Document:

Exhibit 10.2

                              AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT
                              --------------------

         This Employment Agreement  ("Agreement") is made and entered into as of
the _____ day of October,  2006  ("Effective  Date"),  by and between  Provident
Bank, a savings bank  organized and existing under the laws of the United States
of America and having its executive offices at 400 Rella Boulevard,  Montebello,
New York  10901  ("Bank"),  and  George  Strayton  ("Executive").  The Bank is a
wholly-owned subsidiary of Provident New York Bancorp ("Company").

                                   WITNESSETH:

         WHEREAS,  Executive  currently  serves as an  executive  officer of the
Bank; and

         WHEREAS,  the Bank considers the continued  availability of Executive's
services to be important to the successful  management and conduct of the Bank's
business  and  desires to secure for itself the  continued  availability  of his
services; and

         WHEREAS,  Executive  is  willing  to  continue  to  make  his  services
available to the Bank on the terms and  conditions  set forth herein,  such that
both the Bank and the Executive agree that the prior employment  agreement among
the Bank, the Company and the Executive dated January 25, 1996, as amended March
6, 1996 and January 31, 1999, is  superseded  in its entirety by this  Agreement
and the  execution  of this  Agreement  will not  entitle the  Executive  to any
payments under such prior agreement;

         NOW,  THEREFORE,  in  consideration  of the  premises  and  the  mutual
covenants and obligations  hereinafter set forth,  the Bank and Executive hereby
agree as follows:

         1. Employment. The Bank hereby agrees to continue the employment of the
            ----------
Executive and the Executive  hereby agrees to continue such  employment,  during
the period and upon the terms and  conditions set forth in this  Agreement.  All
actions  that may be  undertaken  by the Bank with  respect  to the  Executive's
employment  with the Bank pursuant to this Agreement  shall be undertaken by the
Board of Directors of the Bank.

         2. Employment Period.
            -----------------

         (a) Three Year  Contract;  Daily  Renewal.  The  Executive's  period of
             -------------------------------------
employment with the Bank ("Employment Period") shall begin on the Effective Date
and shall renew daily,  such that the remaining  unexpired term of the Agreement
shall always be thirty-six  (36) months,  until the date that the Bank gives the
Executive written notice of non-renewal  ("Non-Renewal  Notice"). The Employment
Period  shall end on the date that is  thirty-six  (36) months after the date of
the  Non-Renewal  Notice,  unless the parties agree that the  Employment  Period
shall end on an earlier date.  Notwithstanding the preceding  provisions of this
Section 2(a), the Employment  Period under this  Agreement  shall  automatically
terminate on the last day of the calendar  month in which the Executive  attains
age 68.

         (b) Annual Performance Evaluation.  On either a fiscal year or calendar
             -----------------------------
year basis,  (consistently applied from year to year), the Bank shall conduct an
annual  evaluation  of  the  Executive's  performance.  The  annual  performance
evaluation  proceedings  shall be included  in the minutes of the Board  meeting
that next follows such annual performance review.

         (c) Continued  Employment  Following  Termination of Employment Period.
             ------------------------------------------------------------------
Nothing in this  Agreement  shall  mandate or  prohibit  a  continuation  of the
Executive's  employment  following the expiration of the Employment  Period upon
such terms and conditions as the Bank and the Executive may mutually agree.

         3. Duties.
            ------

         (a) Title; Reporting  Responsibility.  The Executive shall serve as the
             --------------------------------
President and Chief  Executive  Officer of the Bank,  with power,  authority and
responsibility  commensurate with those of a senior officer.  As Chief Executive
Officer,  the Executive shall directly report to the Board.  The Executive shall
also be  nominatedas a member of the Board of Directors of the Bank,  subject to
election by shareholders.

         (b) Time Commitment.  The Executive shall devote his full business time
             ---------------
and  attention  to the  business  and affairs of the Bank and shall use his best
efforts to advance the interests of the Bank.

         4. Annual Compensation.
            -------------------

         (a) Base Salary.
             -----------

                  (i) Annual Salary. In consideration for the services performed
                      -------------
by the Executive  under this  Agreement, the

<PAGE>

Bank shall pay to the  Executive  an annual  salary  ("Base  Salary").  The Base
Salary shall be paid in approximately  equal installments in accordance with the
Bank's customary payroll  practices.  The Bank shall review the Executive's Base
Salary at least annually for possible  upward  adjustment,  but, the Executive's
Base Salary shall not be reduced without the Executive's consent. For the fiscal
year that began on October 1, 2005, the Executive's Base Salary is $450,000.

                  (ii) Automatic  Adjustment  Following a Change in Control. For
                       ----------------------------------------------------
each calendar year that begins on or after the date on which a Change in Control
(as defined in Section 9) occurs,  and  continuing  through the remainder of the
Employment Period, the Executive's Base Salary shall  automatically  increase by
the  greater of (1) six  percent  (6%) or (2) the  average  annual  rate of base
salary  increases  provided  for  the  immediately  preceding  calendar  year to
individuals  employed by the Bank at the level of  assistant  vice  president or
above (but excluding the Executive from the determination of such average).

         (b)  Incentive  Compensation.   The  Executive  shall  be  eligible  to
              -----------------------
participate in any bonus and incentive  compensation programs established by the
Bank from time to time for  senior  executive  officers,  including  the  Bank's
Executive Officer  Management  Incentive  Program.  Such  compensation  shall be
referred to herein as "Incentive  Compensation."  For the fiscal year that ended
on  September  30,  2005,  the  Executive  received  Incentive  Compensation  of
$100,800.

         (c) Equity Compensation. The Executive shall be eligible to participate
             -------------------
in any equity  compensation  programs  established by the Bank from time to time
for senior  executive  officers,  including,  but not limited to, the 2004 Stock
Incentive Plan.

         (d) Employee Benefit Plans; Paid Time Off
             -------------------------------------

                  (i) Benefit Plans. During the Employment Period, the Executive
                      -------------
shall be an employee of the Bank and shall be  entitled  to  participate  in the
Bank's (i)  tax-qualified  retirement  plans,  (i.e.,  the defined benefit plan,
401(k)  plan  and  ESOP);   (ii)   nonqualified   retirement  plans  (i.e.,  the
Supplemental Executive Retirement Plan); (iii) group life, health and disability
insurance  plans;  and (iv) any other  employee  benefit  plans and  programs in
accordance with the Bank's customary  practices,  provided he is a member of the
class of employees authorized to participate in such plans or programs.

                  (ii) Paid Time  Off.  The  Executive  shall be  entitled  to a
                       --------------
minimum of five (5) weeks of paid vacation time each year during the  Employment
Period  (measured on a fiscal or calendar  year basis,  in  accordance  with the
Bank's usual practices), as well as sick leave, holidays and other paid absences
in accordance with the Bank's policies and procedures for senior executives. Any
unused paid time off during an annual period shall be treated in accordance with
the Bank's personnel policies as in effect from time to time.

         5. Outside Activities and Board Memberships
            ----------------------------------------

         During the term of this Agreement, the Executive shall not, directly or
indirectly,   provide   services   on  behalf  of  any   competitive   financial
institutions,  any insurance  company or agency,  any mortgage or loan broker or
any other competitive  entity or on behalf of any subsidiary or affiliate of any
such competitive  entity, as an employee,  consultant,  independent  contractor,
agent, sole proprietor,  partner, joint venturer, corporate officer or director;
nor shall the  Executive  acquire by reason of purchase  during the term of this
Agreement the ownership of more than 5% of the  outstanding  equity  interest in
any such competitive entity. In addition, during the term of this Agreement, the
Executive shall not, directly or indirectly,  acquire a beneficial interest,  or
engage  in any joint  venture  in real  estate  with the  Bank.  Subject  to the
foregoing,  and to the  Executive's  right to  continue  to serve as an  officer
and/or  director or trustee of any business  organization  as to which he was so
serving on the  Effective  Date of this  Agreement,  the  Executive may serve on
boards of directors of  unaffiliated  corporations,  subject to Board  approval,
which shall not be  unreasonably  withheld,  and such services shall be presumed
for these purposes to be for the benefit of the Bank. Except as specifically set
forth  herein,  the  Executive  may engage in personal  business and  investment
activities,  including real estate  investments and personal  investments in the
stocks,  securities and  obligations of other financial  institutions  (or their
holding  companies).  Notwithstanding  the  foregoing,  in no  event  shall  the
Executive's  outside  activities,  services,  personal  business and investments
materially interfere with the performance of his duties under this Agreement.

         6. Working Facilities and Expenses
            -------------------------------

         (a) Working Facilities.  The Executive's  principal place of employment
             ------------------
shall be at the Bank's principal executive office or at such other location upon
which the Bank and the Executive may mutually agree.

         (b) Expenses.
             --------

                  (i) Ordinary Expenses.  The Bank shall reimburse the Executive
                      -----------------
for his ordinary and necessary  business  expenses,  incurred in connection with
the  performance of his duties under this  Agreement,  upon  presentation to the
Bank of an  itemized  account  of such  expenses  in such  form as the  Bank may
reasonably require.

                  (ii) Automobile.  The Bank shall provide the Executive with an
                       ----------
automobile suitable to the Executive's

<PAGE>

position and such  automobile  may be used by the  Executive in carrying out his
duties under this Agreement,  including  commuting between his residence and his
principal  place of  employment  and  other  personal  use.  The  Bank  shall be
responsible  for the cost of maintenance  and servicing such  automobile and for
insurance,  gasoline  and  oil for  such  automobile.  The  Executive  shall  be
responsible  for the payment of any taxes on account of his personal use of such
automobile.

                  (iii) Country Club. The Bank shall reimburse the Executive for
                        ------------
membership  fees  in  the  Rockland  Country  Club  and  such  other  clubs  and
organizations  as the Executive and the Board shall mutually agree are necessary
and  appropriate for business  purposes.  The Executive shall be responsible for
the  payment  of any taxes on  account  of his  personal  use of such  clubs and
organizations.

         7. Termination of Employment with Bank Liability
            ---------------------------------------------

         (a)  Reasons  for  Termination.  In  the  event  that  the  Executive's
              -------------------------
employment with the Bank shall terminate during the Employment Period on account
of:

                  (i)      The Executive's voluntary resignation from employment
                           with  the  Bank  within  one  year  after  any of the
                           following   events,   such   that   the   Executive's
                           resignation  shall be  treated as a  resignation  for
                           "Good Reason":

                           (A)      the failure to  re-appoint  the Executive to
                                    the officer position set forth under Section
                                    3  and,  with  respect  to  the  Executive's
                                    service  as  a  director,   the  failure  to
                                    re-nominate  the  Executive  for election to
                                    the Board;

                           (B)      a material change in Executive's  functions,
                                    duties, or responsibilities, including those
                                    with  respect to the  Company,  which change
                                    would cause  Executive's  position to become
                                    one of lesser responsibility, importance, or
                                    scope,  which the Bank fails to cure  within
                                    30 days  following  written  notice  thereof
                                    from the Executive;

                           (C)      liquidation  or  dissolution  of the Bank or
                                    the  Company  other  than   liquidations  or
                                    dissolutions     that    are    caused    by
                                    reorganizations   that  do  not  affect  the
                                    status of the Executive;

                           (D)      a material  breach of this  Agreement by the
                                    Bank, which the Bank fails to cure within 30
                                    days  following  written notice thereof from
                                    the Executive; or

                           (E)      a  Change  in  Control  Date of the  Bank as
                                    defined in Section 9;

                           (F)      the effective date of a Non-Renewal  Notice,
                                    delivered  by  the  Bank  to  the  Executive
                                    pursuant to Section 2(a); or

                  (ii)     the  discharge  of the  Executive by the Bank for any
                           reason  other than for  "Cause" as defined in Section
                           8(a); or

                  (iii)    the  termination of the  Executive's  employment with
                           the Bank as a result of the  Executive's  "total  and
                           permanent  disability"  which,  for  purposes of this
                           Agreement,  shall be  determined  by the Bank,  based
                           upon competent and independent  medical evidence that
                           the Executive's  physical or mental condition is such
                           that  he is  totally  and  permanently  incapable  of
                           performing  the  essential   tasks  of  his  position
                           hereunder,  and,  to the  extent  that  any  payments
                           hereunder  on account of  disability  are  subject to
                           Section  409A of the  Internal  Revenue  Code of 1986
                           ("Code"),  "disability"  shall have the  meaning  set
                           forth  in  Code  Section  409A  and  the  regulations
                           thereunder;

then the Bank shall  provide the benefits and pay to the  Executive  the amounts
provided for under Section 7(b).

                  (b) Severance  Pay.  Subject to the  limitations  set forth in
                      --------------
Sections 7(e) and (f) below, upon the termination of the Executive's  employment
with the Bank under  circumstances  described in Section 7(a) of this Agreement,
the Bank shall pay to the Executive (or, in the event of the  Executive's  death
after the event  described in Section 7(a) has  occurred,  the Bank shall pay to
the Executive's surviving spouse,  beneficiary or estate) an amount equal to the
following,  provided  that, in each case where an amount to be paid below is the
"present value" of an amount,  such "present value" shall be determined  using a
discount rate that is equal to the  "applicable  federal rate"  published by the
Internal Revenue Service for the month preceding the Executive's  termination of
employment:

                  (i) his earned but  unpaid  Base  Salary as of the date of his
termination of employment with the Bank;

<PAGE>

                  (ii)     the  benefits,  if any,  to which he is entitled as a
                           former  employee  under the Bank's  employee  benefit
                           plans;

                  (iii)    continued  group life and health  insurance  benefits
                           which will provide the  Executive  with  coverage for
                           the remaining unexpired  Employment Period equivalent
                           to the coverage to which he would have been  entitled
                           if he had  continued  working for the Bank during the
                           remaining  unexpired  Employment Period with the same
                           Base  Salary  as was in  effect  on the  date  of his
                           termination   of  employment   and  life  and  health
                           insurance   benefits   for  the   remainder   of  the
                           Executive's   lifetime   and  the   lifetime  of  the
                           Executive's  spouse,  equal to the greater of (A) the
                           coverage  provided  to retirees of the Bank as of the
                           Effective  Date of this Agreement or (B) the coverage
                           provided to retirees of the Bank as of the  effective
                           date of the  Executive's  termination  of  employment
                           with the Bank;

                  (iv)     within  60  days   following   his   termination   of
                           employment,   a  lump  sum  payment,   as  liquidated
                           damages,  in an amount equal to the present  value of
                           the Base Salary that the Executive  would have earned
                           (but offset by any payments made under any short-term
                           or long-term disability plan or program maintained by
                           the Bank) if he had  continued  working  for the Bank
                           and serving as a director for the remaining unexpired
                           Employment Period at his final rate of Base Salary;

                  (v)      within  60  days   following   his   termination   of
                           employment  with the Bank,  a lump sum  payment in an
                           amount  equal  to the  excess,  if any,  of:  (A) the
                           present  value of the benefits to which the Executive
                           would be entitled  under the Bank's  Defined  Benefit
                           Pension  Plan  if he  had  the  additional  years  of
                           service  that he  would  have had  accrued  if he had
                           continued  working for the Bank during the  remaining
                           unexpired Employment Period earning his final rate of
                           Base Salary during that period,  over (B) the present
                           value  of  the  benefits  to  which  he  is  actually
                           entitled  under the Bank's  Defined  Benefit  Pension
                           Plan as of the date of his termination;

                  (vi)     within  60  days   following   his   termination   of
                           employment  with the Bank,  a lump sum  payment in an
                           amount  equal  to the  present  value  of the  Bank's
                           contributions that would have been made on his behalf
                           under  the  Bank's  401(k)  Plan and  Employee  Stock
                           Ownership Plan if the Executive had continued working
                           for the Bank for the remaining  unexpired  Employment
                           Period  assuming (A) the  Executive  earned his final
                           rate of Base Salary during that period;  (B) made the
                           maximum amount of employee  contributions  permitted,
                           if  any,  under  such  plans;   and  (C)  the  Bank's
                           contributions  are at  least  equal  to the  rate  of
                           contributions  made in to the  Plan  during  the plan
                           year   immediately   preceding  his   termination  of
                           employment;

                  (vii)    within  60  days   following   his   termination   of
                           employment  with the Bank,  a lump sum  payment in an
                           amount  equal  to the  excess,  if  any,  of (A)  the
                           present  value of the  benefits  to which he would be
                           entitled under the Supplemental  Executive Retirement
                           Plan (and any other  deferred  compensation  plan for
                           management or highly  compensated  employees that are
                           maintained by the Bank), if he had continued  working
                           for the Bank for the remaining  unexpired  Employment
                           Period   following  his   termination  or  employment
                           earning  his final  rate of Base  Salary  during  the
                           remaining  unexpired  Employment Period, over (B) the
                           present value of the benefits to which he is actually
                           entitled  under any such plan,  as of the date of his
                           termination of employment with the Bank;

                  (viii)   within  60  days   following   his   termination   of
                           employment  with the Bank,  a lump sum  payment in an
                           amount  equal to three (3) times the  average  of the
                           prior three (3) years Incentive  Compensation  earned
                           or received by him under all  incentive  compensation
                           plans or programs adopted and maintained by the Bank;
                           and

                  (ix)     stock options shall vest in accordance with the terms
                           of the stock plan under which they were granted.

         (c)  Change  in  Control.   Notwithstanding  the  foregoing,  upon  the
              -------------------
termination of the  Executive's  employment  with the Bank following a Change in
Control,  the Bank: (1) shall provide the employee benefits described in Section
7(b)(iii) for a period of thirty-six  (36) months  following the  termination of
employment  date;(2)  shall pay the Executive (or in the event of his death,  to
his surviving spouse or such other beneficiary as the Executive may designate in
writing,  or if there is  neither,  to his  estate),  the amounts  described  in
Sections  7(b)(iv)  through  7(b)(viii)  above  as if the  "remaining  unexpired
Employment  Period"  under the  Agreement  is  thirty-six  (36)  months from the
termination  of employment  date;  and (3) shall credit the Executive  with full
vesting of all stock or stock-based  awards  granted to the Executive  under any
plan adopted by the Bank or the  Company.  The Bank intends that the Company and
the Executive shall enter into a separate  agreement with respect to reimbursing
the Executive  for any  additional  income or excise taxes that may apply,  on a
grossed up basis,  with  respect to any "excess  parachute  payment"  under Code
Section 280G.

         (d) Damages.  The Bank and the  Executive   hereby  stipulate  that the
             -------
damages which may be incurred by the Executive following any such termination of
employment  are not capable of accurate  measurement as of the effective date of
this Agreement and that such liquidated  damages  constitute  reasonable damages
under the circumstances.

<PAGE>

         (e) OTS Limitation on Severance Pay.  Notwithstanding the foregoing, to
             -------------------------------
the extent  required by regulations or  interpretations  of the Office of Thrift
Supervision,  all severance payments under the Agreement shall be reduced not to
exceedthree (3) times the Executive's average annual compensation (as defined in
such  regulations  or  interpretations)  over the most  recent  five (5) taxable
years.

         (f)  Tax  Code  Limitation  on  Severance  Pay.   Notwithstanding   the
              -----------------------------------------
foregoing,  to the extent required by Internal Revenue Code section 409A and the
regulations thereunder, if the Executive is a "specified employee" (i.e., a "key
employee"  within the meaning of Code Section 416(i) without regard to paragraph
5 thereof), the severance payments described in Sections 7(b)(iv) through (viii)
shall be made to him  immediately  following  the  expiration  of six (6) months
following his "separation from service" (as defined in Code Section 409A and the
regulations  thereunder) with interest  determined using the "applicable federal
rate"  published by the Internal  Revenue  Service for the month  preceding  the
Executive's termination of employment.

         8. Termination without Additional Bank Liability
            ---------------------------------------------

         (a) Termination for Cause.
             ---------------------

                  (i) The Bank may terminate the  Executive's  employment at any
time, but any termination other than termination for "cause," as defined herein,
shall not prejudice the  Executive's  right to  compensation  or other  benefits
under the Agreement.  The Executive shall have no right to receive  compensation
or other benefits for any period after termination for "cause."  Termination for
"cause"  shall  include   termination   because  of  the  Executive's   personal
dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving
personal profit, breach of the Bank's Code of Ethics,  material violation of the
Sarbanes-Oxley  requirements  for  officers  of  public  companies  that  in the
reasonable opinion of the Board will likely cause substantial  financial harm or
substantial  injury to the  reputation  of the  Company  or the Bank,  willfully
engaging  in actions  that in the  reasonable  opinion of the Board will  likely
cause  substantial   financial  harm  or  substantial  injury  to  the  business
reputation of the Company or Bank, intentional failure to perform stated duties,
willful  violation of any law,  rule or regulation  (other than routine  traffic
violations or similar  offenses) or final  cease-and-desist  order,  or material
breach of any provision of the contract.

                  (ii) For purposes of this  Section,  no act or failure to act,
on the part of the Executive,  shall be considered  "willful" unless it is done,
or  omitted to be done,  by the  Executive  in bad faith or  without  reasonable
belief that the Executive's  action or omission was in the best interests of the
Bank. Any act, or failure to act, based upon the direction of the Board or based
upon the advice of counsel  for the Bank shall be  conclusively  presumed  to be
done,  or omitted  to be done,  by the  Executive  in good faith and in the best
interests of the Bank.

                  (iii)  If  the  Bank  wishes  to  terminate  the   Executive's
employment for "cause," such determination shall require the affirmative vote of
three-fourths  of the members of the Board and such vote shall not be made prior
to the  expiration  of the 60-day  period  following the date on which the Board
shall,  by written  notice to the  Executive,  furnish  him a  statement  of its
grounds  for  proposing  to make such  determination,  during  which  period the
Executive  shall be afforded a reasonable  opportunity  to make oral and written
presentations  to the members of the Board,  and to be  represented by his legal
counsel at such presentations, to refute the grounds for proposed termination.

         (b) Death;  Voluntary Resignation Without Good Reason;  Retirement.  In
             --------------------------------------------------------------
the event that the Executive's  employment with the Bank shall terminate  during
the Employment Period on account of any of the reasons set forth in this Section
8(b),  then the Bank  shall have no further  obligations  under this  Agreement,
other than the payment to the  Executive  of his earned but unpaid  salary as of
the  date  of the  termination  of his  employment,  and the  provision  of such
benefits,  if any, to which he is entitled as a former employee under the Bank's
employee  benefit  plans and  programs  and  compensation  plans  and  programs.
Termination  of  employment  under this Section 8(b) shall mean  termination  of
employment due to the following events:

                  (i)      The Executive's death;

                  (ii)     The Executive's voluntary resignation from employment
                           with the Bank for any  reason  other  than the  "Good
                           Reasons" specified in Section 7(a)(i); or

                  (iii)    The automatic termination of the Employment Period as
                           of the last day of the calendar  month  following the
                           Executive's  attainment  of age 68,  which  shall  be
                           treated as his "retirement date" (i.e.,  "retirement"
                           is not a "Good  Reason"  termination  as described in
                           Section  7(a)(i) that would  entitle the Executive to
                           severance benefits under Section 7(b)).

         9. Change in Control
            -----------------

         (a) Except for  payments  that are subject to Code  Section  409A,  for
purposes of this Agreement, the term "Change in Control" shall mean:

                  (i)      a  change  in  control  of a  nature  that  would  be
                           required to be  reported in response to Item  5.01(a)
                           of the  current  report on Form 8-K,  as in effect on
                           the date  hereof,  pursuant to Section 13 or 15(d) of
                           the  Securities  Exchange Act of 1934 (the  "Exchange
                           Act"); or

<PAGE>

                  (ii)     a change in control of the Bank or the Company within
                           the  meaning of the Home  Owners Loan Act, as amended
                           ("HOLA"),   and  applicable   rules  and  regulations
                           promulgated  thereunder,  as in effect at the time of
                           the Change in Control; or

                  (iii)    any of the following  events,  upon which a Change in
                           Control shall be deemed to have occurred:

                                    (A) any  "person"  (as  the  term is used in
                           Sections  13(d) and 14(d) of the Exchange  Act) is or
                           becomes  the  "beneficial  owner" (as defined in Rule
                           13d-3   under  the   Exchange   Act),   directly   or
                           indirectly, of securities of the Company representing
                           25% or more of the combined voting power of Company's
                           outstanding  securities  except  for  any  securities
                           purchased by the Bank's employee stock ownership plan
                           or trust; or

                                    (B)  individuals who constitute the Board on
                           the date hereof (the "Incumbent Board") cease for any
                           reason to  constitute  at least a  majority  thereof,
                           provided   that  any   person   becoming  a  director
                           subsequent  to the date  hereof  whose  election  was
                           approved by a vote of at least  three-quarters of the
                           directors  comprising the Incumbent  Board,  or whose
                           nomination for election by the Company's stockholders
                           was approved by the same Nominating Committee serving
                           under an Incumbent  Board,  shall be, for purposes of
                           this subsection  (B),  considered as though he were a
                           member of the Incumbent Board; or

                                    (C)  a  plan  of   reorganization,   merger,
                           consolidation,  sale of all or substantially  all the
                           assets  of  the  Bank  or  the   Company  or  similar
                           transaction  occurs in which the Bank or  Company  is
                           not the surviving institution; or

                                    (D) a proxy  statement is issued  soliciting
                           proxies from  stockholders  of the Company by someone
                           other than the  current  management  of the  Company,
                           seeking   stockholder   approval   of   a   plan   of
                           reorganization,   merger  or   consolidation  of  the
                           Company  or  similar  transaction  with  one or  more
                           corporations  as a result  of which  the  outstanding
                           shares of the class of securities then subject to the
                           plan are to be exchanged  for or converted  into cash
                           or property or securities  not issued by the Company;
                           or

                                    (E) a  tender  offer is made for 25% or more
                           of the  voting  securities  of the  Company  and  the
                           shareholders  owning beneficially or of record 25% or
                           more of the  outstanding  securities  of the  Company
                           have   tendered  or  offered  to  sell  their  shares
                           pursuant  to such  tender  offer  and  such  tendered
                           shares have been accepted by the tender offeror.

         (b) With  respect to any  payments  hereunder  that are subject to Code
Section  409A,  "Change in Control"  shall mean (i) a change in the ownership of
the Bank or the Company,  (ii) a change in the effective  control of the Bank or
Company,  or (iii) a change in the  ownership  of a  substantial  portion of the
assets of the Bank or Company, as described below.

                  (1) A change  in  ownership  occurs  on the date  that any one
person,  or more  than one  person  acting as a group (as  defined  in  Proposed
Treasury Regulations section 1.409A-3(g)(5)(v)(B)),  acquires ownership of stock
of the Bank or Company  that,  together with stock held by such person or group,
constitutes  more than 50% of the total fair market  value or total voting power
of the stock of such corporation.

                  (2) A change in the  effective  control of the Bank or Company
occurs on the date  that  either  (i) any one  person,  or more than one  person
acting  as  a  group  (as  defined  in  Proposed  Treasury  Regulations  section
1.409A-3(g)(5)(vi)(B))  acquires  (or has acquired  during the  12-month  period
ending on the date of the most  recent  acquisition  by such  person or persons)
ownership  of stock of the Bank or Company  possessing  35% or more of the total
voting  power of the stock of the Bank or  Company,  or (ii) a  majority  of the
members of the Bank's or Company's  board of  directors  is replaced  during any
12-month period by directors whose  appointment or election is not endorsed by a
majority of the members of the Bank's or Company's  board of directors  prior to
the date of the appointment or election,  provided that this subsection  9(b)(2)
is inapplicable  where a majority  shareholder of the Bank or Company is another
corporation.

                  (3) A  change  in a  substantial  portion  of  the  Bank's  or
Company's  assets occurs on the date that any one person or more than one person
acting  as  a  group  (as  defined  in  Proposed  Treasury  Regulations  section
1.409A-3(g)(5)(vii)(C))  acquires  (or has acquired  during the 12-month  period
ending on the date of the most  recent  acquisition  by such  person or persons)
assets from the Bank or Company  that have a total gross fair market value equal
to or more  than 40% of the  total  gross  fair  market  value of (i) all of the
assets of the Bank or Company,  or (ii) the value of the assets  being  disposed
of, either of which is determined  without regard to any liabilities  associated
with such assets.  For all purposes of this  subsection  9(b), the definition of
Change in Control shall be construed to be consistent  with the  requirements of
Proposed Treasury Regulations section 1.409A-3(g)(5),  except to the extent that
such proposed regulations are superseded by subsequent guidance.

         (c) For purposes of this  Agreement,  the term "Change in Control Date"
shall mean the first  date  during  the  Employment  Period on which a Change in
Control occurs. Anything in this Agreement to the contrary  notwithstanding,  if
the

<PAGE>

Executive's  employment  with the  Bank is  terminated  and if it is  reasonably
demonstrated by the Executive that such termination of Employment (i) was at the
request of a third party who has taken steps  reasonably  calculated to effect a
Change in Control or (ii) otherwise  arose in connection with or anticipation of
a Change in  Control,  then for all  purposes of this  Agreement  the "Change in
Control  Date"  shall  mean  the  date  immediately  prior  to the  date of such
termination of employment.

         10.  Confidentiality.  Unless he obtains prior written consent from the
              ---------------
Bank, the Executive shall keep confidential and shall refrain from using for the
benefit of himself,  or any person or entity other than the Bank, the Company or
any entity which is a  subsidiary  or affiliate of the Bank or the Company or of
which  the Bank or the  Company  is a  subsidiary  or  affiliate,  any  material
document or information obtained from the Bank, the Company or from any of their
respective parents,  subsidiaries or affiliates, in the course of his employment
with any of them concerning  their  properties,  operations or business  (unless
such document or information is readily  ascertainable  from public or published
information  or trade sources or has otherwise been made available to the public
through no fault of his own) until the same ceases to be material (or becomes so
ascertainable  or available);  provided,  however,  that nothing in this Section
shall  prevent  the  Executive,  with or  without  the  Bank's or the  Company's
consent,  from  participating  in or  disclosing  documents  or  information  in
connection  with  any  judicial  or  administrative  investigation,  inquiry  or
proceeding to the extent that such participation or disclosure is required under
applicable law.

         11. Non-Solicitation; Non-Competition; Post-Termination Cooperation.
             ---------------------------------------------------------------

         (a) The Executive hereby covenants and agrees that, for a period of one
year  following  his  termination  of  employment  with the Bank,  he shall not,
without the written consent of the Bank, either directly or indirectly:

                  (i)  solicit,  offer  employment  to, or take any other action
intended (or that a reasonable person acting in like circumstances would expect)
to have the effect of causing any  officer or employee of the Bank,  the Company
or any of their  respective  subsidiaries  or affiliates to terminate his or her
employment and accept  employment or become affiliated with, or provide services
for  compensation  in any capacity  whatsoever to, any business  whatsoever that
competes  with the business of the Bank or the Company or any of their direct or
indirect  subsidiaries  or affiliates or has  headquarters or offices within the
counties in which the Bank or the Company has business  operations  or has filed
an application for regulatory approval to establish an office;

                  (ii)  become  an  officer,  employee,  consultant,   director,
independent contractor,  agent, sole proprietor, joint venturer, greater than 5%
equity-owner or stockholder, partner or trustee of any savings bank, savings and
loan association,  savings and loan holding company,  credit union, bank or bank
holding company, insurance company or agency, any mortgage or loan broker or any
other entity  competing with the Bank or its  affiliates in the same  geographic
locations  where  Provident  Bank  or  its  affiliates  has  material   business
interests;  provided,  however,  that  this  restriction  shall not apply if the
Executive's employment is terminated following a Change in Control; or

                  (iii)   solicit,   provide   any   information,    advice   or
recommendation  or take any other action  intended (or that a reasonable  person
acting in like  circumstances  would  expect) to have the effect of causing  any
customer  of the Bank or the  Company  to  terminate  an  existing  business  or
commercial relationship with the Bank or the Company.

         (b) Executive shall, upon reasonable  notice,  furnish such information
and assistance to the Bank and/or the Company,  as may reasonably be required by
the Bank and/or the Company,  in connection  with any  litigation in which it or
any of its  subsidiaries  or affiliates  is, or may become,  a party;  provided,
however,  that  Executive  shall  not be  required  to  provide  information  or
assistance  with respect to any  litigation  between the Executive and the Bank,
the Company or any of its subsidiaries or affiliates.

         (c) All  payments and benefits to the  Executive  under this  Agreement
shall be subject to the Executive's  compliance  with this Section.  The parties
hereto,  recognizing  that  irreparable  injury  will  result to the  Bank,  its
business and property in the event of the  Executive's  breach of this  Section,
agree that, in the event of any such breach by the  Executive,  the Bank will be
entitled,  in  addition  to any other  remedies  and  damages  available,  to an
injunction  to restrain the  violation  hereof by the  Executive and all persons
acting for or with the Executive.  The Executive  represents and admits that the
Executive's  experience and  capabilities are such that the Executive can obtain
employment  in a business  engaged in other lines  and/or of a different  nature
than the Bank, and that the  enforcement  of a remedy by way of injunction  will
not prevent the  Executive  from earning a  livelihood.  Nothing  herein will be
construed  as  prohibiting  the Bank and the  Company  from  pursuing  any other
remedies available to them for such breach or threatened  breach,  including the
recovery of damages from the Executive.

         12. Additional Termination and Suspension Provisions
             ------------------------------------------------

         (a) If the Executive is suspended  and/or  temporarily  prohibited from
participating  in the  conduct of the Bank's  affairs by a notice  served  under
Section 8(e)(3) or (g)(1) of the Federal  Deposit  Insurance Act, as amended (12
U.S.C.  1818(e)(3) and (g)(1)), all obligations of the Bank under this Agreement
shall be  suspended  as of the date of  service  unless  stayed  by  appropriate
proceedings.  If the  charges in the notice are  dismissed,  the Bank may in its
discretion  (i) pay the Executive  all of the  compensation  withheld  while the
Bank's  obligations  under this  Agreement were suspended and (ii) reinstate (in
whole) any of the Bank's  obligations  which were  suspended,  and in exercising
such discretion,  the Bank shall consider the facts and make a decision promptly
following such dismissal of charges and act in good faith in deciding whether to
pay any withheld  compensation  to the  Executive and

<PAGE>

to reinstate any suspended obligations of the Bank.

         (b) If the  Executive is removed  and/or  permanently  prohibited  from
participating  in the  conduct of the Bank's  affairs by an order  issued  under
Section 8(e)(4) or (g)(1) of the Federal  Deposit  Insurance Act, as amended (12
U.S.C. 1818 (e)(4) or (g)(1)),  all obligations of the bank under this Agreement
shall terminate as of the effective date of the order,  but vested rights of the
parties shall not be affected.

         (c) If the Bank is in  default,  as defined  in Section  3(x)(1) of the
Federal  Deposit  Insurance  Act,  as  amended  (12  U.S.C.  1813  (x)(1)),  all
obligations under this Agreement shall terminate as of the date of default,  but
this provision shall not affect any vested rights of the parties.

         (d) All obligations under this Agreement shall be terminated, except to
the extent  determined that  continuation of this Agreement is necessary for the
continued operation of the Bank, (i) by the Director of the OTS (the "Director")
or his  designee,  at the time the FDIC  enters  into an  agreement  to  provide
assistance to or on behalf of the Bank under the authority  contained in Section
13(c) of the Federal Deposit Insurance Act, as amended;  or (ii) by the Director
or his designee, at the time the Director or his designee approves a supervisory
merger to resolve  problems related to operation of the Bank or when the Bank is
determined by the Director to be in an unsafe or unsound  condition.  Any rights
of the parties that have already vested,  however, shall not be affected by such
action.

         (e)  If any  regulation  applicable  to the  Bank  shall  hereafter  be
adopted, amended or modified or if any new regulation applicable to the Bank and
effective after the date of this Agreement:

                  (i)      shall  require the  inclusion in this  Agreement of a
                           provision not presently  included in this  Agreement,
                           then the  foregoing  provisions of this Section shall
                           be deemed  amended  to the extent  necessary  to give
                           effect  in  this   Agreement  to  any  such  amended,
                           modified or new regulation; and

                  (ii)     shall permit the  exclusion  of a limitation  in this
                           Agreement  on  the  payment  to the  Executive  of an
                           amount or  benefit  provided  for  presently  in this
                           Agreement,  then  the  foregoing  provisions  of this
                           Section  shall  be  deemed   amended  to  the  extent
                           permissible  to exclude from this  Agreement any such
                           limitation previously required to be included in this
                           Agreement  by a  regulation  prior to its  amendment,
                           modification or repeal.

         13. Arbitration; Legal Fees.
             -----------------------

         (a) Arbitration. In the event that any dispute should arise between the
             -----------
parties as to the meaning, effect,  performance,  enforcement, or other issue in
connection with this Agreement, which dispute cannot be resolved by the parties,
the  dispute  shall be decided by final and  binding  arbitration  of a panel of
three arbitrators.  Proceedings in arbitration and its conduct shall be governed
by the rules of the  American  Arbitration  Association  ("AAA")  applicable  to
commercial  arbitrations  (the "Rules") except as modified by this Section.  The
Executive shall appoint one  arbitrator,  the Bank shall appoint one arbitrator,
and the  third  shall  be  appointed  by the two  arbitrators  appointed  by the
parties.  The third arbitrator shall be impartial and shall serve as chairman of
the panel. The parties shall appoint their  arbitrators  within thirty (30) days
after the demand for arbitration is served, failing which the AAA promptly shall
appoint a defaulting  party's  arbitrator,  and the two arbitrators shall select
the third  arbitrator  within fifteen (15) days after their  appointment,  or if
they cannot agree or fail to so appoint, then the AAA promptly shall appoint the
third arbitrator.  The arbitrators shall render their decision in writing within
thirty  (30) days  after  the  close of  evidence  or other  termination  of the
proceedings  by the panel,  and the  decision of a majority  of the  arbitrators
shall be final and binding upon the parties, nonappealable, except in accordance
with the Rules and enforceable in accordance with the applicable  state law. Any
hearings in the arbitration  shall be held in Rockland  County,  New York unless
the parties  shall agree upon a  different  venue,  and shall be private and not
open to the  public.  Each  party  shall  bear  the  fees  and  expenses  of its
arbitrator,  counsel,  and  witnesses,  and the fees and  expenses  of the third
arbitrator shall be shared equally by the parties. The costs of the arbitration,
including  the fees of AAA,  shall be borne as directed  in the  decision of the
panel.

         (b)  Legal  Fees.  Unless  it is  determined  that a claim  made by the
              -----------
Executive was either  frivolous or made in bad faith,  the Bank agrees to pay as
incurred, to the full extent permitted by law, all legal fees and expenses which
the Executive  may  reasonably  incur as a result of or in  connection  with his
consultation with legal counsel or arising out of any action,  suit,  proceeding
or contest  (regardless  of the outcome  thereof) by the Bank,  the Executive or
others  regarding the validity or  enforceability  of, or liability  under,  any
provision of this Agreement or any guarantee of performance thereof (as a result
of any contest by the Executive about the amount of any payment pursuant to this
Agreement),  plus in each case interest on any delayed payment at the applicable
federal rate provided for in Internal Revenue Code Section 7872(f)(2)(A).

         14. Indemnification and Insurance.
             -----------------------------

         (a) The Executive  (including his heirs,  executors and administrators)
shall be  provided  with  coverage  under a standard  directors'  and  officers'
liability  insurance  policy at the Bank's  expense,  and the Executive (and his
heirs,  executors and administrators) shall be indemnified to the fullest extent
permitted under  applicable law against all expenses and liabilities  reasonably
incurred  by him in  connection  with  or  arising  out of any  action,  suit or
proceeding  in which he may be  involved by reason of his having been an officer
of the  Bank  (whether  or not he  continues  to be an  officer  at the  time of
incurring such expenses or liabilities

<PAGE>

and for a period of six years  following his  termination of employment with the
Bank),  such  expenses  and  liabilities  to  include,  but not be  limited  to,
judgments,   court  costs  and  attorneys'  fees  and  the  cost  of  reasonable
settlements   (such   settlements   must  be  approved   by  the   Board).   Any
indemnification  shall be made consistent with OTS Regulations and Section 18(k)
of the Federal Deposit Insurance Act, 12 U.S.C. ss.1828(k),  and the regulations
issued thereunder in 12 C.F.R. Part 359.

         (b) Notwithstanding the foregoing,  no indemnification shall be made by
the Bank unless the Bank gives the OTS at least 60 days' notice of its intention
to make such  indemnification.  Such  notice  shall state the facts on which the
action arose, the terms of any settlement,  and any disposition of the action by
a court.  Such notice,  a copy thereof,  and a certified  copy of the resolution
containing the required determination by the Board shall be sent to the Regional
Director of the OTS, who shall promptly  acknowledge receipt thereof. The notice
period shall run from the date of such receipt. No such indemnification shall be
made if the OTS advises the Bank in writing  within such notice  period,  of its
objection thereto.

         15.  Notices.  The persons or addresses to which mailings or deliveries
              -------
shall be made may  change  from time to time by  notice  given  pursuant  to the
provisions of this Section.  Any notice or other communication given pursuant to
the provisions of this Section shall be deemed to have been given (i) if sent by
messenger,  upon personal  delivery to the party to whom the notice is directed;
(ii) if sent by reputable overnight courier,  one business day after delivery to
such  courier;  (iii)  if sent  by  facsimile,  upon  electronic  or  telephonic
confirmation of receipt from the receiving facsimile machine and (iv) if sent by
mail, three business days following deposit in the United States mail,  properly
addressed,  postage  prepaid,  certified or registered  mail with return receipt
requested.  All notices  required or  permitted to be given  hereunder  shall be
addressed as follows:

If to the Executive:
                           ------------------------

                           ------------------------

                           ------------------------

If to the Bank:            Provident Bank
                           400 Rella Boulevard
                           Montebello, New York 10901
                           Attention: Chairman of the Board

With a copy to:

                           Luse Gorman Pomerenk & Schick, PC
                           5335 Wisconsin Avenue, NW, Suite 400
                           Washington, DC 20015
                           Attention: John Gorman, Esq.

         16. Amendment. No modifications of this Agreement shall be valid unless
             ---------
made in writing and signed by the parties hereto.

         17. Miscellaneous.
             -------------

         (a) Successors and Assigns. This Agreement will inure to the benefit of
             ----------------------
and be binding  upon the  Executive,  his legal  representatives  and estate and
intestate distributees,  and the Bank, its successors and assigns, including any
successor by merger or consolidation or a statutory receiver or any other person
or firm or  corporation  to which all or  substantially  all of the  assets  and
business of the Bank may be sold or otherwise transferred. Any such successor of
the Bank  shall be deemed to have  assumed  this  Agreement  and to have  become
obligated  hereunder  to the  same  extent  as the  Bank,  and  the  Executive's
obligations hereunder shall continue in favor of such successor.

         (b) Severability.  A determination that any provision of this Agreement
             ------------
is invalid or unenforceable  shall not affect the validity or  enforceability of
any other provision hereof.

         (c) Waiver.  Failure to insist upon strict  compliance  with any terms,
             ------
covenants  or  conditions  hereof  shall not be  deemed a waiver  of such  term,
covenant or condition.  A waiver of any provision of this Agreement must be made
in writing,  designated  as a waiver,  and signed by the party  against whom its
enforcement  is  sought.  Any  waiver  or  relinquishment  or any right or power
hereunder   at  any  one  or  more  times  shall  not  be  deemed  a  waiver  or
relinquishment of such right or power at any other time or times.

         (d)  Counterparts.  This  Agreement  may be  executed  in  two or  more
              ------------
counterparts,  each of which shall be deemed an original, and all of which shall
constitute one and the same Agreement.

         (e) Governing  Law. This  Agreement  shall be governed by and construed
             --------------
and  enforced  in  accordance  with the laws of the State of New  York,  without
reference  to  conflicts  of law  principles,  except to the extent  governed by
federal law in which case federal law shall  govern.  Any  payments  made to the
Executive pursuant to this Agreement, or otherwise are subject to all applicable
banking laws and regulations, including, without limitation, 12 USC 1828 (i) and
any regulations promulgated thereunder.

<PAGE>

         (f)  Headings  and  Construction.  The  headings  of  sections  in this
              ---------------------------
Agreement are for  convenience of reference only and are not intended to qualify
the meaning of any Section.  Any reference to a Section  number shall refer to a
Section of this Agreement, unless otherwise specified.

         (g) Entire Agreement.  This instrument contains the entire agreement of
             ----------------
the  parties  relating to the  subject  matter  hereof,  and  supersedes  in its
entirety  any  and  all  prior  agreements,  understandings  or  representations
relating  to the  subject  matter  hereof,  including  without  limitation,  the
employment agreement between the Executive and the Bank and the Company dated as
of January 25, 1996, and as amended March 6, 1996 and January 31, 1999.

         (h) Source of Payments.  All payments  provided in this Agreement shall
             ------------------
be timely paid in cash or check from the general funds of the Bank.

         IN WITNESS  WHEREOF,  the Bank has caused this Agreement to be executed
and the  Executive  has  hereunto  set his hand,  all as of the  Effective  Date
specified above.

                                                EXECUTIVE

                                                /s/ George Strayton
---------------------                           --------------------------------
Date                                                George Strayton

                                                PROVIDENT BANK

                                            By:
---------------------                           --------------------------------
Date                                                Chairman of the BoardExhibit 10.3

                           PROVIDENT NEW YORK BANCORP

                        SUPPLEMENTAL EXECUTIVE AGREEMENT

         WHEREAS,  Daniel G.  Rothstein  ("Executive")  and  Provident  New York
Bancorp  (the  "Company")  desire  to enter  into  this  Supplemental  Executive
Agreement  ("Supplemental  Agreement")  to  supplement  the Amended and Restated
Employment  Agreement  between  Executive and Provident  Bank (the "Bank"),  the
wholly-owned  subsidiary of the Company,  dated_________,  2006 (the "Employment
Agreement"); and

         WHEREAS,  tax law provisions  relating to "golden  parachute  payments"
could have the effect of  reducing  the  benefits  intended  to be  provided  to
Executive under the Employment Agreement and Executive's  supplemental executive
retirement  plan as a result of a change in control of the  Company or the Bank;
and

         WHEREAS,  the benefits  intended to be provided to the Executive  under
the Employment Agreement could also be subject to reduction by reason of the OTS
limitation  on severance  benefits  described in Section 7(e) of the  Employment
Agreement; and

         WHEREAS, Board believes that it is in the best interests of the Company
and its shareholders  that the Employment  Agreement  provide the Executive with
the benefits  intended to be provided  thereunder  without  reduction because of
excise taxes  relating to a change in control or because of limits on what might
be deemed appropriate for payment by a federally chartered savings  institution;
and

         WHEREAS,   the  Company  and  Executive   desire  to  enter  into  this
Supplemental  Agreement  for the  purpose  of  providing  further  incentive  to
Executive to achieve  successful results in the management and operations of the
Company.

         NOW,  THEREFORE,  in  consideration  of  the  mutual  covenants  herein
contained,  and upon the other terms and conditions  hereinafter  provided,  the
parties hereto hereby agree as follows:

         1. In the event of a termination  of  Executive's  employment  with the
Bank  under  Section  7(a)  of  the  Employment  Agreement  (as  defined  in the
Employment Agreement),  Executive shall be entitled to receive, pursuant to this
Supplemental  Agreement,  an amount  payable by the Company,  in addition to any
compensation  or benefits  payable by the Bank  pursuant to Section  7(b) of the
Employment Agreement,  which amount shall equal the difference,  if any, between
(i) the amount  that would be paid by the Bank  under the  Employment  Agreement
pursuant to Sections 7(b) without  regard to any reduction  that may be required
by Section  7(e),  and (ii) the amount that is actually  paid under the terms of
the Employment Agreement.

         2. (a) In the event that any  payments  or  benefits  provided or to be
provided to the Executive pursuant to Section 7(b) the Employment Agreement,  in
combination with payments or benefits,  if any, from other plans or arrangements
maintained by the Company or the Bank,  constitute  "excess parachute  payments"
under  Section 280G of the Code and are subject to excise tax under Section 4999
of the Code,  the Company  shall pay to Executive in cash an  additional  amount
equal to the amount of the Gross Up Payment  as  defined  herein.  The "Gross Up
Payment"  shall be the amount  needed to ensure that the amount of such payments
and the value of such benefits received by Executive (net of such excise tax and
any federal, state and local tax on the Company's payment to him attributable to
such excise tax) equals the amount of such  payments and value of such  benefits
as he would receive in the absence of such excise tax and any federal, state and
local tax on the Company's  payment to him  attributable to such excise tax. For
purposes of  determining  the amount of the Gross Up  Payment,  the value of any
non-cash  benefits  and deferred  payments or benefits  shall be  determined  in
accordance with the principles of Section 280G(d)(3) and (4) of the Code.

         (b) In the event that,  after the Gross Up Payment is made,  the amount
of the excise tax described is determined to be less than the amount  calculated
in the  determination  of the  actual  Gross  Up  Payment  made by the  Company,
Executive  shall repay to the  Company,  at the time that such  reduction in the
amount of excise tax is finally determined,  the portion of the Gross Up Payment
attributable to such reduction, plus interest on the amount of such repayment at
the applicable  federal rate under Section 1274 of the Code from the date of the
Gross Up Payment to the date of the  repayment.  The amount of the  reduction of
the Gross Up Payment  shall  reflect any  subsequent  reduction  in excise taxes
resulting from such repayment.

         (c) In the event that,  after the Gross Up Payment is made,  the amount
of the excise tax is determined to exceed the amount anticipated at the time the
Gross  Up  Payment  was  made,  the  Company  shall  pay  to the  Executive,  in
immediately  available funds, at the time that such additional  amount of excise
tax is finally determined, an additional payment ("Additional Gross Up Payment")
equal to such additional  amount of excise tax and any federal,  state and local
taxes thereon,  plus all interest and  penalties,  if any, owed by the Executive
with respect to such additional amount of excise and other tax.

<PAGE>

         (d) The  Company  shall  have the right to  challenge,  on  Executive's
behalf,  any excise tax assessment against him as to which Executive is entitled
to (or would be entitled if such assessment is finally  determined to be proper)
a Gross Up Payment or Additional  Gross Up Payment,  provided that all costs and
expenses  incurred  in such a  challenge  shall be borne by the  Company and the
Company shall  indemnify  the  Executive and hold him harmless,  on an after-tax
basis,  from any excise or other tax  (including  interest  and  penalties  with
respect  thereto)  imposed as a result of such  payment of costs and expenses by
the Company.

         3. Any payments  made to the  Executive  pursuant to this  Agreement or
otherwise,  are subject to and  conditioned  upon compliance with all applicable
banking laws and regulations,  including,  without limitation, 12 U.S.C. Section
1828(k) and any regulations promulgated thereunder.

         IN  WITNESS  WHEREOF,  Provident  New  York  Bancorp  has  caused  this
Supplemental   Agreement  to  be  executed,   and   Executive  has  signed  this
Supplemental Agreement, as of the ____ day of _______________, 2006.

ATTEST:                                         PROVIDENT NEW YORK BANCORP

                                                By:  /s/ Daniel Rothstein
------------------------------------                 ---------------------------
Secretary                                            Daniel Rothstein

WITNESS:                                        EXECUTIVE

                                                By:
------------------------------------                 ---------------------------

                                       2

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