Document:

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                                                                   Exhibit 10(S)

                      NON-QUALIFIED STOCK OPTION AGREEMENT

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

1. TERM. The Option shall become exercisable as follows:

___________ Common Shares may be purchased on or after _______________ and until
_______________, at which date the right to purchase such Common Shares shall
expire.

 ___________ Common Shares may be purchased on or after _______________ and
until _______________, at which date the right to purchase such Common Shares
shall expire.

 ___________ Common Shares may be purchased on or after _______________ and
until _______________, 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 Committee which shall:

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

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

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

3. PAYMENT OF PRICE. Upon exercise of the Option, the Company shall deliver a
certificate or certificates for the Common Shares purchased thereunder to the
specified person or persons at
<PAGE>   2
the specified time upon receipt of the full purchase price for such Common
Shares: (a) by certified or bank cashier's check, or (b) by any other method of
payment or combination thereof authorized by the Plan.

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

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

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

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

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

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

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

          (i) if 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
<PAGE>   3
          (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;

          (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
<PAGE>   4
                    (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 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 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 successor to make any representation
and warranty to comply with any applicable law or regulation or to confirm any
factual matters requested by counsel for the Company.

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

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

THE PROGRESSIVE CORPORATION

DATE OF GRANT: _________, 19____

BY: ______________________________________

TITLE: ___________________________________
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                             ACCEPTANCE OF AGREEMENT

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

Optionee: _________________________________________

 Date: ______________________________, 19____<PAGE>   1
                                                                   Exhibit 10(T)

                                 OBJECTIVE-BASED
                      NON-QUALIFIED STOCK OPTION AGREEMENT

         This Agreement (the "Agreement") is made as of the _____ day of
_______________, 20___ between The Progressive Corporation, an Ohio corporation
(the "Company"), and {NAME} (the "Optionee"). The Company hereby grants Optionee
an option (the "Option") to purchase {TOTAL SHARES} Common Shares, $1.00 par
value (the "Common Shares"), of the Company for a per share purchase price of
$_________ (the "Option Price"). The Option has been granted pursuant to The
Progressive Corporation 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 as follows:

                  _____ Common Shares may be purchased on or after the Vesting
                  Date (as defined below) and until ___________________________
                  (the "Expiration Date"), on which date the right to purchase
                  such Common Shares shall expire.

                  The Option will vest and become exercisable upon the date (the
                  "Vesting Date") which is the earlier of (a)
                  ________________________ or (b) the date of the public
                  dissemination by the Company of a release reporting earnings
                  for the Company and its subsidiaries for the first calendar
                  year or quarter as of the end of which the Company and its
                  subsidiaries have generated net earned premiums of $_________
                  or more over a period consisting of four consecutive calendar
                  quarters ("Realization Period") at a combined ratio of less
                  than _______ for the Realization Period.

         2.       Method of Exercise. Subject to Section 1 above, the Option
                  shall be exercisable from time to time after the Vesting Date
                  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 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.
<PAGE>   2
         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, 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

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

                           (i)      if and to the extent that the Option has
                                    vested and is exercisable as of the
                                    Qualified Retirement Date (as defined
                                    below), the Option shall not terminate upon
                                    the retirement of the Optionee, 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)     if the Option is not vested and exercisable
                                    as of the Qualified Retirement Date, the
                                    Option (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, and may be
                                    exercised by the Optionee, in whole or in
                                    part, at any time between the Vesting Date
                                    and Expiration Date,
<PAGE>   3
                                    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 Option;

                           (iii)    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 within one
                                    (1) year of the date of the Optionee's death
                                    as to (A) all Common Shares as to which the
                                    Option has not been exercised prior to the
                                    date of the Optionee's death, if the Option
                                    has vested and is exercisable as of the date
                                    of the Optionee's death, or (B) if the
                                    Option has not vested prior to the date of
                                    the Optionee's death, the Common Shares, if
                                    any, as to which the Option would have
                                    become exercisable pursuant to Section
                                    5(e)(ii) hereof 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);

                           (iv)     if the Committee determines that the
                                    Optionee is or has engaged in any
                                    Disqualifying Activity (as defined below),
                                    then (1) if 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) if 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.

                           (v)      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:
<PAGE>   4
                           (1)      directly or indirectly serving as a
                                    principal, shareholder, partner, director,
                                    officer, employee or agent of, or as a
                                    consultant, advisor or in any other capacity
                                    to, any business or entity which competes
                                    with the Company or its Subsidiaries in any
                                    business or activity then conducted by the
                                    Company or its Subsidiaries to an extent
                                    deemed material by the Committee; or

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

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

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

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

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

         6.       Restrictions on Exercise. The Option is subject to all
                  restrictions set forth in this Agreement or in the Plan. As a
                  condition to any exercise of the Option, the Company may
                  require the Optionee or his or 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 withheld with respect to the Option, the exercise
                  thereof or the Common Shares to be purchased by the Optionee
                  under this Agreement. The Option shall not be treated as an
                  incentive stock option under Section 422 or any successor
                  Section thereto of the Internal Revenue Code of 1986, as
                  amended.

         8.       Definitions. Unless otherwise defined in this Agreement,
                  capitalized terms will have the same meanings given them in
                  the Plan.
<PAGE>   5
                                                     THE PROGRESSIVE CORPORATION

DATE OF GRANT: __________________________   BY: ________________________________
                                                   Charles E. Jarrett, Secretary

                             ACCEPTANCE OF AGREEMENT

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

                                 Optionee: _____________________________________

                                 Date: _________________________________________

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