Document:

Exhibit 10.01

 

August 2, 2015

ASSET PURCHASE AGREEMENT

 

by
and among

 

KENTUCKY FRONTIER GAS, LLC

 

and

 

PUBLIC GAS COMPANY

 

Dated
as of August 5, 2015

 

     

    

    

 

ASSET PURCHASE
AGREEMENT

 

THIS ASSET PURCHASE
AGREEMENT (this “Agreement”) is made and entered into as of August 5, 2015 (the “Effective Date”)
by and among KENTUCKY FRONTIER GAS, LLC, a Colorado limited liability company (“Buyer”) and PUBLIC
GAS COMPANY, a Kentucky corporation (the “Company” or “Seller”) as follows:

 

RECITALS

 

WHEREAS, Seller
owns and operates, as a public utility with approval by the Kentucky Public Service Commission, a natural gas distribution business
located in the Commonwealth of Kentucky counties of Breathitt, Jackson, Lawrence, Lee, Magoffin, Morgan, and Wolfe including, but
not limited to all pipelines, meters, inventory (including gas), work in progress, rights of way, licenses, easements, pipeline
interconnections, office equipment, leases, fixtures, machinery, equipment, pipe vehicles and Seller’s files and records
pertaining to the same (the “Business”), and

 

WHEREAS, Seller
wishes to sell to Buyer, and Buyer wishes to purchase from Seller, the rights of Seller to the Purchased Assets (as defined herein)
used in the Business, subject to the terms and conditions set forth herein;

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

Purchase
and Sale

 

Section
1.01       Purchase and Sale of Assets. Subject to the terms and
conditions set forth herein, Seller shall sell, assign, transfer, convey and deliver to Buyer, and Buyer shall purchase from Seller,
all of Seller’s right, title and interest in substantially all of the assets used in the operation of the Business (the “Purchased
Assets”), free and clear of any mortgage, pledge, lien, charge, security interest, claim or other encumbrance (“Encumbrance”).

 

Rights of Way.
Seller transfers to Buyer any and all of its Rights of Way to access pipelines and meters along the Assets. Seller will sign a
quitclaim deed to Buyer to transfer any rights appurtenant to the Asset pipelines and meters.

 

Section
1.02       Excluded Assets. Notwithstanding the foregoing, the
Purchased Assets shall not include any real estate owned by the Seller or any of the assets set forth on Section 1.02 of
the Disclosure Schedules, which are incorporated herein by this reference and made a part hereof (the “Excluded
Assets”).

 

    	 	2	 

    

    

 

Section
1.03       Assumption of Contracts and Liabilities. Subject to
the terms and conditions set forth herein, Buyer shall assume all of the contracts identified on Schedule 1.03(a) (the “Assigned
Contracts”) and agree to pay, perform and discharge all other liabilities and obligations of Seller relating to the Assigned
Contracts and all other liabilities of Seller incurred in the ordinary course of business arising after the Closing (the “Assumed
Liabilities”), except those liabilities and obligations specifically set forth in Section 1.03(b) of the Disclosure Schedules
(the “Excluded Liabilities”). There shall be no adjustment to the Purchase Price as a result of the Assumed
Liabilities. Other than the Assumed Liabilities, Buyer shall not assume any other contracts, liabilities, or obligations of Seller
of any kind, whether known or unknown, contingent, matured or otherwise, whether currently existing or hereinafter created.

 

Section
1.04      Purchase Price. The aggregate purchase price (the “Purchase
Price”) for the Purchased Assets shall be ONE MILLION NINE HUNDRD THOUSAND DOLLARS AND NO/100 ($1,900,000.00), payable
as follows: (a) within three (3) business days after the Effective Date of this Agreement, Buyer shall deposit Fifty Thousand Dollars
($50,000) (the “Deposit”) with Community Trust Bank, Pikeville Kentucky (the “Escrow Agent”),
which shall be credited against the Purchase Price at Closing, and (b) the balance of One Million Eight Hundred and Fifty Thousand
Dollars ($1,850,000), shall be paid to Seller at the Closing (as defined herein) in cash, by wire transfer of immediately available
funds in accordance with the wire transfer instructions to be delivered by Seller to Buyer prior to the Closing. If the Closing
does not occur, the Deposit shall be disbursed in accordance with Section 5.10 hereof.

 

Section
1.05      Allocation of Purchase Price. Seller and Buyer agree
to allocate the Purchase Price among the Purchased Assets for all purposes (including tax and financial accounting) as set forth
in Section 1.05 of the Disclosure Schedules. Buyer and Seller agree to file all tax forms (including without limitation)
IRS Form 8594, tax returns and claims for refunds in accordance with Section 1.05 of the Disclosure Schedules.

 

Section
1.06      Non-disclosure of confidential information. The Parties
agree that information provided by Seller to Buyer pursuant to this Agreement is confidential and proprietary to the Seller and
remains the property of the Seller until the purchase contemplated herein is completed. Any Financial Information, Customer Contracts,
or other information provided to Buyer remains the confidential and proprietary information of the Seller until a sale is completed
and the Assets are transferred. Until such time, Buyer shall treat all such information as confidential and proprietary to Seller
and take all commercially reasonable steps to protect the provided information. To the extent Buyer
is required to disclose confidential information obtained from or related to Seller to obtain regulatory of financing approvals,
it shall maintain confidentiality to the extent required by or allowed by those agencies.

 

    	 	3	 

    

    

 

ARTICLE II

Closing

 

Section 2.01       Closing.
The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place no later than
10 business days following the date on which the last of the conditions to Closing set forth in Section 2.03 have been waived or
satisfied (other than conditions which, by this nature, are to be satisfied on the Closing Date), or on such other date as Buyer
and Seller may mutually agree in writing. The Closing shall take place at the office of Gas Natural, Inc. in Cleveland, Ohio, or
at such other location as the Parties may mutually agree in writing (the “Closing Date”). The parties may mutually
agree to effectuate the Closing by exchanging documents using e-mail, fax, or overnight courier by depositing all the deliverables,
including evidence of deposit in the Seller’s designated account of the Purchase Price, with the designated Escrow Agent.
With the execution of this Agreement, the parties will provide written instructions to the Escrow Agent detailing the duties and
responsibilities of the Escrow Agent as it relates to the disposition of the Deposit and Closing Deliverables, consistent with
the terms of this Agreement. Buyer shall be entitled to possession of the Assets and to begin
operating the distribution system on the Closing Date.

 

(a.) After the Effective
Date and subject to Closing, if Seller receives any payments or invoices from any third parties relating to the operations of the
Assets and attributable to the period after the Effective Date, Seller shall promptly make delivery thereof to the Buyer.

 

(b.) In the same manner,
if Buyer receives any payments or invoices from any third parties relating to the operations of the Assets and attributable to
the period before the Effective Date, Buyer shall promptly make delivery thereof to Seller.

 

Section
2.02       Closing Deliverables.

 

(a)          At
the Closing, Seller shall deliver to Buyer the following:

 

(i)          a
Bill of Sale in the form of Exhibit B hereto (the “Bill of Sale”) and duly executed by Seller,
transferring the Purchased Assets to Buyer;

 

(ii)         an
Assignment and Assumption Agreement in the form of Exhibit C hereto (the “Assignment and Assumption Agreement”)
and duly executed by Seller, effecting the assignment to and assumption by Buyer of the contracts and Assumed Liabilities;

 

(iii)        copies
of all consents, approvals, waivers and authorizations referred to in Section 3.03 of the Disclosure Schedules;

 

(iv)        a
certificate of the Secretary or Assistant Secretary (or equivalent officer) of Seller certifying as to (A) the resolutions of the
board of directors of Seller, duly adopted and in effect, which authorize the execution, delivery and performance of this Agreement
and the transactions contemplated hereby, and (B) the names and signatures of the officers of Seller authorized to sign this Agreement
and the documents to be delivered hereunder;

 

    	 	4	 

    

    

 

(v)         a
certificate, dated as of the Closing date and signed by a duly authorized officer of Seller, that each of the conditions set forth
in Section 2.03 have been satisfied; and

 

(vi)        such
other customary instruments of transfer, assumption, filings or documents, in form and substance reasonably satisfactory to Buyer,
as may be required to give effect to this Agreement, including but not limited to:

 

(a)          Copies
of records related to customers conveyed to Buyer;

(b)          Monies
inclusive of interest accumulated currently held by Seller as deposits for customers being conveyed to Buyer;

(c)          Maps,
easements, rights of ways, permits, customer lists, and rate sheets.

 

(b)          At
the Closing, Buyer shall deliver to Seller the following:

 

(i)          the
Purchase Price;

 

(ii)         the
Assignment and Assumption Agreement duly executed by Buyer;

 

(iii)        copies
of all consents and authorizations referred to in Section 2.03(c) of the Disclosure Schedules;

 

(iv)        a
certificate of the Secretary or Assistant Secretary (or equivalent officer) of Buyer certifying as to (A) the resolutions of the
board of directors of Buyer, duly adopted and in effect, which authorize the execution, delivery and performance of this Agreement
and the transactions contemplated hereby, and (B) the names and signatures of the officers of Buyer authorized to sign this Agreement
and the documents to be delivered hereunder;

 

(v)         a
certificate, dated as of the Closing Date and signed by a duly authorized officer of Buyer, that each of the conditions set forth
in Section 2.03 have been satisfied;

 

(vi)        such
other customary instruments of transfer, assumption, filings or documents, in form and substance reasonably satisfactory to Seller,
as may be required to give effect to this Agreement, including but not limited to a written acknowledgement of the Buyer that it
is not a Foreign Investor, as defined under the Foreign Investment in Real Property Tax Act (“FIRTPA”).

 

Section
2.03       Conditions to Closing. The obligations of each party
to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment, at or prior to the Closing,
of each of the following conditions:

 

(a)          No
governmental authority shall have enacted, issued, promulgated, enforced or entered any governmental order which is in effect and
has the effect of making the transactions contemplated by this Agreement illegal, otherwise restraining or prohibiting consummation
of such transactions or causing any of the transactions contemplated hereunder to be rescinded following completion thereof.

 

(b)          No
action shall have been commenced against Buyer or Seller, which is reasonably likely to prevent the Closing. No injunction or restraining
order shall have been issued by any governmental authority, and be in effect, which restrains or prohibits any transaction contemplated
hereby.

 

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(c)          The
transactions contemplated hereby shall have been approved by the Kentucky Public Service Commission (the “KPSC”)
upon terms and conditions reasonably satisfactory to each party as well as any other identified regulatory or financial releases
needed to transfer the Assets.

 

(d)          The
obligations of Buyer to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment, or Buyer’s
waiver, at or prior to the Closing, of each of the following conditions:

 

(i)          All
representations and warranties of Seller contained in this Agreement or in any document or writing delivered by Seller in connection
with this Agreement shall have been true and correct in all material respects when given and as of the Closing Date.

 

(ii)         Seller
shall have duly performed and complied in all material respects with all agreements, covenants and conditions required by this
Agreement to be performed or complied with by it prior to or on the Closing Date; and

 

(iii)        Seller
shall have delivered to Buyer the deliverables listed in Section 2.02(a) and such other documents or instruments as Buyer reasonably
requests and are reasonably necessary to consummate the transactions contemplated by this Agreement.

 

(iv)        Since
the date of the Financing Statements, there shall have been no event, occurrence, fact, condition or change that is or could reasonably
be expected to become materially adverse to the operation of the Business, but specifically excluding any event, fact, condition
or change resulting from (i) any change in economic conditions, generally or in any of the industries or markets in which the Company
is operated; (ii) any omission to act or action taken with the consent of Buyer (including those omissions to act or actions taken
which are permitted by this Agreement); or (iii) changes in cash flow, net income and/or gross margin resulting from seasonal fluctuations
similar to those which have historically occurred in the Business of the Company.

 

(e)          The
obligations of Seller to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment, or Seller’s
waiver, at or prior to the Closing, of each of the following conditions:

 

(i)          All
representations and warranties of Buyer contained in this Agreement or in any document or writing being delivered by Buyer in connection
with this Agreement shall have been true and correct in all material respects when given and as of the Closing Date.

 

(ii)         Buyer
shall have duly performed and complied in all material respects with all agreements, covenants and conditions required by this
Agreement to be performed or complied with by it prior to or on the Closing Date; and

 

(iii)        Buyer
shall have delivered to Seller the deliverables listed in Section 2.02(b) and such other documents or instruments as Seller reasonably
requests and are reasonably necessary to consummate the transactions contemplated by this Agreement.

 

    	 	6	 

    

    

 

(iv)        Seller
shall have received all applicable required consents set forth in Section 3.03 of the Disclosure
Schedules in a form acceptable to Seller in its sole discretion.

 

ARTICLE III

Representations
and warranties of seller

 

Seller represents and
warrants to Buyer that the statements contained in this Article III are true and correct as of the date hereof. For purposes
of this Article III, “Seller’s knowledge,” “knowledge of Seller” and any similar phrases shall
mean the actual knowledge of any director or officer of Seller without investigation.

 

Section
3.01       Organization and Good Standing. Seller is a Kentucky
company in good standing under the laws of the Commonwealth of Kentucky duly qualified and authorized to do business as a utility
in good standing in the Commonwealth of Kentucky.

 

Section
3.02       Authority. Seller has full power and authority to enter
into this Agreement, and this Agreement constitutes a valid and binding obligation of Seller and is enforceable against Seller
according to its terms.

 

Section
3.03       No Defaults. The execution, delivery and performance
at the Closing of this Agreement by the Seller will not (i) conflict or result in a violation or breach of, or default under, any
provision of the Certificate of Incorporation, by-laws or other organizational documents of the Company, (ii) result in the creation
of any encumbrance on the Purchased Assets, or (iii) conflict with, or result in a breach of, any law, order, judgment, decree
or regulation binding on Buyer. Except for the “Required Consents”, as identified in Section 3.03 of
the Disclosure Schedules, no consent, approval, waiver or authorization is required to be obtained by Seller from any person or
entity (including any governmental authority) in connection with the execution, delivery and performance by Seller of this Agreement
and the consummation of the transactions contemplated hereby.

 

Section 3.04       Title
to Purchased Assets. As of the Closing Date, Seller will own and have good title to the Purchased Assets, free and clear of
Encumbrances.

 

Section 3.05      Condition
of Assets. Buyer has inspected the Purchased Assets and Seller shall maintain the Purchased Assets in their current condition,
ordinary wear and tear excepted, between the Effective Date and the Closing. The Purchased Assets comprise all of the assets necessary
for the operation of the Business as currently conducted.

 

Section 3.06       Assigned
Contracts. With the signing of this Agreement, Seller has delivered to Buyer copies of all Assigned Contracts. The Assigned
Contracts have not been further modified or amended or assigned, whether as collateral security or otherwise (except for any collateral
security assignments that will be released as of the Closing Date), and are in full force and effect; to Seller’s knowledge
there are no existing defaults by Seller under the Assigned Contracts; to Seller’s knowledge, no event has occurred or does
any circumstance exist which (whether with or without notice, lapse of time or the happening or occurrence of any other event)
would constitute any default. Except as otherwise provided in Schedule 3.03 (Required Consents) all Assigned Contracts are assignable
without the consent of any third party.

 

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Section 3.07       Compliance
With Laws. To Seller’s knowledge, Seller has complied, and is now complying, with all applicable federal, state and local
laws and regulations applicable to ownership and use of the Purchased Assets.

 

Section 3.08       Litigation.
Seller has not received notice that it is or may be in violation of any material order, writ, injunction, rule, regulation or decree
of any court or of any federal, state, municipal or other governmental authority or agency having jurisdiction with respect to
the Purchased Assets or the Business. Seller is not engaged in any legal action or other proceeding which would have a material
adverse effect on the Purchased Assets or the Business and to Seller’s knowledge, no such action has been threatened.

 

Section 3.09      Financial
Statements. Schedule 3.09 of the Disclosure Schedules contain Seller’s Financial Statements for the period ending
[June 30, 2015] (the “Financial Statements”). The Financial Statements were prepared from the books and records
of the Business using the same accounting principles, procedures, policies, and methods applied on a consistent basis throughout
the periods covered, are accurate and complete in all material respects and present fairly the financial condition and the results
of operations and changes in cash flows of the Business as of the dates and for the periods indicated in all material respects.

 

Section 3.10      Brokers
and Finders. The Seller has not taken any action with respect to any broker or finder which would give rise to any liability
on the part of Buyer or incurred any liability for brokerage fees, commissions or finder’s fees in connection with the transactions
contemplated by this Agreement which would give rise, to any liability on the part of Buyer.

 

Section 3.11      No
Undisclosed Liabilities. Seller shall have no liability or obligation as of the Closing Date that would be required to be disclosed
on a balance sheet prepared from the books and records of the Business, except for the liabilities and obligations of the Company
(i) disclosed or reserved against in the Financial Statements, or (ii) incurred or accrued in the ordinary course of business since
the date of the Financial Statements.

 

ARTICLE IV

Representations
and warranties of buyer

 

Buyer represents and
warrants to Seller that the statements contained in this Article IV are true and correct as of the date hereof. For purposes
of this Article IV, “Buyer’s knowledge,” “knowledge of Buyer” and any similar phrases shall
mean the actual or constructive knowledge of any director or officer of Buyer, after due inquiry.

 

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Section
4.01       Organization and Good Standing. Buyer is a
Colorado limited liability company and is in good standing under the laws of the Commonwealth of Kentucky and is duly qualified
and authorized to do business as a utility in good standing in the Commonwealth of Kentucky.

 

Section
4.02     Authority. Buyer has full power and authority to enter
into this Agreement, and this Agreement constitutes a valid and binding obligation of Buyer and is enforceable against Buyer according
to its terms.

 

Section
4.03       No Defaults. The execution, delivery and performance
at the Closing of this Agreement by Buyer will not (i) conflict with or result in a violation or breach of, or default under, any
provision of the Articles of Organization, Operating Agreement, or other organizational documents of Buyer, or (ii) conflict with,
or result in a breach of, any law, order, judgment, decree or regulation binding on Buyer.

 

Section
4.04       Brokers and Finders. The Buyer has not taken any action
with respect to any broker or finder which would give rise to any liability on the part of Seller or incurred any liability for
any brokerage fees, commissions or finder’s fees in connection with the transactions contemplated by this Agreement which
would give rise, to any liability on the part of Seller.

 

Section
4.05      Consents and Approvals. Except for the approval of
the KPSC as described in Section 2.03(c) no consent, approval or authorization of, or declaration, filing or registration with,
any governmental or regulatory authority is required by Buyer in connection with the execution, delivery and performance of this
Agreement or the consummation of the transactions contemplated hereby.

 

Section
4.06       Litigation. Buyer is not engaged in any legal action
or other proceeding which would affect Buyer’s ability to close the transaction contemplated by this Agreement and to Buyer’s
knowledge no such action has been threatened.

 

Section
4.07       Knowledge. Buyer has no knowledge of any present facts
or circumstances relating to Buyer which would materially adversely affect the ability of it to perform its obligations under this
Agreement.

 

Section
4.08       Knowledge of Inaccuracies. Buyer will promptly
notify the Seller if at any time prior to the Closing if Buyer acquires knowledge of any inaccuracy in the Disclosure Schedules
or in any of the representations made by Seller in this Agreement. If Buyer fails to notify Seller of any inaccuracy in the Disclosure
Schedules or in any of the representations made by Seller herein and it is determined that Buyer had actual notice of the same
prior to Closing, then Buyer will be deemed to have waived and released any and all claims resulting from or arising out of such
false or inaccurate representations or warranties.

 

    	 	9	 

    

    

 

Section
4.09       Investigations. Buyer acknowledges that it has been
furnished with and has an opportunity to read this Agreement and all materials relating to the Business. Buyer further acknowledges
that it has been given ample opportunity to ask questions and request information of, and receive answers from Seller concerning
the Business, including but not limited to information relating to the business, finances, operations, and prospects of the Business.

 

Section
4.10      Financial and Technical Capability. Subject
to Public Service Commission regulations and approvals Buyer will have the financial capability to consummate the transaction
pursuant to the terms and conditions of this Agreement, and has the experience and technical know-how
to continue to provide safe and reliable services to the customers of the Company.

 

Section
4.11      Disclaimer. Except for the representations and warranties
of Seller expressly set forth in this Agreement, Buyer understands and agrees that the Purchased Assets are being acquired “as
is, where is” on the Closing Date, and that Buyer is relying on its own examination of the Purchased Assets. Without limiting
the generality of the foregoing and except for the representations and warranties of Seller expressly set forth in this Agreement,
Buyer understands and agrees that Seller expressly disclaims any representations or warranties as to the operation of the Business
and the Purchased Assets, including the condition, value or quality of the Purchased Assets or the prospects, liabilities, risks
and other incidents of the Purchased Assets and any representation or warranty of merchantability, usage, suitability or fitness
for any particular purpose with respect to the Purchased Assets or any part thereof, or as to the workmanship thereof or the absence
of any defects therein, whether latent or patent. Buyer further agrees that, except for the representations and warranties of Seller
expressly set forth in this Agreement and in the Disclosure Schedules and exhibits attached hereto, no due diligence materials
or other information or materials provided by, or communication made by, Seller or any representative of Seller will constitute,
create or otherwise cause to exist any representation or warranty whatsoever, whether or not expressly disclaimed by the foregoing.

 

ARTICLE V

Covenants

 

Section
5.01       Public Announcements. Unless otherwise required by
applicable law, neither party shall make any public announcements regarding this Agreement or the transactions contemplated hereby
without the prior written consent of the other party (which consent shall not be unreasonably withheld or delayed). The parties
acknowledge and agree that this Section shall not (i) prohibit Seller for filing a Form 8-K with the Securities and Exchange Commission,
including with any other required public securities, stock exchange, regulatory or other filing, or (ii) prohibit Buyer from filing
for any governmental application or consent pursuant to Section 5.06 or from disclosing this Agreement
and the terms of sale to any financial institution for the purpose of securing funds for the purchase.

 

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Section 5.02      Transfer
Taxes. All transfer, documentary, sales, use, stamp, registration, value added and other such taxes and fees (including any
penalties and interest) incurred in connection with this Agreement and the documents to be delivered hereunder shall be borne and
paid by Buyer when due. Buyer shall, at its own expense, timely file any tax return or other document with respect to such taxes
or fees (and Seller shall cooperate with respect thereto as necessary).

 

Section 5.03
      Conduct of Business Pending Closing. Seller agrees that from the Effective Date of this Agreement until the Closing Date,
unless otherwise consented to by Buyer in writing, Seller will carry on the Business in the ordinary course in substantially the
same manner as normally conducted including, without limitation, all sales, purchases, contractual dealings, management of stocks
and employee relations, and will not enter into any agreement or make any commitment relating to the Business except in the ordinary
course of business and consistent with past practice.

 

Section 5.04      Access
to Information. From the date hereof until the Closing, Seller shall (a) afford Buyer and its representatives reasonable access
to and the right to inspect all of the properties, assets, premises, books and records, contracts and other documents and data
related to the Seller’s business; (b) furnish Buyer and its representatives with such financial, operating and other data
and information related to the Seller’s business as Buyer or any of its representatives may reasonably request; and (c) instruct
the representatives of Seller to cooperate with Buyer in its investigation of the Seller’s business and the Purchased Assets.

 

Section 5.05       Hiring
of Seller’s Employees. It is Buyer’s non-binding intention, as of the Closing Date, to offer employment to all
employees of the Seller then employed by Seller in the Business (collectively the “Employees”), all such offers of
employment to be pursuant to Buyer’s standard employment practices and policies. Buyer’s intent to offer employment
to such Employees as of the Closing Date shall not create any written or oral contractual right of employment on the part of any
such Employee, except as otherwise agreed by the parties in writing.

 

Section
5.06       Governmental Approvals and Consents. The Buyer shall, as promptly as possible,
after the Effective Date: (i) make, or cause or be made, all filings and submissions required under any law applicable to
such party or any of its affiliates; and (ii) use reasonable best efforts to obtain, or cause to be obtained, all consents,
authorizations, orders and approvals from all governmental authorities, including, but not limited to the KPSC, that may be
or become necessary for the execution and delivery of this Agreement and the performance of the parties obligations pursuant
to this Agreement. The Seller shall cooperate fully with the Buyer and its affiliates in seeking to obtain all such consents,
authorizations, orders and approvals. The parties hereto shall not willfully take any action that will have the effect of
delaying, impairing or impeding the receipt of any required consents, authorizations, orders and approvals. Seller shall file
all necessary filings with the United States SEC as required for the transaction contemplated under this Agreement (if any). Failure
of Buyer to obtain any Governmental approval does not invoke the terms of Article VI.

 

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Section 5.07       Bulk
Sales Laws. The parties hereby waive compliance as to each other with the provisions of any bulk sales, bulk transfer or similar
laws of any jurisdiction that may otherwise be applicable with respect to the sale of any or all of the Assets to Buyer. Any taxes
that may be imposed by a government pursuant to any such bulk sales laws shall be borne exclusively by Buyer.

 

Section 5.08      Customer
Credit and Prepayments. Buyer shall honor all customer prepayments, deposits and credits on
the books and records of Seller, set forth in Schedule 5.08 of the Disclosure Schedules, as of the Closing Date, without
further charge or liability to Seller.

 

Section
5.09       Further Assurances. Following the Closing, each of the parties hereto shall
execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may
be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement
and the documents to be delivered hereunder.

 

Section 5.10      Expenses.
If Buyer fails to satisfy any of the “Conditions to Closing” in Section 2.03, that it is responsible for and Buyer
notifies Seller of its inability to meet those “Conditions to Closing” then all legal fees, costs and expenses incurred
by the Seller to such date (collectively, the “Transaction Expenses”) shall be borne by the Buyer. Upon such occurrence,
Seller shall deliver a statement of such Transaction Expenses to Buyer and to Escrow Agent and Escrow Agent shall, within three
(3) days of its receipt of such statements, deliver to Seller the portion of the Deposit required to pay the statement. If the
Transaction Expenses are in excess of the Deposit, Buyer shall within three (3) days of its receipt of the statement, pay the difference
to Seller. If the Deposit is in excess of the Transaction Expenses, the remainder of the Deposit shall be paid to Buyer. In addition,
all legal fees, costs and expenses of any hearing or administrative filing with any governmental agency required for the approval
of the transactions contemplated by this Agreement, shall be borne by the Buyer.

 

Section 5.11       Removal
of Assets. Seller will not enter into any agreement or contractual arrangement providing for, or requiring the sale of, any
of the Purchased Assets during the force and effect of this Agreement beyond those transactions conducted in the ordinary course
of the Seller’s operation of the business.

 

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ARTICLE VI

Indemnification

 

Section
6.01       Survival. All representations, warranties, covenants
and agreements contained herein and all related rights to indemnification shall survive the Closing for a period of twelve (12)
months.

 

Section
6.02       Indemnification by Seller. Subject to the limitations
contained in this Article VI, Seller shall defend, indemnify and hold harmless Buyer, its affiliates and their respective
members, directors, officers and employees from and against all claims, judgments, damages, liabilities, settlements, losses, costs
and expenses, including attorneys’ fees and disbursements (collectively, the “Damages”), arising from
or relating to:

 

(a)          any
inaccuracy in or breach of any of the representations or warranties of Seller contained in this Agreement or any document to be
delivered hereunder;

 

(b)          any
breach or non-fulfillment of any covenant, agreement or obligation to be performed by Seller pursuant to this Agreement or any
document to be delivered hereunder;

 

(c)          any
Excluded Asset or Excluded Liabilities;

 

(d)          any
liability relating to any employee benefit plan of Seller or Seller’s parent company (if any) or any of their affiliates,
as set forth in Schedule 6.02 of the Disclosure Schedules;

 

(e)          Any
liability relating to the employment or termination of employment of any employee by Seller prior to the Closing Date;

 

(f)          liability
of Buyer and/or Seller for unpaid federal, state or local, income, sales and intangible taxes for the period prior to the Closing;

 

(g)          liabilities
under laws governing workers’ compensation, unemployment compensation, social security or income tax withholding for the
period prior to the Closing.

 

Section
6.03      Indemnification By Buyer. Subject to the limitations
contained in this Article VI, Buyer shall defend, indemnify and hold harmless Seller, its affiliates and respective stockholders,
directors, officers and employees from and against all Damages, arising from or relating to:

 

(a)          any
inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement or any document to be
delivered hereunder;

 

(b)          any
breach or non-fulfillment of any covenant, agreement or obligation to be performed by Buyer pursuant to this Agreement or any document
to be delivered hereunder;

 

(c)          any
Assumed Liability; or

 

(d)          any
Assigned Contracts.

 

    	 	13	 

    

    

 

Section
6.04       Indemnification Procedures. Whenever any claim shall
arise for indemnification hereunder, the party entitled to indemnification (the “Indemnified
Party”) shall promptly provide written notice of such claim to the other party (the “Indemnifying
Party”). In connection with any claim giving rise to indemnity hereunder resulting from or arising out of any
Action by a person or entity who is not a party to this Agreement, the Indemnifying Party, at its sole cost and expense and upon
written notice to the Indemnified Party, may assume the defense of any such Action with counsel reasonably satisfactory to the
Indemnified Party. The Indemnified Party shall be entitled to participate in the defense of any such Action, with its counsel and
at its own cost and expense. If the Indemnifying Party does not assume the defense of any such Action, the Indemnified Party may,
but shall not be obligated to, defend against such Action in such manner as it may deem appropriate, including, but not limited
to, settling such Action, after giving notice of it to the Indemnifying Party, on such terms as the Indemnified Party may reasonably
deem appropriate and no action taken by the Indemnified Party in accordance with such defense and settlement shall relieve the
Indemnifying Party of its indemnification obligations herein provided with respect to any damages resulting therefrom. The Indemnifying
Party shall not settle any Action without the Indemnified Party’s prior written consent (which consent shall not be unreasonably
withheld, conditioned, or delayed).

 

Section
6.05       Certain Limitations.

 

(a)          The
amount which an Indemnifying Party is or may be required to pay to an Indemnified Party in respect of Damages for which indemnification
is provided under this Agreement will be reduced by any amounts actually received (including amounts received under insurance policies)
by or on behalf of the Indemnified Party from third parties (net of out-of-pocket costs and expenses (including reasonable legal
fees and expenses) incurred by such Indemnified Party in connection with seeking to collect and collecting such amounts), in respect
of such Damages (such net amounts are referred to herein as “Indemnity Reduction Amounts”). If any Indemnified
Party receives any Indemnity Reduction Amounts in respect of an Indemnified Claim for which indemnification is provided under this
Agreement after the full amount of such Indemnified Claim has been paid by an Indemnifying Party or after an Indemnifying Party
has made a partial payment of such Indemnified Claim and such Indemnity Reduction Amounts exceed the remaining unpaid balance of
such Indemnified Claim, then the Indemnified Party will promptly remit to the Indemnifying Party an amount equal to the excess
(if any) of (i) the amount theretofore paid by the Indemnifying Party in respect of such Indemnified Claim less (ii) the amount
of the indemnity payment that would have been due if such Indemnity Reduction Amounts in respect thereof had been received before
the indemnity payment was made. An insurer or other third party who would otherwise be obligated to pay any claim shall not be
relieved of the responsibility with respect thereto or, solely by virtue of the indemnification provisions hereof, have any subrogation
rights with respect thereto, it being expressly understood and agreed that no insurer or any other third party shall be entitled
to any benefit they would not be entitled to receive in the absence of the indemnification provisions by virtue of the indemnification
provisions hereof. Seller and the Buyer will, and will use commercially reasonable efforts to cause their respective representatives
to, pursue promptly any claims or rights it may have against all third parties which would reduce the amount of Damages for which
indemnification is provided under this Agreement.

 

    	 	14	 

    

    

 

(b)          Anything
contained in this Agreement to the contrary notwithstanding, the Seller will have no obligation to indemnify the Buyer with respect
to any matter if the Damages arise from a change in the accounting or tax policies or practices of the Seller on or after the Closing
Date.

 

(c)          Anything
contained in this Agreement to the contrary notwithstanding, neither the Buyer nor the Seller will be entitled to any recovery
under this Agreement for special, punitive, exemplary, incidental, indirect or consequential damages, lost profits or diminution
in value.

 

Section
6.06       Dollar Limitations.

 

(a)          Anything
contained in this Agreement to the contrary notwithstanding, in no event will the aggregate amount for which the Seller shall be
responsible to indemnify the Buyer, and for which the Buyer shall be responsible to indemnify the Seller, for any and all claims
under this Agreement exceed, and the Seller’s or Buyer’s aggregate liability for any and all claims under this Agreement
shall be limited to, an amount equal to $50,000 (the “Cap”).

 

(b)          Anything
contained in this Agreement to the contrary notwithstanding, no monetary amount will be payable by the Seller to the Buyer, or
Buyer to Seller, with respect to the indemnification of any claims pursuant to this Article VI until the aggregate amount
of Damages actually incurred by the Buyer with respect to such claims against the Seller, or by the Seller with respect to such
claims against the Buyer shall exceed on a cumulative basis an amount equal to $25,000 (the “Deductible”), in
which event the Seller, or Buyer (as applicable) shall be responsible only for the amount in excess of the Deductible. Notwithstanding
the foregoing, the Deductible shall not be applicable to indemnification claims against Seller relating to the Excluded Liabilities.
In connection with any claim for indemnification, the Buyer will promptly provide Seller with written notice of all claims included
in the Deductible and copies of all documents reasonably requested by the Seller relating thereto.

 

Section
6.07       Tax Treatment of Indemnification Payments. All indemnification
payments made by Seller under this Agreement may be treated by Buyer as an adjustment to the Purchase Price for tax purposes, unless
otherwise required by law.

 

Section
6.08       Effect of Ancillary Documents. For purposes of this
Agreement or contained in or made pursuant to any closing certificate or other instrument or agreement, Seller’s representations
and warranties shall be deemed to include the Schedules and all other documents or certificates delivered by or on behalf of Seller
pursuant to in connection with this Agreement.

 

Section
6.09       Exclusive Remedy. To the fullest extent permitted by
applicable law, the indemnification provided in this Article VI and specific performance pursuant to Section 8.13 shall
be the sole and exclusive remedies available to each of the parties for any matters in connection with this Agreement and the transactions
contemplated hereby.

 

    	 	15	 

    

    

 

Section
6.10       Exception. Notwithstanding the foregoing, the limitations
set forth in Sections 6.01 and 6.06 of this Agreement shall not be applicable to the indemnification claims brought by Buyer under
section 6.02 (c) and (f) hereof.

 

ARTICLE VII

Termination

 

Section
7.01       Termination. This Agreement may be terminated and the
Transactions abandoned at any time prior to the Closing:

 

(a)          by
the mutual written consent of the Seller and the Buyer; or

 

(b)          by
the Seller if the Required Consents are not obtained by 5:00 p.m. Eastern standard time (EST) on November 30, 2015 (the “Walk-Away
Date”). However, if as of 5:00 p.m. Eastern standard time on November 30, 2015 all other Required Consents are obtained
other than Kentucky Public Service Commission approval then November 30, 2015 shall be substituted with December 31, 2015 ; or

 

(c)          by
the Buyer, if the Seller shall have materially breached any of its representations, warranties, covenants or agreements set forth
in this Agreement, which breach (x) would give rise to the failure of a condition set forth in Section 2.03 and (y) cannot be cured
by the Seller by the Walk-Away Date; or

 

(d)          by
the Seller, if the Buyer shall have materially breached any of its representations, warranties, covenants or agreements set forth
in this Agreement, which breach (x) would give rise to the failure of a condition set forth in Section 2.03 and (y) cannot be cured
by the Buyer by the Walk-Away Date.

 

(e)          by
the Buyer if a substantial portion of the Purchased Assets are damaged or destroyed by fire, storm, or any other casualty (collectively,
a “Casualty”) prior to the closing date. Seller assumes all risk of destruction, loss or damage due to fire,
storm, or any other casualty prior to the Closing Date. Upon such destruction, loss, or damage of the facility, or a substantial
part of Sellers’ assets or its inventory, Buyer shall have the option to terminate this Agreement and in the event of the
exercise of such option all rights of Buyer and Seller shall terminate without liability to any party. Buyer shall notify Seller
within seven (7) days after receiving written notice of said destruction, loss or damage of the decision to terminate this Agreement.
If Buyer does not timely notify Seller of termination, this Agreement shall remain in full force and effect, provided, however,
that the Purchase Price shall be adjusted to reflect such destruction, loss or damage, and if Buyer and Seller are unable to agree
upon the amount of such adjustment, the agreement will stand terminated. If this Agreement remains in full force and effect subsequent
to such loss or damage, Buyer shall receive the insurance proceeds paid as a result of such Casualty, subject to adjustments made
agreed upon by Buyer and Seller to the purchase price.

 

    	 	16	 

    

    

 

(f)          by
the Buyer if Lost and Un-accounted for gas (L&U) as calculated for the distribution systems (Purchased Assets) exceeds an average
of 5% for the latest 12 month period available,

 

(g)          by
the Buyer if the amount of bare steel pipe in service as a part of the Purchased Assets exceeds 7000 feet.

 

(h)          by
Buyer if Buyer is unable to obtain adequate gas transportation and /or gas supply commitments from Jefferson Gas, LLC.

 

(i)          by
Buyer if Buyer determines that information obtained from Seller is incorrect, incomplete, or inaccurate.

 

Section
7.02       Effect of Termination. In the event of the termination
of this Agreement as provided in this Article VII, written notice thereof shall be given to the other party, specifying
the provision hereof pursuant to which such termination is made and this Agreement shall forthwith become null and void and there
shall be no liability on the part of the Buyer or the Seller or their respective directors, officers, and Affiliates, except nothing
shall relieve any party from liability for fraud or any breach of this Agreement.

 

ARTICLE VIII

Miscellaneous

 

Section
8.01       Expenses. Except as otherwise declared in Section 5.10
hereof, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid
by the party incurring such costs and expenses.

 

Section
8.02      Notices. All notices, requests, consents, claims, demands,
waivers and other communications hereunder shall be in writing and shall be deemed to have been given (a) when delivered by hand
(with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier
(receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if sent
during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient;
or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such
communications must be sent to the respective parties at the following addresses (or at such other address for a party as shall
be specified in a notice given in accordance with this Section):

 

	If to Seller:	
        Public Gas Company, c/o Gas Natural, Inc.

        One Cleveland Center

        1375 East 9th Street

        Cleveland, OH 44114

        Attention: Gregory Osborne

        E-mail: gosborne@egas.net

 

    	 	17	 

    

    

 

	With a copy to:	
        Public Gas Company, c/o Gas Natural, Inc.

        One Cleveland Center

        1375 East 9th Street

        Cleveland, OH 44114

        Attention: Vincent Parisi

        E-mail: vparisi@egas.net

	 	 
	If to Buyer:	
        Kentucky Frontier Gas, LLC

        4891 Independence Street, Suite 200

        Wheat Ridge, CO 80033

        Attention: Robert J. Oxford

        Facsimile: 303-422-6105

        E-mail: igsinc@att.net

	 	 
	with a copy to:	
        John Hughes, Esq.

        124 West Todd Street

        Frankfort, KY 40601

        E-mail: jnhughes@johnnhughespsc.com

        502 227 7270: Phone

 

Section
8.03      Headings. The headings in this Agreement are for reference
only and shall not affect the interpretation of this Agreement.

 

Section
8.04       Severability. If any term or provision of this Agreement
is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any
other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction.

 

Section
8.05       Entire Agreement. This Agreement and the documents to be delivered
hereunder constitute the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained
herein, and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such
subject matter. In the event of any inconsistency between the statements in the body of this Agreement and the documents to be
delivered hereunder, the Exhibits and Disclosure Schedules (other than an exception expressly set forth as such in the Disclosure
Schedules), the statements in the body of this Agreement will control.

 

    	 	18	 

    

    

 

Section
8.06       Successors and Assigns. This Agreement shall be binding
upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party
may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be
unreasonably withheld or delayed. No assignment shall relieve the assigning party of any of its obligations hereunder.

 

Section
8.07       No Third-party Beneficiaries. This Agreement is for
the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied,
is intended to or shall confer upon any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever
under or by reason of this Agreement.

 

Section
8.08       Amendment and Modification. This Agreement may only
be amended, modified or supplemented by an agreement in writing signed by each party hereto.

 

Section
8.09       Waiver. No waiver by any party of any of the provisions
hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall
operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver,
whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay
in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege.

 

Section
8.10      Governing Law. This Agreement shall be governed by
and construed in accordance with the internal laws of the Commonwealth of Kentucky without giving effect to any choice or conflict
of law provision or rule (whether of the Commonwealth of Kentucky or any other jurisdiction).

 

Section
8.11       Submission to Jurisdiction. Any legal suit, action
or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in any federal
court of the United States of America or the courts of the Commonwealth of Kentucky in the County where Seller or the Purchased
Assets are primarily located, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit,
action or proceeding.

 

Section
8.12     Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND
AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE,
EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

    	 	19	 

    

    

 

Section
8.13       Specific Performance. The parties agree that irreparable
damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties
shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they are entitled at law
or in equity.

 

Section
8.14       Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed
copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same
legal effect as delivery of an original signed copy of this Agreement.

 

Section
8.15       Disclosure Schedules. Seller shall update the Disclosure
Schedules prior to Closing to list any additional matters or events that arise between the Effective Date and the Closing Date.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	20	 

    

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto
duly authorized.

 

	 	Public Gas Company
	 	By Gas Natural, Inc. its sole shareholder
	 	 	 
	 	By:	/s/ Gregory J. Osborne
	 	Name:	Gregory J. Osborne
	 	Title:	President & CEO
	 	 	 
	 	Kentucky Frontier Gas, LLC
	 	 	 
	 	By:	/s/ Robert J. Oxford
	 	Name:	Robert J. Oxford
	 	Title:	Owner—Manager

 

[Signature Page to Asset Purchase Agreement]Exhibit 10.1 Exec SAP

THE PROGRESSIVE CORPORATION 
EXECUTIVE SEPARATION ALLOWANCE PLAN
(2015 AMENDMENT AND RESTATEMENT)

WHEREAS, The Progressive Corporation Executive Separation Allowance Plan (“Plan”) is currently maintained pursuant to a 2006 Amendment and Restatement and seven amendments thereto; and 

WHEREAS, it is deemed desirable to amend and restate the Plan; 

NOW THEREFORE, effective August 6, 2015, the Plan is hereby amended and restated as set forth below:

SECTION 1 - DEFINITIONS

		
	1.1
	“2015 Plan” means The Progressive Corporation 2015 Equity Incentive Plan, as such plan may be in effect from time to time.

		
	1.2
	“Affiliated Company” means any entity in which the Company owns, directly or indirectly, more than fifty percent (50%) of the stock or ownership interests.

		
	1.3
	“Applicable Group Insurance Plan”, as to each Eligible Employee, means any employee benefit plan (including, but not limited to, The Progressive Health, Life and Disability Benefits Plan) in which the Eligible Employee is eligible to participate and which provides medical, dental, vision, life or disability coverage, as such plan may be in effect from time to time.

		
	1.4
	“Cause” (a) before a Change in Control means (i) an Eligible Employee’s violation of Progressive’s Code of Business Conduct and Ethics, provided that such violation would entitle the Company to terminate the Eligible Employee’s employment under the Company’s customary Code of Business Conduct and Ethics enforcement procedures or (ii) an Eligible Employee’s failure to meet written job objectives, provided that such failure would entitle the Company to terminate the Eligible Employee’s employment under the Company’s customary performance management procedures; and (b) after a Change in Control has the meaning given to that term under the 2015 Plan.

		
	1.5
	“Change in Control” has the meaning given to that term under the 2015 Plan.

		
	1.6
	“Code” means the Internal Revenue Code of 1986, as amended.

		
	1.7
	“Company” means The Progressive Corporation, an Ohio corporation, or its successors.

		
	1.8
	 “Compensation” as to each Eligible Employee means his/her rate of base salary or other base wages immediately prior to his/her Separation Date.  This term does not include overtime pay, shift differentials, other pay differentials, Gainsharing, bonuses, commissions, stock-based compensation, incentive compensation, separate pay adjustments or allowances or any other forms of remuneration.

		
	1.9
	“Eligible Employee” means a regular, non-temporary employee of a Participating Employer who is eligible to receive annual restricted stock or other annual stock-based awards under The Progressive Corporation 2015 Incentive Plan or any similar plan as determined by the Company, or whose annual compensation within the meaning of Section 401(a)(17) of the Code exceeds the 

maximum amount allowed under such Code Section.  Notwithstanding anything in the Plan to the contrary, Eligible Employees shall not include (i) any person classified by a Participating Employer or any Affiliated Company as an independent contractor or as an employee of an entity other than a Participating Employer or Affiliated Company, (ii) any person whose terms and conditions of employment are governed by a collective bargaining agreement, or (iii) any person who receives a one-time restricted stock award or other stock-based award, but who is not eligible to receive regular, annual restricted stock awards or other stock-based awards.

		
	1.10
	“Good Reason” shall mean Good Reason as defined in the 2015 Plan.

		
	1.11
	“Grade Level” shall mean the grade level assigned by Progressive to the position held by an Eligible Employee immediately prior to termination of employment or Job Change.

		
	1.12
	“Participating Employer” shall mean each Affiliated Company that employs one or more individuals and classifies them as its common law employees for payroll tax purposes, and that either (a) was an Affiliated Company as of March 31, 2015, or (b) becomes an Affiliated Company on or after April 1, 2015, and elects to participate in the Plan in accordance with Section 12.

		
	1.13
	“Job Change” means any change in an Eligible Employee’s job duties that is deemed significant by the Company in its sole and absolute discretion.  No determination by the Company as to the significance of any such change shall be deemed a precedent or shall limit in any way the Company’s sole and absolute discretion in deciding whether any change in any Eligible Employee’s job duties is significant.  

		
	1.14
	“Plan” means The Progressive Corporation Executive Separation Allowance Plan (2015 Amendment and Restatement), as set forth herein and as the same may be amended from time to time.  

		
	1.15
	“Progressive” includes the Company and any other entity which from time to time is an Affiliated Company.

		
	1.16
	“Separation Agreement and General Release” means an agreement and release substantially in the form attached hereto as Exhibit A.

		
	1.17
	“Separation Date” means the effective date of any Eligible Employee’s termination of employment or resignation due to a Job Change or, after a Change in Control, resignation for Good Reason.

		
	1.18
	“Years of Service” as to each Eligible Employee means the period of time beginning on his/her most recent date of hire by a Participating Employer and ending on his/her most recent Separation Date.  However, Years of Service shall not include any time during which an Eligible Employee has received long-term disability benefits under the Applicable Group Insurance Plan.

SECTION 2 - ENTITLEMENT TO SEPARATION ALLOWANCE

		
	2.1
	(a) An Eligible Employee shall be entitled to receive a separation allowance under this Plan if (i) Progressive terminates his/her employment for reasons other than resignation (except as provided in Section 2.1(b) below), retirement, death, disability (except as provided in Section 2.3 below), leave of absence or discharge for Cause, and (ii) the Eligible Employee signs a Separation Agreement and General Release and delivers it to the Company within forty-five (45) days after the Eligible Employee's Separation Date.  

(b) An Eligible Employee shall be entitled to receive a separation allowance under this Plan if (i) the Company gives the Eligible Employee written notice of a Job Change, (ii) the Eligible Employee delivers a written resignation from employment to the Company within such period as the Company shall specify and which resignation is effective as of a date that (A) is acceptable to the Company in its sole and absolute discretion and (B) is no later than January 10 of the calendar year immediately following the calendar year in which the Eligible Employee receives from the Company the written notice of a Job Change pursuant to Section 2.1(b)(i) above, and (iii) the Eligible Employee signs a Separation Agreement and General Release and delivers it to the Company within forty-five (45) days after the resignation effective date determined pursuant to Section 2.1(b)(ii) above.

		
	2.2
	In addition,  if during the twenty-four (24) month period following a Change in Control, an Eligible Employee terminates his or her employment for Good Reason (as stated in a written notice to Progressive, which must be provided within thirty (30) days after the occurrence of the event(s) giving rise to such Good Reason, and must set forth such Good Reason in reasonable detail and the expected date of termination, which shall be not more than thirty (30) days after the date of such notice), and Progressive fails to cure the event(s) giving rise to the claim of Good Reason within such thirty (30) day period, then upon the occurrence of such termination, the Eligible Employee shall be entitled to a separation allowance under this Plan if  the Eligible Employee signs a Separation Agreement and General Release and delivers it to the Company within forty-five (45) days after the Eligible Employee’s Separation Date.  

		
	2.3
	Notwithstanding the preceding provisions of this Section 2, no Eligible Employee shall be entitled to receive a separation allowance if he/she is on a medical or other leave of absence, except for an Eligible Employee who, on his or her Separation Date, is receiving long-term disability benefits under the Applicable Group Insurance Plan or is on a qualifying leave pursuant to the Family and Medical Leave Act, the Uniformed Services Employment and Reemployment Rights Act, or any other local, state or federal law pursuant to which the Eligible Employee has a lawful right to a separation allowance upon termination of employment or resignation due to a Job Change or, after a Change in Control, resignation for Good Reason. 

		
	2.4
	Notwithstanding anything in this Plan to the contrary, an Eligible Employee shall not be entitled to receive a separation allowance, and any Separation Agreement and General Release that such Eligible Employee previously may have executed shall be considered null and void, if, at any time prior to payment of a separation allowance to such Eligible Employee, the Company determines that the Eligible Employee has at any time prior to such payment committed a violation of Progressive’s Code of Business Conduct and Ethics that would have led Progressive to terminate the Eligible Employee’s employment in accordance with Progressive’s then current disciplinary practices with respect to the type of violation in question had the Eligible Employee still been actively employed.  The provisions of this Section 2.4 shall cease to be effective immediately upon the occurrence of a Change in Control. The preceding provisions of this Section 2.4 shall not in any way affect the Company’s right to terminate an employee’s employment for Cause following a Change in Control.

SECTION 3 - AMOUNT OF SEPARATION ALLOWANCE

		
	3.1
	The separation allowance payable to each Eligible Employee who is entitled to such allowance under Section 2 above shall be equal to the number of weeks of Compensation set forth in the table 

below, based on the Eligible Employee’s Grade Level and Years of Service as of his/her Separation Date:

	
		
	Eligible Employees at Grade Levels 47 through 52
	26 weeks of Compensation plus two additional weeks of Compensation for each full Year of Service in excess of 13 Years of Service, not to exceed an aggregate of 52 weeks of Compensation

	Eligible Employees at Grade Levels 53, 54 and 55
	52 weeks of Compensation

	(1) The Company’s Chief Executive Officer; (2) Eligible Employees who (i) report directly to him/her, and (ii) have no assigned Grade Level; and (3) any other Eligible Employee designated in writing by (i) the Compensation Committee of the Company’s Board of Directors, if the Eligible Employee is an executive officer, or (ii) the Company’s Chief Executive Officer and Chief Human Resources Officer, if the Eligible Employee is not an executive officer.
	Less than one Year of Service:  52 weeks of Compensation
At least one, but less than two, Years of Service:  104 weeks of Compensation
At least two Years of Service:  156 weeks of Compensation

		
	3.2
	Each Eligible Employee’s separation allowance shall be paid in a lump sum within thirty (30) days following the later of (i) the Eligible Employee’s Separation Date, or (ii) the expiration of the revocation period referred to in the Eligible Employee’s signed Separation Agreement and General Release.  In no event, however, shall an Eligible Employee’s separation allowance be paid later than March 15 of the year following the year in which the Eligible Employee’s Separation Date occurs.

		
	3.3
	Progressive shall withhold from each separation allowance all applicable federal, state, and local taxes, Social Security taxes and other deductions required by law, and any other amounts due to Progressive from the Eligible Employee for any reason.

		
	3.4
	Each Eligible Employee’s separation allowance payable under this Plan shall be reduced by the amount of any state-mandated separation allowance or severance payments payable by Progressive to such Eligible Employee.

		
	3.5
	Notwithstanding anything herein to the contrary, no separation allowance payments shall be made under this Plan to any Eligible Employee later than two and one-half months following (i) the end of the year in which the Eligible Employee’s Separation Date occurs, or (ii) if earlier, the end of the year in which the Eligible Employee receives a written notice from the Company pursuant to Section 2.1(b)(i) above.

		
	3.6
	Each separation allowance payable under this Plan to an Eligible Employee who is affected by a “plant closing” or “mass layoff” within the meaning of the Worker Adjustment and Retraining Notification Act (29 U.S.C. §§2101-2109) (“WARN”) shall be reduced by the amount of salary or other wages paid by Progressive to such Eligible Employee in respect of the period (“WARN Period”) commencing on the date he/she receives written notice pursuant to WARN that Progressive will be terminating his/her employment and ending on his/her Separation Date, but only to the extent that the Eligible Employee has not earned wages from Progressive during such WARN Period.

		
	3.7
	An Eligible Employee who receives a separation allowance under this Plan shall be obligated to repay a portion of that separation allowance if he/she is hired by a Participating Employer as a 

regular employee within a period of time following his/her Separation Date that does not exceed the number of weeks of Compensation used in computing his/her separation allowance under Section 3.1.  The amount of the repayment shall equal the difference between (a) the total separation allowance paid to the Eligible Employee and (b) the total separation allowance paid to the Eligible Employee multiplied by a fraction, the numerator of which is the number of weeks, rounded to the nearest whole week, beginning on the Eligible Employee’s Separation Date and ending on his/her rehire date, and the denominator of which is the total number of weeks of Compensation used in computing his/her separation allowance under Section 3.1.  Repayment shall be made at such time and in such manner as shall be determined by the Participating Employer which hires the Eligible Employee, in such Participating Employer’s sole discretion.

SECTION 4 - CONTINUED WELFARE BENEFITS

		
	4.1
	An Eligible Employee who resigns or whose employment has been terminated under the Plan may elect to continue his/her and his/her dependents' medical, dental and vision coverages, if any, under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), as further provided in the Applicable Group Insurance Plan (to the extent he/she and his/her dependents were receiving such coverages immediately prior to his/her Separation Date), for the period specified in the Applicable Group Insurance Plan and subject to the terms and conditions thereof.  If an Eligible Employee who is entitled to a separation allowance under the preceding provisions of this Plan elects to continue his/her and/or his/her dependents' medical, dental and/or vision coverages under the Applicable Group Insurance Plan, the Eligible Employee will be entitled to receive such coverages at the contribution amount set forth in the Applicable Group Insurance Plan (referred to therein as the “Separation Allowance Contribution”) for a period not to exceed the lesser of (i) the COBRA continued coverage period or (ii) the number of weeks of Compensation used in computing the amount of his/her separation allowance under Section 3.1 above, provided that the Eligible Employee pays such Separation Allowance Contribution to the Participating Employer at such times as the Participating Employer shall specify.  Eligible Employees may also qualify for a reduction of the Separation Allowance Contribution under the American Recovery and Reinvestment Act of 2009.

		
	4.2
	Notwithstanding the foregoing, if the Company reasonably determines that, as a result of the continuation of coverage pursuant to this Section 4, the Company, an Applicable Group Insurance Plan, or an Eligible Employee could be subject to: (a) any excise tax for failure to comply with any law applicable to group health plans; or (b) the taxation of any medical expense reimbursement benefits provided under an Applicable Group Insurance Plan, the Company shall require an Eligible Employee to pay the full cost of the continuation of coverage in lieu of the Separation Allowance Contribution.

 
SECTION 5 - ELIGIBILITY UNDER OTHER PLANS AND AGREEMENTS

		
	5.1
	Except as provided in Section 5.2, this Plan shall entirely supersede and replace all policies, plans, agreements, understandings and arrangements adopted or entered into before August 6, 2015, regarding separation allowances, severance pay and/or similar compensation payable by Progressive to terminated Eligible Employees (other than with respect to any Eligible Employees who may have incurred Separation Dates prior to August 6, 2015).

		
	5.2
	Individual employment, termination, severance and other agreements that include provisions regarding separation allowances, severance pay and/or similar compensation following termination of employment and that are entered into in writing with an Eligible Employee shall supersede and 

replace this Plan, except as otherwise expressly provided by such agreements; however, no such agreement entered into on or after August 6, 2015, shall be effective or enforceable unless approved in writing by the Board of Directors of the Company, and nothing in this Plan shall be construed as ratifying or validating any such agreements that have not been so approved.

SECTION 6 - CLAIMS PROCEDURES

		
	6.1
	The Company shall establish reasonable procedures under which a claimant, or his/her duly authorized representative, may present a claim for benefits under this Plan.

		
	6.2
	Unless such claim is allowed in full by the Company, written notice of the denial shall be furnished to the claimant within ninety (90) days (which may be extended by a period not to exceed an additional ninety (90) days if special circumstances so require and written notice to the claimant is given prior to the expiration of the initial ninety (90) day period describing such circumstances and indicating the date by which the Company expects to render its determination) setting forth the following in a manner calculated to be understood by the claimant:

		
	(i)
	The specific reason(s) for the denial;

		
	(ii)
	Specific references(s) to any pertinent provision(s) of the Plan or rules promulgated pursuant thereto on which the denial is based;

		
	(iii)
	A description of any additional information or material as may be necessary to perfect the claim, together with an explanation of why it is necessary;

		
	(iv)
	A description of the Plan’s claims review procedures and the time limits applicable to such procedures, including a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review; and 

		
	(v)
	     An explanation of the steps to be taken if the claimant wishes to resubmit his/her claim for review.

		
	6.3
	Within a reasonable period of time after the denial of the claim, but in any event, not to be more than sixty (60) days thereafter, the claimant or his/her duly authorized representative may make written application to the Company for a review of such denial. The claimant or his/her representative, may, upon request and free of charge, review or receive copies of documents, records and other information relevant to the claimant’s claim for benefits, and may submit written comments, documents, records and other information relating to the claim for benefits.

		
	6.4
	If an appeal is timely filed, the Company shall conduct a full and fair review of the claim and mail or deliver to the claimant its written decision within sixty (60) days after the claimant's request for review (which may be extended by a period not to exceed an additional sixty (60) days if special circumstances or a hearing so require and written notice is given to the claimant prior to the expiration of the initial sixty (60) day period describing such special circumstances and indicating the date by which the Company expects to render its determination). In conducting its review, the Company shall take into account all comments, documents, records and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.  The Company’s decision on review shall:

(i)    Be written in a manner calculated to be understood by the claimant;

(ii)    State the specific reason(s) for the decision; 

(iii)    Make specific reference to pertinent provision(s) of the Plan;

		
	(iv)
	State that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits; and

		
	(v)
	Include a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA.

		
	6.5
	If a period of time is extended, as permitted under Sections 6.2 and 6.4 above, due to a claimant’s failure to submit information to decide a claim, the period for making the benefit determination on review shall be tolled from the date on which the notification of the extension is sent to the claimant until the date on which the claimant responds to the request for additional information.”

SECTION 7 - AMENDMENT AND TERMINATION

		
	7.1
	The Company, by action of the Compensation Committee of its Board of Directors, may amend, modify or terminate the Plan in whole or in part at any time for any reason without the consent of any Affiliated Company or any employee or other person; provided, however, that, except for legally required amendments, modifications and terminations, no such amendment, modification or termination shall impair the rights of any Eligible Employee who incurs a Separation Date prior to the date the Company adopts such amendment or modification or approves such termination.

		
	7.2
	Notwithstanding the provisions of Section 7.1, upon the occurrence of a Change in Control, the Plan may not be amended, modified or terminated in a way that impairs or reduces any of the rights or benefits of any individual who was an Eligible Employee as of the date such Change in Control occurred until after the third anniversary of the date such Change in Control occurred. 

SECTION 8 - RIGHTS OF SETOFF

		
	8.1
	Progressive shall have the unrestricted right and power to set off against, or recover out of, any payments owed an Eligible Employee or other person under this Plan, at the time such payments would have otherwise been payable under this Plan, any amounts owed to Progressive by such Eligible Employee or other person.

SECTION 9 - FUNDING

		
	9.1
	All payments pursuant to this Plan shall be made from Progressive's general funds and nothing contained herein shall be deemed to require Progressive to, and Progressive shall not, physically segregate any sums from its general funds, or create any trust or escrow account, or make any special deposit, in respect of any amounts payable hereunder.

SECTION 10 - ADMINISTRATION

		
	10.1
	The Company shall be the Administrator of this Plan and shall be the “named fiduciary” within the meaning of Section 402 of the Employee Retirement Income Security Act of 1974, as amended, 

and, except as specified elsewhere herein, shall exercise all rights and duties with respect hereto, including, without limitation, the right:

		
	(i)
	to make and enforce such rules and regulations as are necessary or proper for the efficient administration of this Plan; and

		
	(ii)
	to interpret and construe this Plan and to decide all disputes and other matters arising hereunder, including but not limited to the right to determine eligibility for benefits and resolve possible ambiguities, inconsistencies or omissions.  All such rules, interpretations and decisions shall be applied in a uniform manner to all persons similarly situated.

Except as otherwise specifically provided herein, no action or decision taken in accordance with this Plan by the Company or Progressive shall be relied upon as a precedent for any similar action or decision under any circumstances.

		
	10.2
	It is intended that all amounts payable under this Plan shall be, to the greatest extent possible, either “short-term deferral” or “separation pay” within the meaning of Treasury Regulation Sections 1.409A-1(b)(4) and 1.409A-1(b)(9) respectively and, as such, shall be exempt from the application of Section 409A of the Code.  The Plan, the Separation Agreement and General Release, and any other documents relating to the payment of separation allowance or the provision of benefits hereunder shall be construed and interpreted in accordance with such intention.  Notwithstanding the foregoing, the Company makes no representations that any separation allowance payment shall comply with Section 409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by an Eligible Employee on account of noncompliance with Section 409A of the Code.

SECTION 11 - ADOPTION OF THE PLAN BY AFFILIATED COMPANIES

		
	11.1
	Adoption with Approval

Any Affiliated Company may adopt and become a party to this Plan with the consent of the Company and subject to such terms and conditions as the Company may require or approve.

		
	11.2
	Procedure for Adoption

An Affiliated Company may adopt the Plan and become a Participating Employer hereunder by executing an instrument in writing evidencing such adoption by its Board of Directors and filing a copy thereof with the Company.  Upon approval of the Affiliated Company's adoption of the Plan by the Company, the Affiliated Company's adoption of the Plan shall be effective as of the date specified in said instruments.

		
	11.3
	Effect of Adoption

(a)    If there is more than one Participating Employer hereunder, the costs and expenses in connection with the Plan each year shall be shared by all Participating Employers in such manner as they shall mutually agree.

(b)    Each Participating Employer, as a condition of continued participation in this Plan, delegates to the Company the sole power and authority to design, establish and change the Plan, including, without limitation, the power and authority to: 

(i)    determine the amount of employer and employee contributions

(ii)    consent to the adoption of this Plan by other Affiliated Companies; and

(iii)    amend or terminate the Plan in accordance with Section 7.

(c)    Each Participating Employer, as a condition of continued participation in this Plan, delegates to the Company the sole power and authority to administer and operate the Plan as provided in Section 11 of the Plan.  

		
	11.4
	Termination of Adoption

Each Participating Employer may elect separately to withdraw from the Plan, but amendments may be made only by the Company as provided in Section 7.  Any such withdrawal shall be expressed in an instrument in writing executed by the withdrawing Participating Employer on order of its Board of Directors and filed with the Company.

SECTION 12 - EFFECTIVE DATE

		
	12.1
	This Plan shall be effective August 6, 2015, but only as to Eligible Employees who incur Separation Dates on or after such date.

IN WITNESS WHEREOF, the Company has hereunto caused this Amendment and Restatement to be executed by its duly authorized representative as of the 6th  day of August, 2015.

THE PROGRESSIVE CORPORATION

BY:      

TITLE:      

EXHIBIT A

EXECUTIVE SEPARATION AGREEMENT AND GENERAL RELEASE

THIS AGREEMENT is entered into by and between you («Name») and Progressive «PayrollCompany» (“Progressive”), together with its parents, subsidiaries, affiliates, predecessors, successors and assigns (collectively, with Progressive, the “Progressive Group”), pursuant to The Progressive Corporation Executive Separation Allowance Plan (“Plan”).

WHEREAS, your employment with Progressive ended effective «TermDate» (the “Separation Date”); and

WHEREAS, you desire to receive certain separation allowance benefits under the Plan; and

WHEREAS, the Plan provides separation allowance benefits only to employees who sign a Separation Agreement and General Release in the form specified in the Plan;

NOW, THEREFORE, you and the Progressive Group agree as follows:

1.Final Wages and ETB Payment.  Progressive shall pay you for all hours of work performed and for all credited but unused Earned Time Benefit hours determined as of your Separation Date in accordance with Progressive’s standard practices.  These payments will be made within thirty (30) days of the Separation Date, or at such earlier time as may be required by law, regardless of whether you accept this Agreement.  

2.Severance Benefits.  In consideration of your acceptance of this Agreement and subject to your fully meeting your obligations under it, Progressive will provide you with following severance pay and benefits:  

a.Progressive shall pay you a separation allowance in the total gross amount of «SepText» Dollars ($«SepNo») (representing «sevwks» weeks of Compensation), less applicable tax withholding, other legally required deductions and (except to the extent prohibited by law) amounts due Progressive for any reason.  Such separation allowance shall be paid in a lump sum at the time specified in Section 3.2 of the Plan and subject to the limitations specified in the Plan.  
    
b.If you are participating in The Progressive Health, Life and Disability Benefits Plan (“Group Insurance Plan”), you may elect to continue your and your dependents’ medical, dental and vision coverages under the Group Insurance Plan for the periods specified in the Group Insurance Plan, subject to the terms, conditions and limitations of the Group Insurance Plan.  If you elect to continue any of such coverages, Progressive shall pay the cost of continuing such coverages for a period not to exceed the number of weeks of Compensation used in computing the amount of your separation allowance under Paragraph 1 above, provided that you make payments at such times as and in such manner as Progressive shall specify equal to the contributions you would have had to make for those coverages for such period had you continued to receive those coverages as an active employee during such period, all as determined by Progressive.  You also shall be entitled to the conversion privileges, if any, applicable to your life insurance and/or other coverages under the Group Insurance Plan.  

c.[INCLUDE IF PROVIDING OUTPLACEMENT]  Progressive shall make outplacement services available to you for a period of [ ] months. 

d.If you are rehired by Progressive or any other Participating Employer as a regular employee within a period of time following your Separation Date that does not exceed the number of weeks of Compensation used in computing your separation allowance under the Plan, you shall repay to Progressive the amount specified in Section 3.7 of the Plan at the time and in the manner specified therein.  

e.[DELETE IF SEPARATION DATE IS AFTER CHANGE OF CONTROL.]  You shall not be entitled to receive the severance pay and benefits described above, and this Agreement shall be considered null and void, if, at any time prior to payment to you of a separation allowance, Progressive determines that you have committed a violation of Progressive’s Code of Business Conduct and Ethics that would have led Progressive to terminate your employment in accordance with Progressive’s then current disciplinary practices with respect to the type of violation in question had you still been actively employed.  

3.Effect on Equity Incentives.  [If not Qualified Retirement] You acknowledge the forfeiture of any and all unvested Restricted Equity (whether Restricted Stock Awards or Restricted Stock Units) awarded to you under The Progressive Corporation 2003 Incentive Plan, The Progressive Corporation 2010 Equity Incentive Plan and/or The Progressive Corporation 2015 Equity Incentive Plan, in each case as amended (the “Incentive Plans”), except to the extent stated in any agreement between you and Progressive related to unvested and outstanding performance-based restricted stock award(s) for which the Evaluation Period or the Growth Evaluation Period has ended prior to the Separation Date.  You rights, if any, under The Progressive Corporation Executive Deferred Compensation Plan and/or the Incentive Plans (collectively, the “Executive Compensation Programs”) shall be determined in accordance with the governing provisions of the Executive Compensation Programs as in effect from time to time and any agreements entered into thereunder.  For purposes of such Executive Compensation Programs, you shall be considered to have terminated employment with Progressive on the Separation Date.

[If Qualified Retirement]  The termination of your employment shall be deemed to be a Qualified Retirement as that term is used in The Progressive Corporation 2003 Incentive Plan, The Progressive Corporation 2010 Equity Incentive Plan and/or The Progressive Corporation 2015 Equity Incentive Plan, in each case as amended (the “Incentive Plans”), and any Restricted Stock Award Agreement or Restricted Stock Unit Award Agreement between you and Progressive (the “Stock Agreements”) and you shall enjoy such rights and be subject to such forfeitures and requirements as are contained in said Incentive Plans and Stock Agreements in accordance with the Incentive Plans and Stock Agreements.  Your rights, if any, under The Progressive Corporation Executive Deferred Compensation Plan and/or the Incentive Plans (collectively, the “Executive Compensation Programs”) shall be determined in accordance with the governing provisions of the Executive Compensation Programs as in effect from time to time and any agreements entered into thereunder.  For purposes of such Executive Compensation Programs, the Separation Date shall be your Qualified Retirement Date.  

4.Acknowledgment of Full Payment and Status of Benefits.  You acknowledge that the payments described in paragraph 1 of this Agreement are in complete satisfaction of any and all wages and payments due to you from the Progressive Group, whether for services provided or otherwise, through the Separation Date and that, except as expressly provided under this Agreement, no further compensation is owed to you.  You further acknowledge that, except as expressly provided in paragraphs 2(b) and 3 above, your participation in all employee benefit plans and programs will end as of the Separation Date, in accordance with the terms of those plans and programs.   You acknowledge that you have no rights under The Progressive Corporation Separation Allowance Plan.  

5.Return of Documents and Other Property; Confidentiality. You agree to continue to honor your obligations with respect to confidential and/or proprietary information belonging to the Progressive Group, including the Confidentiality Statement to which you agreed upon your hire, if any, and all applicable policies as set forth in Progressive’s Code of Business Conduct and Ethics and Workplace Policies.  You affirm and represent that you have not taken or misused any such confidential and/or proprietary information and that you have returned to Progressive any records containing such confidential and/or proprietary information and all records that are the Progressive Group’s property.  

6.Release of Claims.  In exchange for separation allowance and benefits provided to you under this Agreement, to which you would not otherwise be entitled, you, on your own behalf and on behalf of your heirs, executors, agents, representatives, administrators, survivors, assigns and anyone claiming by or through you, hereby release Progressive and the Progressive Group, along with each of their individual and respective current and former directors, officers, agents, attorneys and employees in their corporate as well as personal capacities (collectively, the “Releasees”), from any and all claims, liabilities, demands, actions, suits and causes of action, whether known or unknown, that you ever had or now may have against any of the Releasees, both in law and equity, arising from or relating to (a) your employment with Progressive and/or any other entity of the Progressive Group and/or (b) work or services you performed for or on behalf of Progressive or any other entity of the Progressive Group (collectively, “Claims”).  Your released Claims include, without limitation: claims arising under the Age Discrimination in Employment Act (“ADEA”), the Fair Labor Standards Act, Title VII of the Civil Rights Act of 1964, the Family and Medical Leave Act, the Americans with Disabilities Act, the National Labor Relations Act, the Uniformed Services Employment and Reemployment Rights Act and the Employee Retirement Income Security Act of 1974, each as may be amended; claims arising under state law [, including [recite any desired state statutes]]; claims for emotional distress and/or mental and/or physical injury; and any other claims relating in any way to your employment with Progressive and/or any other entity of the Progressive Group and its termination.    

[If Executive is a California resident, include] You further acknowledge that you have read and understand California Civil code Section 1542, which reads as follows:

“A general release does not extend to claims which the creditor does not know or suspect to exist in «HisHer» favor at the time of executing the release, which if known by him must have materially affected «HisHer» settlement with the debtor.”

You hereby waive the provisions and protections of California Civil code Section 1542 and agree that the above release shall apply to all Claims that you ever had or now may have against the Releasees, regardless of whether you currently are aware of the Claims or suspect that they exist.

[IF EXECUTIVE IS A RESIDENT OF ANY OTHER STATE REQUIRING RECITAL, INCLUDE RECITAL.]

7.No Pending or New Claims.  You agree that you will not instigate, initiate, promote or participate in any Claims against Releasees unless required to do so by law, excepting only such Claim(s) as are permitted under paragraph 11 below.  In the event that you do so, the Claim(s) shall be dismissed immediately upon the presentation of this Agreement, and you shall reimburse Releasees for all legal fees and expenses incurred in defending such Claim(s) and obtaining their dismissal.  

8.Cooperation.  You agree to cooperate with the Progressive Group and/or any entity thereof, as well as any entity operating on its or their behalf, in response to all reasonable requests relating to your former job duties, including requests for such information as the location of documents or 

information and disclosure of all passwords necessary or desirable to the Progressive Group’s access of information that you password-protected on the information systems or the Progressive Group or any entity thereof.  You further agree to cooperate with the Progressive Group and/or any entity thereof, as well as any entity operating on its or their behalf, in connection with any investigation or legal proceeding arising out of matters that were under your responsibility or that were related to, or caused by, your actions.  

9.Non-Disparagement.  You agree not to disparage the Progressive Group or Releasees, including by libel or defamation.  You may, however, provide truthful information to any state or federal administrative agency and in response to formal legal process, such as a subpoena compelling your testimony.  

10.Non-Admission.  You agree and acknowledge that this Agreement is not and shall not be construed to be, or represented to others as, an admission that Releasees violated any federal, state or local law or regulation or duty owed to you.  

11.Right to Participate in Government Agency Proceedings.  Notwithstanding paragraphs 5, 6, 7, 8 and 9 above, nothing in this Agreement is intended or shall be construed to prohibit you from filing a charge with or participating in any investigation or proceeding conducted by the U.S. Equal Employment Opportunity Commission or a comparable local, state or federal fair employment practices agency, from taking any other actions protected by Section 7 of the National Labor Relations Act or from communicating directly with the Securities and Exchange Commission regarding any possible securities law violation.  You acknowledge and agree, however, that this Agreement fully and finally resolves all monetary matters between you and Releasees, and you waive any right to monetary damages, attorneys’ fees, costs, equitable remedies and any other individual relief related to or arising from any such charge, or any ensuing complaint or lawsuit, filed by you or on your behalf.  

12.      Miscellaneous.  

		
	a. 
	Unless defined herein, all capitalized terms used in this Agreement shall have the meanings given to them in the Plan.  The captions and headings in this Agreement are for convenience only and do not define or describe the scope or content of any provision of this Agreement.  

		
	b.  
	This Agreement, together with the Plan and the other documents referenced herein, constitutes the entire agreement between the parties and supersedes all prior and contemporaneous oral or written representations, agreements and understandings relating to your employment, its termination and all related matters,  excluding only (i) your continuing obligations under Progressive’s Code of Business Conduct and Ethics and any existing agreements between you and Progressive with respect to Confidential Information and/or Proprietary Information and (ii) your rights, if any, under the Executive Compensation Programs and any agreements entered into thereunder.  Any modifications or assignments of this Agreement must be in a writing signed by you and Progressive’s Chief Legal Officer (or, in the event of a conflict of interest, Progressive’s Chief Financial Officer) in order to be effective.  This Agreement is subject to the terms, provisions and limitations of the Plan in all respects.   

		
	c.  
	In the event any provision of this Agreement shall be held to be void, unlawful or for any reason unenforceable or otherwise at variance with the intentions of the parties as expressed herein, the remaining portions of the Agreement shall remain in full force and 

effect.  In the event you breach this Agreement or any part of it, or fail to perform your obligations under this Agreement, the Plan or any other agreement relating to your employment that survives this Agreement, Progressive’s obligations hereunder shall terminate but the Agreement otherwise shall remain in full force and effect, including your release of Claims.  No waiver of any provision of this Agreement, or the breach thereof, shall be deemed a waiver of any other provision or breach.   

		
	d.  
	This Agreement may be signed in counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute the same instrument, though this Agreement shall be of no force or effect until executed by both you and Progressive.  A wet signature on an electronically transmitted copy of the Agreement and/or a wet signature transmitted electronically (i.e., a facsimile or scanned image) shall have the same effect as the original.  

		
	d.  
	This Agreement shall be interpreted, enforced and governed under the laws of the State of Ohio, in which State the Plan was adopted and is maintained.   

13.      [INCLUDE IF EXECUTIVE IS 40 OR OVER AND PART OF GROUP (2 OR MORE) REORGANIZATION] Group Impact Attachment.  In accordance with the provisions of the Older Workers Benefit Protection Act, attached as Attachment A to this Agreement is statistical information regarding job titles and ages of the employees whose employment will and will not be terminated as a result of the reduction in force as of the date below.  

14.      [INCLUDE IF EXECUTIVE IS 40 OR OVER] YOU FURTHER REPRESENT AND ACKNOWLEDGE: 

		
	A.
	The only consideration for signing this Agreement is that stated expressly herein.  No person or entity has made other promises or agreements of any kind to cause you to sign this Agreement.  

		
	B.
	You fully understand the meaning and intent of this Agreement.  You have read the Agreement carefully, know its contents, understand its terms, their meaning and their effect upon your rights and duties.  You enter into this Agreement knowingly and voluntarily, agree to all its terms and conditions, understand their final and binding effect, and sign THIS Agreement as your own free act with the full intent of releasing Releasees from all claims AS PROVIDED IN THIS AGREEMENT.  

		
	C.
	THIS AGREEMENT DOES NOT WAIVE OR RELEASE ANY RIGHTS OR CLAIMS YOU MAY HAVE UNDER the ADEA THAT ARISE AFTER THE DATE YOU SIGN THIS AGREEMENT.  

		
	D.
	The consideration provided to you under THIS AGREEMENT is in addition to anything of value to which you are entitled already.  

		
	E.
	You have been advised by Progressive to consult with an attorney prior to executing this Agreement.  

[INCLUDE IF EXECUTIVE IS 40 OR OVER] IMPORTANT!  You have 45 days from receipt of this Agreement to consider whether to sign it.  If you do not meet this deadline, you will not be eligible for a separation allowance.  You may revoke the Agreement within seven (7) days after signing it, but you must do so by delivering written notification of such revocation to Progressive’s Chief Legal Officer at 6300 

Wilson Mills Road, Mayfield Village, Ohio, 44143.  If you sign the Agreement within 45 days and do not revoke it, it will become effective immediately following the expiration of the seven-day revocation period.  

[INCLUDE IF EXECUTIVE IS UNDER 40]  IMPORTANT!  You have 45 days after your Separation Date within which to sign this Agreement and return it to Progressive.  This Agreement will become effective once you sign it.  If you do not meet this deadline, you will not be eligible for a separation allowance.  

Date this Agreement was Given to You

________________________________________

By:    _________________      __________ 
HR/Manager Initials        Date

                        
PROGRESSIVE «PayrollCompany» 

By:  ______________________________________

__________________________________________ 
Printed Name

Title: _____________________________________

I understand this Agreement and enter into it of my own free will.  I understand that Progressive will not be required to provide any severance benefits under this Agreement until after this Agreement becomes effective.  

______________________________        Date:  ______________________________
[Name]

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