Document:

Exhibit 10.06

                           1998 SPLIT-DOLLAR AGREEMENT

                                ERNEST J. SEWELL

      THIS  Agreement  made  is  effective  ___________________,  _____,  by and
between FNB Southeast or its successor  (herein called the  "Company"),  a North
Carolina  corporation having its principal office in Reidsville,  North Carolina
(hereinafter  called the "Company") and Ernest J. Sewell (hereinafter called the
"Employee");

                                 R E C I T A L S

      The Employee is a valued employee of the Company,  and the Company desires
to retain him in its employ. As an inducement to such continued employment,  the
Company wishes to assist the Employee with his personal life insurance  program.
The Company has  initiated  a program to purchase a policy of  insurance  on the
lives of certain  key  employees.  The  Employee  wishes to  participate  in the
program provided by the Company as described herein.

      NOW, THEREFORE, the parties hereto agree as follows:

Section 1 - Policy of Insurance
---------

      The life  insurance  policy  subject to this  Agreement  is Policy  Number
[____] (hereinafter  referred to as "the Policy") issued by the General American
Life  Insurance  Company  (hereinafter  called the "Insurer") on the life of the
Employee in the fact amount of $200,000.

Section 2 - Ownership of Insurance
---------

      The Employee  shall be the owner of the Policy,  but as a condition of the
Agreement  agrees to make a "Collateral  Assignment" to the Company in an amount
equal to the sum of the  cumulative  annual  premiums  paid by the Company.  The
Employee may exercise all rights of ownership with respect to the Policy, except
as otherwise hereinafter provided. It is the express intention of the parties to
reserve to the Employee certain rights in and to the Policy granted to it by the
terms of the  Policy,  but  excluding  the right to  designate  and  change  the
beneficiary  of that  portion of the  proceeds  to which the Company is entitled
under Section 5 hereunder.

Section 3 - Payment of Premiums on Policy and Annual Policy Dividends
---------

      All premiums on the Policy  shall be paid by the Company each year,  until
the fifteenth (15th) Policy anniversary date unless this Agreement is terminated
as provided in Section 6 below.  The Company shall pay each annual premium on or
before the premium  date,  or within the grace period  allowed by the Policy for
the payment of the premium.  Any annual  dividend  paid by the Insurer under the
Policy shall be used to purchase paid-up annual  additions,  which shall be used
to increase the face amount of the Policy.

                                       78
<PAGE>

Section 4 - Loan and Surrender of Policy
---------

      The Employee  shall have the right at his discretion to borrow on the cash
value,  subject to the  Collateral  Assignment  in Section 2. In  addition,  the
Employee may  surrender the Policy and receive the entire cash  surrender  value
thereof, subject to the Collateral Assignment in Section 2.

Section 5 - Death Claims
---------

      (a)  Company's  Proceeds:  When the Employee  dies,  the Company  shall be
           -------------------
entitled to receive from the Insurer that amount from the death benefit provided
under the  Policy  which is equal to the sum of the total  premiums  paid by the
Company,  reduced by any Policy  indebtedness  under the  Collateral  Assignment
(policy loan) of the Company to the Insurer under;

      (b)  Employee's  Proceeds:  When the Employee  dies,  the  beneficiary  or
           --------------------
beneficiaries  named by the Employee shall be entitled to receive the balance of
the death benefit  provided  under the Policy in excess of the amount payable to
the  Company  under  Section  5(a) above.  This  amount  shall be paid under the
settlement option elected by the Employee or the Employee's beneficiary.  If the
Employee  has not  named  a  beneficiary  by the  time  of his  death,  or is no
beneficiary  named by the Employee shall be living at the death of the Employee,
the beneficiary shall be the Employee's Estate.

Section 6 - Termination of Agreement Prior to Death of Employee
---------

      This  Agreement  and Policy may not be  terminated  by the Company (or its
successor entity) prior to the death of the Employee, except in the event of (i)
bankruptcy of the Company, (ii) the mutual written agreement between the parties
(iii) the voluntary  termination  of  employment  by the  Employee,  or (iv) the
Employee is terminated  "for cause."  Retirement of Employee shall not terminate
this  Agreement or Policy,  but this Agreement and Policy shall remain in effect
until the death of the Employee.

Section 7 - Disposition of Policy on Termination of Agreement

         If the Agreement is terminated under the provisions of Section 6, the
Employee shall have sixty (60) days in which to pay to the Company the amount
which the Company would be entitled to receive, said amount being the lesser of
(i) the cash surrender value of the policy, or (ii) the cumulative premiums paid
by the Employer under Section 5 (if the Employee's death had occurred at that
time). Upon receipt of this amount, the Company shall cancel any Collateral
Assignment made to it as a security interest in the Policy. If the Employee does
not pay such amount to the Company within sixty (60) days, the Company may
enforce any security interest it has through the Collateral Assignment, which it
has under the policy.

Section 8 - Insurance Company Not a Party
---------

                                       79

<PAGE>

      The Insurer  shall not be deemed to be a party to this  Agreement  for any
purpose  and is not in any  way  responsible  for  its  validity;  shall  not be
obligated to inquire as to the  distribution of any monies payable or paid by it
under the Policy on the  Employee's  life acquired  pursuant to the terms of the
Agreement;  and shall be fully  discharged  from any and all liability under the
terms of any  Policy  issued  by it upon  payment  or other  performance  of its
obligations in accordance with the terms of such Policy.

ection 9 - Amendment of Agreement
---------

      This  Agreement  shall not be modified or amended except by mutual written
agreement as signed by the Company (or its  successor)  and the  Employee.  This
Agreement shall be binding upon the heirs,  administrators or executors, and the
successors and assigns of each party to this Agreement.

Section 10 - Merger, Acquisition or Change in Control
----------

      In the event that the Company is acquired by,  merged  with,  or otherwise
has a "change  in  control"  (change  of 25% or more in its  outstanding  voting
shares of common  stock),  the  successor  entity shall be obligated to continue
this Agreement,  unless otherwise mutually agreed in writing by the Employee and
the successor entity.

Section 11 - Applicable Law
----------

      The Agreement shall be subject to and shall be construed under the laws of
the State of North Carolina.

      IN WITNESS  WHEREOF,  the parties hereto have executed the Agreement as of
this ___ day of ______________, ____.

ATTEST:                                     FNB SOUTHEAST

/s/ Richard Powell                          By: /s/ Ernest J. Sewell
------------------                              --------------------
Asst. Secretary                                 President/CEO
[Corporate Seal]

                                            EMPLOYEE

                                            By: /s/ Ernest J. Sewell
                                                --------------------
                                                Ernest J. Sewell

                                       80Exhibit 10.2

                          STOCK OPTION AWARD AGREEMENT
                 PURSUANT TO THE FIRST DEFIANCE FINANCIAL CORP.
                      2001 STOCK OPTION AND INCENTIVE PLAN
                            (Incentive Stock Option)
                            ------------------------

      THIS  AGREEMENT  is made to be effective  as of  _________________  by and
between First Defiance  Financial Corp.  (the  "Company") and  _________________
(the "Optionee").

                                   WITNESSETH:
                                   -----------

      WHEREAS,  pursuant to the provisions of the First Defiance Financial Corp.
2001 Stock Option and Incentive  Plan (the "Plan"),  the Stock Option  Committee
(the  "Committee") has determined that an option to acquire common shares of the
Company,  $0.01 par value per share (the "Common Shares"),  should be granted to
the Optionee upon the terms and conditions set forth in this Agreement;

      NOW, THEREFORE, in consideration of the above premises and intending to be
legally bound by this Agreement, the parties hereto agree to the following:

      1. Grant of Option. The Company hereby grants to the Optionee an option to
purchase  _________________ Common Shares (the "Option"). The Option is intended
to qualify as an  incentive  stock  option (an "ISO")  under  Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code").

      2. Terms and Conditions of the Option.
         -----------------------------------

            (A) Option Price. The exercise price (the "Option Price") to be paid
by zthe  Optionee to the  Company  upon the  exercise  of the Option  shall be $
_______ per share,  being 100% of the Fair Market Value (as that term is defined
in the Plan) of a Common Share on (current date).
                                  --------------

            (B) Exercise of the Option.  Subject to the  provisions  of the Plan
and the other provisions of this Agreement,  the Option is first  exercisable in
accordance with the following schedule:

                                                            Number of Common
               Date                                     Shares First Exercisable
               ----                                     ------------------------

      (one year anniversary of grant date)              (20% of shares granted)
      (two year anniversary of grant date)              (20% of shares granted)
      (three year anniversary of grant date)            (20% of shares granted)
      (four year anniversary of grant date)             (20% of shares granted)
      (five year anniversary of grant date)             (20% of shares granted)

<PAGE>

      The Option may be  exercised  to  purchase  less than the total  number of
Common Shares  subject to the Option.  The Option may be exercised by delivering
written  notice of exercise to the Company.  The notice must state the number of
Common Shares to be purchased and must be  accompanied by payment in full of the
Option  Price in cash  unless the  Committee,  in its sole  discretion,  permits
payment of the Option Price in Common Shares already owned by the Optionee or by
the surrender of outstanding awards of Options.

      The Option may not be exercised  unless the Common Shares issued upon such
exercise are first registered  pursuant to any applicable federal and state laws
or regulations or, in the opinion of the counsel to the Company, are exempt from
such  registration.  Nothing contained in the Plan or in this Agreement shall be
construed  to  require  the  Company  to  take  any  action  whatsoever  to make
exercisable  any  Option or to make  transferable  any  shares  issued  upon the
exercise of any Option.

            (C) Option Term. The Option shall expire on (ten year anniversary of
grant date). The Option shall in no event be exercisable after the expiration of
ten (10) years from the date of this Agreement.

            (D)  Change  of  Control.   The  Option  shall  become   immediately
exercisable in the event of a change in control of the Company, as determined by
the  Committee.  "Change in  Control"  shall mean the  acquisition,  directly or
indirectly,  of the beneficial  ownership (as such term is defined under Section
13(d)  of the  Securities  Exchange  Act of  1934,  as  amended,  and the  rules
promulgated  thereunder) of 25% or more of the outstanding  Common Shares of the
Company  by any  person,  trust,  entity  or  group  or (ii)  the sale of all or
substantially all of the assets of the Company.

      3.  Non-Assignability of the Option. The Option shall not be assignable or
transferable except by will or by the laws of the descent and distribution.  The
terms  and  conditions  of the  Option  shall be  binding  upon  each and  every
executor, administrator, heir, beneficiary, or other successor to the Optionee's
interest.

      4. Incentive Stock Option Qualification.  The Option is intended to be and
ISO under Section 422 of the Code. The Optionee  acknowledges  that in order for
the Option to qualify as an ISO,  the  Optionee  must comply with the  following
additional conditions:

            (A)  The  Optionee  must  remain  employed  by  the  Company  (or  a
subsidiary  of the  Company) at least until  three  months  before the Option is
exercised  (or one year in the case of an Optionee  who is  disabled  within the
meaning of Section  22(e)(3) of the Code);

            (B) The Optionee may not dispose of the Common Shares  acquired upon
the  exercise of the Option (i) within two years of the date of the grant of the
Option,  and (ii) within one year after the date of the  exercise of the Option;
and

                                       2
<PAGE>

            (C) The aggregate  fair market value  (determined  as of the date of
the grant of the  Option) of the Common  Shares  with  respect to which ISOs are
exercisable under all plans of the Company or a subsidiary for the first time by
the Optionee during any calendar year shall not exceed  $100,000,  or such other
limit as may be required by the Code.

      To the  extent  that the  Optionee  does  not  comply  with the  foregoing
conditions,  the  Option  will not be  deemed  to be an ISO  under the Code with
respect to the number of shares that fail to satisfy each of such conditions.

      5.  Governing  Law.  The rights and  obligations  of the  Optionee and the
Company  under this  Agreement  shall be governed by and construed in accordance
with  the  laws  of the  State  of  Ohio  in all  respects,  including,  without
limitation,  matters  relating to the  validity,  construction,  interpretation,
administration,  effect, enforcement and remedies provisions of the Plan and its
rules and regulations, except to the extent preempted by applicable federal law.
All  disputes  and matters  whatsoever  arising  under,  in  connection  with or
incident to this Agreement shall be litigated,  if at all, in and before a court
located in the State of Ohio,  USA, to the  exclusion of the courts of any other
state or country.

      6. Rights and Remedies Cumulative.  All rights and remedies of the Company
and of the Optionee enumerated in this Agreement shall be cumulative and, except
as expressly provided otherwise in this Agreement,  none shall exclude any other
rights or  remedies  allowed  by law or in  equity,  and each of such  rights or
remedies may be exercised and enforced concurrently.

      7.  Captions.  The captions  contained in this Agreement are included only
for  convenience of reference and do not define,  limit,  explain or modify this
Agreement or its interpretation, construction or meaning and are in no way to be
construed as a part of this Agreement.

      8. Severability.  If any provision of this Agreement or the application of
any provision hereof to any person or any circumstance shall be determined to be
invalid or  unenforceable,  then such  determination  shall not affect any other
provision of this  Agreement or the  application  of such provision to any other
person or circumstance, all of which other provisions shall remain in full force
and effect.  It is the  intention  of each party to this  Agreement  that if any
provision of this Agreement is susceptible of two or more constructions,  one of
which would render the  provision  enforceable  and the other or others of which
would render the  provision  unenforceable,  then the  provision  shall have the
meaning which renders it enforceable.

      9. Plan as Controlling. All terms and conditions of the Plan applicable to
options  granted  thereunder  which are not set forth in this Agreement shall be
deemed incorporated herein by reference. In the event that any provision in this
Agreement  conflicts  with any term in the Plan,  the term in the plan  shall be
deemed controlling.

                                       3
<PAGE>

      10. Entire  Agreement.  This Agreement  constitutes  the entire  agreement
between the  Company  and the  Optionee  regarding  the  subject  matter of this
Agreement,   and  this  Agreement   supersedes  all  prior  and  contemporaneous
agreements  between the parties hereto in connection  with the subject matter of
this Agreement.  All representations of any type relied upon by the Optionee and
the Company in making this Agreement are specifically set forth herein,  and the
Optionee  and the  Company  each  acknowledge  that they have relied on no other
representation  in  entering  into this  Agreement.  No change,  termination  or
attempted  waiver of any of the  provisions of this  Agreement  shall be binding
upon any party hereto  unless  contained in a writing  signed by the party to be
charged.

      IN WITNESS  WHEREOF,  the parties  hereto have caused this Agreement to be
executed to be effective as of February 21, 2005.

                                        FIRST DEFIANCE FINANCIAL CORP.

                                        By: ____________________________________
                                            William J. Small
                                            its Chairman, President, & CEO

                                        OPTIONEE

                                        ________________________________________
                                        (Optionee's Name)

                                       4

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