Document:

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                                                                    Exhibit 4(J)

                               (FACE OF SECURITY)

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

REGISTERED                                                            REGISTERED

NO. R-001                                                           $100,000,000

                              CUSIP No. 743315 AH 6

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                           THE PROGRESSIVE CORPORATION

                               7.30% NOTE DUE 2006

         THE PROGRESSIVE CORPORATION, an Ohio corporation (the "Issuer"), for
value received, hereby promises to pay to CEDE & Co., c/o The Depository Trust
Company, 55 Water Street, New York, New York 10041 or registered assigns, at the
office or agency of the Issuer at the office of the Trustee in Boston,
Massachusetts, the principal sum of ONE HUNDRED MILLION DOLLARS ($100,000,000)
on June 1, 2006, in such coin or currency of the United States of America as at
the time of payment shall be legal tender for the payment of public and private
debts, and to pay interest semiannually on June 1 and December 1 of each year,
commencing on December 1, 1996, on said principal sum at said office or agency,
in like coin or currency, at the rate per annum specified in the title of this
Note, from the June 1 or the December 1, as the case may be, next preceding the
date of this Note to which interest has been paid, unless the date hereof is a
date to which interest has been paid, in which case from the date of this Note,
or unless no interest has been paid on the Notes, in which case from May 28,
1996, until payment of said principal sum has been made or duly provided for;
provided, that payment of interest may be made at the option of the Issuer by
check mailed to the address of the person entitled thereto as such address shall
appear on the Security Register. Notwithstanding the foregoing, if the date
hereof is after the fifteenth day of May or November, as the case may be, and
before the following June 1 or December 1, this Note shall bear interest from
such June 1 or December 1; provided, that if the Issuer shall default in the
payment of interest due on such June 1 or December 1, then this Note shall bear
interest from the next preceding June 1 or December 1, to which interest has
been paid or, if no interest has been paid on this Note, from May 28, 1996. The
interest so payable on any June 1 or December 1 will, subject to certain
exceptions provided in the Indenture referred to on the reverse hereof, be paid
to the person in whose name this Note is registered at the close of business on
May 15 or November 15, as the case may be, next preceding such June 1 or
December 1.
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          Reference is made to the further provisions of this Note set forth on
the reverse hereof. Such further provisions shall for all purposes have the same
effect as though fully set forth at this place.

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

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

                                                     THE PROGRESSIVE CORPORATION
[CORPORATE SEAL]
                                                       By: /s/ Charles B. Chokel
                                                           ---------------------
                                                               Charles B. Chokel
                                                                       Treasurer

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

Dated: May 28, 1996

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                  STATE STREET BANK AND TRUST COMPANY
                                            as Trustee

                            By:______________________

                              Authorized Signatory
<PAGE>   3
                               (BACK OF SECURITY)

                           THE PROGRESSIVE CORPORATION

                               7.30% NOTE DUE 2006

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

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

           The Indenture contains provisions permitting the Issuer and the
Trustee, with the consent of the Holders of not less than 66-2/3% in aggregate
principal amount of the Securities at the time Outstanding (as defined in the
Indenture) of all series to be affected (voting as one class), evidenced as in
the Indenture provided, to execute supplemental indentures adding any provisions
to or changing in any manner or eliminating any of the provisions of the
Indenture or of any supplemental indenture or modifying in any manner the rights
of the Holders of the Securities of each such series; provided, however, that no
such supplemental indenture shall (i) extend the final maturity of any Security,
or reduce the principal amount thereof, or reduce the rate or extend the time of
payment of any interest thereon, or impair or affect the rights of any Holder to
institute suit for the payment thereof, without the consent of the Holder of
each Security so affected or (ii) reduce the aforesaid percentage of Securities,
the Holders of which are required to consent to any such supplemental indenture,
without the consent of the Holder of each Security so affected. It is also
provided in the Indenture that, with respect to certain defaults or Events of
Default regarding the Securities of any series, prior to any declaration
accelerating the maturity of such Securities, the Holders of a majority in
aggregate principal amount Outstanding of the Securities of such series may on
behalf of the Holders of all the Securities of such series waive any such past
default or Event of Default and its consequences. The preceding sentence shall
not, however, apply to a default in the payment of the principal of or premium,
if any, or interest on any of the Securities. Any such consent or waiver by the
Holder of this Note (unless revoked as provided in the Indenture) shall be
conclusive and binding upon such Holder and upon all future Holders and owners
of this Note and any Note which may be issued in
<PAGE>   4
exchange or substitution herefor, irrespective of whether or not any notation
thereof is made upon this Note or such other Note.

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

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

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

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

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

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

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

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

TEN COM - as tenants in common

TEN ENT - as tenants by the entireties

CUST - Custodian

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

UNIF GIFT MIN ACT - Uniform Gifts to Minors Act

                                                                  --------------
                                                                         (State)

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

                          ----------------------------

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

 PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE-

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

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

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

Dated: ___________________                   _______________________

     NOTICE: The signature to this assignment must correspond with the
     name as written upon the face of the within instrument in every
     particular, without alteration or enlargement or any change whatever.<PAGE>   1

                                                                   Exhibit 10(G)

                           THE PROGRESSIVE CORPORATION
                              2001 GAINSHARING PLAN

1.       The Progressive Corporation and its subsidiaries (collectively
         "Progressive" or the "Company") have adopted The Progressive
         Corporation 2001 Gainsharing Plan (the "Plan") as part of their overall
         compensation program. The Plan is performance-based and is administered
         under the direction of the Executive Compensation Committee of the
         Board of Directors of The Progressive Corporation (the "Committee").

2.       Plan participants for each Plan year shall be selected by the Committee
         from those officers and regular employees of Progressive who are
         assigned primarily to the Core Business (as defined below), another
         operating business unit or a corporate support function. The
         gainsharing opportunity, if any, for those executive officers who
         participate in The Progressive Corporation 1999 Executive Bonus Plan
         will be provided by and be a component of that plan.

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

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

4.       Paid Earnings for any Plan year means the following items paid to a
         participant during the Plan year: (a) regular, vacation, sick, holiday,
         funeral and overtime pay, (b) lump sum merit adjustments based on
         performance and (c) 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
         or any other bonus or incentive compensation awards.

         Notwithstanding the foregoing, if the sum of the regular, vacation,
         sick, holiday and funeral pay received by a participant during a Plan
         year exceeds his/her salary range maximum for that Plan year, 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 during that Plan year: (a) overtime pay, (b) retroactive
         payments of regular, vacation, sick, holiday, overtime and funeral pay
         and (c) lump sum merit adjustments.
<PAGE>   2
5.       Target Percentages vary by position. Target Percentages for Plan
         participants typically are as follows:

<TABLE>
<CAPTION>
                    POSITION                              TARGET %
-----------------------------------------------------------------------
<S>                                                        <C>
Senior Executives, General Managers and
Senior Process Leaders/Managers                             40 - 135%
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Top Managers                                                30 - 45%
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Senior Managers                                             20 - 25%
-----------------------------------------------------------------------
Middle Managers                                             10 - 20%
-----------------------------------------------------------------------
Senior Professionals and Managers                            9 - 15%
-----------------------------------------------------------------------
Professionals and Supervisors                                4 - 8%
-----------------------------------------------------------------------
</TABLE>

         Target Percentages will be established within the above ranges by,
         and may be changed with the approval of (a) the Chief Executive
         Officer, (b) the Chief Human Resource Officer and (c) the Chief
         Financial Officer of The Progressive Corporation (collectively,
         the "Designated Executives"). Target Percentages also may be changed
         from year to year by the Designated Executives.

6.       The Performance Factor

         A.       General

                  The Performance Factor shall consist of one or more
                  Profitability and Growth Components, as described below
                  ("Performance Components"). The Performance Components may be
                  weighted to reflect the nature of the individual participant's
                  assigned responsibilities. The weighting factors may differ
                  among participants and will be determined, and may be changed
                  from year to year, by or under the direction of the Committee.

         B.       Profitability and Growth Components

                  The Profitability and Growth Components measure the overall
                  operating performance of Progressive's Core Business
                  (including both the Agent Business Segment and Direct Business
                  Segment, but excluding Midland Financial Group, Inc.), or a
                  designated Business Segment or Sub-Unit thereof, for the Plan
                  year for which an Annual Gainsharing Payment is to be made.
                  For purposes of computing a Performance Score for these
                  Components, operating performance results are measured by one
                  or more Performance Matrices, as established by or under the
                  direction of the Committee for the Plan year, which assign a
                  Profitability and Growth Performance Score to various
                  combinations of profitability (as measured by the Gainsharing
                  Combined Ratio) and growth (based on year-to-year change in
                  Net Earned Premiums) outcomes.

                  For 2001, and for each Plan year thereafter until otherwise
                  determined by the Committee, separate Performance Scores will
                  be determined, and separate Gainsharing Matrices will be used,
                  for the Agent Business Segment, the Direct Business Segment
                  and
<PAGE>   3
                  the Internet Sub-Unit. For purposes hereof, the Agent
                  Business Segment includes Agent Auto (excluding Strategic
                  Alliances Auto), Special Lines (all sources) and Commercial
                  Vehicle (all sources), and the Direct Business Segment
                  includes Auto Pro (including Strategic Alliances Auto) and
                  Internet. For purposes of this Plan, Midland Financial Group,
                  Inc. results are excluded from both the Agent and Direct
                  Business Segments and, thus, from Core Business results. Net
                  operating gains/losses from other Core products (such as
                  Homeowner's insurance and Autograph) will be apportioned among
                  the Agent and Direct Business Segments in accordance with the
                  respective amount(s) of net earned premiums generated by such
                  products in such Business Segments and the apportioned
                  gains/losses will be included in the calculation of the
                  Gainsharing Combined Ratio.

                  The Gainsharing Combined Ratio will be separately determined
                  for each of the Agent Business Segment, the Direct Business
                  Segment and the Internet Sub-Unit, using the GAAP combined
                  ratio as the measure of profitability. The Gainsharing
                  Combined Ratio of each such Business Segment or Sub-Unit will
                  then be matched with growth in Net Earned Premiums for such
                  Business Segment or Sub-Unit, using the applicable Gainsharing
                  Matrix to determine a Performance Score.

         C.       Component Weighting

                  For most participants, the Performance Factor will be
                  determined solely by the performance results for the Core
                  Business, consisting of both the Agent and Direct Business
                  Segments. The Performance Score for each of the Agent and
                  Direct Business Segments will be separately determined, as
                  described above, by application of the appropriate Gainsharing
                  Matrix. The resulting Performance Scores for the Agent and
                  Direct Business Segments will then be weighted (based on the
                  Net Earned Premiums generated by each such Business Segment
                  during the Plan year), the weighted Performance Scores will be
                  combined and the arithmetic mean of such combined scores will
                  equal the Performance Score for the Core Business.

                  As noted above, for most participants, the Performance Factor
                  will be the Performance Score for the Core Business. For
                  certain employees designated by the Committee, however, the
                  Performance Factor will be based on the Performance Scores for
                  both the Core Business, as a whole, and their assigned
                  Business Segment. Generally, for these employees, the
                  Performance Factor will be based 50% on the Core Business
                  Performance Score and 50% on their assigned Business Segment's
                  Performance Score. However, for those employees assigned
                  principally to the Internet Sub-Unit, the Performance Factor
                  will be based 50% on the Core Business Performance Score, 25%
                  on the Direct Business Performance Score and 25% on the
                  Internet Performance Score. With respect to those IT Business
                  Leaders selected by the Designated Executives, the Performance
                  Factor will be based 75% on the Core Business Performance
                  Score and 25% on their assigned Business Segment Performance
                  Score.

                  The Performance Score for each Performance Component will be
                  multiplied by the assigned weighting factor to produce a
                  Weighted Performance Score. The sum of the Weighted
                  Performance Scores equals the Performance Factor. The final
                  Performance Factor can vary from 0 to 2.0, based on actual
                  performance versus the pre-established objectives.
<PAGE>   4
7.       Subject to Paragraph 8 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 equal to 75%
         of an amount calculated on the basis of Paid Earnings for the first 11
         months of the Plan year, one month of estimated earnings, performance
         data through the first 11 months of the Plan year (estimated, if
         necessary) and one month of forecasted operating results. No later than
         February 15 of the following year, each participant shall receive the
         balance of his or her Annual Gainsharing Payment, if any, for such Plan
         year, based on his or her Paid Earnings and performance data for the
         entire Plan year.

         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.       Unless otherwise determined by the Committee or as provided at
         Paragraph 10 hereof, in order to be entitled to receive any portion of
         an Annual Gainsharing Payment for any Plan year, the participant must
         be assigned to the Core Business or a participating business unit or
         support function on December 1 of such Plan year and employed by
         Progressive on the payment date for that portion of the Annual
         Gainsharing Payment. Annual Gainsharing Payments will be net of any
         legally required deductions for federal, state and local taxes and
         other items.

9.       The right to any Annual Gainsharing Payment 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 shall be administered by or under the direction of the
         Committee. The Committee shall have the authority to adopt, alter 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,
         establish, change or modify Performance Components and their respective
         weighting factors, performance targets and Target Percentages) may be
         exercised by the Designated Executives. In the event of a dispute or
         conflict, the determination of the Committee will govern.

11.      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.

12.      The Plan will be unfunded and all payments due under the Plan shall be
         made from Progressive's general assets.
<PAGE>   5
13.      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.

14.      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.

15.      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 2000 Gainsharing Plan, as heretofore in effect
         (the "Prior Plan"), which is and shall be deemed to be terminated as of
         December 31, 2000 (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.

16.      This Plan is adopted, and is to be effective, as of January 1, 2001.
         This Plan shall be effective for 2001 and for each calendar year
         thereafter unless and until terminated by the Committee.

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

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