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                                  EXHIBIT 10.1

                               SEVERANCE AGREEMENT
                               -------------------

         THIS SEVERANCE AGREEMENT (hereinafter referred to as this "AGREEMENT")
is entered into as of the 20th day of August, 2001, by and between Peoples
Federal Savings and Loan Association of Massillon, a savings and loan
association chartered under the laws of the United States (hereinafter referred
to as the "EMPLOYER"), and Paul von Gunten, an individual (hereinafter referred
to as the "EMPLOYEE");

                                   WITNESSETH:

         WHEREAS, the EMPLOYEE is currently employed as the President and Chief
Executive Officer of the EMPLOYER;

         WHEREAS, as a result of the skill, knowledge and experience of the
EMPLOYEE, the Board of Directors of the EMPLOYER desires to retain the services
of the EMPLOYEE as the President and Chief Executive Officer of the EMPLOYER;

         WHEREAS, the EMPLOYEE desires to continue to serve as the President and
Chief Executive Officer of the EMPLOYER; and

         WHEREAS, the EMPLOYEE and the EMPLOYER desire to enter into this
AGREEMENT to set forth their understanding as to their respective rights and
obligations in the event of the termination of EMPLOYEE's employment under the
circumstances set forth in this AGREEMENT.

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

         1.       EMPLOYMENT AND TERM.

         (a) TERM. This AGREEMENT shall commence on the date set forth above and
         shall end on December 31, 2002, subject to extension pursuant to
         subsection (b) of this Section 1 (hereinafter, including any such
         extensions, referred to as the "TERM"), and to earlier termination as
         provided herein.

         (b) EXTENSION. Prior to each anniversary of the date of this AGREEMENT,
         the Board of Directors of the EMPLOYER shall review this AGREEMENT and
         document its approval of this AGREEMENT in the minutes of the Board of
         Directors. In connection with such annual review, the TERM shall be
         extended for a one-year period beyond the then-effective expiration
         date, provided the Board of Directors of the EMPLOYER determines in a
         duly adopted resolution that this AGREEMENT should be extended. Any
         such extension shall be subject to the written consent of the EMPLOYEE.



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         2.       TERMINATION OF EMPLOYMENT.

         (a) TERMINATION FOR JUST CAUSE. In the event that the EMPLOYER
         terminates the employment of the EMPLOYEE before the expiration of the
         TERM because of the EMPLOYEE's personal dishonesty, incompetence,
         willful misconduct, breach of fiduciary duty involving personal profit,
         intentional failure or refusal to perform the duties and
         responsibilities assigned in this AGREEMENT, willful violation of any
         law, rule, regulation (other than traffic violations or similar
         offenses) or final cease-and-desist order, conviction of a felony or
         for fraud or embezzlement, or material breach of any provision of this
         AGREEMENT (hereinafter collectively referred to as "JUST CAUSE"), the
         EMPLOYEE shall not receive, and shall have no right to receive, any
         compensation or other benefits for any period after such termination.

         (b) TERMINATION WITHOUT JUST CAUSE AND WITHOUT A CHANGE OF CONTROL. In
         the event that the EMPLOYER terminates the employment of the EMPLOYEE
         before the expiration of the TERM without JUST CAUSE and on a date that
         is more than six months before a CHANGE OF CONTROL (hereinafter
         defined) or that is after one year following a CHANGE OF CONTROL, the
         EMPLOYEE shall not receive, and shall have no right to receive, any
         compensation or other benefits for any period after such termination.

         (c) TERMINATION IN CONNECTION WITH A CHANGE OF CONTROL. In the event
         that in connection with a CHANGE OF CONTROL (hereinafter defined),
         including, without limitation, a termination other than for JUST CAUSE
         within six months prior to a CHANGE OF CONTROL or within one year after
         a CHANGE OF CONTROL the employment of the EMPLOYEE is terminated by the
         EMPLOYER for any reason other than JUST CAUSE before the expiration of
         the TERM, then the following shall occur:

                  (i) The EMPLOYER shall promptly pay to the EMPLOYEE or to his
                  beneficiaries, dependents or estate $85,000; and

                  (ii) The EMPLOYEE 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 the EMPLOYEE offset in any
                  manner the obligations of the EMPLOYER hereunder.

         (In the event that payments pursuant to this subsection (c) 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 (hereinafter collectively referred
         to as "SECTION 280G"), such payments shall be reduced to the maximum
         amount which may be paid under SECTION 280G without exceeding such
         limits. Payments pursuant to this subsection (c) also may not exceed
         applicable limits established by the Office of Thrift Supervision
         (hereinafter referred to as the "OTS"). In the event a reduction in
         payments is necessary in order to comply with the requirements of this
         AGREEMENT relating to the limitations of SECTION 280G or applicable OTS
         limits, the EMPLOYEE may determine, in his sole discretion, which
         categories of payments are to be reduced or eliminated.

         (d) DEATH OF THE EMPLOYEE. The TERM shall automatically terminate upon
         the death of the EMPLOYEE. In the event of such death, the EMPLOYEE's
         estate shall be entitled to receive the compensation due the EMPLOYEE
         through the last day of the calendar month in which the death occurred,
         except as otherwise specified herein.

         (e) "GOLDEN PARACHUTE" PROVISION. Any payments made to the EMPLOYEE
         pursuant to this AGREEMENT or otherwise are subject to and conditioned
         upon their compliance with 12 U.S.C. Section 1828(k) and any
         regulations promulgated thereunder.

         (f) DEFINITION OF "CHANGE OF CONTROL". A "CHANGE OF CONTROL" shall be
         deemed to have occurred in the event that, at any time during the
         EMPLOYMENT TERM, either any person or entity obtains "conclusive
         control" of the EMPLOYERS within the meaning of 12 C.F.R. Section
         574.4(a), or any person or entity obtains "rebuttable control" 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(c).

         (g) LEGAL FEES. EMPLOYER shall promptly pay all legal fees and expenses
         which EMPLOYEE may incur as a result of EMPLOYEE or EMPLOYER contesting
         the validity or enforceability of this


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         AGREEMENT if a court of competent jurisdiction renders a final decision
         in favor of EMPLOYEE with respect to any such contest, or to the extent
         agreed to by EMPLOYER and EMPLOYEE in an agreement of settlement with
         respect to any such contest.

         3. SPECIAL REGULATORY EVENTS. Notwithstanding Section 2 of this
AGREEMENT, the obligations of the EMPLOYER to the EMPLOYEE shall be as follows
in the event of the following circumstances:

         (a) If the EMPLOYEE is suspended and/or temporarily prohibited from
         participating in the conduct of the EMPLOYER's 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"), the EMPLOYER's obligations
         under this AGREEMENT shall be suspended as of the date of service of
         such notice, unless stayed by appropriate proceedings. If the charges
         in the notice are dismissed, the EMPLOYER shall (i) pay the EMPLOYEE
         all of the compensation withheld while the obligations in this
         AGREEMENT were suspended and (ii) reinstate any of the obligations that
         were suspended.

         (b) If the EMPLOYEE is removed and/or permanently prohibited from
         participating in the conduct of the EMPLOYER's affairs by an order
         issued under Section 8(e)(4) or (g)(1) of the FDIA, all obligations of
         the EMPLOYER under this AGREEMENT shall terminate as of the effective
         date of such order; provided, however, that vested rights of the
         EMPLOYEE shall not be affected by such termination.

         (c) If the EMPLOYER 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 the EMPLOYEE
         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 the EMPLOYER, (i) by the
         Director of the OTS, or his or her designee at the time that the
         Federal Deposit Insurance Corporation enters into an agreement to
         provide assistance to or on behalf of the EMPLOYER under the authority
         contained in Section 13(c) of the FDIA or (ii) by the Director of the
         OTS, or his or her designee, at any time the Director of the OTS, or
         his or her designee, approves a supervisory merger to resolve problems
         related to the operation of the EMPLOYER or when the EMPLOYER is
         determined by the Director of the OTS to be in an unsafe or unsound
         condition. No vested rights of the EMPLOYEE shall be affected by any
         such action.

         4. CONSOLIDATION, MERGER OR SALE OF ASSETS. Nothing in this AGREEMENT
shall preclude the EMPLOYER from consolidating with, merging into, or
transferring all, or substantially all, of its assets to another corporation
that assumes all of the EMPLOYER's obligations and undertakings hereunder. Upon
such a consolidation, merger or transfer of assets, the term "EMPLOYER," as used
herein, shall mean such other corporation or entity, and this AGREEMENT shall
continue in full force and effect.

         5. CONFIDENTIAL INFORMATION. The EMPLOYEE acknowledges that during his
employment he will learn and have access to confidential information regarding
the EMPLOYER and its customers and businesses. The EMPLOYEE agrees and covenants
not to disclose or use for his own benefit, or the benefit of any other person
or entity, any confidential information, unless or until the EMPLOYER consents
to such disclosure or use or such information becomes common knowledge in the
industry or is otherwise legally in the public domain. The EMPLOYEE shall not
knowingly disclose or reveal to any unauthorized person any confidential
information relating to the EMPLOYER, its parent, subsidiaries or affiliates, or
to any of the businesses operated by them, and the EMPLOYEE confirms that such
information constitutes the exclusive property of the EMPLOYER. The EMPLOYEE
shall not otherwise knowingly act or conduct himself (a) to the material
detriment of the EMPLOYER, its subsidiaries, or affiliates, or (b) in a manner
which is inimical or contrary to the interests of the EMPLOYER.

         6. NATURE OF EMPLOYMENT. Nothing contained in this AGREEMENT shall
create any employment relationship between the EMPLOYER and the EMPLOYEE other
than an employment relationship that is terminable "at will." The EMPLOYER may
terminate the EMPLOYEE's employment at any time, subject to providing any
payments specified herein in accordance with the terms hereof.

         7. NONASSIGNABILITY. Neither this AGREEMENT nor any right or interest
hereunder shall be assignable by the EMPLOYEE, his beneficiaries or his legal
representatives without the EMPLOYER's prior written consent; provided, however,
that nothing in this Section 7 shall preclude (a) the EMPLOYEE from designating
a

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beneficiary to receive any benefits payable hereunder upon his death, or (b)
the executors, administrators, or other legal representatives of the EMPLOYEE or
his estate from assigning any rights hereunder to the person or persons entitled
thereto.

         8. 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.

         9. BINDING AGREEMENT. This AGREEMENT shall be binding upon, and inure
to the benefit of, the EMPLOYEE and the EMPLOYER and their respective permitted
successors and assigns.

         10. AMENDMENT OF AGREEMENT. This AGREEMENT may not be modified or
amended, except by an instrument in writing signed by the parties hereto.

         11. 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.

         12. 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.

         13. 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.

         14. GOVERNING LAW; REGULATORY AUTHORITY. 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. References to the OTS
included herein shall include any successor primary federal regulatory authority
of the EMPLOYER.

         15. EFFECT OF PRIOR AGREEMENTS. This AGREEMENT contains the entire
understanding between the parties hereto and supersedes any prior employment
agreement between the EMPLOYER or any predecessor of the EMPLOYER and the
EMPLOYEE.

         16. 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 the EMPLOYER:

         Peoples Federal Savings and Loan
           Association of Massillon
         211 Lincoln Way East
         Massillon, Ohio 44646
         Attention:  President

         If to the EMPLOYEE:

         Paul von Gunten
         1531 Merino Circle, N.E.
         Massillon, Ohio 44646



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         IN WITNESS WHEREOF, the EMPLOYER has caused this AGREEMENT to be
executed by its duly authorized officer, and the EMPLOYEE has signed this
AGREEMENT, each as of the day and year first above written.


Attest:                                      PEOPLES FEDERAL SAVINGS AND LOAN
                                               ASSOCIATION OF MASSILLON



                                             By
--------------------------------               --------------------------------
                                               --------------------------------
                                               --------------------------------


Attest:


--------------------------------    -----------------------------------
                                           Paul von Gunten