On August 23, 2012, Provident New York Bancorp and Provident Bank (collectively, the "Company") entered into a Separation Agreement with Richard O. Jones, the Company's Executive VP, Business Services. The Separation Agreement provides, among other things, for Mr. Jones' resignation from employment by the Company effective October 1, 2012 (the "Resignation Date").

Subject to certain conditions in the Separation Agreement including the execution of a release agreement, Mr. Jones will receive a lump sum cash payment and bonus totaling $314,841. Provident Bank will also provide life and health insurance benefits through July 20, 2013. Certain provisions of Mr. Jones' employment agreement with the Company will continue in effect, including the provisions relating to confidentiality, non-solicitation, non-competition, post-termination cooperation and additional termination and suspension provisions.

The foregoing summary of the terms of the Separation Agreement is qualified in entirety by reference to the Separation Agreement, which is filed herewith as Exhibit 10.1 and incorporated herein by reference.

Simultaneously with the execution of the Separation Agreement, the Company and Mr. Jones entered into an Independent Contractor Agreement, the form of which is attached as Attachment A to the Separation Agreement. Subject to certain conditions, during the term of the Independent Contractor Agreement, Mr. Jones agreed to serve as a consultant to the Company beginning October 1, 2012, at an hourly rate of $136.00 for a six (6) month time period.

(d) Exhibits

Exhibit
  No.

10.1       Form of Separation Agreement between Provident New York Bancorp,
           Provident Bank and Richard O. Jones. †

† Management compensatory plan or arrangement