Exhibit 10.11

 

PROVIDENT FINANCIAL SERVICES, INC.

BOARD OF DIRECTORS VOLUNTARY FEE DEFERRAL PLAN

 

The purpose of this Board of Directors Voluntary Fee Deferral Plan (the “Plan”)
is to enable any non-employee member of the Board of Directors (“eligible
member”) to defer future fees payable to them for their service as a member of
the Provident Financial Services, Inc.’s Board of Directors.

 

1. Elections. Any eligible member may participate in this Plan by executing a
form of deferral election, a copy of which is annexed hereto as Exhibit “A”,
under which each calendar year the eligible member can elect irrevocably to
defer the receipt of all (but not less than all) of any fees that may be paid to
the member. In no event shall any deferral of fees be permitted which the
eligible member would otherwise have the unrestricted right to receive
currently. Except for the first year of the Plan, any election by an eligible
member to defer future fees shall be made in the calendar year next preceding
the calendar year in which the fees would be earned. Subject to the provisions
of the Plan, an eligible member’s election on the deferral election form shall
specify when and in what manner distribution shall be made of any deferred fees.
If the eligible member fails to choose a year of distribution, it shall be
deemed to be the year of his normal retirement. If the eligible member fails to
specify a form of payment, he shall be deemed to have elected a lump-sum
distribution.

 

2. Period of Deferral. An eligible member may defer his fees to a future year as
selected by him. However, in no event shall any fee otherwise payable on account
of any year be deferred so that the distribution begins beyond the year that the
eligible member attains the mandatory retirement age prescribed by the Board of
Directors (in 2003, the mandatory retirement age is age 72). In the event that
the mandatory retirement age is increased (or decreased) an eligible member who
has not yet attained the mandatory retirement age (as set prior to such increase
or decrease) shall be entitled to make an election to maintain their previous
election or to accelerate or defer their distribution to the new mandatory
retirement age, so long as the election is made in the calendar year prior to
the attainment of the original or new mandatory retirement age.

 

3. Investment and Adjustment of Deferred Fees. Subject to Paragraph 6, any fees
deferred pursuant to an eligible member’s election as aforesaid shall be
credited to a separate account maintained in the name of such member. Such
Account shall be referred to as the member’s Investment Account. The value of
each member’s Investment Account shall be credited monthly with interest at the
then prevailing Wall Street Prime Rate. For purposes of making any distribution
under paragraph 4 below, the value of an eligible member’s Investment Account
shall be its value, adjusted with interest as aforesaid, as of the last day of
the month next preceding the month distribution occurs.

 

4. Payment of Deferred Fees. Except as otherwise provided in this paragraph, or
in the case of a “Change in Control” described in paragraph 5, the amount of an
eligible member’s separate account (adjusted as provided in paragraph 3) shall
be distributed to the eligible member in a lump-sum or in annual installments
after such number of years or after

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retiring from the Board of Directors as the eligible member may elect in
accordance with paragraph 2, or, in the event of his death or total disability,
in a lump-sum to the eligible member or to the person or persons designated by
the eligible member to receive such distribution. An eligible member who wishes
to receive a distribution of his separate account in installments may elect to
receive it in annual installments over a period of three (3) years. If
distribution is to be made in annual installments, the amount of each
installment shall be equal to the adjusted value of the eligible member’s
Investment Account determined in accordance with paragraph 3 above multiplied by
a fraction, the numerator of which is one and the denominator of which is the
number of installment payments remaining to be made. If an eligible member’s
service is terminated but he has not attained age 65, the undistributed balance
of his account shall be paid to him in a single lump sum within a reasonable
time following termination of service. If an eligible member’s service is
terminated on or after attainment of age 65, the eligible member shall receive
the balance of his separate account at such time and in such form as he has
elected or, the Board of Directors may, in its sole discretion, after receipt of
a written request by such member, pay the undistributed balance of such member’s
separate account in a single lump sum within a reasonable time following
termination of service.

 

5. Distribution in the Event of a Change in Control. Notwithstanding any other
provision of this Plan or of any election made by an eligible member with
respect to the period of any fee deferral or the form and timing of any
distributions from his separate account, the undistributed balance thereof shall
be distributed to him within 60 days after the date of a Change in Control of
the Company or the Bank. For purposes hereof, a “Change in Control” shall mean
the occurrence of any of the following events:

 

(a) approval by the shareholders of the Company of a transaction that would
result and does result in the reorganization, merger or consolidation of the
Company, with one or more other persons, other than a transaction following
which:

 

(i) at least 51% of the equity ownership interests of the entity resulting from
such transaction are beneficially owned (within the meaning of Rule 13d-3
promulgated under the Securities Exchange Act of 1934, as amended (“Exchange
Act”)) in substantially the same relative proportions by persons who,
immediately prior to such transaction, beneficially owned (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) at least 51% of the outstanding
equity ownership interests in the Company; and

 

(ii) at least 51% of the securities entitled to vote generally in the election
of directors of the entity resulting from such transaction are beneficially
owned (within the meaning of Rule 13d-3 promulgated under the Exchange Act) in
substantially the same relative proportions by persons who, immediately prior to
such transaction, beneficially owned (within the meaning of Rule 13d-3
promulgated under the Exchange Act) at least 51% of the securities entitled to
vote generally in the election of directors of the Company;

 

(b) the acquisition of all or substantially all of the assets of the Company or
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 20% or more of the outstanding securities of the Company
entitled to vote generally in the election of directors by any person or by any
persons acting in concert, or approval by the shareholders of the Company of any
transaction which would result in such an acquisition;

 

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(c) a complete liquidation or dissolution of the Company or the Bank, or
approval by the shareholders of the Company of a plan for such liquidation or
dissolution;

 

(d) the occurrence of any event if, immediately following such event, members of
the Company’s Board of Directors who belong to any of the following groups do
not aggregate at least a majority of the Company’s Board of Directors:

 

(i) individuals who were members of the Company’s initial Board of Directors; or

 

(ii) individuals, other than members of the Company’s initial Board of Directors
who first became members of the Company’s Board of Directors:

 

(A) upon election to serve as a member of the Company’s Board of Directors by
the affirmative vote of three-quarters of the members of such Board, or of a
nominating committee thereof, in office at the time of such first election; or

 

(B) upon election by the shareholders of the Company to serve as a member of the
Company’s Board of Directors, but only if nominated for election by the
affirmative vote of three-quarters of the members of such Board, or of a
nominating committee thereof, in office at the time of such first nomination;
provided that such individual’s election or nomination did not result from an
actual or threatened election contest or other actual or threatened solicitation
of proxies or consents other than by or on behalf of the Company’s Board of
Directors; or

 

(e) any event which would be described in Section 5(a), (b), (c) or (d) if the
term “Bank” were substituted for the term “Company” therein and the term “Bank’s
Board of Directors” were substituted for the term “Company’s Board of Directors”
therein. In no event, however, shall a Change in Control be deemed to have
occurred as a result of any acquisition of securities or assets of the Company,
the Bank or a subsidiary of either of them, by the Company, the Bank, any
subsidiary of either of them, or by any employee benefit plan maintained by any
of them. For purposes of this Section 5, the term “person” shall include the
meaning assigned to it under Sections 13(d)(3) or 14(d)(2) of the Exchange Act.

 

6. Rights of Eligible Member or Other Distributee. Nothing contained herein, and
no action taken pursuant to the provisions hereof shall create, or be deemed to
create a trust of any kind, or to establish any fiduciary relationship between
the Company and any eligible member or other distributee. The separate accounts
established hereunder shall be for record keeping purposes. Fees which have been
deferred will be recorded as a liability on the Company’s general ledger when
earned, but no funds shall be set aside for payment of the liability. To the
extent that any person acquires a right to receive payments from the Company
under the provisions hereof, such right shall be no greater than the right of an
unsecured general creditor of the Company. All payments made pursuant to this
Plan shall be made from

 

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the general assets of the Company, provided, however, that nothing set forth
herein shall be construed as prohibiting the Company from establishing a rabbi
trust to hold any assets for the benefit of eligible members of this Plan.
Deferred fees and the earnings thereon shall be subject to the claims of the
Company’s general creditors at all times prior to distribution, including any
fees that are contributed to and become assets of a rabbi trust.

 

7. Designation of Beneficiary. An eligible member may designate one or more
person or persons to receive the undistributed balance of his deferred fees in
the event of his death by executing and delivering to the Company a beneficiary
designation form, a copy of which is annexed hereto as Exhibit “B”, and may
change and successively change any such designation by executing a subsequent
beneficiary designation form. Unless the beneficiary designation form indicates
otherwise, any designation of beneficiary shall be deemed to apply to the
undistributed balance of all of the eligible member’s prior deferrals. If there
is no valid beneficiary designation on file with the Company on the date of
death of the eligible member, the undistributed balance of deferred fees shall
be paid to the personal representative of his estate.

 

8. Nonassignability of Benefits. Neither the eligible member nor any other
person shall have any power or right to assign, anticipate, hypothecate or
otherwise encumber any deferred fees payable by the Company hereunder, nor shall
any such fees be transferable by operation of law in the event of the bankruptcy
or insolvency of the eligible member or other person.

 

9. Administration of the Plan. The Board of Directors shall have the exclusive
authority to manage and control the operation and administration of the Plan and
shall be the named fiduciary as described in section 402(a) of the Employee
Retirement Income Security Act of 1974. The Board of Directors shall make all
determinations regarding the right of any person to receive a benefit under the
Plan and to determine the amount and time of distribution thereof in accordance
with the provisions of this Plan and the eligible member’s election, provided,
however, that any determination made with respect to the account of any eligible
member shall be made by the Board of Directors sitting without such member. The
interpretation and construction of this Plan by the Board of Directors, and any
action taken hereunder, shall be binding and conclusive upon the eligible and
member and any other person claiming any rights hereunder. The Board of
Directors may from time to time delegate to such person or persons or to such
committee as it shall designate any one or more of its administrative duties
under the Plan.

 

10. Right to Amend and Terminate the Plan. The Company reserves the right to
amend the Plan in whole or in part and to terminate the Plan at any time,
provided that no such action shall affect the rights of any eligible member or
other person to receive payment of benefits in accordance with the terms of the
Plan as in effect on the day immediately preceding the effective date of such
amendment or termination.

 

11. Special Terms, Gender and Number. The term “normal retirement” means the
date of the Board of Directors Annual Meeting after the manager attains his
seventy-second birthday. The term “total disability” shall mean a physical or
mental condition that renders an

 

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eligible member incapable of carrying out the ordinary duties and
responsibilities of his usual occupation. Whenever the context shall require,
the masculine gender shall be construed to include the feminine and the singular
number the plural.

 

12. Incompetence. If the Board of Directors determines that an eligible member
(or the designated beneficiary of an eligible member) is unable to manage his
affairs, it may, in its sole discretion, pay any amount due to such person to
the individual or institution then providing for the care, maintenance and
support of such person, unless prior to such payment claim shall be made
therefor by a duly appointed guardian, committee or other legal representative
designated to receive such payment on behalf of such person.

 

13. Hardship Distribution. An eligible member, who believes that he has incurred
a hardship may petition the Board of Directors for a hardship distribution. Upon
a finding that the Director has suffered a hardship, the Board of Directors may,
in its sole discretion, make distributions from the eligible member’s account
prior to the time specified for payment of benefits in the Director’s Deferral
Election. The amount of such distribution shall be limited to the amount
reasonably necessary to meet the requirements during the financial hardship.

 

14. Applicable Law. This Plan shall be governed and construed in accordance with
the laws of the State of New Jersey to the extent not inconsistent with
applicable federal law.

 

15. Successors. The provisions of this Plan shall bind and inure to the benefit
of the Company and its successors and assigns. The term “successors” as used
herein shall include any corporate or other business entity which shall, whether
by merger, consolidation, purchase or otherwise acquire all or substantially all
of the business and assets of the Company, and successors of any such
corporation or other business entity.

 

IN WITNESS WHEREOF, this Board of Directors Voluntary Fee Deferral Plan has been
executed by the duly authorized officers of Provident Financial Services, Inc.
as of the 17th day of July, 2003.

 

ATTEST:   PROVIDENT FINANCIAL SERVICES, INC.

/s/ John F. Kuntz

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/s/ Paul M. Pantozzi

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Secretary   Chairman, CEO & President

 

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PROVIDENT FINANCIAL SERVICES, INC.

 

BOARD OF DIRECTORS VOLUNTARY FEE

DEFERRAL PLAN

 

EXHIBIT A

 

Election to Defer Board of Directors Fees in 200    

 

Pursuant to the provisions of Provident Financial Services, Inc. Board of
Directors Voluntary Fee Deferral Plan, I understand that I may make an
irrevocable election to defer the receipt of board fees otherwise due to be paid
to me during calendar year 200            . In accordance with the Plan:

 

I hereby elect (check one):

 

         not to defer my board fees earned after the date hereof and during
calendar year 200    .

 

         to defer the receipt of all my board fees (includes Board and Committee
Fees) after the date hereof and during calendar year 200        .

 

The deferral, if any, indicated above shall be until the following year (check
one):

 

         Calendar year of my normal retirement from the Board of Directors.

 

         Certain year that is prior to the calendar year of my normal retirement
from the Board of Directors. You must select the year on this form. Year :
                

 

I hereby further elect that the amount of the above deferred compensation shall
be paid at the end of the deferral period as follows (check one):

 

         In a lump sum.

 

         In 3 annual installments until the entire amount of my deferred
compensation for 200     shall have been paid to me.

 

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I understand that this election is subject to applicable laws and regulations
and to the terms and conditions of the Provident Financial Services, Inc. Board
of Directors Voluntary Fee Deferral Plan as from time to time in effect. I
further understand that the election to defer the receipt of any compensation I
may receive in 200         may not be modified or revoked, other than as set
forth in the Plan.

 

 

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Name of Eligible Member (Print or Type)

   

 

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Signature of Eligible Member

 

Date

 

Received by Provident Financial Services

 

This          day of                     , 200    

 

By:

 

 

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PROVIDENT FINANCIAL SERVICES, INC.

 

BOARD OF DIRECTORS

VOLUNTARY FEE DEFERRAL PLAN

 

EXHIBIT B

 

Beneficiary Designation

 

As an eligible director under the Provident Financial Services, Inc. Board of
Directors Voluntary Fee Deferral Plan (“Plan”) I hereby designate the following
person(s) to receive a lump sum payment of the undistributed balance credited to
my separate account under the Plan as soon as practicable in the event of my
death. (If no beneficiary designation is made, then the undistributed balance
due to me under the Plan shall be paid to my estate in a lump sum.)

 

 

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Name   Name

 

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Address   Address

 

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City, State, Zip   City, State, Zip

 

Note: Unless indicated otherwise, payment to two or more persons shall be made
in equal shares.

 

This beneficiary designation shall apply to all amounts deferred under the Plan
and revokes any and all prior designations made by me. I understand that I am
permitted at any time and from time to time to modify or revoke the beneficiary
designation herein made by executing and delivering a new beneficiary
designation form to Provident Financial Services, Inc.

 

 

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Name of Eligible Member (Print or Type)

   

 

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Signature of Eligible Member

  Date Received by Provident Financial Services, Inc. This          day of
                    ,                     

By:  

 

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PROVIDENT FINANCIAL SERVICES, INC.

BOARD OF DIRECTORS VOLUNTARY FEE DEFERRAL PLAN

 

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Amendment Number One

 

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The Provident Financial Services, Inc. Board of Directors Voluntary Fee Deferral
Plan (the “Plan”) is hereby amended, effective December 18, 2003, in accordance
with the following:

 

Section 1 of the Plan shall be amended by replacing its first sentence by the
following:

 

Any eligible member may participate in this Plan by executing a form of deferral
election, a copy of which is annexed hereto as Exhibit “A,” under which each
calendar year the eligible member can elect irrevocably to defer the receipt of
25%, 50%, 75% or 100% of any fees that may be paid to the member.

 

IN WITNESS WHEREOF, this Amendment Number One has been executed by the duly
authorized officers of Provident Financial Services, Inc. as of the 18th day of
December, 2003.

 

ATTEST:   PROVIDENT FINANCIAL SERVICES, INC.

/s/ John F. Kuntz

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  By:  

/s/ Kevin J. Ward

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Corporate Secretary       Authorized Officer

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PROVIDENT FINANCIAL SERVICES, INC.

 

BOARD OF DIRECTORS VOLUNTARY FEE DEFERRAL PLAN

 

EXHIBIT A

 

Election to Defer Board of Directors Fees in 200    

 

Pursuant to the provisions of the Provident Financial Services, Inc. Board of
Directors Voluntary Fee Deferral Plan (the “Plan”), I understand that I may make
an irrevocable election to defer the receipt of board fees due to me during
calendar year 200    . In accordance with the Plan:

 

I hereby elect (check one):

 

         not to defer my board fees after the date hereof and during calendar
year 200    .

 

         to defer the receipt of

 

                     25%

 

                     50%

 

                     75%

 

                   100%

 

of my board fees (includes Retainer, Executive Committee, Board and Committee
Fees) after the date hereof and during calendar year 200    .

 

The deferral, if any, indicated above shall be until the following year (check
one):

 

         Calendar year of my normal retirement from the Board of Directors.

 

         Certain year that is prior to the calendar year of my normal retirement
from the Board of Directors. You must select the year on this form. Year :
                

 

I hereby further elect that the amount of the above deferred compensation shall
be paid at the end of the deferral period as follows (check one):

 

         In a lump sum.

 

         In 3 annual installments until the entire amount of my deferred
compensation for 200     shall have been paid to me.

 

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I understand that this election is subject to applicable laws and regulations
and to the terms and conditions of the Provident Financial Services, Inc. Board
of Directors Voluntary Fee Deferral Plan as from time to time in effect. I
further understand that the election to defer the receipt of any compensation I
may receive in 200             may not be modified or revoked, other than as set
forth in the Plan.

 

 

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    Name of Eligible Member (Print or Type)    

 

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Signature of Eligible Member   Date Received by Provident Financial Services,
Inc.     This          day of                     , 200        

By:  

 

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