Document:

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Exhibit No. 10(H)
                           THE PROGRESSIVE CORPORATION
                            1999 EXECUTIVE BONUS PLAN
                        (AS AMENDED ON JANUARY 31, 2003)

1.    The Progressive Corporation and its subsidiaries ("Progressive") have
      designed an executive compensation program consisting of three components:
      salary, annual bonus and equity-based incentives. These components have
      been structured to reflect the market for executive compensation and to
      promote both the achievement of corporate goals and performance that is in
      the long-term interest of shareholders. The annual bonus component of this
      program is performance-based and focuses on current results.

2.    The 1999 Executive Bonus Plan, as amended (the "Plan") provides the annual
      bonus component of Progressive's executive compensation program for Plan
      participants. The Plan shall be administered by or under the direction of
      the Compensation Committee (the "Committee") of the Board of Directors.
      Executive officers of Progressive may be selected by the Committee to
      participate in the Plan for one or more Plan years. Plan years shall
      coincide with Progressive's fiscal years.

3.    Subject to the following sentence, the amount of the annual bonus earned
      by any participant under the Plan for any Plan year ("Annual Bonus") will
      be determined by application of the following formula:

       Annual Bonus = Paid Salary x Target Percentage x Performance Factor

      The Annual Bonus payable to any participant with respect to any Plan year
      shall not exceed $3,000,000.00.

4.    The salary rate of each Plan participant for any Plan year shall be
      established by the Committee no later than ninety (90) days after
      commencement of such Plan year. For purposes of the Plan, "salary" and
      "Paid Salary" shall include regular, vacation, sick, holiday and funeral
      pay received by the participant during the Plan year for work or services
      performed by the participant as an officer or employee of Progressive, but
      shall not include any (a) short-term or long-term disability payments, (b)
      lump sum merit adjustments, (c) discretionary or other bonus or incentive
      payments or (d) the earnings replacement component of any worker's
      compensation award.

5.    The Target Percentages for the participants in the Plan shall be
      determined by the Committee, but will not exceed 150% for any participant.
      Target Percentages may vary among Plan participants and may be changed
      from year to year by the Committee.

6.    The Performance Factor

      A.    General

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            The Performance Factor shall consist of one or more of the following
            components: a Core Business Profitability and Growth Component, a
            Business Segment Performance Component, a Cost Structure Improvement
            Component and an Investment Performance Component (the "Bonus
            Components"). An appropriate combination of Bonus Components will be
            designated for each participant, and the designated Bonus Components
            will be weighted, based on such participant's assigned
            responsibilities, as determined by the Committee.

            The relative weighting of the Bonus Components may vary among Plan
            participants and may be changed from year to year by the Committee.

            For purposes of computing the amount of the Annual Bonus for any
            Plan year, the performance score achieved for each of the designated
            Bonus Components will be multiplied by the applicable weighting
            factor to produce a Weighted Performance Score. The sum of the
            Weighted Performance Scores will equal the Performance Factor. The
            Performance Factor will equal 1.0 if specified performance goals are
            met, and can vary from 0 to 2.0, based on actual performance versus
            the pre-established objectives.

            Actual performance results achieved for any Plan year, as used to
            calculate the performance score achieved for each of the applicable
            Bonus Components, must be certified by the Committee prior to
            payment of the Annual Bonus.

      B.    Core Business Profitability and Growth Component

            The Core Business Profitability and Growth Component measures
            overall operating performance of Progressive's Personal Lines
            segment (excluding Midland Financial Group, Inc.) and commercial
            vehicle insurance business unit (collectively, the "Core Business")
            for the Plan year for which an Annual Bonus payment is to be made.
            For purposes of computing a Performance Score for this Component,
            operating performance results are measured by a Gainsharing Matrix,
            as established by or under the direction of the Committee for the
            Plan year, which assigns a Profitability and Growth Performance
            Score to various combinations of profitability (as measured by the
            Gainsharing Combined Ratio) and growth (based on year-to-year change
            in Net Written Premium) outcomes.

            The Gainsharing Combined Ratio is determined for the Core Business
            as follows:

            1.    Each year, a target combined ratio is established by or under
                  the direction of the Committee for all products within the
                  Core Business, determined to yield an average policy life
                  target combined ratio of 96.

            2.    A weighted target combined ratio is calculated based on the
                  various target combined ratios for the constituent product
                  categories, which are weighted on the basis of the Net Earned
                  Premium generated by each such product category for the Plan
                  year.

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            3.    The actual GAAP combined ratio achieved for the Plan year is
                  subtracted from the weighted target combined ratio to
                  determine the extent to which performance is over or under
                  target. This result, whether positive or negative, is
                  subtracted from the average policy life combined ratio target
                  of 96 to determine the Gainsharing Combined Ratio.

            The Gainsharing Combined Ratio is then matched with growth in Net
            Written Premium using the Gainsharing Matrix to determine a Core
            Business Profitability and Growth Performance Score.

      C.    Business Segment Performance Component

            The Business Segment Performance Component measures the performance
            of a designated Business Segment (as defined below) in terms of any
            one or more of the following criteria selected by the Committee:
            profitability (measured by the combined ratio, weighted combined
            ratio, return on equity or return on revenue), growth (measured by
            net written premium, earned premium or revenues) or operating
            effectiveness (measured by systems availability or timeliness of
            response). A Business Segment may consist of a distribution channel,
            business unit, product, function, process or other business
            category, such as new or renewal business. The Committee may
            designate one or more Business Segment Performance Components for an
            individual Plan participant for any Plan year and, for each such
            Component, will determine the applicable criteria upon which
            performance will be measured, the goals to be achieved and the
            performance scores that will result from various levels of
            performance. The applicable criteria, related goals and resulting
            performance scores may be set forth in a Business Segment
            Performance Matrix or other format approved by the Committee.
            Business Segment Performance Components, performance criteria, goals
            and resulting performance scores may vary among participants and may
            be changed from year to year by the Committee.

      D.    Cost Structure Improvement Component

            The Cost Structure Improvement Component measures success in
            achieving cost structure improvement for the Core Business, as a
            whole, or for an assigned Business Segment, if applicable. Results
            are reflected in a Cost Structure Improvement Score. For purposes of
            computing the Cost Structure Improvement Score, cost structure
            improvement is measured by comparing the sum of the GAAP
            Underwriting Expense Ratio ("Underwriting Expense Ratio") and Loss
            Adjustment Expense Ratio ("LAE Ratio") achieved for the Plan year
            (collectively, "Actual Expense Ratio") against defined expense
            objectives for that year, as established by or under the direction
            of the Committee ("Target Expense Ratio"). The Target Expense Ratio,
            including its individual components, may vary by Business Segment
            and/or for the Core Business as a whole, and may be changed from
            year to year by or under the direction of the Committee.

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            The Cost Structure Improvement Score will be computed in accordance
            with the following formula:

 Cost Structure Improvement = 1 + [Target Expense Ratio-Actual Expense Ratio]
 Score                             -----------------------------------------

                                               3

      E.    Investment Performance Component

            The Investment Performance Component compares the investment
            performance of individual segments of Progressive's investment
            portfolio ("Portfolio Segments") against the performance of selected
            groups of comparable investment funds, indexes or other benchmarks
            ("Investment Benchmarks") over such period or periods as shall be
            determined by the Committee. Such Investment Benchmarks may be
            risk-adjusted in accordance with such formula or other method as may
            be determined by the Committee. Investment results are marked to
            market in order to calculate total return, which is then compared
            against the designated Investment Benchmarks to produce a
            Performance Score for each Portfolio Segment.

            The applicable Portfolio Segments will be identified, and the
            related Investment Benchmarks will be determined, by the Committee
            and may be changed from year to year by the Committee.

            In the event that any participant's Annual Bonus is to be determined
            by the performance of two or more Portfolio Segments, the
            Performance Scores for each of the Portfolio Segments will be
            weighted, based on the average amounts invested from time to time in
            each of such Portfolio Segments during the Plan year, and the
            weighted Performance Scores for the applicable Portfolio Segments
            will be then combined to produce the Investment Performance Score.
            Investment expense is not included in determining investment
            performance vs. benchmark.

8.    The Annual Bonus for any Plan year will be paid to participants as soon as
      practicable after the Committee has certified performance results for the
      Plan year, but no later than March 15 of the immediately following year.
      The provisions of this Paragraph shall be subject to Paragraph 9 hereof.

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

9.    Unless otherwise determined by the Committee, in order to be entitled to
      receive an Annual Bonus for any Plan year, the participant must be
      employed by Progressive on the date designated for payment thereof;
      provided, however, that if any participant who is employed by Progressive
      on the last day of any Plan year shall die at any time between

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      the end of such Plan year and the date designated for payment of Annual
      Bonuses in respect of such year, his or her estate shall be entitled to
      receive the Annual Bonus that would have been payable to such deceased
      participant had he or she lived until and been employed by Progressive on
      such payment date. Annual Bonus payments made to participants will be net
      of any legally required deductions for federal, state and local taxes and
      other items.

10.   The right to any of the Annual Bonuses hereunder may not be transferred,
      assigned or encumbered by any participant. Nothing herein shall prevent
      any participant's interest hereunder from being subject to involuntary
      attachment, levy or other legal process.

11.   The Plan will be administered by or under the direction of the Committee.
      The Committee will have the authority to adopt, alter and repeal such
      rules, guidelines, procedures and practices governing the Plan as it, from
      time to time, in its sole discretion deems advisable.

      The Committee will have full authority to determine the manner in which
      the Plan will operate, to interpret the provisions of the Plan and to make
      all determinations thereunder. All such interpretations and determinations
      will be final and binding on Progressive, all Plan participants and all
      other parties. No such interpretation or determination may be relied on as
      a precedent for any similar action or decision.

      The Plan will be administered by the Committee in accordance with the
      requirements of Section 162(m) of the Internal Revenue Code, as amended,
      and the rules and regulations promulgated thereunder (the "Code").

12.   The Plan will be subject to approval by the holders of Progressive's
      Common Shares, $1.00 par value ("shareholders") in accordance with the
      requirements of Section 162(m) of the Code and no Annual Bonus will be
      paid hereunder unless the Plan has been so approved.

13.   The Plan may be terminated, amended or revised, in whole or in part, at
      any time and from time to time by the Committee, in its sole discretion;
      provided that the Committee may not increase the amount of compensation
      payable hereunder to any participant above the amount that would otherwise
      be payable upon attainment of the applicable performance goals, or
      accelerate the payment of any portion of the Annual Bonus due to any
      participant under the Plan without discounting the amount of such payment
      in accordance with Section 162(m) of the Code, and further provided that
      any amendment or revision of the Plan required to be approved by
      shareholders pursuant to Section 162(m) of the Code will not be effective
      until approved by Progressive's shareholders in accordance with the
      requirements of Section 162(m).

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

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15.   Nothing in the Plan shall be construed as conferring upon any person the
      right to remain a participant in the Plan or to remain employed by
      Progressive, nor shall the Plan limit Progressive's right to discipline or
      discharge any of its officers or employees or change any of their job
      titles, duties or compensation.

16.   Progressive shall have the unrestricted right to set off against or
      recover out of any bonuses or other sums owed to any participant under the
      Plan any amounts owed by such participant to Progressive.

17.   This Plan supersedes all prior plans, agreements, understandings and
      arrangements regarding bonuses or other cash incentive compensation
      payable or due to any participant from Progressive. Without limiting the
      generality of the foregoing, this Plan supersedes and replaces The
      Progressive Corporation 1997 Executive Bonus Plan, as heretofore in effect
      (the "Prior Plan"), which is and shall be deemed to be terminated as of
      December 31, 1998 (the "Termination Date"); provided, that any bonuses or
      other sums earned under the Prior Plan with respect to any period ended on
      or prior to the Termination Date shall be unaffected by such termination
      and shall be paid to the appropriate participants when and as provided
      thereunder.

18.   This Plan is adopted and, subject to the provisions of Paragraph 12
      hereof, is to be effective, as of January 1, 1999. Subject to the
      provisions of Paragraph 12, this Plan shall be effective for 1999 and for
      each year thereafter unless and until terminated by the Committee.

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

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Exhibit No. 10(M)

                      NON-QUALIFIED STOCK OPTION AGREEMENT

      This Agreement (the "Agreement") is made as of the ____ day of __________,
200__ between The Progressive Corporation, an Ohio corporation (the "Company"),
and NAME (the "Optionee"). The Company hereby grants Optionee an option (the
"Option") to purchase TOTAL_SHARES Common Shares, $1.00 par value, (the "Common
Shares") of the Company for a purchase price of $_______ per share (the "Option
Price"). The Option has been granted pursuant to The Progressive Corporation
1995 Incentive Plan (the "Plan") and shall include and be subject to all
provisions of the Plan, which are hereby incorporated herein by reference, and
shall be subject to the following provisions of this Agreement:

1.    Term. The Option shall become exercisable, in installments, as follows:

            _____Common Shares may be purchased on or after 1/1/200__ and until
                  12/31/20___, at which date the right to purchase such Common
                  Shares shall expire.

            _____Common Shares may be purchased on or after 1/1/200__ and until
                  12/31/20___, at which date the right to purchase such Common
                  Shares shall expire.

            _____Common Shares may be purchased on or after 1/1/200__ and until
                  12/31/20___, at which date the right to purchase such Common
                  Shares shall expire.

      The dates set forth above on or after which the Option, or any part
      thereof, may be exercised and specified numbers of Common Shares may be
      purchased hereunder are referred to herein as "Vesting Dates" and the
      dates set forth above as of which such stock purchase rights expire are
      referred to herein as "Expiration Dates."

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

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

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

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

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

4.    Transferability. The Option shall not be transferable by the Optionee
      other than by will or by the laws of descent and distribution. Subject to
      the following sentence, during the lifetime of the Optionee, the Option
      shall be exercisable (subject to any other applicable restrictions on
      exercise) only by the Optionee for his or her own account. Upon the death
      or Disability of the Optionee, the Option shall be exercisable (subject to
      any other applicable restrictions on exercise) only by the Optionee's
      estate (acting through its fiduciary) or by the Optionee's duly authorized
      legal representative, during the period and to the extent authorized in
      the Plan.

5.    Termination of Employment. If the employment of the Optionee by the
      Company (or any of its Subsidiaries or Affiliates) terminates:

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

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

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

      (d)   due to termination for Cause, the Option and all rights to purchase
            Common Shares thereunder shall immediately terminate; and
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      (e)   due to a Qualified Retirement (as defined below), the following
            provisions shall apply (subject in all cases to Section 5(e)(v)
            hereof):

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

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

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

            (iv)  if the Optionee dies after the date of his or her retirement
                  and has not exercised the Option, in whole or in part, prior
                  to his or her death, the Optionee's estate shall have the
                  right to exercise the Option as to (A) all Common Shares, if
                  any, as to which the Option has vested and is exercisable as
                  of the date of the Optionee's death, plus (B) the additional
                  Common Shares, if any, as to which the Option would have
                  become exercisable within one (1) year from the date of the
                  Optionee's death pursuant to Sections 5 (e)(ii) and/or (iii)
                  hereof, as applicable, but for the death of the Optionee, at
                  any time during the one (1) year period beginning on the date
                  of the Optionee's death (or such other period as the Committee
                  may specify), and the balance of the Option shall terminate as
                  of the date of the Optionee's death;
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            (v)   if the Committee determines that the Optionee is or has
                  engaged in any Disqualifying Activity (as defined below), then
                  (1) to the extent that the Option has vested and is
                  exercisable as of the Disqualification Date (as defined
                  below), the Optionee shall have the right to exercise the
                  Option during the lesser of two months from the
                  Disqualification Date or the balance of the Option's term and
                  (2) to the extent that the Option is not vested and
                  exercisable as of the Disqualification Date, the Option shall
                  terminate as of such date. Any determination by the Committee,
                  which may act upon the recommendation of the Chief Executive
                  Officer or other senior officer of the Company, that the
                  Optionee is or has engaged in any Disqualifying Activity, and
                  as to the Disqualification Date, shall be final and
                  conclusive.

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

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

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

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

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

                  (C)   Disqualifying Activity - means and includes each of the
                        following acts or activities:

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

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

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

                        (4)   making any other disclosure or taking any other
                              action which is determined by the Committee to be
                              materially detrimental to the business, prospects
                              or reputation of the Company or its Subsidiaries.

                        The ownership of less than 2% of the outstanding voting
                        shares of a publicly traded corporation which competes
                        with the Company or its Subsidiaries shall not
                        constitute a Disqualifying Activity.

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

                  (E)   Option Installment - if the Option consists of multiple
                        awards, each with a separate Vesting Date and/or
                        Expiration Date, any one of such awards.

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

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

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

                                          THE PROGRESSIVE CORPORATION

DATE OF GRANT:    __________, 200_        BY:_______________________________
                                             Charles E. Jarrett, Secretary
<PAGE>
                             ACCEPTANCE OF AGREEMENT

      The Optionee hereby: (a) acknowledges receiving a copy of the Plan
Description dated November 6, 1997 (the "Plan Description") relating to the
Plan, and represents that he or she is familiar with all of the material
provisions of the Plan, as set forth in the Plan Description; (b) accepts this
Agreement and the Option granted to him or her under this Agreement subject to
all provisions of the Plan and this Agreement; and (c) agrees to accept as
binding, conclusive and final all decisions or interpretations of the Committee
relating to the Plan, this Agreement or the Option granted hereunder.

                              Optionee:   __________________________

                              Date:       ____________________, 200__

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