Document:

EXHIBIT 10.38

THE PHOENIX COMPANIES, INC.
DIRECTORS CASH DEFERRAL
PLAN

Effective as of January 1, 2009

 

THE PHOENIX COMPANIES, INC.
DIRECTORS CASH DEFERRAL
PLAN

ARTICLE I

PURPOSE AND EFFECTIVE DATE

1.01

Purpose.   The Phoenix Companies, Inc. Directors Cash
Deferral Plan is intended to provide current, duly-elected non-employee members
of The Phoenix Companies, Inc. Board of Directors with a plan to defer all or a
portion of the cash portion of the Directors’ compensation.  It is the
Company’s desire to have the benefit of the Director’s continued loyalty,
service and counsel and also to assist the Director in planning for retirement
and certain other contingencies.  The Phoenix Companies, Inc. Directors
Cash Deferral Plan is intended to be an unfunded plan under the Employee
Retirement Income Security Act of 1974, as amended.

1.02

Effective
Date.   The Phoenix Companies, Inc. Directors Cash Deferral
Plan is effective as of January 1, 2009.

ARTICLE
II

DEFINITIONS

Wherever
used in this Plan, unless the context clearly indicates otherwise, the following
terms shall have the following meanings:

2.01

“Beneficiary”
means the person(s) or entity, including one or more trusts, last designated by
a Participant on a form or electronic media and accepted by the Plan
Administrator or its duly authorized representative as a beneficiary,
co-beneficiary, or contingent beneficiary to receive benefits payable under the
Plan in the event of the death of the Participant.  In the absence of any
such designation, the Beneficiary shall be (i) the Participant’s surviving
spouse or domestic partner, (ii) if there is no surviving spouse or domestic
partner, the Participant’s children (including stepchildren and adopted
children) per stirpes, or (iii) if there is no surviving spouse or domestic
partner and/or children per stirpes, the Participant’s estate.  

2.02

"Benefit"
means the amount equal to a Participant's Deferred Compensation Benefit.

2.03

“Benefit
Plans Committee” means the committee which shall be composed of the Chief
Executive Officer, the Chief Financial Officer and the Chief Investment Officer,
or any other person(s) designated by the Chief Executive Officer.

2.04

“Board
of Directors” means the board of directors of the Company or any of its
subsidiaries.

2.05

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

2.06

“Company”
means The Phoenix Companies, Inc.

2.07

“Compensation”
means the cash portion of the Director’s annual cash retainer, committee fees,
meeting fees and any other cash payments that a Director may receive
attributable to service as a member of the Board of Directors.

2.08

“Deferred
Compensation Benefit” means the amount determined in accordance with the
provisions of Article IV of this Plan. 

2.09

“Deferred
Compensation Credit” means the amount determined in accordance with the
provisions of Section 4.02 of this Plan. 

2.10

“Deferred
Compensation Plan Election” means a Participant’s election to defer a portion of
Compensation as set forth in Section 4.03.

2.11

“Deferred
Compensation Investment Account” means the book account established on behalf of
a Participant under Article VI of this Plan. 

2.12

“Director”
means a current, duly-elected non-employee member of the Company’s
Board of
Directors.

2.13

“Disability”
means that a Participant is unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment that can
be expected to result in death or can be expected to last for a continuous
period of not less than 12 months.

2.14

“ERISA” means the Employee Retirement Income Security Act of
1974, as amended.

2.15

“Governing
Body” means the Board of Directors, or any committee designated to act in such
capacity by the Board of Directors. 

2.16

“Investment
Funds” means the funds designated by the Benefit Plans Committee as available
investment options under the Plan, as the same may, from time to time, be
changed by action of the Benefit Plans Committee.

2.17

“Participant”
means a Director who meets the eligibility requirements of Article III and
elects to participate in the Plan. 

2.18

“Plan” means The Phoenix Companies, Inc. Directors Cash Deferral
Plan as is set forth in this document as it may be amended from time to
time.

2.19

“Plan
Administrator” means the Benefit Plans Committee, designated to administer and
manage the Plan and its deemed investments.

2.20

“Plan
Year” means the calendar year.

2.21

“Retirement”
means mandatory retirement from the Board of Directors pursuant to the Company’s
mandatory retirement policy for Directors.

2

2.22

“Separation
from Service” shall have the meaning set forth and described in the final
regulations promulgated under Code section 409A.

2.23

“Specified
Employee” means, for a non-employee Director who becomes an officer of the
Company, a Director who, as of the date of the Director’s Separation from
Service, is a key employee of the Company whose stock is publicly traded on an
established securities market or otherwise.  A Director is a key employee
if the Director meets the requirements of Code section 416(i)(1)(A)(i), (ii), or
(iii) (applied in accordance with the regulations thereunder and disregarding
Code section 416(i)(5)) at any time during the 12-month period ending on a
Specified Employee identification date.  If a Director is a key employee as
of a Specified Employee identification date, the Director is treated as a key
employee (and therefore a Specified Employee) for the entire 12-month period
beginning on the Specified Employee effective date.  For any nonqualified
deferred compensation plan of the Company that is subject to Code section 409A,
the Specified Employee identification date is December 31 of the preceding
calendar year, and the Specified Employee effective date is April 1 of the
current calendar year.

ARTICLE
III

PARTICIPATION

3.01

Eligibility.
 With respect to any Plan Year, any current, duly-elected non-employee
Director of the Company who has elected to defer at least a portion of the
Director’s Compensation shall be eligible to participate in this Plan. 

3.02

Commencement
of Participation.   Each eligible Director shall become a
Participant in the Plan as of the date he or she meets the above requirement and
completes a Deferred Compensation Plan Election as described in Section 4.03.

3.03

Termination
of Participation.  A Director shall cease to be a Participant as of
the date such Director ceases to meet all of the requirements of Section 3.01
above; provided, however, that benefits accrued by the Director as of such date
shall not be reduced and shall be paid as provided herein.

ARTICLE
IV

DEFERRED COMPENSATION

4.01

Deferred
Compensation Benefit.  A Participant’s Deferred Compensation
Benefit shall be equal to any amounts deferred by the Participant and credited
to a Deferred Compensation Investment Account established for such Participant.

4.02

Deferred
Compensation Credit.  A Participant’s Deferred Compensation Credits
for any Plan Year shall consist of an amount the Participant elected to defer
pursuant to Section 4.03.

4.03

Deferred
Compensation Plan Election.  Each year prior to the beginning of
the calendar year in which such Compensation would otherwise be paid, the
Participant may make an 

3

irrevocable
election to defer between one percent (1%) and one-hundred percent (100%)
of such Participant’s Compensation for a Plan Year.

ARTICLE
V

ELECTION TO DEFER AND ELECTION AS TO TIME AND FORM OF
PAYMENT

5.01

Elections
to Defer Under Section 4.03.

(a)

Deferral
elections must be made by the end of the Participant’s taxable year immediately
preceding the taxable year in which the services underlying the compensation are
to be performed.  All such deferral elections become irrevocable as of the
last day of the immediately preceding taxable year.

A
newly eligible Participant must make an election within 30 days of initial
eligibility (based on the plan aggregation rules) and such election applies only
to Compensation on and after the election date, but shall be effective for the
remaining portion of the calendar year in which the Participant is elected.
 All such deferral elections become irrevocable as of the 30th
day.

(b)

Deferred
Compensation Elections will be carried over from year to year until the
Participant makes an affirmative election to modify or terminate the election
within the permitted time frames.

5.02

Elections
– Time and Form of Payment.  The Participant must elect pursuant to
the procedure established by the Plan Administrator within the time frames set
forth in Section 5.01, the form of payment of the Deferred Compensation
Investment Account hereunder.

(a)

Time
of Payment – subject to Section 5.03, a distribution will always commence upon
the Participant’s Separation from Service.

(b)

Form
of Payment – the Participant may elect, as set forth above in this Article V, to
receive his or her Benefit in one of the following forms of payment:

(i)

lump
sum; or

(ii)

annual
installments over a period not exceeding ten (10) years.

A
Participant who fails to make such an election shall be deemed to have elected a
lump sum distribution of the Participant’s Deferred Compensation Investment
Account.  Any lump sum payment will be paid within 90 days of the
Separation from Service.  Any installment payments will be made on a fixed
schedule as specified in the Participant’s election, with the first installment
to be paid within 90 days of the Participant’s Separation from Service.

If
the annual installment method is elected, the Company, in its sole discretion,
may elect that all amounts notionally held in the Deferred Compensation 

4

Investment
Account be withdrawn therefrom up to thirty (30) days prior to the first
installment payment date and be deemed applied to purchase a period certain
annuity in the name of the Company, and the amount payable to the Participant
will be equivalent to the amounts payable under such annuity and in accordance
with the installment payment schedule elected.

All
distribution elections made pursuant to this Section 5.02 become irrevocable
upon acceptance by the Plan Administrator.

5.03

Deferred
Compensation Investment Account Distribution Provisions.
 Notwithstanding any provision to the contrary in this Plan, for a Director
who is a Specified Employee, the commencement date of any payment or the
provision of any benefit from the Deferred Compensation Investment Account that
would otherwise have occurred prior to the six month anniversary of the
Director’s Separation from Service shall be postponed until the earlier to occur
of (i) such six month anniversary and (ii) within 90 days following the
Director’s death.  Upon the expiration of the six-month period, all
payments and benefits delayed pursuant to this Section (whether they would have
otherwise been payable in a lump sum or in installments in the absence of such
delay) shall be paid or reimbursed to the Participant in a lump sum, and any
remaining payments and benefits due under this Plan shall be paid or provided in
accordance with the normal payment dates specified for them herein.

5.04

Payment
of Benefit.  Payment of a Participant’s Deferred Compensation
Investment Account shall be made or commence in accordance with the manner
elected not later than 90 days after the applicable distribution event, as
described in Section 5.02.

5.05

Death
Benefit.  Within 90 days following the
death of a Participant, the value of the Participant’s Deferred Compensation
Investment Account, determined as of the date of distribution, shall be
distributed to the Participant’s Beneficiary in the manner specified in the
Participant’s distribution election.

5.06

Mandatory
Distributions of Account Balances of $25,000 or Less.   If the
value of the Participant’s Deferred Compensation Investment Account under this
Plan is equal to $25,000 or less on his or her Separation of Service, then,
notwithstanding anything else contained herein to the contrary, including the
Participant’s elections, the Participant shall receive a lump sum payment of his
or her Deferred Compensation Investment Account within 90 days after his or her
Separation from Service.  

5.07

409A
Transition Relief Provision.  Notwithstanding any other provision
to the contrary in this Plan, Participants may be permitted to make elections
prior to January 1, 2009 in accordance with the transition rules in effect under
Code section 409A.

5.08

Suspension
of Benefits Upon Re-Election.  Upon re-election, the benefits
payable under this Plan cannot be suspended pursuant to Code section 409A, the
regulations and guidance promulgated thereunder.

5

ARTICLE VI

INVESTMENT OF THE ACCOUNTS

6.01

Investment
Accounts.  All Deferred Compensation Credits under Section 4.02
shall be made to the Participant’s Deferred Compensation Investment Account on
the date that the Compensation would have otherwise been received by the
Participant.  Such Deferred Compensation Credits shall be deemed to be
invested in the Investment Fund(s) designated by the Participant in such manner
as may be specified by the Plan Administrator, or, if no such designation is
made, in the default Investment Fund designated from time to time by the Benefit
Plans Committee.  Each Participant’s Deferred Compensation Investment
Account will be adjusted on a daily basis by an amount equal to the amount of
any adjustment that would have been made had the Participant’s credits been
allocated and invested as herein provided; reduced, however, at the Company’s
discretion, by an amount equal to the estimated income taxes, if any, payable by
the Company on such adjustment, based on the Company’s highest tax rate on its
net taxable income for the Plan Year in which such adjustment is made.  The
Company reserves the right to reduce the interest or earnings on deferred
compensation amounts for any federal or state taxes which it may incur as a
result of interest or earnings on amounts held under this Plan.

6.02

Company
Retains Control of Deemed Investments.  The election to designate
deemed investments, as described above, shall be subject to restrictions as to
minimum and maximum amounts as determined from time to time by the Plan
Administrator.  Both initial and subsequent investment allocations must be
made in one percent (1%) increments.  The Company shall have the right at
any time to add new deemed investment options, cease to offer any or all of the
deemed investment options, and alter or adjust the basis or method of
calculating any interest or earnings for any of the investment options outlined
above.  The Company shall be under no obligation to actually make any
investment as described above.  Reference to any such investment shall be
solely for the purpose of aiding the Company in measuring and meeting its
liabilities under the terms of this Plan.  In any event, if any investments
are made, the Company shall be named the sole owner and shall, except as
otherwise determined by the Plan Administrator, have all of the rights and
privileges conferred by any instrument evidencing such investments.  Such
investments shall not be segregated, set aside or held in trust or escrow and
shall at all times remain the unrestricted assets of the Company subject to the
claim of its general creditors.

6.03

Value
of Benefit.  The value of any benefit under this Plan at any point
in time shall be equal to the value of the Deferred Compensation Investment
Account as of the date of determination.

 

6

ARTICLE
VII

FUNDING

7.01

Funding.
 No special or separate fund shall be established by the Company and no
segregation of assets shall be made to assure the payment of benefits under the
Plan. No Participant shall have any right, title, or interest whatsoever in any
specific asset of the Company.  Nothing contained in this Plan and no
action taken pursuant to its provisions shall create or be construed to create a
trust of any kind, or a fiduciary relationship, between the Company and a
Participant or any other person.  To the extent that any person acquires a
right to receive payments under this Plan, such right shall be no greater than
the right of an unsecured general creditor of the Company.

ARTICLE
VIII

CLAIMS FOR BENEFITS

8.01

Claims
Procedure.  Claims for benefits under the
Plan may be filed with the Plan Administrator on forms supplied by the Plan
Administrator.  Written or electronic notice of the disposition of a claim
shall be   furnished to the claimant within ninety (90) days after the
application is filed (or within one hundred eighty (180) days if special
circumstances require an extension of time for processing the claim and if
written notice of such extension and circumstances are communicated to the
claimant within the initial ninety (90) day period).  In the event the
claim is wholly or partially denied, the reasons for the denial shall be
specifically set forth in the notice in language calculated to be understood by
the claimant, pertinent provisions of the Plan on which the decision is based
shall be cited, and, where appropriate, a description of any additional material
or information necessary to perfect the claim, and an explanation of why such
material or information is necessary, will be provided.  In addition, the
claimant shall be furnished with an explanation of the Plan's claims review
procedure and the time limits applicable to such procedures, including a
statement of the claimant’s right to bring a civil action under ERISA section
502(a) following an adverse benefit determination on review.  A claimant
must request a review of a denied claim in accordance with Section 8.02 and
exhaust all remedies under the Plan before the claimant is permitted to bring a
civil action for benefits.

8.02

Claims
Review Procedure.  Any Director, former
Director, or authorized representative or Beneficiary of either, who has been
denied, either in whole or in part, a benefit by a decision of the Plan
Administrator pursuant to Section 8.01 shall be entitled to request the Plan
Administrator to give further consideration to his or her claim by filing with
the Plan Administrator (on a form which may be obtained from the Plan
Administrator) a request for review.  Such request, together with a written
statement of the reasons why the claimant believes his or her claim should be
allowed, shall be filed with the Plan Administrator no later than sixty (60)
days after receipt of the notification provided for in Section 8.01.  If
such request is so filed, the claimant or an authorized representative may
submit written comments, documents, records and other information relating to
the claim to the Plan Administrator within sixty (60) days after receipt of the
notification provided for in Section 8.01.  The claim for review shall be
given a full and fair review that takes 

7

into
account all comments, documents, records and other information submitted that
relates to the claim, without regard to whether such information was submitted
or considered in the initial benefit determination.  The Plan Administrator
shall provide the claimant or an authorized representative with written or
electronic notice of the final decision as to the allowance of the claim within
sixty (60) days of receipt of the request for review (or within one hundred
twenty (120) days if special circumstances requires an extension of time for
processing the request and if written notice of such extension and
circumstances is given to the claimant or an authorized representative
within the initial sixty (60) day period).  Such communication shall
be written in a manner calculated to be understood by the claimant and shall
include specific reasons for the decision, specific references to the pertinent
Plan provisions on which the decision is based, a statement of the claimant or
an authorized representative’s right to bring a civil action under ERISA section
502(a)  and a statement that the claimant or his or her Beneficiary is
entitled to receive, upon request and free of charge, reasonable access to and
copies of, all documents, records and other information relevant to the claim
for benefits.  A document is relevant to the claim for benefits if it was
relied upon in making the determination, was submitted, considered or generated
in the course of making the determination or demonstrates that benefit
determinations are made in accordance with the Plan and that Plan provisions
have been applied consistently with respect to similarly situated claimants.

8.03

Lost
or Unknown Participants.  If any benefits payable under this Plan
to a Participant, or to such Participant’s legal representative or Beneficiary,
cannot be paid by reason that such person cannot be located by the later of (i)
the last day of the calendar year in which the payment was due and (ii) the
15th day of the third calendar month following the date specified
under the Plan, after reasonable efforts have been made to locate such person,
such benefits shall be forfeited and returned to the Company.

ARTICLE
IX

ADMINISTRATION OF THE PLAN

9.01

Powers
and Duties of the Plan Administrator.  The Plan Administrator shall
be responsible for the administration of the Plan (including but not limited to
complying with reporting and disclosure requirements, and establishing and
maintaining Plan records).  Any authority exercised by the Plan
Administrator under the Plan shall be exercised by the Plan Administrator in its
sole and absolute discretion.  Subject to the terms of the Plan, the Plan
Administrator is authorized to determine all questions arising in connection
with the Plan, to determine the eligibility of individuals for benefits, to
interpret the provisions of the Plan and to construe all of its terms, to
prescribe, amend and rescind rules and regulations relating to the
administration of the Plan, and to make all other determinations and take all
other actions necessary or advisable for the administration and interpretation
of the Plan or to carry out its provisions and purposes. Determinations,
interpretations or other actions made or taken by the Plan Administrator
pursuant to the provisions of the Plan shall be final, binding and conclusive
for all purposes and upon all persons.

8

9.02

Agents.
 The Plan Administrator may engage such legal counsel, certified
public accountants and other advisers and service providers, who may be advisers
or service providers for the Company, and make use of such agents and clerical
or other personnel, as it shall require or may deem advisable for purposes of
the Plan.  The Plan Administrator may rely upon the written opinion of any
legal counsel or accountants engaged by the Plan Administrator, and may delegate
to any such agent its authority to perform any act hereunder, including, without
limitation, those matters involving the exercise of discretion, provided that
such delegation shall be subject to revocation at any time at the discretion of
the Plan Administrator.

9.03

Reports
to Governing Body.  The Plan Administrator shall report to the
Governing Body or to a committee of the Governing Body designated for that
purpose, as frequently as the Governing Body or such committee shall specify,
with regard to the matters for which the Plan Administrator is responsible under
the Plan.

9.04

Instructions
for Payments.  All requests of or directions for payment,
disbursement or settlement shall be managed by the Plan Administrator or such
other person(s) as the Plan Administrator may from time to time designate in
writing, including third-party record keepers and administrators.  This
person shall cause to be kept full and accurate accounts of payments,
disbursements and settlements under the Plan.

9.05

Hold
Harmless.  To the maximum extent permitted by law, no person
serving as the Plan Administrator shall be personally liable by reason of any
contract or other instrument executed by such person or on such person’s behalf
in such person’s capacity as the Plan Administrator nor for any mistake of
judgment made in good faith, and the Company shall indemnify and hold harmless,
each such person and each other officer, employee, or director to whom any duty
or power relating to the administration or interpretation of the Plan against
any cost or expense (including counsel fees) or liability arising out of any act
or omission to act in connection with the Plan unless arising out of such
person’s own fraud or bad faith.

9.06

Service
of Process.  The Secretary of the Company or such other person
designated by the Governing Body shall be the agent for service of process under
the Plan.

ARTICLE
X

MISCELLANEOUS

10.01

Amendment
and Termination.

(a)

The
Plan may be amended, modified or terminated at any time by the Company, at its
sole discretion, subject to Section 10.01(b) below and except that, without the
consent of any Participant or Beneficiary, if applicable, no such amendment,
modification or termination shall affect, reduce or diminish any rights or
benefits of any Participant accrued or in pay status as of the date of such
amendment, modification or termination.  However no amendment, modification
or termination shall result or cause an acceleration of payments or benefits
under the 

 

9

Plan,
unless the termination satisfies the Code section 409A safe harbor summarized in
Section 10.01(b).  Further, at its sole discretion, the Company may elect,
upon termination of this Plan, to distribute in one (1) lump sum to the
Participant or any Beneficiary, as the case may be, the value of the Deferred
Compensation Investment Account or the commuted value of any remaining
installment payments.  Notwithstanding the foregoing to the
contrary, the Company may amend this Plan as it deems necessary or desirable to
comply with the requirements of Code section 409A, as amended, and the
regulations and pronouncements thereunder, regardless of whether any such
amendment shall cause a reduction or cessation of the benefit prior to the
adoption of such amendment.

(b)

Plan
Termination under Code section 409A. Generally, payments may be accelerated upon
Plan termination only if: 

 

(i)     the
Company is terminating an entire category of aggregated plans, that is,

         all other plans of a
similar type (i.e., that are required to be aggregated with

         the terminating plan under
the Code section 409A final regulations);

 

(ii)    all
payments to the Directors as a result of the Plan termination are not

        made until at least twelve
(12) months after action taken to terminate the

        Plan is taken, that is, all
payments must be made between 13 and
24 
        months
after the date such action is taken; and 

(iii)

no
similar successor plan can be established within three (3) years following the
date the action to terminate the Plan was taken.

10.02

Nonassignability.
 The benefits payable under this Plan shall not be subject to alienation,
assignment, garnishment, execution or levy of any kind and any attempt to cause
any benefits to be so subjected shall not be recognized, except to the extent
required by applicable law; provided, however, that at the sole discretion of
the Plan Administrator, a Participant or Beneficiary may assign his or her
entire interest in his or her Deferred Compensation Investment Account to the
Participant’s or Beneficiary’s spouse or former spouse, as the case may be,
under a divorce or separation instrument described in subparagraph (A) of Code
Section 71(b)(2).  Furthermore, except by will or the laws of descent or
distribution, the Participant and any Beneficiary may not anticipate the
benefits provided hereunder by assignment, pledge, sale or similar act.

10.03

Other
Rights.  This Plan creates no rights in the Participant to continue
the Participant's affiliation with the Company, if any, for any length of time,
nor does it create any rights in the Participant or obligations in the part of
the Company other than those set forth herein.

10.04

Interpretation
Consistent with Code Section 409A.  The intent of the parties is
that payments and benefits under this Plan comply with Code section 409A and,
accordingly, to the maximum extent permitted, this Plan shall be interpreted to
be in compliance therewith.  If any provision of this Plan would cause the
Participant to incur any

 

10

additional
tax or interest under Code section 409A, the Company, to the extent feasible,
shall reform such provision to try to comply with Code section 409A through good
faith modifications to the minimum extent reasonably appropriate to conform to
Code section 409A.  To the extent that any provision hereof is modified to
comply with Code section 409A, such modification shall, to the extent reasonably
possible, maintain the original intent of the applicable provision without
violating the provisions of Code section 409A.

10.05

Successor
Company.  In the event of the dissolution, merger, consolidation or
reorganization of the Company, provision may be made by which a successor to all
or a major portion of the Company’s property or business shall continue the
Plan, and the successor shall have all of the power, duties and responsibilities
of the Company under the Plan.

10.06

Governing
Law.  This Plan shall be construed and enforced in accordance with,
and governed by, the laws of the State of Connecticut, without giving effect to
the conflict of law provisions thereof.

10.07

Tax
Withholding.  The Company may withhold from a payment any federal,
state or local taxes required by law to be withheld with respect to such
payments and such sums as the Company may reasonably estimate are necessary to
cover taxes for which the Company may be liable and which may be assessed with
regard to such payment.

10.08

Illegality
of Particular Provision.  The illegality of any particular
provision of this document shall not affect the other provisions and the
document shall be construed in all respects as if such invalid provision were
omitted.

11EXHIBIT 10.42

May 6,
2008

Mrs.
Dona D. Young

Chairman, President and Chief Executive Officer

The
Phoenix Companies, Inc.

One
American Row

Hartford, CT 06102-5056

Dear
Mrs. Young:

This
letter (“Letter Agreement”) serves to memorialize our understanding with respect
to the modification of the distribution dates in respect of the restricted stock
units (“RSUs”) referenced in the below table (the “Outstanding Award Table”).
 Because Section 409A of the Internal Revenue Code of 1986, as amended
(“Section 409A”), has substantially limited the parties’ ability to modify the
distribution provisions in the future, were that determined to be appropriate,
the parties have agreed to provide you the opportunity to modify the
distribution dates in respect of your RSUs by written election delivered on or
before December 31, 2008. 

For the
avoidance of doubt, the changes set forth herein with respect to the
distribution dates of the RSUs do not in any way amend, modify or waive your
obligation to comply with the company’s stock ownership guidelines, as currently
in effect and as the same may be amended from time to time.

The
currently effective payment terms for each of the RSU awards are specified
below.  

					
	
Award 
Type
	
Award 
Date
	
Number of
RSUs
	
Vested

Status
	
Payment 
Date

	
Employment Agreement
	
December 31,
2002
	
394,736.842
	
Vested
	
Termination

	
Employment Agreement 
	
May 18, 2005
	
  90,901.000
	
Will vest

May 18, 2008
	
Termination

As set
forth below, we have agreed to a modification of the payment terms for the
above-referenced RSUs as permitted by the transitional relief provided with
respect to Section 409A under Notice 2007-86.  However, if a Separation
from Service, as defined in Section 409A, or any other event that would entitle
you to receive payment in respect of your referenced RSUs in 2008, occurs in
2008, then distribution shall be made to you in respect of such RSUs pursuant to
the terms in effect prior to the date of this Letter Agreement and without
regard to any election that you may make pursuant to this Letter Agreement.

2

Employment Agreement RSUs

As
described in the Outstanding Award Table, you were awarded 394,736.842 RSUs (the
“2003 Employment RSUs”) pursuant to Exhibit A of your Executive Employment
Agreement, dated January 1, 2003, and 90,901.000 RSUs (the “2005 Employment
RSUs”) pursuant to Annex A of your Amended and Restated Employment Agreement,
dated May 18, 2005 (the “2005 Employment Agreement”).  Pursuant to Section
4(c)(i) of the 2005 Employment Agreement, and Section 1.4 of Annex A of the 2005
Employment Agreement, respectively, the 2003 Employment RSUs and the 2005
Employment RSUs are scheduled to be paid six months and one day following your
termination of employment.  We have agreed that, notwithstanding these
previously specified distribution provisions, you have the opportunity to elect,
in writing, on or before December 31, 2008, to have the 2003 Employment RSUs
convert into and settle in common shares of company stock on a fixed date or
dates on or after January 1, 2009 and that, if you elect such a fixed
distribution date or dates with respect to such 2003 Employment RSUs, the
dividend equivalents associated with the RSUs being settled on any such date,
and any interest accrued thereon, will be paid in cash on such date.  We
have also agreed that, notwithstanding these previously specified distribution
provisions, but subject to such 2005 Employment RSUs becoming vested in
accordance with their otherwise applicable terms, you have the opportunity to
elect, in writing, on or before December 31, 2008, to have the 2005 Employment
RSUs convert into and settle in common shares of company stock on a fixed date
or dates on or after January 1, 2009 and that, if you elect such a fixed
distribution date or dates with respect to such 2005 Employment RSUs, the
dividend equivalents associated with the RSUs being settled on any such date,
and any interest accrued thereon, will be paid in cash on such date.  This
Letter Agreement constitutes an amendment to Section 4(c)(i) and Section 1.4 of
Annex A of the 2005 Employment Agreement.

We have
also agreed that, if you elect a settlement at a fixed date or dates in respect
of any of your 2003 Employment RSUs or 2005 Employment RSUs, you will be
permitted to have the least number of whole shares of common stock otherwise
distributable to you having a value, on the date of such settlement, equal to
the minimum amount required to be withheld at law in respect of such
distribution of shares withheld by the Company to satisfy such minimum required
withholding obligation.

If you
agree that the above terms properly reflect our agreement and understanding with
respect to the opportunity for you to modify the time at which the RSUs listed
in the Outstanding Award Table shall be distributed to you, please countersign
both copies of this Letter Agreement and return one copy to me.

3

THE PHOENIX COMPANIES, INC.

/s/
Bonnie J.
Malley                              

Date:

5/6/08                                    
 

DONA D.
YOUNG

/s/
Dona D.
Young                              
 

Date:

5-6-08

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