements specified herein and make determinations hereunder and to select, approve, establish, change or modify the Business Units and the Gainsharing formulae, weighting factors, performance targets and Target Percentages) may be exercised by the Designated Executives; provided, however, that only the Committee may take such actions or make such determinations for the Company’s executive officers.  In the event of a dispute or conflict, the determination of the Committee will govern.

4

12.    Miscellaneous.  

		
	A.
	Recoupment.  Progressive shall have the right to recoup any Annual Gainsharing Payment (or an appropriate portion thereof, as hereinafter provided) with respect to any Plan year paid to a participant hereunder who was an executive officer of Progressive at any time during such Plan year, if: (i) the Annual Gainsharing Payment was predicated upon the achievement during such Plan year of certain financial or operating results (which includes, for purposes hereof, the Performance Factor described in Section 6); (ii) such financial or operating results were incorrect and were subsequently the subject of a restatement by Progressive within three (3) years after the date on which such Annual Gainsharing Payment was paid to the participant; and (iii) a lower payment would have been made to the participant if the restated financial or operating results had been known at the time the payment was made.  Such recoupment right shall be available to Progressive whether or not the participant in question was at fault or responsible in any way in causing such restatement.  In such circumstances, Progressive will have the right to recover from each participant for such Plan year, and each such participant will refund to Progressive, the amount by which the Annual Gainsharing Payment paid to such participant for the Plan year in question exceeded the lower payment that would have been made based on the restated results, without interest; provided, however, that Progressive will not seek to recover such amounts unless the amount due would exceed the lesser of five percent (5%) of the Annual Gainsharing Payment previously paid or twenty-thousand dollars ($20,000).  Such recovery, at the Committee’s discretion, may be made by lump sum payment, installment payments, credits against future bonus payments, or other appropriate mechanism.

		
	B.
	Further Rights.  Notwithstanding the foregoing subsection A., if any participant that was an executive officer at any time during such Plan year engaged in fraud or other misconduct (as determined by the Committee or the Board, in their respective sole discretion) resulting, in whole or in part, in a restatement of the financial or operating results used hereunder to determine the Annual Gainsharing Payments for a specific Plan year, Progressive will further have the right to recover from such participant, and the participant will refund to Progressive upon demand, an amount equal to the entire Annual Gainsharing Payment paid to such participant for such Plan year plus interest at the rate of eight percent (8%) per annum or, if lower, the highest rate permitted by law, calculated from the date that such bonus was paid to the participant.  Progressive shall further have the right to recover from such participant Progressive’s costs and expenses incurred in connection with recovering such Annual Gainsharing Payment from the participant, including, without limitation, reasonable attorneys’ fees.  There shall be no time limit on the Company’s right to recover such amounts under this subsection B., except as otherwise provided by applicable law.

		
	C.
	Rights Not Exclusive.  The rights contained in the foregoing subsections A. and B. shall be in addition to, and shall not limit, any other rights or remedies that the Company may have under any applicable law or regulation.

		
	D.
	Compliance with Law.  The Annual Gainsharing Payments determined and paid pursuant to the Plan shall be subject to all applicable laws and regulations.  Without limiting the foregoing, and notwithstanding anything to the contrary contained in this Plan, if the SEC promulgates rules under Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that require, as a condition to the Company’s continued listing on a national securities exchange,  that the Company develop and implement a policy requiring the recovery of erroneously awarded compensation, and such regulations are applicable to the Annual Gainsharing Payments awarded pursuant to the Plan, then the following shall apply:

5

In the event that the Company is required to prepare a restatement of one or more of its financial statements due to the material noncompliance of the Company with any financial reporting requirement under the securities laws, the Company will be entitled to recover from each participant hereunder who was at the time of grant or payment of an Annual Gainsharing Payment an executive officer of the Company under applicable SEC rules (whether or not such participant remains an executive officer of the Company at the time of such restatement or thereafter), the amount of any Annual Gainsharing Payment that (i) was paid during the three year period preceding the date on which the Company is required to prepare such restatement and (ii) is in excess of what would have been paid to the participant under the restatement, or as may otherwise be required by such rules to be promulgated by the SEC.

13.    Termination; Amendment.  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.

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

15.    No Employment Rights.  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, duties or compensation.

16.    Set-Off Rights.  Progressive shall have the unrestricted right to set off against or recover out of any Annual Gainsharing Payment or other sums owed to any participant under the Plan any amounts owed by such participant to Progressive.

17.    Prior Plans.  This Plan supersedes all prior plans, agreements, understandings and arrangements regarding bonuses or other cash incentive compensation payable to participants by or due from Progressive.  Without limiting the generality of the foregoing, this Plan supersedes and replaces The Progressive Corporation 2013 Gainsharing Plan (the "Prior Plan”), which is and shall be deemed to have terminated on the last day of the Company’s 2013 fiscal year (the "Prior Plan Termination Date"); provided, however, 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 Prior Plan Termination Date shall be unaffected by such termination and shall be paid to the appropriate participants when and as provided thereunder.

18.    Effective Date.  This Plan is adopted, and is to be effective, as of the first day of Progressive’s 2014 fiscal year.  This Plan shall be effective for the 2014 Plan year and for each Plan year thereafter unless and until terminated by the Committee.  

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

6

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