Document:

<PAGE>

                                                                    Exhibit 10.7

                                 RETIREMENT PLAN
                            FOR THE BOARD OF MANAGERS
                                       OF
                               THE PROVIDENT BANK

WHEREAS. The Provident Bank, a New Jersey savings bank (the "Bank") desires to
provide retirement benefits for eligible .members of their Board of Managers
("Managers"); NOW. THEREFORE, the Bank hereby adopts the "Retirement Plan For
The Board Of Managers Of The Provident Bank" (the "Plan"), effective January 1,
1992 as hereinafter set forth:

     1.   Eligibility

          All Managers who are not employees of the Bank are eligible for
          Participation in the Plan. Even though a Manager participates in the
          Plan, no benefits shall be paid under this Plan to a Manager unless he
          or she meets the age requirements outlined in this Plan and unless he
          or she has been a Manager for at least ten years.

     2.   Normal Retirement Benefits

          A Manager who ceases to be a Manager on or after the first Annual
          Meeting of the Bank after the Manager has attained his or her 70th
          birthday, and after having been a Manager for at least ten years,
          shall receive on each subsequent January1, April 1, July 1, and
          October 1 for the remainder of his or her lifetime (but not to exceed
          40 quarterly payments) a payment from the Bank in an amount determined
          as follows:

              Full Years Of
               Service As        Quarterly
          A Manager After 1991    Payment

                   1              $125.00
                   2               250.00
                   3               375.00
                   4               500.00

                                       -1-

<PAGE>

              Full Years Of
               Service As        Quarterly
          A Manager After 1991    Payment

                     5           $  625.00
                     6              750.00
                     7              875.00
                     8            1,000.00
                     9            1,125.00
               10 or more         1,250.00

     3.   Early Retirement Benefit

          A Manager who ceases to be a Manager at or after attaining age 65, but
          prior to the first Annual Meeting of the Bank after the Manager has
          attained his or her 70th birthday, and after having been a Manager for
          at least ten years, shall receive the quarterly payments outlined in
          Section 2 above commencing on the first day of the calendar quarter
          immediately following the first Annual Meeting of the Bank after the
          Manager has attained his or her 70th birthday. Alternatively, such
          Manager may elect to have quarterly payments commence on the first day
          of any calendar quarter coincident with or next following the date he
          ceases to be a Manager, in which case each payment shall be reduced to
          reflect the fact that the payments commence prior to the first day of
          the calendar quarter immediately following the first Annual Meeting of
          the Bank after the Manager would have attained his or her 70th
          birthday. The reduction shall be 2.5% for each calendar quarter by
          which the date payments commence precedes the first day of the
          calendar quarter immediately following the first Annual Meeting of the
          Bank after the Manager would have attained his or her 70th birthday.
          The quarterly payments made to a Manager who retires early in
          accordance with this Section shall be made for the remainder of his or
          her lifetime (but not to exceed 40 quarterly payments).

                                       -2-

<PAGE>

     4.   Lump Sum Death Benefit

          In the event that a Manager dies before ceasing to be a Manager or
          before age 65 or before having been a Manager for at least ten years,
          no benefits will be payable from this Plan to his or her surviving
          beneficiary. In the event that a Manager who has met the eligibility
          requirements for benefits outlined in Sections 2 or 3 above dies after
          he or she has ceased to be a Manager, a lump sum amount shall be paid
          to his or her beneficiary equal to four times the amount of the
          quarterly payment which the Manager was receiving (or would have
          started receiving on the first day of the calendar quarter next
          following his or her death if payments have not yet commenced), except
          that if such deceased Manager has received more than 36 quarterly
          payments, the lump sum amount paid shall equal (a) 40 minus the number
          of quarterly payments made to the deceased Manager times (b) the
          amount of the quarterly payment which the Manager was receiving.

     5.   General Provisions

          5.1  Benefits under this Plan shall be paid out of the general assets
               of the Bank.

          5.2  The Board of Managers of the Bank may amend or terminate the Plan
               at any time and from time to time in such manner as it shall
               determine. Any amendment may be given retroactive effect, except
               that no amendment may reduce or eliminate any benefit which
               accrued to any Manager under the Plan prior to the date of the
               amendment without the consent of the affected Manager.

          5.3  Except as otherwise provided by law, the right of any Manager to
               any benefit or payment hereunder is expressly made subject

                                       -3-

<PAGE>

               to the condition and limitation that it shall not be subject to
               alienation, assignment, attachment, execution, or other process.

          5.4  In the event it becomes necessary or appropriate to interpret the
               Plan, the Bank hereby delegates the authority to interpret the
               provisions of the Plan to those persons, who from time to time,
               have such authority with respect to and under The Provident Bank
               Pension Plan.

          5.5  In the event that any claim for benefits, which must initially be
               submitted in writing to the Board of Managers of the Bank, is
               denied (in whole or in part) hereunder, the claimant shall
               receive from the Bank notice in writing, written in a manner
               calculated to be understood by the claimant, setting forth the
               specific reasons for denial, with specific reference to pertinent
               provisions of this Plan. The interpretations and construction
               hereof by the Board of Managers shall be binding and conclusive
               on all persons and for all purposes. Any disagreements about such
               interpretations and construction shall be submitted to an
               arbitrator subject to the rules and procedures established by the
               American Arbitration Association. No member of the Board of
               Managers shall be liable to any person for any action taken
               hereunder except those actions undertaken with lack of good
               faith.

          5.6  The Plan shall be interpretated and construed in accordance with
               the laws of the State of New Jersey.

          Dated: June 18, 1992

                                       -4-

<PAGE>

                EXCERPT FROM THE MINUTES OF THE BOARD OF MANAGERS

                         MEETING HELD OCTOBER 22, 1992

On motion made and duly seconded the Board of Managers unanimously adopted the
following resolution:

BE IT RESOLVED that the Board of Managers deem it advisable to amend the
Retirement Plan for the Board of Managers for the Provident Bank (the Plan) by
providing that in the event that Provident is deemed to be "undercapitalized" as
set forth in the applicable FDIC capital regulations or fails to satisfy the
minimum capital requirement established from time to time by the New Jersey
Department of Banking then Provident's obligations under the Plan shall cease
until such time as Provident is deemed to be "well capitalized" under the
applicable FDIC capital regulations and satisfies the minimum capital
requirements of the Department of Banking at which time the Plan will be
resumed.

                                Mary Louise Festa
                               Corporate Secretary

<PAGE>

                                RETIREMENT PLAN
                           FOR THE BOARD OF MANAGERS
                                       OF
                               THE PROVIDENT BANK

                              Amendment Number One

         WHEREAS, The Provident Bank (the "Bank") sponsors the Retirement Plan
for the Board of Managers of The Provident Bank (the "Plan") for the benefit of
certain non-employee managers of the Bank; and

         WHEREAS, the Bank desires to amend the Plan to provide for benefit
payments in the event of a change in control.

         NOW THEREFORE, in consideration of the foregoing, the Plan is hereby
amended effective October 1, 2002 in accordance with the following:

1.       The Plan shall be amended by inserting new Section 5 immediately after
         Section 4 to provide as follows, and by renumbering existing Section 5
         and its subsections as Section 6 and its subsections:

                                    "Notwithstanding any other provision of this
                           Plan, the undistributed balance of each Manager's
                           accrued benefit under the Plan shall be distributed
                           to him within 60 days after the date of a "Change in
                           Control" as hereafter defined. For purposes hereof, a
                           "Change in Control" shall mean the occurrence of any
                           of the following events:

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

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

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

<PAGE>

Retirement Plan for the Board of Managers
of The Provident Bank
Amendment Number One
Page 2

                                    at least 51% of the securities entitled to
                                    vote generally in the election of directors
                                    of the Company;

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

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

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

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

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

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

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

                                    (e)     any event which would be described
                           in Section 5(a), (b), (c) or (d) if the term "Bank"
                           were substituted for the term "Company" therein and
                           the term "Bank's Board of Managers" were substituted
                           for the term "Company's Board of Directors" therein.
                           In no event, however, shall a Change in Control be

<PAGE>

Retirement Plan for the Board of Managers
of The Provident Bank
Amendment Number One
Page 3

                           deemed to have occurred as a result of any
                           acquisition of securities or assets of the Company,
                           the Bank or a subsidiary of either of them, by the
                           Company, the Bank, any subsidiary of either of them,
                           or by any employee benefit plan maintained by any of
                           them. For purposes of this Section 5, the term
                           "person" shall include the meaning assigned to it
                           under Sections 13(d)(3) or 14(d)(2) of the Exchange
                           Act."

2.       The Plan shall be amended by adding Section 6.7 immediately after new
Section 6.6 to read as follows:

                  "6.7.    Whenever used herein, the term "Board of Managers"
                           shall mean the Board of Managers of The Provident
                           Bank in its mutual form and the Board of Directors of
                           The Provident Bank in its stock form. Wherever the
                           context shall require, the masculine gender shall be
                           construed to include the feminine and the singular
                           number the plural."

         IN WITNESS WHEREOF, this Amendment Number One has been executed by the
duly authorized officers of The Provident Bank as of the ___ day of
________________, 2002.

ATTEST:                                  THE PROVIDENT BANK

__________________________               By:____________________________________
Secretary                                       Authorized Officer<PAGE>

                               THE PROVIDENT BANK
                              AMENDED AND RESTATED
                 BOARD OF MANAGERS VOLUNTARY FEE DEFERRAL PLAN

         The Provident Bank ("Bank") initially amended and restated this Board
of Managers Voluntary Fee Deferral Plan ("Plan") on October 23, 1997, to enable
any non-employee member of the Board of Managers ("eligible member") to defer
future fees payable to them for their service as a member of the Bank's Board of
Managers. The Bank now desires to further amend and restate the Plan, effective
October 1, 2002, in order to permit eligible members to make a special one-time
election to invest all or any portion of their existing account balance in the
Plan in common stock of Provident Financial Services, Inc. For purposes of this
amended and restated document, the term "Board of Managers" shall refer to the
Board prior to the conversion of the Bank from a mutual to stock chartered
savings bank and shall also refer to the "Board of Directors" of the Bank
following said conversion. Any reference herein to the "Company" shall refer to
Provident Financial Services, Inc., the Delaware chartered stock holding company
which will hold all of the outstanding common stock of the Bank following the
conversion.

         1.   Elections.

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

         (b)  Election to Acquire Company Stock. In connection with the
conversion of The Provident Bank from a mutual savings bank to a capital stock
savings bank and the concurrent formation of the Company, each eligible member
shall be provided with the opportunity to invest all or any portion of his or
her separate account under the Plan in Company stock on a one-time basis in
connection with the stock offering. Any eligible member who wishes to take
advantage of this opportunity shall execute a special investment election form,
a copy of which is annexed hereto as Exhibit "B". Notwithstanding any provision
in the Plan to the contrary, if an eligible member elects to invest all or a
portion of the eligible member's separate account under the Plan in Company
stock, the amount so invested shall remain invested in Company stock for the
duration of such eligible member's participation in the Plan. Each eligible
member who has directed the investment of all or portion of his or her separate
account under the Plan in Company stock may exercise the voting rights
appurtenant to such shares of Company stock by giving voting instructions to the
trustee of the rabbi trust established to hold

<PAGE>

such Company stock or such other person as designated in a written resolution by
the Board of Managers.

         2.   Period of Deferral. An eligible member may defer his fees to a
future year as selected by him. However, in no event shall any fee otherwise
payable on account of any year after 1997 be deferred so that the distribution
begins beyond the year of the eligible member's normal retirement from the Board
of Managers.

         3. Investment and Adjustment of Deferred Fees.

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

              (b)  Investment in Company Stock. Notwithstanding the above, if
an eligible member has elected pursuant to paragraph 1(b) to purchase common
stock of the Company in accordance with paragraph 1(b) hereof, the common stock
so purchased shall be credited to a separate account in the name of the member.
Such account shall be referred to as the member's Stock Fund Account. The value
of each member's Stock Fund Account shall be determined by reference to the last
reported trading price of the Company's common stock on the applicable valuation
date. Any earnings on such common stock shall be credited to the Investment
Account and shall be credited with interest in accordance with the provisions of
paragraph 3(a) hereof. For purposes of making any distribution under paragraph 4
below, the appropriate number of shares of common stock shall be distributed
in-kind to the eligible member on the distribution date.

         4.   Payment of Deferred Fees. Except as otherwise provided in this
paragraph, or in the case of a "Change in Control" described in paragraph 5, the
amount of an eligible member's separate account(s) (adjusted as provided in
paragraph 3) shall be distributed to the eligible member in a lump-sum or in
annual installments after such number of years or after retiring from the Board
of Managers as he may elect in accordance with paragraph 2, or, in the event of
his death or total disability, in a lump-sum to the member or to the person or
persons designated by the eligible member to receive such distribution. An
eligible member who wishes to receive a distribution of his separate account in
installments may elect to receive it in annual installments over a period of
three (3) years. If distribution is to be made in annual installments, the
amount of each installment shall be equal to the sum of (i) the adjusted value
of the eligible member's Investment Account determined in accordance with
paragraph 3 above multiplied by a fraction, the numerator of which is one and
the denominator of which is the number of installment payments remaining to be
made and (ii) the number of shares of common stock held in the eligible member's
Stock Fund Account multiplied by a fraction, the numerator of which is one and
the denominator of which is the number of installment

                                       2

<PAGE>

payments remaining to be made. In the event that the calculation under "(ii)"
above would result in the distribution of a fractional share, the number of
shares distributed shall be rounded up or down to the closest whole number of
shares. If an eligible member's service is terminated but he has not attained
age 65, the undistributed balance of his account shall be paid to him in a
single lump sum within a reasonable time following termination of service. If an
eligible member's service is terminated on or after age 65, he shall receive the
balance of his separate account(s) at such time and in such form as he has
elected or, the Board of Managers may, in its sole discretion, after receipt of
a written request by such member, pay the undistributed balance of such member's
separate account(s) in a single lump sum within a reasonable time following
termination of service.

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

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

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

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

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

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

                                       3

<PAGE>

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

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

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

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

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

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

         6.   Rights of Eligible Member or Other Distributee. Nothing contained
herein, and no action taken pursuant to the provisions hereof shall create, or
be deemed to create a trust of any kind, or to establish any fiduciary
relationship between the Bank and any eligible member or other distributee. The
separate accounts established hereunder shall be for record keeping purposes.
Fees which have been deferred will be recorded as a liability on the Bank's
general ledger when earned, but no funds shall be set aside for payment of the
liability. To the extent that any person acquires a right to receive payments
from the Bank under the provisions hereof, such right shall be no greater than
the right of an unsecured general creditor of the Bank. All payments made
pursuant to this Plan shall be made from the general assets of the Bank,
provided, however, that nothing set forth herein shall be construed as
prohibiting the Bank from establishing a rabbi trust to hold any assets for the
benefit of eligible members of this Plan. Deferred fees and the earnings thereon
shall be subject to the claims of the Bank's general creditors at all times
prior to distribution, including any fees that are contributed to and become
assets of a rabbi trust.

                                       4

<PAGE>

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

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

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

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

         11.  Special Terms, Gender and Number. Whenever used herein, the term
"Board of Managers" shall mean the Board of Managers of The Provident Bank. The
term "normal retirement" means the date of the Board of Managers Annual Meeting
after the manager attains his seventieth birthday. The term "total disability"
shall mean a physical or mental condition that renders an eligible member
incapable of carrying out the ordinary duties and responsibilities of his usual
occupation. Whenever the context shall require, the masculine gender shall be
construed to include the feminine and the singular number the plural.

                                       5

<PAGE>

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

         13.  Hardship Distribution. An eligible member, who believes that he
has incurred a Hardship may petition the Board of Managers for a Hardship
distribution. Upon a finding that the Director has suffered a Hardship, the
Board of Managers may, in its sole discretion, make distributions from the
eligible members account(s) prior to the time specified for payment of benefits
in the Directors Deferral Election. The amount of such distribution shall be
limited to the amount reasonably necessary to meet the requirements during the
financial Hardship. A distribution due to Hardship shall first be made from
amounts attributable to the eligible members Investment Fund Account.

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

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

         IN WITNESS WHEREOF, this Amended and Restated Board of Managers
Voluntary Fee Deferral Plan has been executed by the duly authorized officers of
The Provident Bank as of the ___ day of ________________, 2002.

ATTEST:                                  THE PROVIDENT BANK

__________________________               By:____________________________________
Secretary                                      Authorized Officer

                                       6

<PAGE>

                               THE PROVIDENT BANK

                              AMENDED AND RESTATED

                         BOARD OF MANAGERS VOLUNTARY FEE
                                 DEFERRAL PLAN

                                   EXHIBIT A

         Election to Defer Board of Managers Fees in 200__

         Pursuant to the provisions of The Provident Bank Amended and Restated
Board of Managers Voluntary Fee Deferral Plan, I understand that I may make an
irrevocable election to defer the receipt of board fees due to me during
calendar year 200__. In accordance with the Plan:

         I hereby elect (check one):

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

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

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

                            ___ Calendar year of my normal retirement from the
                                Board of Managers.

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

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

                            ___ In a lump sum.

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

                                       7

<PAGE>

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

______________________________
Name of Eligible Member (Print or Type)

_______________________________                         ___________________
Signature of Eligible Member                            Date

Received by The Provident Bank

This ___ day of ____________, 200__

By: _____________________________

                                       8

<PAGE>

                               THE PROVIDENT BANK
                               BOARD OF MANAGERS

                          VOLUNTARY FEE DEFERRAL PLAN

                                   EXHIBIT B

                        Special Investment Election Form

         I, __________________________________, an eligible member under The
Provident Bank Board of Managers Voluntary Fee Deferral Plan (the "Plan"), do
hereby request that my separate account under the Plan be invested in the
following manner:

         __________ % invested in common stock of Provident Financial Services,
Inc.

         I understand that my election to invest all or a portion of my separate
account in common stock of Provident Financial Services, Inc. during the stock
offering will be IRREVOCABLE.

         I also understand that this request is provided to the Board of
Managers for the purpose of determining the value of my benefit under the Plan
and the Board of Managers may or may not actually invest in accordance with my
direction.

ELIGIBLE MEMBER                                   DATE:

_________________________________                 ______________________________
Print Name:

THE PROVIDENT BANK                                DATE:

By:_______________________________                ______________________________
         Name:
         Title:

                                       9

<PAGE>

                               THE PROVIDENT BANK
                               BOARD OF MANAGERS

                          VOLUNTARY FEE DEFERRAL PLAN

                                   EXHIBIT C

                            Beneficiary Designation

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

         _________________________                       _______________________
         Name                                            Name

         _________________________                       _______________________
         Address                                         Address

         _________________________                       _______________________
         City, State, Zip                                City, State, Zip

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

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

         _______________________________
         Name of Eligible Member (Print or Type)

         _______________________________                 _______________________
         Signature of Eligible Member                    Date

         Received by The Provident Bank

         This ___ day of ___________, _____

         By: ___________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]