SUPPLEMENTAL EXECUTIVE AGREEMENT

                                  Exhibit 10.3

                           PROVIDENT NEW YORK BANCORP

                        SUPPLEMENTAL EXECUTIVE AGREEMENT


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

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

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

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

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

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

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

         2. (a) In the event that any   payments   or   benefits   provided or to be
provided to the