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                                  EXHIBIT 10.3

                         HOME LOAN FINANCIAL CORPORATION
               RECOGNITION AND RETENTION PLAN AND TRUST AGREEMENT

                                    ARTICLE I
                                   DEFINITIONS

      The following words and phrases when used in this Agreement with an
initial capital letter shall have the meanings set forth below. Wherever
appropriate, the masculine pronoun shall include the feminine pronoun and the
singular shall include the plural:

      1.01 "Agreement" means The Home Loan Financial Corporation Recognition and
Retention Plan and Trust Agreement.

      1.02 "Award" means a right granted to a Director or an Employee under this
Plan to receive Plan Shares.

      1.03 "Bank" means The Home Loan Savings Bank, a savings and loan
association organized under the laws of the State of Ohio.

      1.04 "Beneficiary" means the person or persons designated by a Recipient
to receive any benefits payable under this Plan in the event of such Recipient's
death. Such person or persons shall be designated in writing on forms provided
for this purpose by the Committee and may be changed from time to time by
similar written notice to the Committee. In the absence of a written
designation, the Beneficiary shall be the Recipient's estate.

      1.05 "Board" means the Board of Directors of the Corporation.

      1.06 "Committee" means the Recognition and Retention Plan Committee
appointed by the Board pursuant to Article IV hereof.

      1.07 "Common Shares" means common shares of the Corporation.

      1.08 "Conversion" means the conversion of the Bank from mutual to stock
form.

      1.09 "Corporation" means Home Loan Financial Corporation, a savings and
loan holding company incorporated under the laws of the State of Ohio for the
purpose of holding all of the common shares of the Bank issued in connection
with the Conversion, or any successor thereto.

      1.10 "Director" means any person who is a member of the Board of Directors
of the Corporation, the Bank or a Subsidiary.

      1.11 "Employee" means any person who is employed by the Corporation, the
Bank or a Subsidiary.

      1.12 "Person" means an individual, corporation, partnership, trust, bank,
joint venture, pool, syndicate, sole proprietorship, unincorporated organization
or any other form of entity not specifically listed herein.

      1.13 "Plan" means the Recognition and Retention Plan established by this
Agreement.


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      1.14 "Plan Shares" means the Common Shares held pursuant to the Trust or
which may be purchased by the Trustee pursuant to Section 5.02 of this
Agreement.

      1.15 "Plan Share Reserve" means the Common Shares held by the Trustee
pursuant to Sections 5.02 and 5.03 of this Agreement.

      1.16 "Recipient" means any Director or Employee who receives an Award
under the Plan.

      1.17 "Subsidiary" means a subsidiary of the Bank, if any, which, with the
consent of the Board, agrees to participate in the Plan.

      1.18 "Trust" means the trust established by this Agreement.

      1.19 "Trustee" means the person or persons or entity approved by the Board
pursuant to Sections 4.01 and 4.02 to hold legal title to the assets of the Plan
for the purposes set forth herein.

                                   ARTICLE II
                       ESTABLISHMENT OF THE PLAN AND TRUST

      2.01 The Corporation hereby establishes a Recognition and Retention Plan
and Trust upon the terms and subject to the conditions set forth in this
Agreement.

      2.02 The Trustee hereby accepts the Trust and agrees to hold the Trust
assets existing on the date of this Agreement and all additions and accretions
thereto upon the terms and conditions of this Agreement.

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                                   ARTICLE III
                               PURPOSE OF THE PLAN

      3.01 The purpose of the Plan is to reward and retain the Directors and
Employees of the Corporation, the Bank and the Subsidiaries by providing such
Directors and Employees with an equity interest in the Corporation as reasonable
compensation for their contributions to the Corporation, the Bank and any
Subsidiary.

                                   ARTICLE IV
                           ADMINISTRATION OF THE PLAN

      4.01 ROLE OF THE COMMITTEE. The Plan shall be administered and interpreted
by the Committee, which shall consist of not less than three members of the
Board. The Committee shall have all of the powers set forth in this Plan. The
interpretation and construction by the Committee of any provisions of this
Agreement or of any Award granted hereunder shall be final, conclusive and
binding. The Committee shall act by the vote, or the written consent, of a
majority of its members. The Committee shall report actions and decisions with
respect to the Plan to the Board upon request by the Board.

      4.02 ROLE OF THE BOARD. The members of the Committee and the Trustee shall
be appointed or approved by and shall serve at the pleasure of the Board. The
Board may in its discretion from time to time remove members from or add members
to the Committee and may remove, replace or add one or more Trustees.

      4.03 LIMITATION ON LIABILITY. No member of the Board or the Committee, nor
any Trustee, shall be liable for any determination made in good faith with
respect to the Plan or any Plan Shares or Awards granted under the Plan. If a
member of the Board or of the Committee or any Trustee is a party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative, by
reason of anything done or not done by such member in such capacity under or
with respect to this Plan, the Bank shall indemnify such member against expenses
(including attorneys' fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred by such member in connection with such action,
suit or proceeding if such member acted in good faith and in a manner such
member reasonably believed to be in or not opposed to the best interests of the
Corporation, the Bank and any Subsidiary and, with respect to any criminal
action or proceeding, had no reasonable cause to believe such member's conduct
was unlawful.

                                    ARTICLE V
                        CONTRIBUTIONS; PLAN SHARE RESERVE

      5.01 AMOUNT AND TIMING OF CONTRIBUTIONS. The Board shall determine the
amounts, or the method of computing the amounts, to be contributed by the
Corporation or the Bank to the Trust. Such amounts shall be paid to the Trustee
at the time of contribution. No contributions to the Trust by Directors or
Employees shall be permitted.

      5.02 INVESTMENT OF TRUST ASSETS. The Trust shall not purchase a number of
Common Shares greater than four percent (4%) of the number of Common Shares
issued in connection with the Conversion. After such investment, the Common
Shares purchased shall be held by the Trustee in the Plan Share Reserve until
such Common Shares are subject to one or more Awards. Any funds held by the
Trust shall be invested by the Trustee in such accounts at the Bank or elsewhere
or such other instruments or investments as the Trustee shall determine to be
appropriate.

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      5.03 EFFECT OF ALLOCATIONS, RETURNS AND FORFEITURES UPON PLAN SHARE
RESERVES. Upon the allocation of Awards pursuant to Section 6.02 of this
Agreement, or the decision of the Committee to return Plan Shares to the
Corporation, the Plan Share Reserve shall be reduced by the number of Plan
Shares so allocated or returned. Any Plan Shares subject to an Award which is
forfeited by the Recipient pursuant to Section 7.01(b) of this Agreement shall
be retained in the Plan Share Reserve.

                                   ARTICLE VI
                            ELIGIBILITY; ALLOCATIONS

      6.01 ELIGIBILITY. Directors and Employees are eligible to receive Awards
within the sole discretion of the Committee.

      6.02 ALLOCATIONS. The Committee will determine in its sole discretion
which of the Directors and Employees will be granted Awards and the number of
Plan Shares covered by each Award; provided, however, if this Plan is
implemented prior to the first anniversary of the effective date of the
Conversion, the following restrictions shall apply: (a) the aggregate number of
Plan Shares covered by Awards to any one Employee shall not exceed 25% of the
total number of Plan Shares, (b) no more than 5% of the Plan Shares shall be
awarded to any Director who is not an Employee, and (c) no more than 30% of the
Plan Shares shall be awarded in the aggregate to Directors who are not
Employees. In the event that Plan Shares are forfeited for any reason, the
Committee may, from time to time, determine which of the Employees and Directors
will be granted additional Awards to be awarded from forfeited Plan Shares.

      In selecting the Directors and Employees to whom Awards will be granted
and the number of shares covered by such Awards, the Committee shall consider
the position, duties and responsibilities of the eligible Directors and
Employees, the value of their services to the Corporation, the Bank and any
Subsidiary and any other factors the Committee may deem relevant.

      6.03 FORM OF ALLOCATION. As promptly as practicable after a determination
is made pursuant to Section 6.02 of this Agreement that an Award is to be made,
the Committee shall notify the Recipient in writing of the grant of the Award,
the number of Plan Shares covered by the Award and the terms upon which the Plan
Shares subject to the Award may be earned. The date on which the Committee
determines that an Award is to be made or a later date designated by the
Committee shall be considered the date of grant of the Award. The Committee
shall maintain records as to all grants of Awards.

      6.04 ALLOCATIONS NOT REQUIRED. None of the Directors or Employees, either
individually or as a group, shall have any right or entitlement to receive an
Award. The Committee may, with the approval of the Board, and shall, if so
directed by the Board, return all Common Shares and other assets in the Plan
Share Reserve to the Corporation at any time and thereafter cease issuing
Awards.

      6.05 SHAREHOLDER APPROVAL. If this Plan is implemented prior to the first
anniversary of the effective date of the Conversion, this Agreement shall be
submitted to the shareholders of the Corporation for approval at an annual or
special meeting to be held no sooner than six months after the effective date of
the Conversion and no Awards shall be granted hereunder until the shareholders
of the Corporation approve this Agreement.

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                                   ARTICLE VII
             EARNING AND DISTRIBUTION OF PLAN SHARES; VOTING RIGHTS

      7.01 EARNING PLAN SHARES; FORFEITURES.

            (a) GENERAL RULES. Unless the Committee shall specifically state a
longer period of time over which Awards shall be earned and non-forfeitable at
the time an Award is granted, Plan Shares covered by each Award shall become
earned and non-forfeitable by a Recipient over a period of five years at the
rate of one-fifth per year commencing on the date which is one year after the
date of the grant of such Award, if this Plan is implemented prior to the first
anniversary of the effective date of the Conversion. As Plan Shares become
earned and non-forfeitable, any cash dividends, returned capital and earnings
thereon shall also become earned and non-forfeitable.

            (b) REVOCATION. Unless otherwise permitted by applicable laws and
regulations, any Plan Shares and any cash dividends, returned capital and
earnings thereon that have not become earned and non-forfeitable in accordance
with Section 7.01(a) of this Agreement shall be forfeited in the event that a
Recipient is no longer a Director or an Employee, except as otherwise provided
in subsection (c) of this Section 7.01.

            (c) EXCEPTION FOR TERMINATIONS DUE TO DEATH OR DISABILITY. All Plan
Shares and cash dividends, returned capital and earnings thereon subject to an
Award held by a Recipient whose service as a Director or Employee terminates due
to (i) death or (ii) disability (as determined by the Committee) shall be deemed
fully earned and non-forfeitable as of the later of the Recipient's last day of
service as a Director or as an Employee and shall be distributed as soon as
practicable thereafter.

      7.02 DISTRIBUTION OF PLAN SHARES.

            (a) TIMING OF DISTRIBUTIONS: GENERAL RULE. Except as otherwise
provided in this Agreement, Plan Shares shall be distributed to the Recipient or
his or her Beneficiary, as the case may be, as soon as practicable after they
become earned and non-forfeitable, together with any cash distributions,
returned capital and earnings with respect to such Plan Shares.

            (b) FORM OF DISTRIBUTION. All distributions of Plan Shares, together
with any shares representing stock dividends, shall be distributed in the form
of Common Shares. No fractional shares shall be distributed. Payments
representing cash dividends, returned capital and earnings thereon shall be made
in cash.

            (c) WITHHOLDING. The Trustee may withhold from any cash payment made
pursuant to this Plan sufficient amounts to cover any applicable withholding and
employment taxes and, if the amount of such cash payment is not sufficient, the
Trustee may require the Recipient or Beneficiary to pay to the Trustee the
amount required to be withheld as a condition of delivering the Plan Shares
which have become earned and non-forfeitable. The Trustee shall pay over to the
Bank, the Corporation or the Subsidiary which employs or employed such Recipient
or which the Recipient serves or served as a Director, any such amount withheld
from or paid by the Recipient or Beneficiary.

            (d) REGULATORY EXCEPTIONS. Notwithstanding anything to the contrary
in this Agreement, no Plan Shares, upon becoming earned and non-forfeitable,
shall be distributed unless and until all of the requirements of all applicable
laws and regulations shall have been met.

      7.03 VOTING OF PLAN SHARES. All Common Shares held by the Trustee in the
Plan Share Reserve which have not yet been earned by a Recipient pursuant to
Section 7.01 of this Agreement shall be voted by the Trustee. A Recipient shall
be entitled to direct the voting of Plan Shares which have been earned pursuant
to Section 7.01 of this Agreement but have not yet been distributed to him.

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                                  ARTICLE VIII
                                      TRUST

      8.01 TRUST. The Trustee shall receive, hold, administer, invest and make
distributions and disbursements from the Trust in accordance with the provisions
of the Plan and the Trust and the applicable directions, rules, regulations,
procedures and policies established by the Committee pursuant to this Agreement.

      8.02 MANAGEMENT OF TRUST. The Trustee shall have complete authority and
discretion with respect to the management and control of the Trust. The Trustee
shall have the power to do all things and execute such instruments as may be
deemed necessary or proper with respect to the duties of the Trustee hereunder,
including the following powers:

            (a) To invest up to 100% of all Trust assets in Common Shares
      without regard to any law now or hereafter in force limiting investments
      for trustees or other fiduciaries. In making such investment, the Trustee
      is authorized to purchase Common Shares from the Corporation or from any
      other source. Such Common Shares so purchased may be outstanding, newly
      issued or treasury shares;

            (b) To invest any Trust assets not otherwise invested in Common
      Shares in such other investments as the Trustee considers appropriate.
      Such investments may include deposit accounts and certificates of deposit
      issued by the Bank;

            (c) To sell, exchange or otherwise dispose of any property at any
      time held or acquired by the Trust;

            (d) To cause stocks, bonds or other securities to be registered in
      the name of a nominee, without the addition of words indicating that such
      security is an asset of the Trust (but accurate records shall be
      maintained showing that such security is an asset of the Trust);

            (e) To hold cash without interest in such amounts as may be
      reasonable, in the opinion of the Trustee, for the proper operation of the
      Plan and the Trust;

            (f) To employ brokers, agents, custodians, consultants and
      accountants;

            (g) To hire counsel to render advice with respect to the rights,
      duties and obligations of the Trustee hereunder, and such other legal
      services or representation as the Trustee may deem desirable; and

            (h) To hold funds and securities representing the amounts to be
      distributed to a Recipient or his or her Beneficiary as a consequence of a
      dispute as to the disposition thereof, whether in a segregated account or
      held in common with other assets of the Trust.

Notwithstanding anything herein contained to the contrary, the Trustee shall not
be required to make any inventory, appraisal or settlement or report to any
court, or to secure any order of court for the exercise of any power herein
contained, or to give bond.

      8.03 RECORDS AND ACCOUNTS. The Trustee shall maintain accurate and
detailed records and accounts of all transactions of the Trust, which shall be
available at all reasonable times for inspection by any legally entitled person
or entity to the extent required by applicable law, or any other person
determined by the Committee.

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      8.04 EARNINGS. All earnings, gains and losses with respect to Trust assets
shall be allocated, in accordance with a reasonable procedure adopted by the
Committee, to bookkeeping accounts for Recipients or to the general account of
the Trust, depending on the nature and allocation of the assets generating such
earnings, gains and losses. Without limiting the generality of the foregoing,
any earnings on cash dividends or returned capital received with respect to Plan
Shares shall be allocated (a) to accounts for Recipients, if such shares which
are the subject of outstanding Awards, and shall become earned and distributed
as specified in Article VII of this Agreement or (b) otherwise to the Plan Share
Reserve if such Plan Shares are not the subject of outstanding awards.

      8.05 EXPENSES. All costs and expenses incurred in the operation and
administration of the Plan shall be paid by the Bank.


                                   ARTICLE IX
                                  MISCELLANEOUS

      9.01 ADJUSTMENTS FOR CAPITAL CHANGES. The aggregate number of Plan Shares
available for issuance pursuant to the Awards and the number of Plan Shares to
which any Award relates shall be proportionately adjusted for any increase or
decrease in the total number of outstanding Common Shares issued subsequent to
the effective date of the Plan if such increase or decrease resulted from any
split, subdivision or consolidation of shares or other capital adjustment, or
other increase or decrease in such shares effected without receipt or payment of
consideration by the Corporation.

      9.02 AMENDMENT AND TERMINATION OF PLAN. The Board may, by resolution, at
any time amend or terminate the Plan. The power to amend or terminate the Plan
shall include the power to direct the Trustee to return to the Corporation or
the Bank all or any part of the assets of the Trust, including Common Shares
held in the Plan Share Reserve, as well as Common Shares and other assets
subject to Awards which are not yet earned by the Directors or Employees to whom
they are allocated; provided, however, that the termination of the Trust shall
not affect a Recipient's right to earn Awards and to the distribution of Common
Shares relating thereto, including earnings thereon, in accordance with the
terms of this Agreement and the grant by the Committee or the Board.

      9.03 NONTRANSFERABLE. Awards shall not be transferable by a Recipient.
During the lifetime of the Recipient, an Award may only be earned by and paid to
the Recipient who was notified in writing of the Award by the Committee pursuant
to Section 6.03 of this Agreement. No Recipient or Beneficiary shall have any
right in or claim to any assets of the Plan or the Trust, nor shall the
Corporation, the Bank or any Subsidiary be subject to any claim for benefits
hereunder.

      9.04 DIRECTORSHIP RIGHTS. Neither this Agreement nor any grant of an Award
hereunder nor any action taken by the Trustee, the Committee or the Board in
connection with the Plan shall create any right, either express or implied, on
the part of any Director to continue to serve as a Director of the Corporation,
the Bank or any Subsidiary.

      9.05 EMPLOYMENT RIGHTS. Neither this Agreement nor any grant of an Award
hereunder nor any action taken by the Trustee, the Committee or the Board in
connection with the Plan shall create any right, either express or implied, on
the part of any Employee to continue in the employ of the Corporation, the Bank
or any Subsidiary.

      9.06 VOTING AND DIVIDEND RIGHTS. No Recipient shall have any voting or
dividend rights or other rights of a shareholder in respect of any Plan Shares
covered by an Award, except as expressly provided in Sections 7.01, 7.02 and
7.03 of this Agreement, prior to the time such Plan Shares are actually
distributed to such Recipient.

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      9.07 GOVERNING LAW. This Agreement shall be governed by and construed
under the laws of the State of Ohio, except to the extent that federal law shall
be deemed applicable.

      9.08 EFFECTIVE DATE. Subject to Section 6.05 of this Agreement, this
Agreement shall be effective as of the 13th day of October, 1998.

      9.09 TERM OF PLAN. The Plan shall remain in effect until the earlier of
(a) the termination of the Plan by the Board or (b) the distribution of all
assets from the Trust. The termination of the Plan shall not affect any Awards
previously granted and such Awards shall remain valid and in effect until they
have been earned and paid or by their terms expire or are forfeited.

      9.10 TAX STATUS OF TRUST. It is intended that the trust established hereby
be treated as a grantor trust of the Corporation under the provisions of Section
671, et seq., of the Internal Revenue Code of 1986, as amended (26
U.S.C.Section 671 et seq.).

         IN WITNESS WHEREOF, the following Trustees execute this Agreement,
accepting and binding themselves to undertake and perform the obligations and
duties of the Trustee hereunder and consenting to the foregoing Agreement
effective the 13th day of October, 1998.

                                  By: ___________________________ (Trustee)



                                  By: ___________________________ (Trustee)



      IN WITNESS WHEREOF, the Corporation has caused this Agreement to be
executed by its duly authorized officer and duly attested, all as of the 13th
day of October, 1998.

Attest:                              HOME LOAN FINANCIAL CORPORATION



____________________________         By: _________________________________
Preston W. Bair                          Robert C. Hamilton
Secretary                                its President




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