Document:

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                                  EXHIBIT 10.2

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                                                                    EXHIBIT 10.2

                                   VANS, INC.
                              EMPLOYMENT AGREEMENT

               THIS EMPLOYMENT AGREEMENT ("Agreement" herein) is entered into as
of August 20, 2001, by and between VANS, INC., a Delaware corporation (the
"Company"), and SCOTT J. BLECHMAN ("Employee").

               1. Employment and Duties. Subject to appointment by the Board of
Directors, the Company hereby employs Employee as Vice President -- Finance and
Planning of the Company on the terms and subject to the conditions contained in
this Agreement. Employee shall be responsible for managing designated areas of
the Company's Finance Department. Employee hereby accepts such employment and
agrees to perform in good faith and to the best of Employee's ability all
services which may be required of Employee hereunder, to do what is asked of
him, and to be available to render services at all times and places in
accordance with such directions, requests, rules and regulations made by the
Company in connection with Employee's employment. Employee hereby acknowledges
and understands the duties and services that are expected of him hereunder, and
he hereby represents that he has the experience and knowledge to perform such
duties and services. Employee shall, during the term hereof, devote Employee's
full time and energy to performing his duties. Employee shall report to the
Senior Vice President and Chief Financial Officer of the Company, or such other
executive officer as may be designated by the Company. Employee shall be based
at the Company's corporate offices. Employee understands, however, that Employee
may be required to travel within and out of the State of California to discharge
his duties hereunder.

               2. Term of Employment. The term of this Agreement shall commence
as of the date hereof and shall terminate on August 19, 2004, unless sooner
terminated as provided herein. This Agreement does not give Employee any
enforceable right to employment beyond this term, and Employee agrees that he
shall have no rights hereunder thereafter. AS PROVIDED FURTHER IN PARAGRAPH 11.1
BELOW, THIS AGREEMENT CONSTITUTES AN EMPLOYMENT AT-WILL THAT MAY BE TERMINATED
AT ANY TIME BY COMPANY OR EMPLOYEE, WITH OR WITHOUT CAUSE, NOTWITHSTANDING THE
THREE - YEAR TERM OF THIS AGREEMENT. IF EMPLOYEE IS TERMINATED WITHOUT CAUSE
DURING THE TERM HEREOF, OR AFTER A "CHANGE IN MANAGEMENT OR CONTROL," AS DEFINED
IN PARAGRAPH 11.5 BELOW, OR TERMINATES THIS AGREEMENT FOR "GOOD REASON," AS
DEFINED IN PARAGRAPH 11.3 BELOW, EMPLOYEE'S SOLE REMEDY SHALL BE THE
COMPENSATION SET FORTH IN PARAGRAPH 11.4 BELOW.

Initial  CEG                                                         Initial SJB
   Representative                                                       Employee
   of the Company

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               3. Salary Compensation. As salary compensation for Employee's
services hereunder and all the rights granted hereunder by Employee to the
Company, the Company shall pay Employee a gross salary of not less than $150,000
during the term of this Agreement. Employee's salary shall be payable in
bi-weekly increments in accordance with the Company's payroll practices for
salaried employees, upon the condition that Employee fully and faithfully
performs Employee's services hereunder in accordance with the terms and
conditions of this Agreement. The Company shall deduct and withhold from the
compensation payable to Employee hereunder any and all amounts required to be
deducted or withheld by the Company under the provisions of any statute,
regulation, ordinance, or order and any and all amendments hereinafter enacted
requiring the withholding or deducting from compensation payable to employees.

               4. Expense Reimbursement. Employee shall be reimbursed by the
Company for all traveling, hotel, entertainment and other expenses that are
properly and necessarily incurred by Employee, pursuant to the Company's
policies on the same.

               5. Death or Disability of Employee.

                      5.1 General. In the event of Employee's death or
"disability" (as such term is defined in Paragraph 5.2 hereof) while in the
employ of the Company, this Agreement, and the compensation due to Employee
pursuant to Paragraph 3 hereof, shall terminate upon the date of death or
disability and the Company shall thereafter be required to make payments only to
Employee, as provided in Paragraph 11.2 hereof. If Employee shall recover from
such disability prior to the expiration date of the Agreement, this Agreement
and Employee's employment hereunder shall be reinstated for the balance of the
term of this Agreement.

                      5.2 Definition of Disability. Employee shall be deemed
disabled if, in the sole opinion of the Company, Employee is unable to
substantially perform the services required of Employee hereunder for a period
in excess of 60 consecutive work days or 60 work days during any 90 work day
period. In such event, Employee shall be deemed disabled as of such 60th
workday.

               6. Restrictive Covenant. During the term of this Agreement,
Employee shall (i) devote his full time and energy solely and exclusively to the
performance of his duties described herein; (ii) not directly or indirectly
provide services to or through any company or firm except the Company unless
otherwise instructed by the Company; (iii) not directly or indirectly own,
manage, operate, join, control, contribute to, or participate in the ownership,
management, operation or control of or be employed by or connected in any manner
with any enterprise which is engaged in any business competitive with or similar
to that of the Company; and (iv) not render any services of any kind or
character for Employee's own account of for any other person, firm or
corporation without first obtaining the Company's consent in writing; provided,

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however, Employee shall have the right to perform such incidental services as
are necessary in connection with Employee's (a) private passive investments
where he is not obligated or required to, and shall not in fact, devote any
managerial efforts, as long as such investments are not in companies which are
in competition in any way with the Company; or (b) charitable or community
activities, or in trade or professional organizations, provided that such
incidental services do not interfere with the performance of Employee's services
hereunder.

               7. Non-Solicitation. Employee shall not, during the full term of
this Agreement and for a period of one (1) year thereafter, for himself or on
behalf of any other person, partnership, corporation or entity, directly or
indirectly, or by action in concert with others, solicit, induce, suggest or
encourage any person known to him to be an employee of the Company or any
affiliate of the Company to terminate his or her employment or other contractual
relationship with the Company or any of its affiliates.

               8. Trade Secrets and Related Matters

                      8.1 Definitions. For purpose of this Section 8:

                             (a) "Records" means files, accounts, records, log
books, documents, drawings, sketches, designs, diagrams, models, plans,
blueprints, specifications, manuals, books, forms, notes, reports, memoranda,
studies, surveys, software, flow charts, data, computer programs, listing of
source code, calculations, recordings, catalogues, compilations of information,
correspondence, confidential data of customers and all copies, abstracts or
summaries of the foregoing in any storage medium, as well as instruments, tools,
storage devices, disks, equipment and all other physical items related to the
business of the Company (other than merely personal items of a general
professional nature), whether of a public nature or not, and whether prepared by
Employee or not.

                             (b) "Trade Secrets" means confidential business or
technical information or trade secrets of the Company which Employee acquires
while employed by the Company, whether or not conceived of, developed or
prepared by Employee or at his direction and includes:

                                       (i) Any information or compilation of
information concerning the Company's financial position, financing, purchasing,
accounting, marketing, merchandising, sales, salaries, pricing, investments,
costs, profits, plans for future development, employees, prospective employees,
research, development, formulae, patterns, inventions, plans, specifications,
devices, products, procedures, processes, operations, techniques, software,
computer programs or data;

                                       (ii) Any information or compilation of
information concerning the identity, plans, requirements, preferences, practices
and methods of

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doing business on specific customers, suppliers, prospective customers and
prospective suppliers of the Company;

                                       (iii) Any other information or "know how"
which is related to any product, process, service, business or research of the
Company; and

                                       (iv) Any information which the Company
acquires from another party and treats as its proprietary information or
designates as "Confidential," whether or not owned or developed by the Company.

        Notwithstanding the foregoing, "Trade Secrets" do not include any of the
following:

                                       (i) Information which is publicly known
or which is generally employed by the trade, whether on or after the date that
Employee first acquires the information;

                                       (ii) General information or knowledge
which Employee would have learned in the course of similar work elsewhere in the
trade; or

                                       (iii) Information which Employee can
prove was known by Employee before the commencement of Employee's engagement by
the Company;

                      8.2 Acknowledgments. Employee acknowledges that:

                             (a) Employee's relationship with the Company will
be a confidential relationship in which Employee will have access to and may
create Trade Secrets.

                             (b) The Company uses the Trade Secrets in its
business to obtain a competitive advantage over its competitors who do not know
or use that information.

                             (c) The protection of the Trade Secrets against
unauthorized disclosure or use is of critical importance in maintaining the
competitive position of the Company.

                      8.3 Protection of Trade Secrets. Employee shall not at any
time, without the prior written consent of the Company, which may be withheld by
it in its sole and absolute discretion, disclose any Trade Secret in any way
except to employees of the Company, and shall not use any Trade Secret in any
way except in connection with his or her duties to the Company.

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                      8.4 Records.

                             (a) Ownership. All Records are and shall remain the
exclusive property of the Company.

                             (b) Return of Records. At the termination of this
Agreement, Employee shall promptly return to the Company all records in
Employee's possession or over which Employee has control.

                      8.5 Prohibited Use of Trade Secrets. During the term of
this Agreement and for 12 months following termination of this Agreement,
Employee shall not undertake any employment or consulting relationship (the "New
Activity") if the loyal and complete fulfillment of his duties in the New
Activity would inherently call upon Employee to reveal any Trade Secret.

               9. Ownership of Material and Ideas. Employee agrees that all
material, ideas, and inventions pertaining to the business of the Company or of
any client of the Company, including but not limited to, all patents and
copyrights thereon and renewals and extensions thereof, trademarks and trade
names, and the names, addresses and telephone numbers of customers, distributors
and sales representatives of the Company, belong solely to the Company. Employee
hereby assigns any rights he may have to any such property to the Company, and
agrees to execute and deliver any documents which evidence such assignment.

               10. Employee Plans, etc. Employee shall be entitled to
participate, to the same extent as most other officers of the Company, in any
bonus compensation plan, stock purchase or stock option plan, group life
insurance plan, group medical insurance plan and other compensation or employee
benefit plans (collectively, "Plans") which are generally available to a
majority of the other officers of the Company during the term hereof and for
which Employee shall qualify. Employee further understands, however, that the
Board of Directors, or such committee or person or persons designated by the
Board of Directors, shall determine in its sole discretion (i) whether any Plans
are made available to a majority of the officers of the Company; (ii) whether
one or more Plans are adopted solely for the Chief Executive Officer and/or one
or more (but not a majority) of the officers of the Company; (iii) whether one
or more Plans are made available to a majority of the officers; and (iv) the
amounts payable or the benefits provided thereunder to each participant in whole
or in part. Employee agrees and acknowledges that he has no vested interest in
the continuance of any Plan, and that no Plan in existence on the date of the
Agreement has acted as a material inducement to Employee in entering into this
Agreement.

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               11. Termination.

                      11.1 "At Will" Employment. This Agreement, and Employee's
employment, is at will, and the Company may, with or without notice, terminate
this Agreement and all of the Company's obligations hereunder with or without
"Cause." Employee may also terminate this Agreement at any time, for any reason,
upon the giving of thirty (30) days' written notice to the Company; provided,
however, the Company may waive all or any portion of such notice period in its
sole and absolute discretion. Termination by the Company for "Cause" means
termination due to (i) Employee's conviction of a felony ( which, through the
lapse of time or otherwise is not subject to appeal); (ii) Employee's material
refusal, failure or neglect without proper cause to perform adequately his
obligations under this Agreement or follow the instructions of his
supervisor(s); (iii) any negligence or willful misconduct by Employee; (iv)
Employee's material breach of any of his fiduciary obligations as an executive
officer of the Company; (v) Employee's material failure to adhere to the code of
conduct and rules set forth in the Company's Employee Handbook, as amended or in
existence from time to time; (vi) the death or disability of Employee; or (vii)
the voluntary termination by Employee of his employment, except for "Good
Reason" (as defined in Paragraph 11.3 hereof).

                      11.2 Termination for Cause. Upon termination for Cause,
the Company shall only be required to pay Employee (i) accrued salary
compensation due to Employee as compensation for services rendered hereunder and
not previously paid; (ii) accrued vacation pay; and (iii) any appropriate
business expenses incurred by Employee in connection with his duties hereunder
and approved pursuant to Section 4 hereof, all through the date of termination.
Employee shall not be entitled to any severance compensation; bonus
compensation, whether "vested" or unvested; or any other compensation, benefits
or reimbursement of any kind.

                      11.3 Termination for "Good Reason." Employee may terminate
this Agreement for "Good Reason" (as hereinafter defined) upon thirty (30) days
written notice to the Company. The term "Good Reason" means (i) Employee is not
appointed or is removed from the position of Vice President -- Finance and
Planning without Cause during the term of this Agreement; or (ii) without
Employee's consent, a majority of the duties defined in Section 1 hereof are
removed from Employee's responsibilities. The term Good Reason does not include
a situation where certain of the duties defined in Section 1 hereof are removed
from Employee's responsibilities and are replaced with duties which have greater
responsibility and/or authority than the duties which are removed. Unless
Employee terminates this Agreement within thirty (30) days of learning from any
source that the Company has acted so as to provide Good Reason for Employee to
terminate this Agreement, and gives thirty (30) days' written notice of such
termination, Employee's right to receive severance compensation pursuant to
Paragraph 11.4 for such event shall be forever lost.

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                      11.4 Severance Compensation. In the event (i) Employee
terminates this Agreement for Good Reason in accordance with Paragraph 11.3
hereof; (ii) Employee is terminated for any reason (except death or disability)
upon, or within six months following, a "Change in Management or Control (as
such term is defined in Paragraph 11.5 hereof);" or (iii) Employee is terminated
without Cause, the Company shall be obligated to pay severance compensation to
Employee in an amount equal to his salary compensation (at the rate payable at
the time of such termination) for a period of six (6) months from the date of
termination. Notwithstanding the foregoing, if Employee is employed by a new
employer, or as a consultant after the termination of this Agreement, the
severance compensation payable to Employee hereunder shall be reduced by the
amount of compensation that Employee actually receives from the new employer, or
as a consultant. However, Employee shall have a duty to inform the Company that
he has obtained such new employment, and the failure to do so is a material
breach of this Agreement. In such event, the Company shall be entitled to (i)
cease all payments to Employee under this Paragraph 11.4; and (ii) recover any
unauthorized payments to Employee in an action for breach of contract.
Notwithstanding anything else in this Agreement to the contrary, solely in the
event of a termination upon or following a Change in Management or Control, the
amount of severance compensation paid to Employee hereunder shall not include
any amount that the Company is prohibited from deducting for federal income tax
purposes by virtue of Section 280G of the Internal Revenue Code of 1986, as
amended, or any successor provision. In addition to the foregoing severance
compensation, the Company shall pay Employee (i) all compensation for services
rendered hereunder and not previously paid; (ii) accrued vacation pay; and (iii)
any appropriate business expenses incurred by Employee in connection with his
duties hereunder and approved pursuant to Section 4 hereof, all through the date
of termination. Employee shall not be entitled to any bonus compensation,
whether vested or unvested; or any other compensation, benefits or reimbursement
of any kind.

                      11.5 Definition of "Change in Management or Control." The
term "Change in Management or Control" means (i) the time that the Company first
determines that any person and all other persons who constitute a group (within
the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934
("Exchange Act")) have acquired direct or indirect beneficial ownership (within
the meaning of Rule 13d-3 under the Exchange Act) of twenty percent (20%) or
more of the Company's outstanding securities, unless a majority of the
"Continuing Directors" (as such term is hereinafter defined) approves the
acquisition not later than ten (10) business days after the Company makes that
determination, or (ii) the first day on which a majority of the members of the
Company's Board of Directors are not "Continuing Directors." The term
"Continuing Directors" means, as of any date of determination, any member of the
Board of Directors of the Company who (i) was a member of that Board of
Directors on the date of this Agreement, (iii) has been a member of that Board
of Directors for the two years immediately preceding such date of determination,
or (iv) was nominated for election or elected to the Board of Directors with the
affirmative vote of the greater of

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(x) a majority of the Continuing Directors who were members of the Board at the
time of such nomination or election, or (y) at least four Continuing Directors.

                      11.6 Exclusive Remedy. The payments referred to in this
Section 11 shall be exclusive and shall be the only remedy available to Employee
for termination of his employment with the Company, regardless of the
circumstances, reasons or motivation for any such termination. If Employee gives
notice of termination of this Agreement, or if it becomes known that this
Agreement will otherwise terminate in accordance with its provisions, the
Company may, in its sole discretion, relieve Employee of his duties under this
Agreement or assign Employee other duties and responsibilities to be performed
until the termination becomes effective.

               12. Services Unique. It is agreed that the services to be
rendered by Employee hereunder are of a special, unique, unusual, extraordinary
and intellectual character which gives them a peculiar value, the loss of which
cannot be reasonably or adequately compensated in damages in an action at law
and that a breach by Employee of any of the provisions contained herein will
cause the Company irreparable injury and damage. Employee expressly agrees that
the Company shall be entitled to injunctive or other equitable relief to prevent
a breach hereof. Resort to any such equitable relief shall not be construed as a
waiver of any of the rights or remedies which the Company may have against
Employee for damages or otherwise.

               13. Key Man Life Insurance. During the term of this Agreement,
the Company may at any time effect insurance on Employee's life and/or health in
such amounts and in such form as the Company may in its sole discretion decide.
Employee shall not have any interest in such insurance, but shall, if the
Company requests, submit to such medical examinations, supply such information
and execute such documents as may be required in connection with, or so as to
enable the Company to effect, such insurance.

               14. Vacation. Employee shall have the right during each one year
period of the term of this Agreement to take an aggregate of three weeks of
vacation, with pay, at such times as are mutually convenient to Employee and to
the Company.

               15. Additional Benefits

                      15.1 Signing Bonus. Upon execution of this Agreement, the
Company shall pay Employee a net signing bonus of $5,000.00.

                      15.2 Incentive Stock Option. The Company shall recommend
to the Compensation Committee of the Board of Directors that it grant Employee
an incentive stock option to purchase 15,000 shares of Company Common Stock at
the fair market value of such stock on the date of grant. Such option shall vest
over a period of five years.

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                      15.3 2002 Bonus Plan. Employee shall be entitled to
participate in the Company's 2002 Bonus Plan with a bonus potential equal to 30%
of his salary, subject to the terms and conditions of the Plan.

               16. Notices. Any and all notices, demands or other communications
required or desired to be given hereunder by any party shall be in writing and
shall be validly given or made to another party if given by personal delivery,
telex, facsimile, telegram or if deposited in the United States mail, certified
or registered, postage prepaid, return receipt requested. If such notice, demand
or other communication is given by personal delivery, telex, facsimile or
telegram, service shall be conclusively deemed made at the time of such personal
service. If such notice, demand or other communication is given by mail, such
notice shall be conclusively deemed given forty-eight (48) hours after the
deposit thereof in the United States mail addressed to the party to whom such
notice, demand or other communication is to be given as hereinafter set forth:

        To the Company:      VANS, INC.
                             15700 Shoemaker Avenue
                             Santa Fe Springs, California 90670
                             Attn: General Counsel
                             562/565-8413 - facsimile

        To Employee:         Scott J. Blechman
                             (at the address set forth below his signature)

Any party hereto may change his or its address for the purpose of receiving
notices, demands and other communications as herein provided by a written notice
given in the manner aforesaid to the other party or parties hereto.

               17. Applicable Law and Severability. This Agreement shall, in all
respects, be governed by the laws of the State of California applicable to
agreements executed and to be wholly performed within the State of California.
Nothing contained herein shall be construed so as to require the commission of
any act contrary to law, and wherever there is any conflict between any
provision contained herein and any present or future statute, law, ordinance or
regulation contrary to which the parties have no legal right to contract, the
latter shall prevail but the provision of this Agreement which is affected shall
be curtailed and limited only to the extent necessary to bring it within the
requirements of the law.

               18. Attorneys' Fees. In the event any action is instituted by a
party to enforce any of the terms and provisions contained herein, the
prevailing party in such action shall be entitled to such reasonable attorneys'
fees, costs and expenses as may be fixed by the Court.

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               19. Modifications or Amendments. No amendment, change or
modification of this Agreement shall be valid unless in writing and signed by
all of the parties hereto. Further, any amendment, change or modification of
this Agreement (including but not limited to the at-will nature of this
Agreement as set forth in Section 2 and Paragraph 11.1 hereof) must be approved
in advance by the Board of Directors of Company and reflected in the minutes of
such Board's meetings or in an action by unanimous written consent.

               20. Successors and Assigns. All of the terms and provisions
contained herein shall inure to the benefit of and shall be binding upon the
parties hereto and their respective heirs, personal representatives, successors
and assigns.

               21. Entire Agreement. This Agreement constitutes the entire
understanding and agreement of the parties with respect to the subject matter of
this Agreement, and any and all prior agreements, understandings or
representations are hereby terminated and canceled in their entirety and are of
no further force or effect.

               22. Counterparts. This Agreement may be executed in counterparts.

               23. Arbitration of Employment Disputes. All disputes or
controversies arising out of the employment relationship between Employee and
the Company, including claims by the Company against Employee, and claims by
Employee against the Company, including but not limited to claims for wrongful
termination; violations of Title VII of the Civil Rights Act of 1964, as
amended; violations of the Americans with Disabilities Act of 1990; or claims
for violations of any State law, rule or regulation regarding discrimination,
harassment or other wrongful conduct, shall be decided by a single arbitrator in
a final and binding arbitration administered by either the American Arbitration
Association or the Judicial Arbitration and Mediation Service ("JAMS") to be
conducted in Los Angeles, California, in accordance with their rules, guidelines
and standards for employment arbitration. Notwithstanding anything in the rules
of the body administering the arbitration, or applicable law to the contrary,
each party to the arbitration shall be entitled to conduct sufficient discovery
to adequately prepare its claims or defenses for arbitration, including access
to essential documents and witnesses, to be determined by the arbitrator,
subject to judicial review as allowed by law. The arbitrator shall have
jurisdiction to decide his/her jurisdiction, any questions as to the
arbitrability of such claims, whether an agreement to arbitrate exists, or
whether an agreement to arbitrate covers the claims in question. The arbitrator
shall have the authority to grant any and all rights, remedies and relief that
would otherwise be available to the parties if the claims were brought in a
court of law including punitive damages and shall have the authority to award
the prevailing party reasonable attorneys' fees. The arbitrator shall issue a
written award and arbitration decision that sets forth the arbitrator's findings
of fact and conclusions of law upon which the award is based. Judgment upon the
award rendered by the arbitrator may be entered in any court of competent
jurisdiction. The cost of arbitration (other than Employee's attorneys' fees and
costs) shall be borne by the Company.

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               24. Survival of Certain Provisions. Sections 7, 8, 9, and 23 of
this Agreement shall survive the termination hereof.

               IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.

EMPLOYEE:                                 THE COMPANY:

                                          VANS, INC.,
                                          a Delaware corporation

/s/ Scott J. Blechman                     By: /s/ Craig E. Gosselin
----------------------------------           -----------------------------------
Scott J. Blechman

                                          Vice President and General Counsel
----------------------------------        --------------------------------------
Address                                   Title

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                                  EXHIBIT 4(a)

                         HOME LOAN FINANCIAL CORPORATION
                      1998 STOCK OPTION AND INCENTIVE PLAN

         1. PURPOSE. The purpose of the Home Loan Financial Corporation 1998
Stock Option and Incentive Plan (this "Plan") is to promote and advance the
interests of Home Loan Financial Corporation (the "Company") and its
shareholders by enabling the Company to attract, retain and reward directors,
managerial and other employees of the Company and any Subsidiary (hereinafter
defined), and to strengthen the mutuality of interests between such directors
and employees and the Company's shareholders by providing the directors and
employees with a proprietary interest in pursuing the long-term growth,
profitability and financial success of the Company.

         2. DEFINITIONS. For purposes of this Plan, the following terms shall
have the meanings set forth below:

                  (a) "Board" means the Board of Directors of the Company.

                  (b) "Code" means the Internal Revenue Code of 1986, as
         amended, or any successor thereto, together with the rules, regulations
         and interpretations promulgated thereunder.

                  (c) "Committee" means the Committee of the Board constituted
         as provided in Section 3 of this Plan.

                  (d) "Common Shares" means the common shares, without par
         value, of the Company or any security of the Company issued in
         substitution, in exchange or in lieu thereof.

                  (e) "Company" means Home Loan Financial Corporation, an Ohio
         corporation, or any successor corporation.

                  (f) "Employment" means regular employment with the Company or
         a Subsidiary and does not include service as a director only.

                  (g) "Exchange Act" means the Securities Exchange Act of 1934,
         as amended, or any successor statute.

                  (h) "Fair Market Value" shall be determined as follows:

                           (i) If the Common Shares are traded on a national
                  securities exchange at the time of grant of the Stock Option,
                  then the Fair Market Value shall be the average of the highest
                  and the lowest selling prices on such exchange on the date
                  such Stock Option is granted or, if there were no sales on
                  such date, then on the next prior business day on which there
                  was a sale.

                           (ii) If the Common Shares are quoted on either The
                  Nasdaq National Market or The Nasdaq Small Cap Market at the
                  time of the grant of the Stock Option, then the Fair Market
                  Value shall be the mean between the closing high bid and low
                  asked quotation with respect to a Common Share on such date on
                  such market.

                           (iii) If the Common Shares are not traded on a
                  national securities exchange or quoted on The Nasdaq National
                  Market or The Nasdaq Small Cap Market, then the Fair Market
                  Value shall be as determined by the Committee.

                  (i) "Incentive Stock Option" means any Stock Option granted
         pursuant to the provisions of Section 7 of this Plan that is intended
         to be and is specifically designated as an "incentive stock option"
         within the meaning of Section 422 of the Code.

                  (j) "Non-Qualified Stock Option" means any Stock Option
         granted pursuant to the provisions of Section 6 of this Plan that is
         not an Incentive Stock Option.

                  (k) "OTS" means the Office of Thrift Supervision, Department
         of the Treasury.

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                  (l) "Participant" means an employee or director of the Company
         or a Subsidiary who is granted a Stock Option under this Plan.
         Notwithstanding the foregoing, for the purposes of any Incentive Stock
         Option under this Plan, the term "Participant" shall include only
         employees of the Company or a Subsidiary.

                  (m) "Plan" means the Home Loan Financial Corporation 1998
         Stock Option and Incentive Plan, as set forth herein and as it may be
         hereafter amended from time to time.

                  (n) "Stock Option" means an option to purchase Common Shares
         granted pursuant to the provisions of Section 7 of this Plan.

                  (o) "Subsidiary" means any corporation or entity in which the
         Company directly or indirectly controls 50% or more of the total voting
         power of all classes of its stock having voting power and includes,
         without limitation, The Home Loan Savings Bank.

                  (p) "Terminated for Cause" means any removal of a director or
         discharge of an employee for personal dishonesty, incompetence, willful
         misconduct, breach of fiduciary duty involving personal profit,
         intentional failure to perform stated duties, willful violation of a
         material provision of any law, rule or regulation (other than traffic
         violations or similar offenses), a material violation of a final
         cease-and-desist order or any other action of a director or employee
         which results in a substantial financial loss to the Company or a
         Subsidiary.

         3. ADMINISTRATION.

                  (a) This Plan shall be administered by the Committee, which
         shall be comprised of not less than three of the members of the Board.
         The members of the Committee shall be appointed from time to time by
         the Board. Members of the Committee shall serve at the pleasure of the
         Board and the Board may from time to time remove members from, or add
         members to, the Committee. A majority of the members of the Committee
         shall constitute a quorum for the transaction of business. An action
         approved in writing by a majority of the members of the Committee then
         serving shall be fully as effective as if the action had been taken by
         unanimous vote at a meeting duly called and held.

                  (b) The Committee is authorized to construe and interpret this
         Plan and to make all other determinations necessary or advisable for
         the administration of this Plan. The Committee may designate persons
         other than members of the Committee to carry out its responsibilities
         under such conditions and limitations as it may prescribe. Any
         determination, decision or action of the Committee in connection with
         the construction, interpretation, administration, or application of
         this Plan shall be final, conclusive and binding upon all persons
         participating in this Plan and any person validly claiming under or
         through persons participating in this Plan. The Company shall effect
         the granting of Stock Options under this Plan in accordance with the
         determinations made by the Committee, by execution of instruments in
         writing in such form as approved by the Committee.

         4. TERM OF PLAN. This Plan shall terminate on the date which is ten
(10) years from the effective date of this Plan, except with respect to Stock
Options then outstanding. Notwithstanding the foregoing, no Incentive Stock
Option may be granted under this Plan after the date which is ten (10) years
from the date on which this Plan is adopted by the Board or the date on which
this Plan is approved by the shareholders of the Company, whichever is earlier.

         5. COMMON SHARES SUBJECT TO PLAN. The maximum number of Common Shares
in respect of which Stock Options may be granted under this Plan, subject to
adjustment as provided in Section 10 of this Plan, shall be ten percent of the
total Common Shares sold in connection with the conversion of The Home Loan
Savings Bank from mutual to stock form.

         For the purpose of computing the total number of Common Shares
available for Stock Options under this Plan, there shall be counted against the
foregoing limitations the number of Common Shares subject to issuance upon the
exercise or settlement of Stock Options as of the dates on which such Stock
Options are granted. If any Stock Options are forfeited, terminated or exchanged
for other Stock Options, or expire unexercised, the Common Shares which were
theretofore subject

                                      -2-
<PAGE>

to such Stock Options shall again be available for Stock Options under this Plan
to the extent of such forfeiture, termination or expiration of such Stock
Options.

         Common Shares which may be issued under this Plan may be either
authorized and unissued shares or issued shares which have been reacquired by
the Company. No fractional shares shall be issued under this Plan.

         6. ELIGIBILITY AND GRANTS. Persons eligible for Stock Options under
this Plan shall consist of directors and managerial and other employees of the
Company or a Subsidiary who hold positions with significant responsibilities or
whose performance or potential contribution, in the judgment of the Committee,
will benefit the future success of the Company or a Subsidiary. In selecting the
directors and employees to whom Stock Options will be awarded and the number of
shares subject to such Stock Options, the Committee shall consider the position,
duties and responsibilities of the eligible directors and employees, the value
of their services to the Company and the Subsidiaries and any other factors the
Committee may deem relevant.

         7. STOCK OPTIONS. Stock Options granted under this Plan may be in the
form of Incentive Stock Options or Non-Qualified Stock Options, and such Stock
Options shall be subject to the following terms and conditions, as the Committee
shall deem desirable:

                  (a) Grant. Stock Options may be granted under this Plan on
         terms and conditions not inconsistent with the provisions of this Plan
         and in such form as the Committee may from time to time approve and
         shall contain such additional terms and conditions, not inconsistent
         with the express provisions of this Plan, as the Committee shall deem
         desirable; provided, however, that no more than 25% of the shares
         subject to Stock Options may be awarded to any individual who is an
         employee of the Company or a Subsidiary, no more than 5% of such shares
         may be awarded to any director who is not an employee of the Company or
         a Subsidiary and no more than 30% of such shares may be awarded to
         non-employee directors of the Company or a Subsidiary in the aggregate.

                  (b) Stock Option Price. The per share option exercise price of
         a Stock Option shall be determined by the Committee at the time of
         grant; provided, however, that in no event shall the exercise price of
         a Stock Option be less than 100% of the Fair Market Value of the Common
         Shares on the date of the grant of such Stock Option. Notwithstanding
         the foregoing, in the case of a Participant who owns Common Shares
         representing more than 10% of the outstanding Common Shares at the time
         an Incentive Stock Option is granted, the option exercise price shall
         in no event be less than 110% of the Fair Market Value of the Common
         Shares at the time an Incentive Stock Option is granted to such
         Participant.

                  (c) Stock Option Terms. Subject to the right of the Company to
         provide for earlier termination in the event of any merger, acquisition
         or consolidation involving the Company, the term of each Stock Option
         shall be fixed by the Committee; except that the term of an Incentive
         Stock Option will not exceed ten years after the date the Incentive
         Stock Option is granted; provided, however, that in the case of a
         Participant who owns a number of Common Shares representing more than
         10% of the Common Shares outstanding at the time an Incentive Stock
         Option is granted, the term of the Incentive Stock Option granted to
         such Participant shall not exceed five years.

                  (d) Exercisability. Except as set forth in Section 7(f) and
         Section 8 of this Plan, Stock Options awarded under this Plan shall
         become exercisable at the rate of not more than one-fifth per year
         commencing on the date that is one year after the date of the grant of
         the Stock Option and shall be subject to such other terms and
         conditions as shall be determined by the Committee at the date of
         grant.

                  (e) Method of Exercise. A Stock Option may be exercised, in
         whole or in part, by giving written notice of exercise to the Company
         specifying the number of Common Shares to be purchased. Such notice
         shall be accompanied by payment in full of the purchase price in cash
         or, if acceptable to the Committee in its sole discretion, in Common
         Shares already owned by the Participant, or by surrendering outstanding
         Stock Options. The Committee may also permit Participants, either on a
         selective or aggregate basis, to simultaneously exercise Stock Options
         and sell Common Shares thereby acquired, pursuant to a brokerage or
         similar arrangement, approved in advance by the Committee, and use the
         proceeds from such sale as payment of the purchase price of such
         shares.

                                      -3-
<PAGE>

                  (f) Special Rule for Incentive Stock Options. With respect to
         Incentive Stock Options granted under this Plan, to the extent the
         aggregate Fair Market Value (determined as of the date the Incentive
         Stock Option is granted) of the number of shares with respect to which
         Incentive Stock Options are exercisable under all plans of the Company
         or a Subsidiary for the first time by a Participant during any calendar
         year exceeds $100,000, or such other limit as may be required by the
         Code, such Stock Options shall be Non-Qualified Stock Options to the
         extent of such excess.

         8. TERMINATION OF EMPLOYMENT OR DIRECTORSHIP.

                  (a) Except in the event of the death or disability of a
         Participant, upon the resignation, removal or retirement from the board
         of directors of any Participant who is a director of the Company or a
         Subsidiary or upon the termination of Employment of a Participant who
         is not a director of the Company or a Subsidiary, any Stock Option
         which has not yet become exercisable shall thereupon terminate and be
         of no further force or effect and, subject to extension by the
         Committee, any Stock Option which has become exercisable shall
         terminate if it is not exercised within 12 months of such resignation,
         removal or retirement.

                  (b) Unless the Committee shall specifically state otherwise at
         the time a Stock Option is granted, all Stock Options granted under
         this Plan shall become exercisable in full on the date of termination
         of a Participant's employment or directorship with the Company or a
         Subsidiary because of his death or disability, and, subject to
         extension by the Committee, all Stock Options shall terminate if not
         exercised within 12 months of the Participant's death or disability.

                  (c) In the event the Employment or the directorship of a
         Participant is Terminated for Cause, any Stock Option which has not
         been exercised shall terminate as of the date of such termination for
         cause.

         9. NON-TRANSFERABILITY OF STOCK OPTIONS. No Stock Option under this
Plan and no rights or interests therein shall be assignable or transferable by a
Participant except by will or pursuant to the laws of descent and distribution.
During the lifetime of a Participant, Stock Options are exercisable only by, and
payments in settlement of Stock Options will be payable only to, the Participant
or his or her legal representative.

         10. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.

                  (a) The existence of this Plan and the Stock Options granted
         hereunder shall not affect or restrict in any way the right or power of
         the Board or the shareholders of the Company to make or authorize the
         following: any adjustment, recapitalization, reorganization or other
         change in the Company's capital structure or its business; any merger,
         acquisition or consolidation of the Company; any issuance of bonds,
         debentures, preferred or prior preference stocks ahead of or affecting
         the Company's capital stock or the rights thereof; the dissolution or
         liquidation of the Company or any sale or transfer of all or any part
         of its assets or business; or any other corporate act or proceeding,
         including any merger or acquisition which would result in the exchange
         of cash, stock of another company or options to purchase the stock of
         another company for any Stock Option outstanding at the time of such
         corporate transaction or which would involve the termination of all
         Stock Options outstanding at the time of such corporate transaction.

                  (b) In the event of any change in capitalization affecting the
         Common Shares of the Company, such as a stock dividend, stock split,
         recapitalization, merger, consolidation, spin-off, split-up,
         combination or exchange of shares or other form of reorganization, or
         any other change affecting the Common Shares, such proportionate
         adjustments, if any, as the Board in its discretion may deem
         appropriate to reflect such change shall be made with respect to the
         aggregate number of Common Shares for which Stock Options in respect
         thereof may be granted under this Plan, the maximum number of Common
         Shares which may be sold or awarded to any Participant, the number of
         Common Shares covered by each outstanding Stock Option, and the
         exercise price per share in respect of outstanding Stock Options.

                                      -4-
<PAGE>

                  (c) The Committee may also make such adjustments in the number
         of shares covered by, and the exercise price or other value of, any
         outstanding Stock Options in the event of a spin-off or other
         distribution (other than normal cash dividends) of Company assets to
         shareholders. In the event that another corporation or business entity
         is being acquired by the Company and the Company agrees to assume
         outstanding employee stock options and/or the obligation to make future
         grants of options or rights to employees of the acquired entity, the
         aggregate number of Common Shares available for Stock Options under
         Section 5 of this Plan may be increased accordingly.

         11. AMENDMENT AND TERMINATION OF THIS PLAN. Without further approval of
the shareholders, the Board may at any time terminate this Plan or may amend it
from time to time in such respects as the Board may deem advisable, except that
the Board may not, without approval of the shareholders, make any amendment
which would (a) increase the aggregate number of Common Shares which may be
issued under this Plan (except for adjustments pursuant to Section 10 of this
Plan), (b) materially modify the requirements as to eligibility for
participation in this Plan, or (c) materially increase the benefits accruing to
Participants under this Plan. The above notwithstanding, the Board may amend
this Plan to take into account changes in applicable securities, federal income
tax and other applicable laws.

         12. MODIFICATION OF OPTIONS. The Board may authorize the Committee to
direct the execution of an instrument providing for the modification of any
outstanding Stock Option which the Board believes to be in the best interests of
the Company; provided, however, that no such modification, extension or renewal
shall reduce the exercise price or confer on the holder of such Stock Option any
right or benefit which could not be conferred on him by the grant of a new Stock
Option at such time and shall not materially decrease the Participant's benefits
under the Stock Option without the consent of the holder of the Stock Option,
except as otherwise permitted under this Plan.

         13. MISCELLANEOUS.

                  (a) Tax Withholding. The Company shall have the right to
         deduct from any settlement made under this Plan, including the delivery
         or vesting of Common Shares, any federal, state or local taxes of any
         kind required by law to be withheld with respect to such payments or to
         take such other action as may be necessary in the opinion of the
         Company to satisfy all obligations for the payment of such taxes. If
         Common Shares are used to satisfy tax withholding, such shares shall be
         valued based on the Fair Market Value when the tax withholding is
         required to be made.

                  (b) No Right to Employment. Neither the adoption of this Plan
         nor the granting of any Stock Option shall confer upon any employee of
         the Company or a Subsidiary any right to continued Employment with the
         Company or a Subsidiary, as the case may be, nor shall it interfere in
         any way with the right of the Company or a Subsidiary to terminate the
         Employment of any of its employees at any time, with or without cause.

                  (c) Annulment of Stock Options. The grant of any Stock Option
         under this Plan payable in cash is provisional until cash is paid in
         settlement thereof. The grant of any Stock Option payable in Common
         Shares is provisional until the Participant becomes entitled to the
         certificate in settlement thereof. In the event the Employment or the
         directorship of a Participant is Terminated for Cause, any Stock Option
         which is provisional shall be annulled as of the date of such
         termination.

                  (d) Other Company Benefit and Compensation Programs. Payments
         and other benefits received by a Participant under a Stock Option made
         pursuant to this Plan shall not be deemed a part of a Participant's
         regular, recurring compensation for purposes of the termination
         indemnity or severance pay law of any country and shall not be included
         in, nor have any effect on, the determination of benefits under any
         other employee benefit plan or similar arrangement provided by the
         Company or a Subsidiary unless expressly so provided by such other plan
         or arrangement, or except where the Committee expressly determines that
         a Stock Option or portion of a Stock Option should be included to
         accurately reflect competitive compensation practices or to recognize
         that a Stock Option has been made in lieu of a portion of competitive
         annual cash compensation. Stock Options under this Plan may be made in
         combination with or in tandem with, or as alternatives to, grants,
         stock options or payments under any other plans of the Company or a
         Subsidiary. This Plan notwithstanding, the Company or any Subsidiary
         may adopt such other compensation programs and additional compensation
         arrangements as it deems necessary to attract, retain and reward
         directors and employees for their service with the Company and its
         Subsidiaries.

                                      -5-
<PAGE>

                  (e) Securities Law Restrictions. No Common Shares shall be
         issued under this Plan unless counsel for the Company shall be
         satisfied that such issuance will be in compliance with applicable
         federal and state securities laws. Certificates for Common Shares
         delivered under this Plan may be subject to such stock-transfer orders
         and other restrictions as the Committee may deem advisable under the
         rules, regulations, and other requirements of the Securities and
         Exchange Commission, any stock exchange upon which the Common Shares
         are then listed, and any applicable federal or state securities law.
         The Committee may cause a legend or legends to be put on any such
         certificates to make appropriate reference to such restrictions.

                  (f) Stock Option Agreement. Each Participant receiving a Stock
         Option under this Plan shall enter into an agreement with the Company
         in a form specified by the Committee agreeing to the terms and
         conditions of the Stock Option and such related matters as the
         Committee shall, in its sole discretion, determine.

                  (g) Cost of Plan. The costs and expenses of administering this
         Plan shall be borne by the Company.

                  (h) Governing Law. This Plan and all actions taken hereunder
         shall be governed by and construed in accordance with the laws of the
         State of Ohio, except to the extent that federal law shall be deemed
         applicable.

                  (i) Effective Date. This Plan shall be effective upon the
         later of adoption by the Board and approval by the Company's
         shareholders. This Plan shall be submitted to the shareholders of the
         Company for approval at an annual or special meeting of shareholders to
         be held no sooner than six months after the effective date of the
         conversion of The Home Loan Savings Bank from mutual to stock form.

                                      -6-

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