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Exhibit 10.2
 
 
 
June 20, 2011
 
 
Mr. George  Strayton
President and Chief Executive Officer
Provident New York Bancorp
400 Rella Boulevard
Montebello, New York  10901

 
Dear George:
 
The Board of Directors has asked me to accept on its behalf your decision to
retire as President and Chief Executive Officer of Provident New York Bancorp
and Provident Bank (together, the “Bank”) effective July 5th, 2011.  The Board
would like to express its appreciation for your outstanding record of
achievement for the Bank over the past 25 plus years.  Under your leadership,
the Bank has evolved into a publicly-held institution, made several successful
acquisitions, seen an almost ten-fold  increase in total deposits, and achieved
an enviable market position and reputation.  In recent years, you have
successfully guided the Bank through turbulent economic times.

As the result of your retirement and the transition to a successor President and
CEO, your employment with the Bank will be terminating prior to the October 31,
2011 scheduled expiration of your December 8, 2008 employment agreement with the
Bank.  In light of the early termination of your employment, the terms of your
employment agreement, and your having voluntarily foregone certain prior
compensation awards and payments from the Bank, the Bank will make a lump sum
payment to you on January 5, 2012 in the amount of $340,341.  In addition, in
recognition of the foregoing, your record of accomplishment with the Bank, and
the Bank’s performance during your tenure (including for the current fiscal
year), the Bank will pay a lump sum bonus to you on January 5,  2012 in the
amount of $441,820 (which represents 75% of your current annual base
salary).  These payments will be subject to applicable withholdings and will not
count as compensation for purposes of any of the Bank’s benefit plans and
programs.

You agree that the payments described in the preceding paragraph are in lieu of
any rights you may have to severance payments or benefits under your employment
agreement with the Bank, any bonus entitlement you may have under the Bank’s
Executive Officer Incentive Plan, and any other rights you might have in
connection with your retirement and termination of employment (other than vested
rights to benefits under the Bank’s compensation and benefit plans, which will
be paid in accordance with the terms of such plans).
 
 
 
 

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On behalf of the Board, I want to thank you for your extraordinary dedication
and service to the Bank.  As you know, under Bank policy, termination of
employment is deemed to constitute voluntary resignation from the Board.  As we
have discussed with you, however, the Board, with the recommendation of its
Corporate Governance Committee, has determined that in light of the benefits to
the Bank of your continuing Board service, it does not wish to accept your
resignation.  We are pleased that you are willing to remain a director and look
forward to continuing to work with you in that capacity.
 

 

 
Sincerely yours,
 
 
 
Provident New York Bancorp and
Provident Bank
 
By:                        /s/ William F. Helmer                 
                  William F. Helmer                   Chairman of the Board    

 
                                                                                                               
 
 

Agreed and accepted:
 
              /s/ George Strayton               
George Strayton
         

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