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                                                                    Exhibit 10.3

                                    AGREEMENT
                                    ---------

         THIS AGREEMENT, entered into this 26th day of April, 2000 by and
between Potters Bank, a savings bank incorporated under Ohio law (hereinafter
referred to as "POTTERS"); and Stephen A. Beadnell, an individual (hereinafter
referred to as the "SAB");

                                   WITNESSETH:

         WHEREAS, SAB is an officer of POTTERS;

         WHEREAS, the Board of Directors of POTTERS desire to retain the
services of SAB as an officer of POTTERS;

         WHEREAS, SAB desires to continue to serve as an officer of POTTERS; and

         WHEREAS, SAB and POTTERS desire to enter into this Agreement to set
forth the rights and obligations of SAB and POTTERS in the event of the
termination of SAB's employment under the circumstances set forth in this
Agreement;

         NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, POTTERS and SAB hereby agree as follows:

         Section l.        TERMINATION OF EMPLOYMENT.

         (a) In the event of the termination of the employment of SAB (i)
without SAB's prior written consent, (ii) for any reason other than JUST CAUSE
(hereinafter defined) and (iii) in connection with or within one year of a
CHANGE OF CONTROL (hereinafter defined) of POTTERS, then the following shall
occur:

                           (I) POTTERS shall pay to SAB or, in the event of the
                  death of SAB, to the estate of SAB, an amount equal to the
                  SEVERANCE PAYMENT (hereinafter defined), subject to standard
                  withholding, within ten (10) days after such termination;

                           (II) To the extent permitted by the benefit plans of
                  POTTERS, SAB and his dependents shall continue to be covered
                  under all such plans at POTTERS' expense as if SAB were still
                  employed by POTTERS until the earliest of the expiration of
                  the TERM (hereinafter defined) or the date on which SAB is
                  included in another employer's benefit plans as a full-time
                  employee; and

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                           (III) SAB shall not be required to mitigate the
                  amount of any payment provided for in this Agreement by
                  seeking other employment or otherwise, nor shall any amounts
                  received from other employment or otherwise by SAB offset in
                  any manner the obligations of POTTERS hereunder, except as
                  specifically stated in subparagraph (II).

In the event that payments pursuant to this Section 1(a) would result in the
imposition of a penalty tax pursuant to Section 280G(b) (3) of the Internal
Revenue Code of 1986, as amended, and the regulations promulgated thereunder,
such payments shall be reduced to the maximum amount which may be paid under
Section 280G without exceeding such limits.

         (b) In the event of the occurrence of any of the following events (i)
without the prior written consent of SAB and (ii) within one year following a
CHANGE OF CONTROL of POTTERS, SAB may voluntarily terminate his employment with
POTTERS:

                           (i) The requirement that SAB move his personal
                  residence more than thirty-five (35) miles from his residence
                  as of the date of this Agreement;

                           (ii) A reduction in SAB's base compensation as in
                  effect on the date of this Agreement or as the same may have
                  been increased from time to time;

                           (iii) The failure by POTTERS to continue to provide
                  SAB with compensation and benefits substantially similar to
                  those provided to him under any of the employee benefit plans
                  in which SAB becomes a participant or the taking of any action
                  by POTTERS which would directly or indirectly reduce any of
                  such benefits or deprive SAB of any material fringe benefit
                  potentially enjoyed by him at the time of the CHANGE OF
                  CONTROL;

                           (iv) The assignment to SAB of material duties and
                  responsibilities other than those normally associated with his
                  position as referenced in the recitals above; or

                           (v) A material diminution or reduction in SAB's
                  responsibilities or authority (including reporting
                  responsibilities) in connection with his employment with
                  POTTERS.

Within ten (10) days after the voluntary termination of SAB's employment in
accordance with this Section 1(b), POTTERS shall pay to SAB or, in the event of
the death of SAB, to the estate of SAB, an amount equal to the SEVERANCE
PAYMENT, subject to standard withholding.

         (c) In the event the employment of SAB is terminated under
circumstances other than



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as set forth in paragraphs (a) and (b) of this Section 1, SAB shall not be
entitled to any severance pay or benefits. Without limiting the generality of
the foregoing sentence, SAB acknowledges that this Agreement is not a contract
of employment; that SAB has no guaranteed term of employment; and that SAB is an
employee at will, subject to termination at any time, with or without notice or
cause.

         Section 2. DEFINITIONS. (a) A "CHANGE OF CONTROL" shall be deemed to
have occurred in the event that, at any time during the TERM, either any person
or entity obtains "conclusive control" of Potters Financial Corporation, the
sole shareholder of POTTERS, within the meaning of 12 C.F.R. Section 574.4(a),
or any person or entity obtains "rebuttable control" of Potters Financial
Corporation within the meaning of 12 C.F.R. Section 574.4(b) and has not
rebutted control in accordance with 12 C.F.R. Section 574.4(e).

         (b) "JUST CAUSE" shall mean personal dishonesty, incompetence, willful
misconduct, breach of fiduciary duty involving personal profit, failure or
refusal to perform the duties and responsibilities assigned by the Board of
Directors of POTTERS, violation of any law, rule, regulation or final
cease-and-desist order (other than traffic violations or similar offenses),
conviction of a felony or for fraud or embezzlement, or material breach of any
provision of this Agreement.

         (c) "SEVERANCE PAYMENT" shall mean the TOTAL REMUNERATION paid by
POTTERS to SAB for the calendar year preceding termination of employment.

         (d) "TOTAL REMUNERATION" shall mean the sum of (i) base salary, (ii)
bonuses, (iii) incentives, (iv) commissions and (v) other benefits, including,
but not limited to, health and life insurance, club dues, contributions made by
POTTERS to the 401-K plan and the Employee Stock Ownership Plan and the taxable
value of an employer-provided automobile, if any.

         Section 3. TERM. The term of this Agreement shall commence on the date
first above written and shall continue for a period of three (3) years
thereafter (herein referred to as the "TERM"); provided, however, that in the
event of a CHANGE OF CONTROL during the third year of the TERM, the TERM shall,
automatically and without further act, be extended for a period of fifteen (15)
months following such CHANGE OF CONTROL.

         Section 4. SPECIAL REGULATORY EVENTS. Notwithstanding Section 1 of this
Agreement, the obligations of POTTERS to SAB shall be as follows in the event of
the following circumstances:


         (a) If SAB is suspended and/or temporarily prohibited from
participating in the conduct of the POTTERS' affairs by a notice served under
section 8(e) (3) or (g) (1) of the Federal Deposit Insurance Act (hereinafter
referred to as the "FDIA"), POTTERS' obligations under this Agreement shall be
suspended as of the date of service of such notice, unless stayed by appropriate
proceedings.



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         (b) If SAB is removed and/or permanently prohibited from participating
in the conduct of POTTERS' affairs by an order issued under Section 8(e) (4) or
(g) (l) of the FDIA, all obligations of POTTERS under this Agreement shall
terminate as of the effective date of such order; provided, however, that vested
rights of SAB shall not be affected by such termination.

         (c) If POTTERS is in default, as defined in section 3(x) (1) of the
FDIA, all obligations under this Agreement shall terminate as of the date of
default; provided, however, that vested rights of SAB shall not be affected.

         (d) All obligations under this Agreement shall be terminated, except to
the extent of a determination that the continuation of this Agreement is
necessary for the continued operation of POTTERS, (i) by the Federal Deposit
Insurance Corporation (hereinafter referred to as the "FDIC") at the time that
the FDIC enters into an agreement to provide assistance to or on behalf of
POTTERS under the authority contained in Section 13(c) of the FDIA or (ii) by
the FDIC at any time the FDIC approves a supervisory merger to resolve problems
related to the operation of POTTERS or when POTTERS is determined by the FDIC to
be in an unsafe or unsound condition. No vested rights of SAB shall be affected
by any such action.

         Section 5. NONASSIGNABILITY. Neither this Agreement nor any right or
interest hereunder shall be assignable by SAB without POTTERS' prior written
consent; provided, however, that nothing in this Section 5 shall preclude SAB
from designating a beneficiary to receive any benefits payable hereunder upon
his death.

         Section 6. NO ATTACHMENT. Except as required by law, no right to
receive payment under this Agreement shall be subject to anticipation,
commutation, alienation, sale, assignment, encumbrance, charge, pledge or
hypothecation or to execution, attachment, levy, or similar process of
assignment by operation of law, and any attempt, voluntary or involuntary, to
effect any such action shall be null, void and of no effect.

         Section 7. BINDING AGREEMENT. This Agreement shall be binding upon, and
inure to the benefit of, SAB and POTTERS and their respective heirs, executors,
personal representatives, successors and assigns.

         Section 8. WAIVER. No term or condition of this Agreement shall be
deemed to have been waived, nor shall there be an estoppel against the
enforcement of any provision of this Agreement, except by written instrument of
the party charged with such waiver or estoppel. No such written waiver shall be
deemed a continuing waiver, unless specifically stated therein, and each waiver
shall operate only as to the specific term or condition waived and shall not
constitute a waiver of such term or condition for the future or as to any act
other than the act specifically waived.

         Section 9. SEVERABILITY. If, for any reason, any provision of this
Agreement is held invalid, such invalidity shall not affect the other provisions
of this Agreement not held so invalid, and each such other provision shall, to
the full extent consistent with applicable law, continue in full force and
effect. If this Agreement is held invalid or cannot be enforced, then any prior



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Agreement between POTTERS (or any predecessor thereof) and SAB shall be deemed
reinstated to the full extent permitted by law, as if this Agreement had not
been executed.

         Section 10. HEADINGS. The headings of the paragraphs herein are
included solely for convenience of reference and shall not control the meaning
or interpretation of any of the provisions of this Agreement.

         Section 11. GOVERNING LAW. This Agreement has been executed and
delivered in the State of Ohio and its validity, interpretation, performance,
and enforcement shall be governed by the laws of the State of Ohio, except to
the extent that federal law is governing.

         Section 12. EFFECT OF PRIOR AGREEMENTS. This Agreement contains the
entire understanding between the parties hereto and supersedes any prior
employment agreement between POTTERS and SAB, each of which is hereby terminated
and is of no further force or effect.

         Section 13. NOTICES. Any notice or other communication required or
permitted pursuant to this Agreement shall be deemed delivered if such notice or
communication is in writing and is delivered personally or by facsimile
transmission or is deposited in the United States mail, postage prepaid,
addressed as follows:

         If to Potters Bank:

                           Potters Bank
                           519 Broadway
                           East Liverpool, Ohio  43920
                           Attention:  President/CEO

         With copies to:

                           John C. Vorys, Esq.
                           Vorys, Sater, Seymour and Pease
                           Atrium Two, Suite 2100
                           221 East Fourth Street
                           Cincinnati, Ohio 45201-0236



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         If to SAB to:

                           Stephen A. Beadnell
                           2993 Queens Way
                           East Liverpool, Ohio  43920

                  Section 14. AMENDMENT. This Agreement may be amended,
supplemented or modified only by a written instrument duly executed by or on
behalf of POTTERS and SAB.

                  Section 15. COUNTERPARTS. This Agreement may be executed in
any number of counterparts, each of which will be deemed an original, but all of
which together will constitute one and the same instrument.

                  IN WITNESS WHEREOF, Potters Bank has caused this Agreement to
be executed by its duly authorized officers, and SAB has signed this Agreement,
each as of the day and year first above written.

Attest:                                             POTTERS BANK

/s/ Beverly J. Neer                                 by /S/ William L. Miller
    --------------------------------                   ---------------------
                                                       William L. Miller
                                                       ---------------------
                                                       its Chairman

Attest:

/s/ Edward L. Baumgardner                              /s/ Stephen A. Beadnell
    --------------------------------                   -----------------------
                                                       Stephen A. Beadnell



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