Document:

<PAGE>   1
Exhibit No. 10(E)

                                    AIRCRAFT
                              MANAGEMENT AGREEMENT

         THIS MANAGEMENT AGREEMENT (the "Agreement") made and entered into as of
this 23rd day of April, 1999, by and between Village Transport Corp., a Delaware
corporation having an office at 6300 Wilson Mills Road, Mayfield Village, Ohio
44143 ("Manager"), and ACME Operating Corporation, an Ohio corporation having an
office at 6300 Wilson Mills Road, Mayfield Village, Ohio 44143 ("ACME").

                                   WITNESSETH:

         WHEREAS, ACME pursuant to an Aircraft Lease Agreement ("Lease") dated
of even date herewith, leases the aircraft (the "Aircraft") bearing the
manufacturer's Serial Number and Federal Aviation Administration Registration
Number set forth on the Schedule hereto, equipped with two General Electric CF
34-1A engines as more particularly described in the Lease Schedule (hereinafter
called the "Aircraft"); and

         WHEREAS, ACME is desirous of engaging the services of Manager to
provide certain management services with respect to the Aircraft; and

         WHEREAS, Manager is desirous of providing certain management services
pertaining to the Aircraft on the terms and conditions set forth herein.

         NOW, THEREFORE, in consideration of the mutual covenants herein
contained and other good and valuable consideration, the parties hereto hereby
agree as follows:

         1. ACME hereby engages Manager, and Manager hereby agrees, to provide
certain management services with respect to the Aircraft for the benefit of the
ACME.

         2. Manager hereby agrees for the benefit and at the direction of ACME
that it shall provide the services set forth below:

         3. (a) Throughout the term of this Agreement, Manager shall, at ACME's
cost and expense, (1) inspect, maintain, service, repair, overhaul and test the
Aircraft by duly competent personnel, in accordance with FAA approved
maintenance and preventive repair programs therefor, so as to keep the Aircraft
in good operating condition, ordinary wear and tear excepted, and in such
condition as may be necessary to enable the airworthiness certification of the
Aircraft to be maintained in good standing at all times under 49 U.S.C. Section
40101, et seq., as in effect from time to time; (2) maintain all records, logs
and other materials required by the FAA to be maintained in respect of the
Aircraft and make the same available for ACME's inspection; and (3) comply with
all laws of each and every jurisdiction in which the Aircraft may be operated
and with all rules of the FAA and each and every other legislative, executive,
administrative or judicial body exercising any power or jurisdiction over the
Aircraft, and shall maintain the Aircraft in proper condition for operation
under such laws and rules including, without limitation, all manufacturers
recommended maintenance. Manager also agrees not to

<PAGE>   2

operate or locate the Aircraft, or suffer the Aircraft to be operated or
located, in any area excluded from coverage by any insurance required by the
terms of this Agreement.

            (b) The cost of compliance with any airworthiness or similar
directive, or regulation issued by the FAA or other governmental agency
("Airworthiness Directive") and the cost of complying with any mandatory or
recommended service bulletins or letters, shall be borne by ACME.

         4. (a) Manager hereby agrees to identify and make available to ACME at
the inception of this Agreement, certain pilots, from a group of professionally
qualified pilots who shall be familiar with and licensed to operate the
Aircraft, from which ACME shall, in its own discretion, designate two (2) of
such pilots to operate the Aircraft for ACME, and thereafter such designated
pilots shall be ACME's pilots of the Aircraft. The pilot designation shall be in
writing and signed by ACME, which writing shall be binding upon ACME.

            (b) ACME shall be permitted to remove any of such pilots by
providing written notice to Manager and designate new pilots, who shall
thereafter be ACME's pilots of the Aircraft.

            (c) Notwithstanding the foregoing, the pilots designated by ACME
shall be subject to (i) availability, (ii) the rules and regulations promulgated
by the FAA, and (iii) strikes and labor disputes.

            (d) ACME may at any time provide its own pilots upon twenty-four
(24) hours prior notice to Manager.

            (e) ACME hereby directs Manager and Manager hereby agrees to make
all necessary take-off, flight and landing arrangements for flights operated by
ACME. Manager shall pay, at Manager's cost and expense, the following operating
expenses relating to the Aircraft: crew salary and benefits, telephone and costs
associated with providing information services. ACME shall, at all reasonable
times, have the right to inspect Manager's records with respect to the Aircraft.

            (f) ACME will pay all operating expenses related to the Aircraft
except those set forth in paragraph (e) of this Section 4. Such operating
expenses shall include, but shall not be limited to: fuel, storage, domestic
landing fees, all federal, state and local taxes, charges, imposts, duties and
excise taxes and with respect to flights outside the 48 contiguous states of the
continental United States (the "Continental United States"), for foreign permit,
overflight, navigation, and air space fees, customs, head taxes and similar
assessments relating to the ownership, operation, maintenance or the use of the
Aircraft by ACME, registration and handling costs, catering, crew travel and
lodging, hangar and tie-down costs, flight planning and weather contract
services, maintenance supplies, outside pilot services (if any), equipment
costs, sales and use taxes and any other taxes and licensing fees associated
with the Aircraft.

         5. ACME shall obtain, at ACME's expense, all-risk aircraft hull
insurance with no deductible with respect to the Aircraft, against any loss,
theft or damage to the Aircraft, including

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extended coverage with respect to any engines or parts while removed from the
Aircraft, for the fair market value of the Aircraft, naming Manager and ACME, as
named insureds and loss payees with losses payable as their respective interests
may appear. ACME shall likewise pay for and arrange to procure liability
insurance for the Aircraft in the form and substance and with such insurers
approved by Manager but in an amount not less than One Hundred Million Dollars
($100,000,000) single limit liability coverage and shall cause ACME and Manager,
to be named as additional insureds. Copies of such policies and certificates of
Insurance shall be furnished by the ACME to Manager promptly upon the execution
of this Agreement. Such Insurance shall be maintained by ACME in full force and
effect throughout the term hereof and the insurer shall provide ACME and Manager
thirty (30) days advance notice of cancellation or material alteration. All such
insurance shall contain a Breach of Warranty Endorsement in favor of ACME and
Manager.

         6. At ACME's direction, Manager hereby agrees that it will provide
assistance to and consult with ACME in all matters regarding the Aircraft
including but not limited to:

            (a) FAA and manufacturers correspondence and directives;

            (b) Enforcement of warranty claims;

            (c) Enforcement, litigation and settlement of insurance matters; and

            (d) Parts replacement, services and maintenance arrangements.

         7. As compensation for the services to be performed by Manager
hereunder, ACME hereby agrees to pay to Manager an annual Management Fee in an
amount equal to $405,200; provided, that the parties agree to adjust the
Management Fee at each anniversary of the date hereof. The Management Fee shall
be payable in twelve equal monthly installments each of which shall be due on
the first day of each calendar month during the term of this Agreement.

         8. In addition, ACME agrees that it shall provide Manager with the
following information for each proposed flight:

            (a) proposed departure point;

            (b) destination;

            (c) date and time of flight;

            (d) the number of anticipated passengers;

            (e) the nature and extent of luggage to be carried;

            (f) the date and time of a return flight, if any; and

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            (g) any other information concerning the proposed flight that may be
                pertinent or is reasonably required by Manager.

         9. Manager agrees that, throughout the term of this Agreement, it shall
not cause or permit, through any of its own acts or failures to act, any liens,
claims or encumbrances to attach to the Aircraft other than mechanics liens to
be discharged in the ordinary course of business.

         10. ACME acknowledges that Manager shall have no liability for delay or
failure to furnish the pilots pursuant to this Agreement. Manager shall not
otherwise be liable to ACME for any direct, indirect, special, consequential or
other damages caused directly or indirectly by any such delay or failure to
furnish the pilots. ACME and Manager further agree that when, in the reasonable
view of ACME or the pilots of the Aircraft, safety may be compromised, ACME or
the pilots may terminate a flight, refuse to commence a flight, or take other
action necessitated by such safety considerations without liability for loss,
injury, damage or delay. ACME can dictate other limitations of flights. ACME
acknowledges that the ACME shall operate the Aircraft at all times in accordance
with applicable FAA Regulations.

         11. Upon the occurrence of an Event of Default (as hereinafter defined)
under this Agreement, Manager will cease all activities hereunder. In addition
to the foregoing, Manager shall have all right to bring an action or claim
against ACME for all sums which may be due and owing hereunder and to pursue all
other remedies available to it at law or in equity. For purposes hereof, the
term "Event of Default" shall mean the occurrence and continuation of any of the
following events of default hereunder:

             (a) The failure of ACME to pay when due the Management Fee set
forth in Section 7 hereof or any taxes or similar assessments levied or imposed
against components of such fee, as set forth in said Section 7, with a ten (10)
day period of grace after written notice of nonpayment;

             (b) The material breach by ACME of any other provision of this
Agreement, which material breach shall continue for thirty (30) days after
written notice to ACME;

             (c) If ACME shall:

                 (1) admit in writing its inability to pay, or fail to pay, its
         debts generally as they become due;

                 (2) file a petition in bankruptcy or a petition to take
         advantage of any insolvency act or file an answer admitting or failing
         to deny the material allegations of such petition:

                 (3) make an assignment for the benefit of its creditors;

                 (4) consent to the appointment of, or possession by, a
         custodian for itself or for the whole or substantially all of its
         property; or

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                 (5) file a petition or answer seeking reorganization or
         arrangement or other aid or relief under any bankruptcy or insolvency
         laws or any other law for the relief of debtors or file an answer
         admitting, or fail to deny, the material allegations of a petition
         filed against it for any such relief.

             (d) If a court of competent jurisdiction shall enter an order,
judgment or decree appointing, without the consent of ACME, a custodian for ACME
or the whole or substantially all of its property, or approving a petition filed
against it seeking liquidation, reorganization or arrangement of ACME under any
bankruptcy or insolvency laws or any other law for the relief of debtors, and
such order, judgment or decree shall not be vacated or set aside or stayed
within sixty (60) days from the date of entry thereof; or,

             (e) If, under the provision of any law for the relief of debtors,
any court of competent jurisdiction or custodian shall assume custody or control
of ACME or of the whole or any substantial part of its property without the
consent of ACME, and such custody or control shall not be terminated or stayed
within sixty (60) days from the date of assumption of such custody or control.

         12. This Agreement shall commence on the date of execution hereof and
shall terminate on the earlier of (i) thirty (30) days after the date Manager
elects to terminate this Agreement as a result of ACME's default, or (ii) after
the first anniversary hereof, thirty (30) days after either party elects, by
written notice to the other party, to terminate this Agreement.

         13. Manager represents and warrants to ACME as follows:

             (a) Manager is a corporation duly and validly organized and
existing in good standing under the laws of the state of its incorporation.
Manager has the power and authority to enter into this Agreement and to execute,
deliver or receive all other instruments and documents executed and delivered
and received, in connection with the transactions contemplated hereunder;

             (b) There is no action, suit or proceeding pending against Manager
before or by any court, administrative agency or other governmental authority,
or threatened, which brings into question the validity of, or in any way legally
or financially (in the case of performance) impairs or would if adversely
determined impair the execution, delivery or performance by Manager of this
Agreement;

             (c) The execution and delivery of this Agreement by Manager and the
performance by it of its obligations hereunder, have been duly authorized by all
necessary corporate action of Manager and do not violate or conflict with (i)
any provision of Manager's Certificate of Incorporation or By-Laws, (ii) any law
or any order, writ, injunction, decree, rule or regulation of any court,
administrative agency or any other governmental authority or (iii) any Agreement
entered into or binding on Manager or its affiliated companies, whether relating
to the Aircraft or otherwise;

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             (d) This Agreement constitutes the valid and binding obligations of
Manager enforceable in accordance with its terms, subject, however, to (i) laws
of general application affecting creditors' rights and (ii) judicial discretion,
to which equitable remedies are subject; and

             (e) Manager is not subject to any restriction (which has not been
complied with) or agreement which, with or without the giving of notice, the
passage of time, or both, prohibits or would be violated by, or be in conflict
with, the execution, delivery and consummation of this Agreement.

         14. ACME represents and warrants to Manager as follows:

             (a) ACME is duly and validly organized and existing in good
standing under the laws of the state of its incorporation;

             (b) ACME has the power and the authority to enter into this
Agreement, and to carry out the transactions contemplated hereunder;

             (c) The execution and delivery of this Agreement by ACME, and the
performance of its obligations hereunder, have been duly authorized by all
necessary action of ACME and do not violate or conflict with (i) any provision
of ACME's Certificate of Incorporation or By-Laws or (ii) any law or any order,
writ, injunction, decree, rule or regulation of any court, administrative agency
or any other governmental authority. There is no action, suit or proceeding
pending or threatened against ACME before any court, administrative agency or
other governmental authority which brings into question the validity of, or
might in any way impair, the execution, delivery or performance by ACME of this
Agreement; and

             (d) This Agreement constitutes the valid and binding obligations of
the ACME enforceable in accordance with its terms, subject, however, to (i) laws
of general application affecting creditors' rights and (ii) judicial discretion,
to which equitable remedies are subject.

         15. This Agreement shall be binding upon and shall inure to the benefit
of the parties hereto, their representatives, successors and permitted assigns.
This Agreement shall not be assignable by either party except upon the express
written consent of the other party.

         16. This Agreement constitutes the entire understanding among the
parties with respect to the subject matter hereof, and any changes or
modifications hereto must be in writing and signed by authorized representatives
of both parties. The parties hereto further agree that the courts of the United
States and State of Ohio shall have jurisdiction over the parties with regard to
any disputes arising under this Agreement or arising out of the operation,
maintenance, inspection, servicing or occupancy of the Aircraft during the term
of the Agreement and that this Agreement shall be interpreted and governed by
the laws of the State of Ohio.

         17. Any notice, request or other communication to either party by the
other hereunder shall be made in writing and shall be deemed given on the
earlier of the date (i) personally delivered with receipt acknowledged, or (ii)
telecopied at time of transmission or (iii) three (3)

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days after mailed by certified mail, return receipt requested, postage prepaid
and addressed to the party at the address set forth in the first paragraph of
this Agreement. The address of a party to which notices or copies of notices are
to be given may be changed from time to time by such party by written notice to
the other party.

         18. This Agreement may be executed in one or more counterparts each of
which shall be deemed an original, all of which together shall constitute one
and the same agreement.

         19. In the event that any one or more of the provisions of this
Agreement shall for any reason be held to be invalid, illegal or unenforceable,
the remaining provisions of this Agreement shall be unimpaired and the invalid,
illegal or unenforceable provision shall be replaced by a mutually acceptable
provision, which, being valid, legal and enforceable, comes closest to the
intention of the parties underlying the invalid, illegal or unenforceable
provision.

                REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.

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                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed the day and year first above written. The persons
signing below warrant their signatures.

ACME Operating Corporation

By:   /s/ Peter B. Lewis
      ----------------------------------
      Peter B. Lewis, President

Village Transport Corp.

By:   /s/ David M. Schneider
      ----------------------------------

      David M. Schneider, Secretary

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<PAGE>   9

                                    SCHEDULE

Minimum Telephonic Notice:          24 hours
Serial No.:                         3007
FAA Registration No.:               N711SX<PAGE>   1
                                                                 Exhibit (10)(H)

                          THE PROGRESSIVE CORPORATION
                             2000 GAINSHARING PLAN
                             ---------------------

1.       The Progressive Corporation and its subsidiaries ("Progressive" or the
         "Company") have adopted The Progressive Corporation 2000 Gainsharing
         Plan (the "Plan") as part of their overall compensation program. The
         objective of the compensation program is to pay competitive base
         salaries and for gainsharing to bring total cash compensation to the
         top of the market when Core Business (as defined below) and assigned
         Business Unit performance meets expectations. Participants will have
         the opportunity to earn cash compensation in excess of the top of the
         market when Core Business and assigned Business Unit performance
         exceeds expectations.

2.       Plan participants for each Plan year shall be selected by the Executive
         Compensation Committee (the "Committee") of the Board of Directors of
         The Progressive Corporation from those officers and regular employees
         of Progressive who are assigned primarily to the Core Business, other
         operating business or a corporate support function as of December 1 (or
         such other date as may be determined by the Chief Human Resource
         Officer) of that Plan year. 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. The Plan shall be administered by or under the direction of
         the Committee.

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.

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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%
--------------------------------------------------------------------------------------------
Top Functional/Line Managers                                                  30 - 45%
--------------------------------------------------------------------------------------------
Senior Functional/Line Managers                                                  25%
--------------------------------------------------------------------------------------------
Middle Functional/Line Managers                                               15 - 20%
--------------------------------------------------------------------------------------------
Senior Professionals and Managers                                             12 - 15%
--------------------------------------------------------------------------------------------
Professionals and Supervisors                                                     8%
============================================================================================
</TABLE>

         Target Percentages will be established within the above ranges by, and
         may be changed with the approval of (a) the Chairman and CEO or CEO -
         Insurance Operations, (b) Chief Human Resource Officer and (c) the
         Chief Financial Officer (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 (the
                  "Performance Component"). The Performance Components will 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 overall
                  operating performance of Progressive's Personal Lines segment
                  (excluding Midland Financial Group, Inc.) and commercial
                  vehicle insurance business unit (collectively, the "Core
                  Business"), as a whole, or the participant's assigned Business
                  Unit, 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 a Gainsharing Matrix, as established by or under
                  the direction of the Committee for the Plan year, which
                  assigns 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 Written Premium) outcomes.

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<PAGE>   3

                  The Gainsharing Combined Ratio is determined for the Core
                  Business, or assigned Business Unit, using the GAAP combined
                  ratio as a measure of profitability. The Gainsharing Combined
                  Ratio is then matched with growth in Net Written Premium using
                  the Gainsharing Matrix to determine a Profitability and Growth
                  Performance Score.

         C.       COMPONENT WEIGHTING
                  -------------------

                  Performance Components for the Core Business and assigned
                  Business Unit are weighted as determined by or under the
                  direction of the Committee. For participants in the Core
                  Business, the typical weighting will be as follows:

-----------------------------------------------------------------------
PERFORMANCE COMPONENT                    WEIGHTING
-----------------------------------------------------------------------
Core Business Profitability and Growth
Results                                   75%
-----------------------------------------------------------------------
Business Unit Profitability and Growth
Results                                   25%
-----------------------------------------------------------------------
Total                                    100%
-----------------------------------------------------------------------

                  There will typically be no Business Unit Profitability and
                  Growth Component for participants assigned to a corporate
                  support function (such as Finance, Human Resource and Law) and
                  others who are not assigned primarily to a Business Unit.
                  Individualized programs may be developed if and to the extent
                  deemed appropriate by the Designated Executives.

                  The Performance Score for each Performance Component is
                  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.

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.

                                       3
<PAGE>   4

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 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.

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.

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<PAGE>   5

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 1999 Gainsharing Plan, as heretofore in effect
         (the "Prior Plan"), which is and shall be deemed to be terminated as of
         December 31, 1999 (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, 2000.
         This Plan shall be effective for 2000 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.

                                       5

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