Document:

<PAGE>   1
                                                                   Exhibit 10(M)

                    SEPARATION AGREEMENT AND GENERAL RELEASE

1. This Agreement specifies the terms of the separation of CHARLES BERGEN CHOKEL
("Employee") from PROGRESSIVE CASUALTY INSURANCE COMPANY ("Progressive").

In consideration of the payments noted in Paragraphs 3 and 4 below, Employee
hereby releases Progressive, its officers, directors, employees, parent,
subsidiaries, affiliates, agents and assigns (the "Progressive Entities") from
all actions, suits, claims, and demands in law or equity, that Employee ever had
or now has against any of the Progressive Entities, by reason of any matter,
cause, or thing, and particularly any claims relating in any way to Employee's
employment relationship or the termination of Employee's employment relationship
with Progressive, including, without limitation, any claim under the Age
Discrimination in Employment Act, any claim arising under any federal, state, or
local law and any common law claim, but excepting those matters described in
Paragraphs 3 and 4 below.

2. Effective January 31, 2001 (the "Resignation Date"), Employee hereby resigns
as an officer and/or director of The Progressive Corporation, Progressive and of
any Progressive subsidiary or affiliate(s) as is confirmed by Employee's
signature on the resignation letter attached hereto as Exhibit A and hereby
agrees to execute all other documents and undertake any other action(s)
necessary to effect such resignations or any other matters necessary to complete
his obligations as an officer or director of Progressive or any of its
affiliates. Employee agrees to resign his directorships with Plymouth Rock
Assurance Company, G & L Holding Group, Inc., Netrex Holdings L.L.C. and any of
Netrex's subsidiaries or affiliates, and in any other company in which
Progressive has made an equity investment effective the Resignation Date, and to
execute all other documents and undertake any other action(s) necessary to
effect such resignations. Although Employee will remain employed by Progressive
until the Separation Date (as defined below), he will have no authority to make
any commitments or representations or take any action on behalf of any of the
Progressive Entities or to bind any of the Progressive Entities in any way.
Progressive, accordingly, shall have no obligation to defend or indemnify
Employee for any act or omission by Employee after the Resignation Date.

3. In full consideration of Employee signing this Agreement and for the
covenants contained herein, Progressive hereby agrees to the following:

     A. Employee shall remain an employee of Progressive through the Separation
     Date (as defined below) and shall receive-for the period of time between
     the execution of this Agreement and the Separation Date - salary in the
     amount of Two Thousand Dollars ($2,000), payable within ten (10) days of
     the Separation Date. The Separation Date shall be the earlier of: (a)
     January 31, 2002; (b) the date on which Employee begins employment as an
     employee on the payroll of another entity; or c) the date of a
     "Disqualifying Activity" as defined in Section 4B. below.

     B. Within ten (10) days of Employee's execution of this Agreement or upon
     the dissolution of all applicable restraining orders, whichever is later,
     Employee shall be paid a lump-sum payment of One Million Two Hundred
     Forty-four Thousand Dollars ($1,244,000) (the "Severance Amount"), less all
     applicable withholding taxes.

     C. Employee shall be paid for credited but unused Earned Time Benefit
     ("ETB") hours determined as of the Resignation Date. Such payment to be
     made within ten (10) days of the Resignation Date or upon the dissolution
     of all applicable restraining orders, whichever

<PAGE>   2

     is later. Employee agrees that Employee will not be entitled to accrue any
     ETB hours subsequent to the Resignation Date.

4.

     A. Notwithstanding anything to the contrary provided in any Non-Qualified
     Stock Option Agreement ("NQSO Agreement") heretofore entered into between
     Employee and Progressive, the parties hereto agree that, subject to the
     conditions set forth in Paragraph 4B. below concerning a "Disqualifying
     Activity," if and to the extent that any Option Installment (as defined
     below) of any non-qualified stock option ("NQSO") heretofore granted to
     Employee by Progressive under The Progressive Corporation 1989 Incentive
     Plan (the "1989 Plan") or The Progressive Corporation 1995 Incentive Plan
     (the "1995 Plan") (collectively, the "Plans") is not vested and exercisable
     as of the Resignation Date, such Option Installment (i) shall remain in
     effect with respect to fifty percent (50%) of the Common Shares of The
     Progressive Corporation ("Common Shares") covered thereby and, as to such
     Common Shares, shall vest and become exercisable on the vesting date
     applicable thereto, as provided in the applicable NQSO Agreement, and may
     be exercised by Employee in whole or in part at any time between such
     vesting date and the expiration date applicable thereto (i.e., the tenth
     anniversary of the date of grant), as provided in the related NQSO
     Agreement, and (ii) shall terminate, effective as of the Resignation Date,
     with respect to the remaining fifty percent (50%) of the Common Shares
     covered by such Option Installment. In the event that Employee shall engage
     in any Disqualifying Activity, Employee shall forfeit all of his rights
     under this Paragraph and all NQSOSs then held by Employee which were not
     vested as of the Resignation Date (regardless of whether vested at the time
     of the Disqualifying Activity), shall immediately terminate and may not
     thereafter be exercised in whole or in part. For purposes hereof, an Option
     Installment shall mean any NQSO award included within a single grant which
     includes multiple NQSO awards, each with a separate vesting date. Except as
     herein expressly provided, all NQSOS's awarded to Employee under the Plans
     will continue to be governed by all of the terms and conditions of the
     Plans and applicable NQSO Agreement.

     B. Employee shall forfeit his rights under Paragraph 4A. if Employee
     participates in any "Disqualifying Activity" as defined below:

              Disqualifying Activity - means any of the following acts or
              activities committed during the period beginning on the
              Resignation Date and ending January 31, 2004 (the "Restriction
              Period"):

              - directly or indirectly serving as a principal, shareholder,
              partner, of officer, employee or agent of, or as a consultant,
              advisor or in any other capacity (other than as a Director) to,
              any insurance carrier other than Progressive with more than 1.5%
              market share of the U.S. market for private passenger automobile
              insurance as of December 31, 1999 as reported by A.M. Best and
              specifically listed on the attached Exhibit B. This clause shall
              not apply if Employee becomes an employee of one of the entities
              listed on Exhibit B solely as a result of actions beyond
              Employee's control--such as an acquisition not initiated by
              Employee of an entity with a smaller market share then employing
              Employee by one of the listed companies; or

              - any disclosure by the Employee, or any use by the Employee for
              his own benefit or for the benefit of any other person or entity
              (other than Progressive, its parent or

<PAGE>   3
              its subsidiaries), of any confidential information or trade secret
              of Progressive or its subsidiaries (as defined herein) to an
              extent deemed material by Progressive; or

              - any violation of Paragraphs 2, 5, 8 or 10 of this Agreement; or

              - making any other disclosure or taking any other action which is
              materially detrimental to the business, prospects or reputation of
              Progressive, its parent or its subsidiaries. The direct ownership
              of less than 10% of the outstanding voting shares of a publicly
              traded corporation which competes with Progressive or its
              subsidiaries shall not constitute a Disqualifying Activity.

5. Employee shall not, during the Restriction Period, hire or solicit to hire
any of Progressive's then current employees (other than Employee's spouse),
either directly or indirectly, to work for Employee or any other entity. This
prohibition is not intended, nor shall it be construed, to prohibit any future
employer of Employee from hiring anyone in the normal course of its business
without assistance from Employee; but, rather, is intended to cover and shall
only be construed to prohibit actions of Employee.

6. With the exception of the rights and benefits contained in this Agreement,
Employee: (a) waives any and all rights Employee now has or might hereafter have
acquired to, and acknowledges the forfeiture of, any and all "NQSOs" under the
Plans which are not vested as of the Resignation Date; and (b) waives any rights
Employee may now have or would have had under Progressive's 2001 Gainsharing
Program, The Progressive Corporation 2001 Executive Bonus Plan, The Progressive
Corporation 1999 Executive Bonus Plan, The Progressive Corporation Separation
Allowance Plan and to any other compensation or bonus Employee may have received
had Employee remained employed by Progressive. Other than is provided for in
paragraph 3, Employee shall not be entitled to any compensation as a Progressive
employee after the Resignation Date, including, but not limited to, NQSOs
granted under the Plans and any other bonus or incentive payment(s).

7. Employee's rights relating to vested, but unexercised NQSOs shall be
determined in accordance with the provisions of the Plans and applicable NQSO
Agreement(s) between Progressive and Employee, and as is specified in those
agreements, the last available date for exercise by Employee of any vested NQSOs
shall be sixty (60) days after the Separation Date. Employee's rights (if any)
under the Executive Deferred Compensation Program (the "Program") shall be
determined in accordance with the governing provisions of the Program.

8. Employee hereby agrees that neither Employee nor any person, organization, or
other entity acting on Employee's behalf will communicate or permit to be
communicated, either directly or indirectly, any information regarding the
financial terms of this Agreement except to Employee's counsel, Employee's
spouse, Employee's accountant, a prospective employer, financial institutions
when needed to demonstrate Employee's personal financial condition, or to any
court involved in any action brought by either party to enforce the terms of
this Agreement.

9. Employee agrees and acknowledges that this Agreement is not and shall not be
construed to be an admission of any violation of any federal, state, or local
law, regulation or of any duty Progressive owed Employee and that the execution
of this Agreement is a voluntary act to provide conclusion to Employee's
employment relationship with Progressive.

<PAGE>   4

10. Employee agrees that Employee will maintain the confidentiality of
confidential information which Employee has received by virtue of Employee's
employment with Progressive and will refrain from using such information or
disclosing it to anyone other than Progressive or its employees. For purposes of
this Agreement, confidential information is information which Progressive
endeavors to keep confidential, including, without limitation, customer lists,
employee lists, rate schedules, underwriting information, the terms of contracts
and policies, marketing plans, program designs, trade secrets, Progressive's
internal electronic mail distribution lists and addresses, proprietary
information, and any such information provided by a third party to Progressive
in confidence. Employee represents that upon Employee's separation, Employee
will return to Progressive any documents in Employee's possession containing
confidential information of Progressive or documents or other items which are
the property of Progressive.

11. Any notices or matters regarding this Agreement shall be made to
Progressive's Chief Legal Officer, Charles E. Jarrett by mail to 300 North
Commons Boulevard, Mayfield Village, Ohio 44143, by facsimile transmission to
(440) 395-0280 or by electronic mail to GOTOBUTTON BM_1_
Chuck_Jarrett@Progressive.com or to Employee at his home address.

12. Employee has read and understands all of the terms of this Agreement.
Employee signs this Agreement in exchange for the consideration to be given to
Employee. Neither Progressive nor its agents, representatives, or employees have
made any representations to Employee concerning the terms or effects of this
Agreement other than those contained in the Agreement. This Agreement contains
the entire agreement between Employee and Progressive and supercedes all prior
or contemporaneous discussions or agreements.

13. The terms of this Separation Agreement and General Release are separate and
independent and should any of them be declared invalid or unenforceable by any
court, the remaining provisions and terms of this Agreement shall remain in full
force and effect.

14. This Agreement shall be governed and interpreted in accordance with the laws
of the State of Ohio. Any dispute arising under the terms of this Agreement
shall be resolved by binding arbitration in Cuyahoga County, Ohio in accordance
with the rules of commercial arbitration of the American Arbitration
Association. In any such arbitration proceeding, the tribunal may award only
compensatory damages and is not empowered to award punitive or exemplary
damages, but shall award reasonable attorneys' fees to the prevailing party.

<PAGE>   5

         EMPLOYEE HAS READ AND UNDERSTANDS ALL OF THE TERMS OF THIS AGREEMENT
         AND EMPLOYEE HAS BEEN ENCOURAGED TO CONSULT WITH AN ATTORNEY. EMPLOYEE
         ACKNOWLEDGES THAT EMPLOYEE HAS BEEN GIVEN A PERIOD OF TWENTY-ONE (21)
         DAYS TO REVIEW THIS AGREEMENT WITH AN ATTORNEY AND CONSIDER ITS EFFECT,
         INCLUDING EMPLOYEE'S RELEASE OF RIGHTS AND SEPARATION. EMPLOYEE ALSO
         ACKNOWLEDGES THAT EMPLOYEE HAS SEVEN (7) DAYS FOLLOWING EXECUTION OF
         THIS AGREEMENT TO REVOKE THIS AGREEMENT FOR ANY REASON AND IS HEREBY
         ADVISED THAT THIS AGREEMENT SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE
         UNTIL THE EXPIRATION OF THE SEVEN (7) DAY REVOCATION PERIOD.

         IN WITNESS WHEREOF, the parties have executed this Agreement this 23
day of February, 2001

                           _________________________________________
                           CHARLES BERGEN CHOKEL

                           _______________________________________
                           Witness

                                PROGRESSIVE CASUALTY INSURANCE COMPANY

                                By: _________________________________________

                                Title: ______________________________________

                                Witness: ____________________________________<PAGE>   1

                                                                   EXHIBIT 10(R)

                      NON-QUALIFIED STOCK OPTION AGREEMENT

This Agreement (the "Agreement") is made as of the _____ day of _______________,
19_____, between The Progressive Corporation, an Ohio corporation (the
"Company"), and (NAME) (the "Optionee"). The Company hereby grants Optionee an
option (the "Option") to purchase (TOTAL_SHARES) Common Shares, $1.00 par value,
(the "Common Shares") of the Company for a per share purchase price of
$_________ (the "Option Price"). The Option has been granted pursuant to The
Progressive Corporation 1989 Incentive Plan (as amended and restated) (the
"Plan") and shall include and be subject to all provisions of the Plan, which
are hereby incorporated herein by reference, and shall be subject to the
following provisions of this Agreement:

1. TERM. The Option shall become exercisable on _______________ (the "Vesting
Date") and may be exercised, in whole or in part, at any time thereafter until
_______________ (the "Expiration Date"), on which date the Option shall expire
and no longer be exercisable.

2. METHOD OF EXERCISE. Subject to Section 1 above, the Option shall be
exercisable from time to time by written notice (in form approved or furnished
by the Company) to the Committee which shall:

   (a) state that the Option is thereby being exercised, the number of Common
   Shares with respect to which the Option is being exercised, each person in
   whose name any certificates for the Common Shares should be registered and
   his or her address and social security number;

   (b) be signed by the person or persons entitled to exercise the Option and,
   if the Option is being exercised by anyone other than the Optionee, be
   accompanied by proof satisfactory to counsel for the Company of the right of
   such person or persons to exercise the Option under the Plan and all
   applicable laws and regulations; and

   (c) be accompanied by such representations, warranties and agreements, in
   form and substance satisfactory to counsel for the Company, with respect to
   the investment intent of such person or persons exercising the Option as the
   Company may request.

3. PAYMENT OF PRICE. Upon exercise of the Option, the Company shall deliver a
certificate or certificates for the Common Shares purchased thereunder to the
specified person or persons at the specified time upon receipt of the full
purchase price for such Common Shares: (a) by certified or bank cashier's check,
or (b) by any other method of payment or combination thereof authorized by the
Plan.

4. TRANSFERABILITY. The Option shall not be transferable by the Optionee other
than by will or by the laws of descent and distribution. Subject to the
following sentence, during the lifetime of the Optionee, the Option shall be
exercisable (subject to any other applicable restrictions on exercise) only by
the Optionee for his or her own account. Upon the death or disability of the
Optionee, the Option shall be exercisable (subject to any other applicable
restrictions on

<PAGE>   2

exercise) only by the Optionee's estate (acting through its fiduciary) or by the
Optionee's duly authorized legal representative, during the period and to the
extent authorized in the Plan.

5. TERMINATION OF EMPLOYMENT. If the employment of the Optionee by the Company
(or any of its Subsidiaries or Affiliates) terminates:

   (a) due to involuntary termination without cause or due to retirement (with
   the employer's approval, but subject to Section 5(e) below), the Option may
   be exercised to the extent exercisable at the date of such termination,
   during the lesser of (i) two months after such date, or (ii) the balance of
   the Option's term;

   (b) due to death or disability, the provisions of Section 5(b)(6) or 5(b)(7)
   of the Plan, as applicable, shall apply;

   (c) due to resignation by the Optionee (other than by reason of a Qualified
   Retirement, as provided at Section 5(e) below), the Optionee may exercise the
   Option, to the extent of the lesser of (A) the number of Common Shares as to
   which the Option is exercisable on the date the Optionee ceases to be an
   employee or (B) the number of Common Shares as to which the Option was
   exercisable ninety days prior to such date, reduced by any Common Shares
   acquired by exercise of the Option within such ninety day period, at any time
   within two (2) months after the date that the Optionee ceases to be an
   employee (but in no event after expiration of the original term of the
   Option) and the Option shall not be or become exercisable as to any
   additional Common Shares after the date that the Optionee ceases to be an
   employee;

   (d) due to termination for cause, the Option and all rights to purchase
   Common Shares thereunder shall immediately terminate; and

   (e) due to a Qualified Retirement (as defined below), the following
   provisions shall apply (subject in all cases to Section 5(e)(v) hereof):

      (i) if the Option has vested and is exercisable as of the Qualified
      Retirement Date (as defined below), the Option shall not terminate upon
      the retirement of the Optionee, and, to the extent that it has not been
      previously exercised, may be exercised by the Optionee, in whole or in
      part, at any time between the Qualified Retirement Date and the Expiration
      Date;

      (ii) subject to Section 5(e)(iii) hereof, if the Option is not vested and
      exercisable as of the Qualified Retirement Date, the Option shall not
      terminate in its entirety upon the retirement of the Optionee; instead,
      the Option (A) shall remain in effect with respect to fifty percent (50%)
      of the Common Shares which are subject to the Option as of the Qualified
      Retirement Date and, as to such Common Shares, shall vest and become
      exercisable on the Vesting Date and may be exercised by the Optionee, in
      whole or in part, at any time between the Vesting Date and the Expiration
      Date, and (B) shall terminate, effective as of the Qualified Retirement
      Date, with respect to the remaining fifty percent (50%) of the Common
      Shares that are subject to the Option as of the Qualified Retirement Date;

<PAGE>   3

      (iii) notwithstanding Section 5(e)(ii) above, if the Option is not vested
      and exercisable as of the Qualified Retirement Date, but has a Vesting
      Date which is no later than four (4) months after the Qualified Retirement
      Date, then, notwithstanding the Optionee's retirement, the full Option
      (or, if the Option is subject to installment vesting, that portion thereof
      which is scheduled to vest on such Vesting Date) shall remain in effect,
      shall vest on such Vesting Date and may be exercised by the Optionee, in
      whole or in part, at any time between such Vesting Date and the Expiration
      Date;

      (iv) if the Optionee dies after the date of his or her retirement and has
      not exercised the Option, in whole or in part, prior to his or her death,
      the Optionee's estate shall have the right to exercise the Option as to
      (A) all Common Shares, if any, as to which the Option has vested and is
      exercisable as of the date of the Optionee's death, plus (B) the
      additional Common Shares, if any, as to which the Option would have become
      exercisable within one (1) year from the date of the Optionee's death
      pursuant to Section 5(e)(ii) and/or (iii) hereof, as applicable, but for
      the death of the Optionee, at any time during the one (1) year period
      beginning on the date of the Optionee's death (or such other period as the
      Committee may specify), and the balance of the Option shall terminate as
      of the date of the Optionee's death;

      (v) if the Committee determines that the Optionee is or has engaged in any
      Disqualifying Activity (as defined below), then (1) to the extent that the
      Option has vested and is exercisable as of the Disqualification Date (as
      defined below), the Optionee shall have the right to exercise the Option
      during the lesser of two months from the Disqualification Date or the
      balance of the Option's term and (2) to the extent that the Option is not
      vested and exercisable as of the Disqualification Date, the Option shall
      terminate as of such date. Any determination by the Committee, which may
      act upon the recommendation of the Chief Executive Officer or other senior
      officer of the Company, that the Optionee is or has engaged in any
      Disqualifying Activity, and as to the Disqualification Date, shall be
      final and conclusive.

      (vi) As used in this Section 5(e), the following terms are defined as
      follows:

            (A) QUALIFIED RETIREMENT - any termination of the Optionee's
            employment with the Company or its Subsidiaries for any reason
            (other than death, Disability or an involuntary termination for
            Cause) if, at or immediately prior to the date of such termination,
            the Optionee satisfies both of the following conditions:

                (1) the Optionee shall be 55 years of age or older; and

                (2) the sum of the Optionee's age and completed years of service
                as an employee of the Company or its Subsidiaries (disregarding
                fractions, in both cases) shall total 70 or more.

            (B) QUALIFIED RETIREMENT DATE - the date as of which the Optionee's
            employment with the Company or its Subsidiaries shall terminate
            pursuant to a Qualified Retirement.

<PAGE>   4

            (C) DISQUALIFYING ACTIVITY - means and includes each of the
            following acts or activities:

                (1) directly or indirectly serving as a principal, shareholder,
                partner, director, officer, employee or agent of, or as a
                consultant, advisor or in any other capacity to, any business or
                entity which competes with the Company or its Subsidiaries in
                any business or activity then conducted by the Company or its
                Subsidiaries to an extent deemed material by the Committee; or

                (2) any disclosure by the Optionee, or any use by the Optionee
                for his or her own benefit or for the benefit of any other
                person or entity (other than the Company or its Subsidiaries),
                of any confidential information or trade secret of the Company
                or its Subsidiaries to an extent deemed material by the
                Committee; or

                (3) any material violation of any of the provisions of the
                Company's Code of Conduct or any agreement between the Optionee
                and the Company; or

                (4) making any other disclosure or taking any other action which
                is determined by the Committee to be materially detrimental to
                the business, prospects or reputation of the Company or its
                Subsidiaries. The ownership of less than 2% of the outstanding
                voting shares of a publicly traded corporation which competes
                with the Company or its Subsidiaries shall not constitute a
                Disqualifying Activity.

            (D) DISQUALIFICATION DATE - the date of any determination by the
            Committee that the Optionee is or has engaged in any Disqualifying
            Activity.

6. RESTRICTIONS ON EXERCISE. The Option is subject to all restrictions set forth
in this Agreement or in the Plan. As a condition to any exercise of the Option,
the Company may require the Optionee or his successor to make any representation
and warranty to comply with any applicable law or regulation or to confirm any
factual matters requested by counsel for the Company.

7. TAXES. The Optionee hereby agrees that he or she shall pay to the Company, in
cash, any federal, state and local taxes of any kind required by law to be
withheld with respect to the Option granted to him or her hereunder or the
exercise thereof. If the Optionee does not make such payment to the Company, the
Company shall have the right to deduct from any payment of any kind otherwise
due to the Optionee from the Company (or from any Subsidiary or Affiliate of the
Company), any federal, state and local taxes of any kind required by law to be
withheld with respect to the Option, the exercise thereof or the Common Shares
to be purchased by the Optionee under this Agreement. The Option shall not be
treated as an incentive stock option under Section 422 or any successor Section
thereto of the Internal Revenue Code of 1986, as amended.

8. DEFINITIONS. Unless otherwise defined in this Agreement, capitalized terms
will have the same meanings given them in the Plan.

<PAGE>   5

THE PROGRESSIVE CORPORATION

DATE OF GRANT: _________, 19____

BY: _____________________________________
TITLE: __________________________________

<PAGE>   6

                             ACCEPTANCE OF AGREEMENT

The Optionee hereby: (a) acknowledges receiving a copy of the Plan Description
dated _______________ (the "Plan Description") relating to the Plan, and
represents that he or she is familiar with all of the material provisions of the
Plan, as set forth in the Plan Description; (b) accepts this Agreement and the
Option granted to him or her under this Agreement subject to all provisions of
the Plan and this Agreement; and (c) agrees to accept as binding, conclusive and
final all decisions or interpretations of the Committee relating to the Plan,
this Agreement or the Option granted hereunder.

Optionee: _________________________________________

Date: _______________________________, 19____

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]