Document:

Exhibit 10.14

                              EMPLOYMENT AGREEMENT
                              --------------------

         This Employment Agreement  ("Agreement") is made and entered into as of
the _____ day of August, 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  Richard  O.  Jones  ("Executive").  The Bank is the
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;

         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  may be undertaken by the
Chief Executive Officer of the Bank ("CEO"),  provided that the CEO shall report
such actions to the Bank's Board of Directors  ("Board")  and such actions shall
be subject to ratification by the Board in accordance with the Bank's by-laws.

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

         (a) One  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 be twelve (12)  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  twelve  (12)  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 65.

         (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 performance evaluation of the Executive's  performance,  unless notice of
non-renewal has been given. 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.
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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
             --------------------------------
Executive Vice President,  Business Services of the Bank, with power,  authority
and  responsibility  commensurate with those of a senior officer.  The Executive
shall directly report to the CEO.

         (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.
             -----------

<PAGE>

                  (i) Annual Salary. In consideration for the services performed
                      -------------
by the Executive  under this  Agreement,  the 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 $212,000.

                  (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 $25,100.

         (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 four (4) 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  expire at the end of that
period,  such that  unused paid time off shall not be carried  forward  into the
following year and the Executive  shall not be compensated  for unused paid time
off.

         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.

<PAGE>

         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.  The Bank shall  reimburse the Executive for his ordinary
             --------
and necessary  business expenses and travel and entertainment  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.

         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 position set forth under Section 3;

                           (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; 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  salary as of the date of his
                           termination of employment with the Bank;

                  (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

<PAGE>

                           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;

                  (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
                           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 one (1)  times  the  average  of the
                           prior two (1) 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.
             -----------------

                  (i) 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 twenty-four  (24) 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  twenty-four  (24) 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.

         (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.

         (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) Section 409A  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 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

<PAGE>

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 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.  The Bank shall furnish the Executive
with a statement of the grounds for  termination  for cause and shall afford the
Executive  a  reasonable  opportunity  to refute the  grounds  for the  proposed
termination.

                  (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 CEO 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.

         (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 Executive's  "retirement" (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

                  (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

<PAGE>

                           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  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.

<PAGE>

         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 prior 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 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.

<PAGE>

         (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.  Any dispute or controversy arising out of, under, in
              -----------
connection with, or relating to this Agreement and any amendment hereof shall be
submitted to binding  arbitration  before one  arbitrator in Rockland  County in
accordance  with the Commercial  Arbitration  Rules of the American  Arbitration
Association for expedited arbitration,  and any judgment upon the award rendered
by the arbitrator may be entered in any court having jurisdiction thereof.

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

         (a)  The  Bank  shall  provide  the  Executive  (including  his  heirs,
executors and  administrators)  with coverage  under a standard  directors'  and
officers' liability insurance policy at the Bank's expense,  and shall indemnify
Executive (and his heirs,  executors and  administrators)  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  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
CEO). Any such 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: George Strayton,
                                      President & Chief Executive Officer

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.

<PAGE>

         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 to all
applicable banking laws and regulations,  including,  without limitation, 12 USC
1828 (i) and any regulations promulgated thereunder.

         (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.

         (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/ Richard Jones
-------------------                               ------------------------------
Date                                              Richard O. Jones

                                                  PROVIDENT BANK

                                          By:     /s/ George Strayton
-------------------                               ------------------------------
Date                                              George Strayton, President and
                                                  Chief Executive OfficerExhibit 10(xi)

                     2007 Schedule of Director Compensation
                     --------------------------------------

On December 7, 2006, the Company's Compensation Committee approved the following
2007 compensation for the Company's directors:

The directors of the Company and the Bank other than the Chairman of the Board
will be compensated for their services in the amount of $800 per board meeting
held. All directors, other than inside directors, also will receive a fee of
$500 for each committee meeting held. The Chair of the Audit Committee will
receive a fee of $2,000 for each Audit Committee meeting held. All other
committee chairpersons will receive $650 for each committee meeting held. The
Chairman of the Board of Directors will receive an annual fee of $38,000 and
will not receive any additional compensation for meetings attended.

Directors may defer receipt of fees into a grantor trust established by the
Company. Amounts which are deferred are invested in various mutual funds or
Monroe Bancorp common stock at the participant's direction.

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