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”, all references to managers herein shall be
deemed to refer equally to Directors);
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:
All Managers who are not employees
of the Bank are eligible for Participation in the Plan;
provided, however , that, effective as of January 1,
2005, no Manager shall participate in the Plan or receive a benefit
under the Plan unless he or she will have been a member of the
Board of Managers for at least ten years as of December 31,
2006. 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.
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2.
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Normal
Retirement Benefits
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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 Normal Retirement Age, and after having
been a Manager for at least ten years, shall receive on each
subsequent January 1, 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:
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Full Years Of
Service As
A Manager After 1991
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Quarterly
Payment
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1
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$
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125.00
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2
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250.00
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3
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375.00
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4
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500.00
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5
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625.00
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6
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750.00
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7
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875.00
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8
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1,000.00
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9
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1,125.00
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10 or more
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1,250.00
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For purposes of this Plan
“Normal Retirement Age” shall mean age 70 for a Manager
who would reach age 70 on or before January 1, 2003 and age 72
for any other Manager, and “Early Retirement Age” shall
mean the age that is ten years less than the Manager’s Normal
Retirement Age.
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3.
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Early
Retirement Benefit
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A Manager who ceases to be a Manager
at or after attaining his or her Early Retirement Age, but prior to
the first Annual Meeting of the Bank after the Manager has attained
his or her Normal Retirement Age, 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 after the Manager has attained his or her Normal
Retirement Age, or, if later, the first day of any calendar quarter
coincident with or next following the date he ceases to be a
Manager. Alternatively, such Manager may elect, by written notice
to the Bank given within thirty (30) days after becoming a
non-employee Manager or on or before December 31, 2008,
whichever is later, 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
