Document:

EX-10.28

 Exhibit 10.28 
 STRICTLY PRIVATE & CONFIDENTIAL 
 ADDRESSEE ONLY 

NAME 
 ADDRESS 

ADDRESS 
 7 December 2011 

Dear 
 I write to confirm your appointment as a
director of Signet Jewelers Limited (the “Company”), with effect from 8 December 2011. I set out below the terms of your appointment. 
  

	1.	Definitions 

 In this
letter: 
  

	1.1	“Board” means the board of directors of the Company from time to time; 

 

	1.2	“Combined Code” means the principles of good governance and code of best practice published and maintained by the Financial Reporting Council of the
United Kingdom; 

  

	1.3	“Bye-laws” means the bye-laws of the Company from time to time; 

 

	1.4	“Companies Act” means the Companies Act 1981 of Bermuda, as amended; 

 

	1.5	“Group” means the Company and any subsidiary or subsidiary undertaking of the Company from time to time; 

 

	1.6	“LPDT Rules” means the Listing, Prospectus, Disclosure and Transparency Rules made by the UK Listing Authority; 

 

	1.7	“NYSE” means the New York Stock Exchange; and 

  

	1.8	“SEC” means the US Securities and Exchange Commission. 

  

	2.	Term of Appointment 

  

	2.1	Your appointment is subject to the provisions of the Bye-laws regarding appointment, fees, expenses, retirement, (including the Term of Office whereby Directors shall
be elected to office at every Annual General Meeting), disqualification and removal of directors and will terminate forthwith without any entitlement to compensation (save for any arrears of compensation which may be due under the terms of this
letter) if: 

  

	 	2.1.1	you are not re-elected at an Annual General Meeting of the Company in accordance with the Bye-laws; or 

 

	 	2.1.2	you are required to vacate office for any reason pursuant to any of the provisions of the Bye-laws; or 

  
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	 	2.1.3	you are removed as a director or otherwise required to vacate office under any applicable law. 

 

	2.2	Subject to clause 2.1, to satisfactory performance by you, and to the results of the annual review as set out in clause 9, it is anticipated that you will continue to
serve as a Director until the Annual General Meeting in 2012 and be subject to election on an annual basis, unless otherwise terminated by you at your discretion or by the Board at its discretion upon one month’s written notice.

  

	3.	Duties 

  

	3.1	You will be expected to devote such time as is necessary for the proper performance of your duties, which is likely to be at least 20 days per year. You will have all
the usual duties of a director under Bermuda law and applicable listing standards of the NYSE, including attendance at board meetings, executive sessions, the annual general meeting, meetings of independent directors, meetings with investors and
shareholders and other Board events such as site visits, together with such additional duties as may be agreed with the Board, and which may relate to the business of the Company or any other member of the Group. You will be required to serve on
such committees as the Board may request, including but not limited to Audit, and/or Compensation and/or Nomination and Corporate Governance Committees. In addition, you will be expected to devote appropriate preparation and travel time ahead of
each meeting. In carrying out your duties, you shall have regard to the Bye-laws, Bermuda law, applicable SEC rules and NYSE listing standards, and such principles of the Combined Code as the Board considers appropriate for the Company from time to
time. 

  

	3.2	By accepting this appointment you undertake that, taking into account all other commitments you may have, you are able to devote sufficient time to properly discharge
your duties as a director of the Company and member of the Audit, and/or Compensation, and/or Nomination and Corporate Governance Committees. 

  

	3.3	If you are required to spend substantially longer than the likely time commitment set out in clause 3.1 on your duties, the Company may at its sole and absolute
discretion make one or more specific payments to you (subject to any limits on directors’ fees contained in the Bye-laws) in addition to the fees set out in clause 7 of this letter, which will be subject to any deductions which the Company may
be required to make (including in respect of tax and other contributions (including national insurance contributions)). 

  

	3.4	You will be expected to faithfully, efficiently, competently and diligently perform your duties and exercise your powers in good faith and in the best interests of the
Company in your role as an independent director having regard in particular to the Companies Act, the SEC rules and NYSE listing standards and such principles of the Combined Code that the Board deems appropriate from time to time.

  

	3.5	During the continuance of your appointment you shall: 

  

	 	3.5.1	to the best of your ability, attend all meetings of the Board and of committees of the Board of which you are a member, and annual general meetings of the Company;

  
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	 	3.5.2	use your reasonable endeavours to promote and extend the interests and reputation of the Group, including assisting the Chairman and the Board in relation to public and
corporate affairs and promotion of the success of the Company in general through application of your particular knowledge, skill and experience; 

  

	 	3.5.3	accurately complete questionnaires as and when requested by the Company, and promptly notify the Company of any subsequent changes which may have occurred in relation
to the responses provided in such questionnaires (in particular, where such changes may impact your independence as determined by the Board under NYSE listing rules); 

 

	 	3.5.4	promptly declare, so far as you are aware, the nature of any interest, whether direct or indirect, in any contract or proposed contract entered into by any member of
the Group; 

  

	 	3.5.5	acquire and then maintain a minimum holding of common shares of the Company equal to a total stock value of US $150,000 whilst in office as a director of the Company,
such holding to be reached within five years of appointment. Once the minimum stock holding requirement has been achieved at any given stock price, the requirement would be considered to have been met notwithstanding a subsequent change in stock
price resulting in a reduction in the value of the stock held; 

  

	 	3.5.6	comply where relevant with any applicable law, rules, regulations and stock exchange listing standards, and policies and codes of the Company, including the
Company’s Code of Conduct applicable to directors, officers and employees; 

  

	 	3.5.7	comply where relevant with any rule of law or regulation of any competent authority or of the Company, from time to time in force in relation to dealing in shares,
debentures and other securities of the Company and unpublished price sensitive information affecting the shares, debentures or other securities of the Company; 

 

	 	3.5.8	observe the LPDT, SEC rules and the NYSE listing standards, as applicable; 

 

	 	3.5.9	comply with all reasonable requests, instructions and regulations made or given by the Board (or by any duly authorised committee thereof) and give to the Board such
explanations, information and assistance as the Board may reasonably require; and 

  

	 	3.5.10	in the event that you have concerns which cannot be resolved (i) about the way in which the Company is being run or (ii) about a course of action being
proposed by the Board, discuss these concerns with another member of the Board, or raise these concerns at a meeting of the Board. 

  

	4.	Provision of Information 

  

	4.1	Following your appointment, the Board will provide an induction programme. This will include the provision of certain information. The Company will also arrange
meetings with senior and middle management and site visits as well as meetings with major shareholders in the Company, as appropriate, within 12 months of your appointment. 

  
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	4.2	In the event that you require further information or advice in relation to the Company, including in relation to compliance with applicable rules and regulations,
during the course of your appointment, you should contact the Group Company Secretary. 

  

	4.3	During the course of your appointment, you will be expected, if necessary, to update your skills and knowledge for the purposes of fulfilling your role as a director of
the Company and as a chairman or member of any committee of the Board to which you may be appointed. The Company will explore, make available and design and provide continuing education opportunities for directors, from time to time. You should
contact the Group Company Secretary if you have any queries in relation to professional development. 

  

	5.	Confidential Information 

  

	5.1	You agree that both during and after your time as a director of the Company, you will not use for your own or another’s benefit or disclose or permit the
disclosure of any confidential information about the Company, its suppliers, customers or other constituents or any member of the Group, other than as appropriate in connection with the proper performance of your duties as a director or otherwise in
accordance with prior authorization provided by the Company. Confidential information shall include, without limitation, all and any information, whether or not recorded, of the Company or of any members of the Group which you have obtained by
virtue of your appointment and which (i) the Company or any member of the Group regards as confidential, (ii) is apparently confidential by reason of its nature or the circumstances in which it comes to your knowledge, and/or (iii) in
respect of which the Company or any member of the Group is bound by any obligation of confidence to a third party. Confidential information may include, without limitation: 

 

	5.1.1	all and any information relating to results of operations, financial condition, plans and prospects, business methods, corporate plans, future business strategy,
management systems, borrowing activities, possible transactions with other parties, possible restructuring, liquidity issues, litigation (pending or threatened), senior management changes, securities offerings, dividend policy, and maturing new
business opportunities; 

  

	 	5.1.2	all and any information relating to research and/or development projects; 

  

	 	5.1.3	all and any information concerning the curriculum vitae, compensation details, work-related experience and other personal information concerning those employed or
engaged by the Company or by any member of the Group; 

  

	 	5.1.4	 all and any information relating to marketing or sales of any past, present or future product or service of the Company or any member of the Group
including sales targets and statistics, market share and pricing statistics, marketing surveys and strategies, marketing research reports, sales techniques, price lists, mark-ups, discounts, rebates, tenders, advertising and promotional material,
credit and payment policies and procedures, and lists and details of customers, prospective customers, 

  
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suppliers, prospective suppliers, joint venture partners and prospective joint venture partners, including their identities, business requirements and contractual negotiations and arrangements
with the Company or any member of the Group; 

  

	 	5.1.5	all and any trade secrets, secret formulae, processes, inventions, design, know-how, research projects, technical specifications and other technical information in
relation to the creation, production or supply of any past, present or future product or service of the Company or any member of the Group, including all and any information relating to the working of any product, process, invention, improvement or
development carried on or used by the Company or any member of the Group and information concerning the intellectual property portfolio and strategy of the Company or of any member of the Group; and 

 

	 	5.1.6	any other information that a reasonable investor would consider important in making a decision to buy, hold or sell the Company’s securities.

  

	5.2	The restrictions contained in this clause 5 shall cease to apply to any confidential information which: 

 

	 	5.2.1	may (other than by reason of your breach of these terms) become available to the public generally; or 

 

	 	5.2.2	you are required to disclose by law, governmental rule or regulation (in which event you shall promptly notify the Company a reasonable period in advance of such
disclosure). 

  

	5.3	You also agree during your appointment that you will not, other than for the benefit of the Company, make any notes (which shall include any notes you make on Board, or
Board committee, minutes or papers, or at or for the purpose of Board meetings, in each case, for the benefit of the Company), memoranda, electronic records, tape records, films, photographs, plans, drawings or any form of record relating to any
matter within the scope of the business or concerning the dealings or affairs of the Group and will return any such items at any time at the request of the Board. 

 

	6.	Other Directorships, Appointments and Interests 

  

	6.1	You confirm that you have notified the Board in writing of all your other directorships, appointments (including employment relationships) and interests, including any
directorship, appointment or interest in a company, business or undertaking which competes or is likely to compete with the Company or any other member of the Group or which is a customer or supplier of any such company or which could otherwise
potentially give rise to a conflict with your duties with the Company (a “competing interest”). 

  

	6.2	You undertake that during the term of your appointment you will: 

  

	 	6.2.1	disclose any proposed new directorship or appointment to the Chairman before accepting it and following acceptance, promptly disclose it to the Board;

  
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	 	6.2.2	promptly notify in writing, in the first instance to the Chairman and subsequently to the Board, any subsequent changes to any such directorship or appointment or
competing interest; and 

  

	 	6.2.3	not acquire any new competing interest (except as the holder for investment of less than 3 per cent. of any class of securities listed on a recognised stock
exchange) without the prior consent of the Board in writing. If you anticipate any possible conflict might arise you should discuss the matter with the Chairman in advance. 

 

	7	Fees 

  

	7.1	You will be entitled to an annual fee at the rate of US$180,000 per annum which total shall be split so as US $90,000 is paid in cash, and US $90,000 is paid in
restricted stock to be delivered annually at the time of the annual general meeting. The fee will be paid less any deductions which the Company may be required to make including in respect of tax and other contributions (including national insurance
contributions). 

  

	7.2	The fee in clause 7.1 will be paid by the Company in respect of your services as a director of the Company, and does not include additional remuneration paid to you in
respect of other duties which you may perform for the Company (including, but not limited to, special remuneration pursuant to Bye-law 46 of the Bye-laws). 

 

	7.3	All cash fees will be payable in arrears by equal quarterly instalments in US dollars. You will not be eligible for the grant of options or other incentives under any
of the Company’s share option schemes as part of your remuneration other than as set out herein. 

  

	8	Expenses, Indemnity and Insurance 

  

	8.1	The Company shall reimburse to you all expenses reasonably incurred by you in the proper performance of your obligations under this letter provided that you supply
receipts or other evidence of expenditure. 

  

	8.2	Subject to the Bye-laws, your expenses may include professional fees if it is necessary in the furtherance of your duties for you to seek independent professional
advice, subject to you having first consulted the Chairman or the Group Company Secretary as appropriate. Any such payment by the Company would, of course, be subject to (i) any applicable restriction under applicable company law and the
Bye-laws, and (ii) the terms of the Deed of Indemnity provided by the Company dated 1 December 2011 (the “Deed of Indemnity”). 

  

	8.3	The Company currently has directors’ and officers’ liability insurance for which the current indemnity limit is £100 million plus
£50 million “Side A Difference in Conditions” cover. A summary of the current policy document has been provided to you. The Company will provide and maintain directors’ and officers’ liability insurance coverage for
you in respect of the period for which you are a director of the Company at such levels, for such risks and subject to such terms, and for such a period after you cease to be a director of the Company, as the Company provides and maintains such
cover for its directors generally for each year thereafter, including such self insurance coverage as the Company makes available or obtains on behalf of itself or its directors. 

  
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	9	Review 

 The performance
of individual directors, and of the Board as a whole, will be evaluated annually. If, in the interim, there are any matters which cause you concern in relation to your role, you should raise them with the Chairman as soon as possible. 

 

	10	Termination of Appointment 

On the termination of your appointment: 
  

	10.1	you will at the request of the Company (where relevant) resign (in writing) from the office of director and you irrevocably authorise the Company as your attorney in
your name and on your behalf to sign all documents and do all things necessary to give effect to this; 

  

	10.2	you will surrender to an authorised representative of the Company all correspondence, documents (including without limitation Board minutes and Board papers (save for
Board minutes and Board papers upon which you have made notes provided that they remain subject to the confidentiality obligations set out in clause 5 of this letter)), and copies thereof or other property of the Group made or received by you in the
course of your directorship (whether before or after the date of this letter) provided that you shall be permitted access to such relevant documentation previously under your control and which you returned pursuant to this clause for the limited
purpose of defending any legal proceedings to which you are a party or through which you are seeking relief by a court; and 

  

	10.3	without prejudice to any right which you may have to recover any fee owing to you pursuant to clause 7 of this letter, you hereby agree that you shall not be entitled
to and shall not pursue any action or claim for compensation from the Company whether such termination occurs before or after the date of expiry of the period set out in clause 2.2. 

 

	11	Miscellaneous 

  

	11.1	Nothing in this letter shall create the relationship of employee and employer between you and the Company. 

 

	11.2	The agreement constituted by this appointment letter shall be governed by, and construed in accordance with, Bermuda law. 

 

	11.3	Both you and the Company irrevocably agree that the Courts of Bermuda shall have exclusive jurisdiction in relation to any claim, dispute or difference concerning this
appointment letter and any matter arising therefrom. 

  

	11.4	Both you and the Company irrevocably waive any right that you or the Company may have to object to an action being brought in those Courts, to claim that the action has
been brought in an inconvenient forum, or to claim that those Courts do not have jurisdiction. 

  

	12	Entire Agreement and Severability 

  

	12.1	This appointment letter together with the Deed of Indemnity represents the entire understanding, and constitutes the whole agreement, in relation to your appointment
and supersedes any previous agreement between yourself and the Company with respect thereto and, without prejudice to the generality of the foregoing, excludes any warranty, condition or other undertaking implied at law or by custom.

  
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	12.2	You confirm that: 

  

	 	12.2.1	in entering into the agreement constituted by this appointment letter you have not relied on any representation, warranty, assurance, covenant, indemnity, undertaking
or commitment which is not contained in this appointment letter; and 

  

	 	12.2.2	in any event, without prejudice to any liability for fraudulent misrepresentation or fraudulent misstatement, the only rights or remedies in relation to any
representation, warranty, assurance, covenant, indemnity, undertaking or commitment given or action taken in connection with this appointment are under this appointment letter and, for the avoidance of doubt and without limitation, neither party has
any right or remedy (whether by way of a claim for contribution or otherwise) in tort (including negligence) or for misrepresentation (whether negligent or otherwise, and whether made prior to, and/or in, this appointment letter).

  

	12.3	In the event that any part (including any sub-clause or part thereof) of this appointment letter shall be void or unenforceable by reason of any applicable law, it
shall be deleted and the remaining parts of this appointment letter shall continue in full force and effect and, if necessary, both parties shall use their best endeavours to agree any amendments to the appointment letter necessary to give effect to
the spirit of this appointment letter. 

  

	13	Counterparts 

 This
appointment letter may be executed by facsimile and in counterparts, all of which taken together shall constitute one and the same instrument. 
  

	14	Waiver 

 The failure of
either party to insist upon strict performance of any of the terms in this appointment letter shall not constitute a waiver of any of its rights hereunder. Further, the waiver by either party of the breach of any provision of this appointment letter
shall not operate or be construed as a waiver of any subsequent breach thereof. 
  

	15	Assignment 

 The rights
and benefits of the Company under this appointment letter shall be transferable and shall inure to the benefit of its successors and assigns. Your duties and obligations under this appointment letter are personal and therefore you may not assign any
right or duty under this appointment letter without the prior written consent of the Company. 
  

	16	Notices 

 Any notice to be
given under the terms of this letter shall, in the case of notice to the Company, be deemed to be given if left at or sent by first class post or facsimile transmission to the registered office for the time being of the Company

  
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marked for the attention of the Group Company Secretary and, in the case of notice to you, if handed to you personally or left at or sent by first class post or facsimile transmission to your
last-known address. Any such notice shall be deemed to be given at the time of its delivery or despatch by facsimile transmission or on the next following weekday (not being a public holiday) after it was posted. 

Kindly confirm your agreement to the terms set out above by signing the endorsement on the enclosed copy of this letter in the presence of an independent
adult witness who should also sign and add his or her full name, address and occupation. Please return the copy to me at the above address. In returning this letter duly signed, you agree that the Company may make this letter publicly available.

 Yours sincerely 
 Sir Malcolm
Williamson 
 Chairman 
 for
and on behalf of Signet Jewelers Limited 
  

			
	EXECUTED as a DEED
	by	 	
		
	Signed:	 	  

		
	Date:	 	
	
	in the presence of

  

			
	  
	  	Witness Name
		
	  
	  	Witness Signature
		
	  
	  	Full Name
		
	  
	  	Address
		
	  
	  	
		
	  
	  	
		
	  
	  	Occupation

  
 9EX-10.1

 Exhibit 10.1 
 RESTRICTED STOCK UNIT AWARD AGREEMENT 
 (2012 Performance-Based
Award – Investment Results) 
 This Agreement (“Agreement”) is made this <Grant Date> by and between
<Participant Name> (“Participant”) and The Progressive Corporation (the “Company”). 
 1.
Definitions. Unless otherwise defined in this Agreement, each capitalized term in this Agreement shall have the meaning given to it in The Progressive Corporation 2010 Equity Incentive Plan, as amended (collectively, the “Plan”).
References herein to performance results of the Company mean the applicable results achieved by the Subsidiaries and Affiliate of the Company. 
 2. Award of Restricted Stock Units. The Company grants to Participant an award (the “Award”) of performance-based restricted stock units (“Restricted Stock Units” or
“Units”), pursuant and subject to the Plan. The Award is based on an initial award value of <# of Units> Units (the “Initial Award Value”). The number of Restricted Stock Units that are ultimately earned pursuant to the
Award (if any) will be determined based on the Initial Award Value and the procedures and calculations set forth in this Agreement. The maximum potential Award is a number of Units equal to two (2) times the Initial Award Value (the
“Maximum Award Value”). 
 3. Condition to Participant’s Rights under this Agreement. This Agreement shall
not become effective, and Participant shall have no rights with respect to the Award or any Restricted Stock Units, unless and until Participant has fully executed this Agreement and delivered it to the Company. In the Company’s sole
discretion, such execution and delivery may be accomplished through electronic means. 
 4. Restrictions; Vesting.
Subject to the terms and conditions of the Plan and this Agreement, Participant’s rights in and to Restricted Stock Units shall vest, if at all, as follows: 

I. Investment Performance Criteria. Provided that at the Company’s 2012 Annual Meeting of Shareholders, the
Company’s shareholders approve the Fourth Amendment to the Plan, the following shall control the vesting of Units under this Agreement: 
 a. Evaluation Period. The “Evaluation Period” shall be the three-year period comprised of the calendar years 2012, 2013 and 2014. 

b. Certification. The Award shall vest (if at all) only if, to the extent, and when the Compensation Committee of
the Board of Directors (the “Committee”) certifies: 
 i. the Performance Ranking of, and Performance
Factor for, the Company’s Fixed-Income Portfolio (as each of those terms are defined in Subparagraph c. below); and 
 ii. the corresponding number of Restricted Stock Units (if any) that have vested as a result of such performance. 
 If the Committee certifies the vesting of a number of Units that is less than the Maximum Award Value, then with respect to all other Units that could have been earned under this Agreement, the Award will
terminate and be forfeited automatically. 

 c. Number of Units Vesting. The number of Restricted Stock Units (if
any) that vest in connection with the Award will be determined by application of the following formula: 
 Number
of Units Vesting = Initial Award Value x Performance Factor 
 i. The Performance Factor will be determined
after the expiration of the Evaluation Period based on the fully taxable equivalent total return of the Company’s fixed-income investment portfolio (the “Fixed-Income Portfolio” or “Portfolio”), in comparison to the total
returns of the group of comparable investment firms identified by Rogers Casey (the “Investment Benchmark”), each calculated for the three calendar years comprising the Evaluation Period. After the end of the Evaluation Period, Rogers
Casey will determine the firms that are included in the Investment Benchmark in accordance with the criteria specified on Exhibit I hereto. Rogers Casey will also supply to the Company the monthly total return data for each of the Investment
Benchmark firms for the three-year period ending on the last day of the Evaluation Period. 
 Investment results for the
Fixed-Income Portfolio will be marked to market, including the benefit of any state premium tax abatements for municipal securities held in the Portfolio that are realized by the Company during the Evaluation Period, in order to calculate the
Portfolio’s fully taxable equivalent total return, compounded on a monthly basis, for the Evaluation Period. The investment performance achieved by the Fixed-Income Portfolio for the Evaluation Period will then be compared against the total
returns of the firms included in the Investment Benchmark for the same period, also compounded on a monthly basis, as determined by the Company from the monthly performance data supplied by Rogers Casey for each firm in the Investment Benchmark, to
determine where the Fixed-Income Portfolio’s performance falls on a percentile basis when compared to the firms in the Investment Benchmark, as further described in Exhibit II hereto (“Performance Ranking”). 

The Portfolio’s Performance Ranking will be used to determine a performance score of between 0.00 and 2.00 for the Evaluation
Period, based on the following schedule: 
  

					
	 Score = 0.00
 Rank at or below
	  	Score = 1.00
Rank equal 
to	 	Score = 2.00
Rank at 
or above
	
25th Percentile
	  	50th Percentile	 	75th Percentile

 A Performance Ranking between the values identified in the schedule will be interpolated on a
straight-line basis to generate the Performance Factor, as further described on Exhibit II. 
 ii. The Company will work with Rogers Casey to ensure, to the extent practicable, that the list of firms comprising the Investment Benchmark and all data necessary to calculate the Performance Ranking and
the Performance Factor are received by March 1st of
the year immediately following the Evaluation Period. In all events, distributions under this Agreement must be 

  
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made on or before March 15th of the year immediately following the Evaluation Period. 
 iii.
In the event that Rogers Casey (or its successors or assigns) ceases to provide or publish the information required to calculate the Performance Factor, or modifies the information in such a way as to render the comparisons required by this
Agreement to be not meaningful, in the Committee’s sole judgment, the determinations required above shall be made using such comparable Company and other investment data as may be available from another recognized provider of investment
industry data as the Committee may approve in its sole discretion. 
 II. Alternative Performance
Criteria. If the Company’s shareholders do not approve the Fourth Amendment to the Plan at the 2012 Annual Meeting of Shareholders, the following shall control the vesting of Units under this Agreement: 

a. Growth Evaluation Period. The “Growth Evaluation Period” shall be the three-year period comprised of
the years 2012, 2013 and 2014. 
 b. Certification. The Award shall vest (if at all) only if, to the
extent, and when the Compensation Committee of the Board of Directors (the “Committee”) certifies: 

i. the extent to which the Company’s performance results have satisfied the performance criteria set forth in both
Subparagraphs c. and d. below; and 
 ii. the corresponding number of Restricted Stock Units (if any) that have
vested as a result of such performance. 
 Such certification shall occur as soon as practicable after the end of the Growth
Evaluation Period, but in any event must occur (if at all) on or before January 31, 2017 (the “Expiration Date”). If the Committee certifies the vesting of a number of Units that is less than the Maximum Award Value, the Award will
terminate and be forfeited automatically with respect to all other Units that could have been earned under this Agreement. 
 c. Profitability Requirement. The Award shall not vest unless the Company has achieved a combined ratio of 96 or less, determined in accordance with GAAP, for the twelve (12) consecutive
fiscal months immediately preceding the date of the certification described in Subparagraph b. above (the “Profitability Requirement”). 
 d. Number of Units Vesting. Provided that the Profitability Requirement has been satisfied, the number of Restricted Stock Units (if any) that vest in connection with the Award will be determined
as follows: 
 i. The Company’s compounded annual rate of growth in “Written Premiums” (defined
below) for the Growth Evaluation Period for the Company’s Private Passenger Auto and Commercial Auto businesses (“Company Growth Rate”) will be compared to the compounded annual rate of growth of the Private Passenger Auto and
Commercial Auto markets as a whole for the Growth 

  
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Evaluation Period (“Market Growth Rate”), in each case determined as provided below. If the Company Growth Rate exceeds the Market Growth Rate, the applicable calculation required by
the following table will determine the number of Restricted Stock Units vesting: 
  

			
	 Performance vs. Market
	  	 Determination of the Number of Units
Vesting

	 If the Company Growth Rate exceeds the Market Growth Rate by 3 percentage points or more
	  	Initial Award Value x 2.00 (i.e., the Maximum Award Value)
		
	 If the Company Growth Rate exceeds the Market Growth Rate by more than 2 but less than 3 percentage points
	  	 Initial Award Value x (1.00 + (Company Growth Rate – Market Growth Rate – 2.00))

Example:
 Company Growth Rate = 2.50%;
Market Growth Rate = 0.10%; Number of Units vesting will equal Initial Award Value x (1.00 + (2.50 - 0.10 - 2.00)) = Initial Award Value x 1.40

		
	 If the Company Growth Rate exceeds the Market Growth Rate by exactly 2 percentage points
	  	Initial Award Value
		
	 If the Company Growth Rate exceeds the Market Growth Rate by less than 2 percentage points
	  	 Initial Award Value x ((Company Growth Rate – Market Growth Rate) / 2.00)

Example:
 Company Growth Rate = 2.50%;
Market Growth Rate = 1.10%; Number of Units vesting will equal Initial Award Value x ((2.50 – 1.10) / 2.00) = Initial Award Value x 0.70

 ii. If the Company Growth Rate is equal to or less than the Market Growth Rate, or if the
Profitability Requirement has not been satisfied with respect to the Award prior to the Expiration Date, none of the Award shall vest, and the Award shall be forfeited in its entirety. 

iii. For purposes of these determinations: 

A. Subject to the provisions of Subparagraphs B., C. and D. below: 

1. “Written Premiums” shall mean premiums written directly during the applicable time period for the specified
types of business, without taking into account reinsurance; 
 2. The Company Growth Rate will be the compounded
annual rate of growth in Written Premiums during the Growth Evaluation Period, determined by comparing (a) the annual aggregate Written Premiums of the Company in its Private Passenger Auto and Commercial Auto businesses for 2014, as reported
by A.M. Best in its annual report currently known as the “A2 Report,” with (b) such Written Premiums of the Company for 2011 as reported in A.M. Best’s A2 Report; and 

  
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 3. The Market Growth Rate will be the compounded annual rate of growth in
Written Premiums during the Growth Evaluation Period, determined by comparing (a) the aggregate Written Premiums of the U.S. Private Passenger Auto market and the Commercial Auto market for 2014, as reported in A.M. Best’s A2 Report, with
(b) such Written Premiums for 2011 as reported in A.M. Best’s A2 Report, but excluding (in each case) the applicable Written Premiums of the Company; 
 B. If 2014 is a 53-week year under the Company’s fiscal calendar, then in determining the Company Growth Rate as set forth in Subparagraph A. above, the aggregate Written Premiums for such year will
be reduced by an amount equal to twenty percent (20%) of the Written Premiums of the Company in fiscal December 2014 in its Private Passenger Auto and Commercial Auto businesses, as determined from the Company’s records; 

C. In making the calculations required under this Agreement, the Company Growth Rate and the Market Growth Rate shall
each be rounded to the nearest thousandth of a whole percentage point and (if applicable) the number of Restricted Stock Units vesting shall be rounded to the nearest thousandth of a whole Unit (or, in each case, as otherwise reasonably determined
by the Company); and 
 D. In the event that A.M. Best ceases to publish the A2 Report, or modifies the A2
Report in such a way as to render the comparisons required by this Agreement to be not meaningful, in the Committee’s sole judgment, the determinations required above shall be made using such comparable Company and industrywide data as may be
then available from A.M. Best in any successor or replacement report or publication, or such comparable data as may be available from another nationally recognized provider of insurance industry data, in each case as the Committee may approve in its
sole discretion. 
 III. Notwithstanding anything to the contrary contained in this Agreement, at or prior to the
time of vesting, the Committee, in its sole discretion, may reduce the number of Restricted Stock Units that otherwise would vest according to this Agreement, or eliminate the Award in full. The Committee, in its sole discretion, may treat
individual participants differently for these purposes. Any such determination by the Committee shall be final and binding on the Participant. Under no circumstances shall the Committee have discretion to increase the award to any Participant in
excess of the number of Units that would have been awarded at vesting based on this Paragraph 4 (excluding adjustments required by Section 3(c) of the Plan). 

IV. The Award shall vest in accordance with and subject to the foregoing except to the extent that, prior to the
Committee’s certification of the Award, the Award has been forfeited under the terms and conditions of the Plan. 
 5.
Dividend Equivalents. Subject to this Paragraph 5, Participant shall be credited with Dividend Equivalents with respect to the outstanding Award prior to the applicable vesting date. All Dividend Equivalents so credited will be deemed to be
reinvested in Restricted Stock Units on the date 

  
 5 

 
that the applicable dividend or distribution is made to the Company’s shareholders, based on the Initial Award Value and any Units resulting from prior reinvestments of Dividend Equivalents,
in the number of Units determined by dividing the value of the Dividend Equivalents by the Fair Market Value of the Company’s Stock on such date (rounded to the nearest thousandth of a whole Unit or as otherwise reasonably determined by the
Company); provided, however, that if Dividend Equivalents cannot be reinvested in Units due to the operation of Section 3(a) of the Plan, such Dividend Equivalents will be credited to Participant as a cash value based on the Initial Award Value
and any Units resulting from prior reinvestments of Dividend Equivalents, which cash value shall be held by the Company (without interest) subject to this Agreement. The Units and, if applicable, cash value resulting from the reinvestment of such
Dividend Equivalents shall be subject to the same terms and conditions, and shall vest or be forfeited (if applicable) at the same time, upon the same conditions, and in the same proportion, as the Initial Award Value set forth in this Award.

 6. Units Non-Transferable. No Restricted Stock Units (and no Dividend Equivalents credited hereunder) shall be
transferable by Participant other than by will or by the laws of descent and distribution, and then only in accordance with the Plan. In the event any Award is transferred or assigned pursuant to a court order, such transfer or assignment shall be
without liability to the Company, and the Company shall have the right to offset against such Award any expenses (including attorneys’ fees) incurred by the Company in connection with such transfer or assignment. 

7. Deferral of Award. If Participant is eligible, and has made the appropriate election, to defer the Award into The Progressive
Corporation Executive Deferred Compensation Plan (the “Deferral Plan”), at the time of vesting, the Restricted Stock Units that would otherwise vest under this Agreement shall be considered to be deferred pursuant to the Deferral Plan,
subject to and in accordance with the terms and conditions of the Deferral Plan and any related deferral agreement. 
 8.
Termination of Employment. Except as otherwise provided in the Plan or in this Paragraph 8, or as determined by the Committee, if Participant’s employment with the Company is terminated for any reason other than death or Qualified
Retirement, the Award and all Restricted Stock Units held by Participant that are unvested or subject to restriction at the time of such termination shall be forfeited automatically. 

a. If the vesting of Units hereunder is determined under Subparagraph 4.I. (Investment Performance Criteria) hereof, in
the event that any such termination of employment occurs, for any reason other than death or for Cause, after the end of the Evaluation Period but prior to the Committee’s certification of results for the Evaluation Period, the Award shall not
be forfeited at the time of Participant’s termination, and Participant shall be eligible to participate in the vesting of Restricted Stock Units under this Agreement only to the extent certified by the Committee, subject to the provisions of
the Plan; and 
 b. If the vesting of Units hereunder is determined under Subparagraph 4.II. (Alternative
Performance Criteria) hereof, in the event that any such termination of employment occurs, for any reason other than death or for Cause, after the end of the Growth Evaluation Period but prior to the “first opportunity to certify results”
(defined below), the Award shall not be forfeited at the time of Participant’s termination, and: 
 i. if
Participant has not satisfied the requirements for a Qualified Retirement, Participant shall be eligible to participate in the vesting of Restricted Stock Units under this Agreement only to the extent certified by the Committee at the time of such
first opportunity to certify results, but if certification does not occur upon such first opportunity to certify results, the Award shall be forfeited automatically; 

  
 6 

 ii. if Participant has satisfied the requirements for a Qualified
Retirement, Participant shall be eligible to participate in the vesting of Restricted Stock Units under this Agreement only to the extent certified by the Committee at the time of such first opportunity to certify results, but if certification does
not occur upon such first opportunity to certify results, then pursuant to Section 10 of the Plan, fifty percent (50%) of such Award shall remain in effect and fifty percent (50%) of the Award shall be forfeited (or in certain cases,
if the applicable requirements are satisfied, all of such Award shall remain in effect), and the portion that remains in effect shall thereafter vest, if at all, in accordance with this Agreement, but subject at all times to Section 10 of the
Plan; 
 provided, however, in either case, that if, prior to certification by the Committee, the Committee determines that
Participant is engaging in, or has engaged in, a Disqualifying Activity, the Award and all applicable Restricted Stock Units that are then unvested or subject to restriction shall be forfeited automatically as of the Disqualification Date determined
by the Committee. Any determination by the Committee that the Participant is engaging in, or has engaged in, any Disqualifying Activity, and of the Disqualification Date, shall be final and conclusive on Participant. 

For purposes of this Paragraph 8.b., the phrase “first opportunity to certify results” means the date which is
the earlier to occur of: (i) the last day of the calendar month immediately following the month in which A.M. Best publishes the A2 Report (or, if applicable, the calendar month immediately following the month in which the successor or
replacement report or data described in Subparagraph 4.II.d.iii.D. above is published) for the third year of the Growth Evaluation Period, or (ii) a meeting of the Compensation Committee is held at which such report or data is reviewed (whether
or not a certification occurs) or a written action is executed by the Committee in lieu of such a meeting. 
 9. Distribution
at Vesting. Subject to the provisions of the Plan and this Agreement, upon vesting of all or part of the Award, the Company shall distribute to Participant one share of the Company’s Stock in exchange for each such vested Restricted Stock
Unit, and the remaining Restricted Stock Units (if any) shall be cancelled. Unless determined otherwise by the Company at any time prior to the applicable distribution, each fractional Restricted Stock Unit shall vest and be settled in an equal
fraction of a share of the Company’s Stock. 
 10. Taxes. No later than the date as of which an amount relating to
the Award first becomes taxable, Participant shall pay to the Company, or make arrangements satisfactory to the Committee regarding the payment of, any federal, state and local taxes and other items of any kind required by law to be withheld with
respect to such amount. The obligations of the Company under the Plan shall be conditional on such payment or arrangements and the Company and its Subsidiaries and Affiliate, to the extent permitted by law, shall have the right to deduct any such
taxes from any payment of any kind otherwise due to Participant. At vesting, Restricted Stock Units awarded under this Agreement will be valued at the Fair Market Value of the Company’s Stock on such date. 

Participant must satisfy the minimum statutory tax withholding obligations resulting from the vesting of Restricted Stock Units
(“Minimum Withholding Obligations”) either (a) by surrendering to the Company Restricted Stock Units that are then vesting with a value sufficient to satisfy the Minimum Withholding Obligations, or (b) by paying to the Company
the appropriate amount in cash or, if acceptable to the Company, by check or other instrument. Unless Participant advises the Company of his or her election to use an alternative payment method, Participant shall be deemed to have elected to

  
 7 

 
surrender to the Company Restricted Stock Units that are then vesting with a value sufficient to satisfy the Minimum Withholding Obligations. If Participant requests that the Company withhold
taxes in addition to the Minimum Withholding Obligations, such additional withholding must be satisfied by Participant either (x) by paying to the Company the appropriate amount in cash or, if acceptable to the Company, by check or other
instrument, or (y) provided that Participant has obtained the approval of either the Company or the Committee (as required under rules adopted by the Committee) prior to the date of vesting, by surrendering unrestricted shares of the
Company’s Stock that are not being distributed to Participant as a result of the vesting event and that have then been owned by Participant in unrestricted form for more than six (6) months. 

Under no circumstances will Participant be entitled to satisfy any such additional withholding by surrendering Restricted Stock Units,
shares of the Company’s Stock that are being distributed to Participant as a result of the vesting event, or other shares of Stock that have then been owned by Participant in unrestricted form for six (6) months or less. In addition, under
no circumstances will Participant be entitled to satisfy any Minimum Withholding Obligations or additional withholding by surrendering Restricted Stock Units that are not then vesting or any Restricted Stock Units that Participant has elected to
defer under Paragraph 7 above. All payments, surrenders of Units or shares, elections or requests for approval must be made by Participant in accordance with such procedures as may be adopted by the Company in connection therewith, and subject to
such rules as have been or may be adopted by the Committee. 
 11. Non-Solicitation. In consideration of the Award made
to Participant under this Agreement, for a period of twelve (12) months immediately following Participant’s Separation Date (defined below), Participant shall not directly or indirectly recruit or solicit for hire, or hire, or assist in
any manner in the recruitment, solicitation for hire or hiring, of any employee or officer of the Company or any of its Subsidiaries, or in any way induce any such employee or officer to terminate his or her employment with the Company or any of its
Subsidiaries. For purposes of this Paragraph, “Separation Date” means the date on which Participant’s employment with the Company or its Subsidiaries is terminated for any reason. 

12. Recoupment. If the Securities and Exchange Commission adopts final rules under Section 954 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act that require, as a condition to the Company’s continued listing on a national securities exchange, that the Company develop and implement a policy requiring the recovery of erroneously awarded compensation,
and such regulations are applicable to Participant and the Award granted pursuant to this Agreement, then the following shall apply: 
 In the event that the Company is required to prepare a restatement of one or more of its financial statements due to the material noncompliance of the Company with any financial reporting requirement
under the federal securities laws, the Company will be entitled to recover from Participant, and Participant will promptly upon written demand return to the Company (whether or not Participant remains an employee of the Company at the time of such
restatement or thereafter), the amount of any Award granted hereunder that (i) was paid or distributed to Participant (or any assignee or transferee permitted under Paragraph 6 above) during the three year period preceding the date on which the
Company is required to prepare such restatement, and (ii) is in excess of what would have been paid or distributed to Participant (or any such assignee or transferee) under the restatement, or such other amount as may be required by the rules
of the Securities and Exchange Commission or, if applicable, the New York Stock Exchange. 

  
 8 

 The provisions of this Paragraph 12 are in addition to the rights of the Company as set forth in
Section 14(h) of the Plan. 
 13. Entire Agreement. This Agreement constitutes the entire agreement between the
parties and supersedes and cancels any other agreement, representation or communication, whether oral or in writing, between the parties relating to the Award, provided that the Agreement shall be at all times subject to the Plan. 

14. Amendment. The Committee, in its sole discretion, may amend the terms of this Award, but no such amendment shall be made that
would impair the rights of Participant, without Participant’s consent. 
 15. Acknowledgments. Participant:
(a) acknowledges receiving a copy of 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 such Plan Description; (b) accepts this Agreement
and the Award subject to all provisions of the Plan and this Agreement; and (c) agrees to accept as binding, conclusive and final all decisions and interpretations of the Committee relating to the Plan, this Agreement or the Award. 

Participant evidences his or her agreement with the terms and conditions of this Agreement, and his or her intention to be bound by this
Agreement, by electronically accepting the Award pursuant to the procedures adopted by the Company. Upon such acceptance by Participant, this Agreement will be immediately binding and enforceable against Participant and the Company. 

  

			
	THE PROGRESSIVE CORPORATION
		
	By:	 	/s/ Charles E. Jarrett
		 	Vice President & Secretary

  
 9 

 EXHIBIT I 

INVESTMENT BENCHMARK CRITERIA 
 After the end of the Evaluation Period, Rogers Casey will determine the firms comprising the Investment Benchmark for the Plan year from its records and will supply to the Company the monthly total
returns and any other relevant data for each of those firms for the Evaluation Period. 
 A firm will be included in the Investment Benchmark if
Rogers Casey is able to determine from its records that: 
  

	1.	The firm has provided monthly data regarding its holdings and investment return, as necessary to determine or calculate such firm’s monthly total return, and to
evaluate such firm’s compliance with each of the criteria set forth below, for the entire Evaluation Period; and 

  

	2.	At all times during the Evaluation Period, the information provided by the firm shows, or Rogers Casey is able to calculate, that such firm’s investment portfolio
satisfies each of the following criteria: 

  

			
	Duration:	  	Effective Duration between 1.5 years and 5.0 years
	Credit Quality Average	  	= A, or = AA, or = AAA, or = AAA+
	Convexity (%)	  	>= -1
	Sector Allocation:	  	U.S. High-Yield Corporate Debt <= 10%
	Sector Allocation:	  	Mortgages <= 60%
	Sector Allocation:	  	U.S. Investment-Grade Corporate Debt <= 60%
	Sector Allocation:	  	CMBS <= 60%
	Sector Allocation:	  	ABS <= 60%
	Sector Allocation:	  	Emerging Markets Debt <= 5%

  

	3.	The Company will have no discretion to alter the Investment Benchmark list after it is finalized by Rogers Casey. 

  
 10 

 EXHIBIT II 

DETERMINATION OF PERFORMANCE RANKING AND PERFORMANCE FACTOR 
 Once all the total returns are calculated, the data is sorted in descending order from highest to lowest total return. From here, the process to compute the Performance Factor is as follows: 

INTERPOLATED VALUES FOR SETTING TOP AND BOTTOM 25% LEVELS 
 The top 25% and bottom 25% total return rankings are computed based on the total number of firms in the Investment Benchmark, excluding the PCM Fixed-Income Portfolio return. For example, if there were
279 participants, the return required to earn a 2.00 portfolio performance factor would be determined by interpolating between the sixty-ninth and seventieth firm’s returns, since 25% of 279 = 69.75. The same procedure would be used to
determine the 0.00 portfolio performance factor. 
 The total returns, computed by Investment Accounting, for the interpolated positions are
calculated as follows (continuing to use an example of 279 survey firms): 
 Interpolated Value = Firm 69 return – ((Firm 69 Return –
Firm 70 Return)*0.75) 
 Firm 69 = 18.35% 
 Firm 70 = 18.23% 
 Firm 69.75 (Interpolated Value) = 18.35% – ((18.35% – 18.23%)*0.75) =
18.26%. 
 In this case, the PCM Performance Factor will equal 2.00 if its total return equals the interpolated value for Firm 69.75 or 18.26%.
A similar calculation is then used to determine the bottom 25% group and interpolated value for a 0.00 performance score. 
 Once the two groups
are computed, top and bottom 25%, the remainder of the performance scores are calculated as follows: 
 Performance score
variance = (2.00) / Number of positions from first participant after the top 25% ranking to the 1st participant in the bottom 25% ranking. In the case of 279 participants, the number of positions to divide the 2.00 performance factors by would be 142. 

The calculation for the performance score variance from 2.00 – 0.00 would be: 
 2.00 / 142 = .014085 per position for 279 firms 
 In the case of a tie in total returns
between firms, each firm will have the same performance score, one step under the next higher position. The next lowest position would then be stepped down by a factor based on the number of participants who tie. In the case of a tie between two
firms, the step down will be twice the performance score variance to maintain the proper stepping to the 0.00 performance score level. 

Example: If firms 70 and 71 each had the same total return in the 279 firm example, then firms 70 and 71 would each have a Performance Factor of
1.985915, which is 2.00 – .014085. The number 72 position in this example would have a performance score of 1.957746, which is the required step down from 70 to 72. 

  
 11 

 In addition, if the returns are tied between the interpolated value set for the 2.00 performance score and
any position below the 2.00 level, those lower positions will also be set to a 2.00 performance score. The step down factor in the performance score will work similarly as noted in the example above. For the last 25% group, all firms with total
returns equaling the last interpolated total return value would have the same performance score as the last interpolated value (.014085), and all others in the last 25% group would have a 0.00 Portfolio Performance Factor. 

Once all the performance scores have been created, from 2.00 to 0.00, PCM’s return is compared to the rankings to determine its Performance Factor.
If the PCM return is not in the top or bottom 25% and does not match the return of any participant, then PCM’s Performance Factor is an interpolated value between the firms with the next highest and next lowest returns. 

The interpolation computation for the Performance Factor based on PCM’s return is as follows: 

Performance score of firm below PCM return + (PCM’s Return – Return below PCM) / (Return above PCM – Return below PCM) * (Performance
score of firm above PCM – Performance score of firm below PCM) 
 Assuming the following data, using the 279 firm example: 

 

									
	 Firm
	  	Performance score	 	  	Total return	 
	 Firm above PCM
	  	 	.90	  	  	 	13.61	  
	 PCM
	  				  	 	13.39	  
	 Firm below PCM
	  	 	.89	  	  	 	13.34	  

 The calculation of PCM’s Performance Factor is: 
 0.89 + (13.39-13.34) / (13.61-13.34) * (0.90-0.89) = 0.89 
 The final performance score is rounded
to the nearest one-hundredth, if necessary. 

  
 12

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