PATAPSCO BANCORP, INC.
                         CASH DEFERRED COMPENSATION PLAN

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                                TABLE OF CONTENTS
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                                                                     Page

ARTICLE I.        General Provisions...................................1

ARTICLE II.       Definitions..........................................1

ARTICLE III.      Eligibility and Participation........................2

ARTICLE IV.       Deferred Compensation................................2

ARTICLE V.        Plan Administration..................................3

ARTICLE VI.       Amendment and Termination............................3

ARTICLE VII.      General Provisions...................................3

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                             PATAPSCO BANCORP, INC.
                         CASH DEFERRED COMPENSATION PLAN

Article I.  GENERAL PROVISIONS

     1.01 Purpose.  The Company hereby  establishes this Plan for the purpose of
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enabling  Directors to defer the receipt of fees  otherwise  payable to them, in
cash, and to transfer to this Plan amounts deferred under the Prior Plan.

     1.02 Effective Date. The Plan shall become effective on August 15, 2001.
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Article II. DEFINITIONS

     Unless the context clearly  requires  otherwise,  the terms defined in this
Article II shall,  for all purposes of this Plan,  have the respective  meanings
specified in this Article II.

     2.01   "Beneficiary"   means  the  person  or  persons   designated   as  a
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Participant's  beneficiary  or  beneficiaries  in  accordance  with Section 4.02
hereof or a Participant's deferred compensation agreement.

     2.02 "Board" means the Company's Board of Directors.
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     2.03 "Committee"  means the committee  appointed by the Board to administer
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the Plan.  In the absence at any time of a duly  appointed  committee,  the Plan
shall  be  administered  by  those  members  of the  Employer's  Board  who  are
"disinterested  persons"  within the meaning of Rule 16b-3 of the Securities and
Exchange Commission.

     2.04 "Company" means Patapsco Bancorp, Inc.
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     2.05 "Common Stock" means common stock of the Company.
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     2.06  "Compensation"  means the total fees that the  Director  receives for
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service on the Board during the Plan Year.

     2.07 "Director" means any member of the Board.
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     2.08  "Participant"  means a Director who has made a deferred  compensation
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election pursuant to Article IV hereof.

     2.09 "Plan" means the Patapsco  Bancorp,  Inc. Cash  Deferred  Compensation
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Plan, as amended from time to time.

     2.10 "Plan Year" means the 12-month  period  ending on each June 30th after
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the  Effective  Date,  except the  initial  Plan Year shall be a short plan year
beginning August 15, 2001 and ending June 30, 2002.

     2.11 "Prior Plan" means the Patapsco  Deferred  Compensation Plan in effect
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prior to August 15, 2001.

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     2.12 "Share" means one share of Common Stock.
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Article III. ELIGIBILITY AND PARTICIPATION

     Each Director of the Company shall be eligible to participate in the Plan.

Article IV.  DEFERRED COMPENSATION

     4.01 General  Deferral  Procedure.  In accordance  with this Article,  each
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Director may elect,  within 30 days of becoming a  Participant  or in advance of
any July 1st, to defer all or any portion of the Compensation  otherwise payable
to him from the  Company,  in cash,  for any Plan  Year in which  the Plan is in
effect.  Deferred  amounts  shall be credited  by the  Company to a  bookkeeping
account ("Deferral  Account")  Employer at the end of each calendar quarter,  in
accordance with the terms of the deferred  compensation  agreement  entered into
between the Participant and the Company.

     In  addition to the funds  deferred  quarter-annually  and  credited to the
Deferral Accounts of Participants,  the Company shall adjust each Account at the
end of each Plan Year to credit  the  Participant's  Deferral  Account  with the
appreciation  that would have occurred if the Deferral Account had been invested
in a fund  having  the  highest  interest  rate  during  the Plan Year which The
Patapsco Bank pays on certificates of deposit having a term of one year.

     4.02 Distributions to Participants.  A Participant's Deferral Account shall
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be paid,  in cash,  in  accordance  with those  terms set forth in his  deferred
compensation  agreement  which are  applicable  to the  deferred  amounts.  If a
Participant  should die before  receiving  all  deferred  compensation  benefits
payable  under  this  Article,  then  such  payment(s)  shall  be  made  to  the
Participant's Beneficiary.

     4.03 Agreements.  Deferred compensation  agreements made hereunder shall be
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prospective  only and shall be  irrevocable  with  respect to  amounts  deferred
pursuant  thereto,  except that a  Participant  may at any time and from time to
time (i) change the Beneficiary designated therein,  and/or (ii) file a deferred
compensation  agreement which supersedes a prior deferred compensation agreement
as to amounts  deferred  on or after the July 1st which  coincides  with or next
follows execution of the superseding  agreement.  In addition, a Participant may
at any time  file a  written  notice  with the  Company  pursuant  to which  the
Participant  ceases future  deferrals as soon as  practicable  after the Company
receives such notice.

     4.04  Transfers from Prior Plan. A Participant  who deferred  amounts under
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the Prior Plan may make a one time election,  not later than August 31, 2001, to
transfer  the value of amounts  credited to his account  under the Prior Plan to
this Plan by entering into a deferred  compensation  agreement with the Company.
All such deferred amounts  transferred from the Prior Plan to this Plan shall be
distributed  in cash to the  Participant  at such  time  and in such  manner  as
specified in the Participant's  deferred compensation agreement with the Company
that was  applicable  with respect to such deferred  amounts.  Such  transferred
amounts shall be credited to a separate bookkeeping account ("Transfer Account")
in the name of the  Participant.  The Company shall adjust such Transfer Account
at the end of each Plan Year to credit the account  with the  appreciation  that
would have  occurred if the Transfer  Account had been invested in a fund having
the highest  interest  rate during the Plan Year which The Patapsco Bank pays on
certificates of deposit having a term of one year.

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Article V.   PLAN ADMINISTRATION

     5.01 The Committee.  In its sole and absolute discretion,  which discretion
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when exercised shall be final and binding on all parties affected  thereby,  the
Committee  shall  have the  authority  and the  responsibility  to  control  the
administration and operation of the Plan in accordance with its terms including,
without limiting the generality of the foregoing,  the powers and duties: (i) to
interpret,   apply,  and  administer  the  Plan,  to  decide  all  questions  of
eligibility,  participation,  status,  benefits,  and rights of Participants and
Beneficiaries  under the  Plan;  (ii) to  establish  and  amend  such  rules and
procedures as it deems necessary or appropriate to the proper  administration of
the  Plan;  (iii) to  employ or retain  such  agents  as it deems  necessary  or
advisable to assist in the  administration  of the Plan,  and to delegate to the
extent  permitted by applicable law such powers and duties as it deems necessary
or  advisable,  (iv) to prepare and file all  statements,  returns,  and reports
required  to be filed by the Plan with any agency of  government;  (v) to comply
with all requirements of applicable  state and federal law including  applicable
securities,  labor and tax law;  and (vi) to  perform  all  functions  otherwise
assigned to it under the terms of the Plan.

     5.02 Claims Procedure. Claims for benefits under the Plan shall be filed in
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writing with the Committee.  Written notice of the Committee's  disposition of a
claim  generally  shall be furnished  to the  claimant  within 60 days after the
application therefor is filed.  However, if special circumstances exist of which
the Committee notifies the claimant within such 60 day period, the Committee may
extend  such  period to the extent  necessary,  but in no event  beyond 180 days
after the claim is filed. In the event the claim is denied,  the reasons for the
denial shall be specifically set forth in writing,  pertinent  provisions of the
Plan  shall  be cited  and,  where  appropriate,  an  explanation  as to how the
claimant  can  perfect the claim will be  provided.  Any  claimant  who has been
denied a benefit shall be entitled, upon request to the Committee, to appeal the
denial  of his claim  within 60 days  following  the  Committee's  determination
described in the preceding  sentence.  Upon such appeal,  the  claimant,  or his
representative,  shall be entitled to examine pertinent documents, submit issues
and  comments  in writing to the  Committee,  and meet with the  Committee.  The
Committee  shall review its decision and issue a final  decision to the claimant
in writing,  generally within 60 days following such appeal. However, if special
circumstances  exist of which the Committee notifies the claimant within such 60
day period, the Committee may extend such period to the extent necessary, but in
no event beyond 120 days following such appeal.

Article VI.  AMENDMENT AND TERMINATION

     The  Company,  acting  by its  Board,  reserves  the  right  at any time to
terminate or amend the Plan in any manner and for any reason;  provided, that no
amendment or termination  shall,  without the consent of the  Participant or, if
applicable,  his Beneficiary,  either (i) adversely affect such Participant's or
Beneficiary's  rights with  respect to  benefits  accrued as of the date of such
amendment or  termination,  or (ii) suspend or terminate  the Plan during a Plan
Year without  providing for both advance written notice to Participants  and the
payment of benefits  for the portion of the Plan Year during  which the Plan was
in effect.

Article VII. GENERAL PROVISIONS

     7.01 Prohibition Against  Alienation.  Benefits payable to a Participant or
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Beneficiary  under the terms of this Plan  shall not be subject in any manner to
alienation,  anticipation,  sale, transfer,  assignment,  pledge, hypothecation,
attachment,  receivership,  or encumbrance of any kind,

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nor shall it pass to any trustee in  bankruptcy  or be reached or applied by any
legal  process  for  the  payment  of  any  obligations  of the  Participant  or
Beneficiary, except at such times and in such manner as provided in this Plan.

     7.02 No Enlargement of Employment  Rights.  Nothing  contained in this Plan
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shall give or be  construed  as giving any  Director the right to be retained in
the service of the Company,  or shall interfere with the right of the Company to
terminate any Director's service at any time.

     7.03 Unfunded Promise to Pay.  Nothing  contained herein shall be deemed to
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create  a trust of any  kind or  create  any  fiduciary  relationship.  Deferred
amounts  hereunder  shall  continue  for all  purposes to be part of the general
assets of the Company and no person other than the Company  shall,  by virtue of
the  provisions  of this Plan,  have any interest in such assets.  To the extent
that any person acquires a right to receive payments from the Company under this
Plan,  such right shall be no greater  than the right of any  unsecured  general
creditor of the Company.

     7.04 Gender.  Whenever any masculine  terminology  is used in this Plan, it
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shall be taken to include the feminine, unless the context otherwise indicates.

     7.05  Applicable  Law. This Plan shall be construed and regulated,  and its
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validity and effect and the rights hereunder of all parties  interested shall at
all times be determined,  in accordance  with the laws of the State of Maryland,
except to the extent such state law is preempted by federal law.

     7.06  Titles and  Headings.  The titles and  headings  included  herein are
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included for convenience only and shall not be construed as in any way affecting
or modifying the text of this Plan, which text shall control.

     IN WITNESS  WHEREOF,  the Company  hereby adopts this Plan  effective as of
August 15, 2001.


ATTEST:                              PATAPSCO BANCORP, INC.


___________________________          By:_______________________________
                                               Its President


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                             PATAPSCO BANCORP, INC.
                         CASH DEFERRED COMPENSATION PLAN
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                   DIRECTOR'S DEFERRED COMPENSATION AGREEMENT
                  ____________________________________________


     AGREEMENT,   made  this  ____  day  of  ________,   2001,  by  and  between
_______________ (the "Participant"), and Patapsco Bancorp, Inc. (the "Company").

     WHEREAS,  the Company  maintains the Patapsco  Bancorp,  Inc. Cash Deferred
Compensation Plan (the "Plan"); and

     WHEREAS,  the  Participant  is  eligible  to make a  deferred  compensation
election pursuant to the Plan; and

     WHEREAS, the Company's Board of Directors has established that any director
of the Employer may elect to defer his or her director's fees and may defer said
fees under the same terms and conditions as set forth in the Plan.

     NOW THEREFORE, it is mutually agreed as follows:

     1. The  Participant,  by the execution  hereof,  agrees to defer his or her
regular  director's fees,  pursuant to the terms and conditions set forth in the
Plan and, in accordance therewith, makes the following elections:

          a.  Participant  hereby elects to defer ______ percent  (____%) of the
director's fees otherwise earned from the date of this Agreement forward.

          b. Until distributed to the Participant, the amounts deferred pursuant
hereto  and any  amounts  transferred  to this Plan from the  Patapsco  Deferred
Compensation  Plan  shall  appreciate  for each Plan  Year as  though  they were
invested in a fund having the highest interest rate which The Patapsco Bank pays
on certificates of deposit having a term of one year.

          c. The amounts  deferred under the Plan,  and any related  accumulated
income on such deferrals shall be distributed,  in cash,  beginning on the first
day of the month following the  Participant's  _____ termination of service with
the Company,* ______  attainment of age ______,  OR ______ the later to occur of
these events.

          d.  The  Participant   hereby  elects  to  have  the  amount  deferred
hereunder,  and any earnings  attributable  thereto be  distributed  as follows:
_____ one lump sum,  OR _____  substantially  equal  ____  annual  ____  monthly
payments over a period of ______ years.

     2. The Participant hereby designates  _______________________  to be his or
her beneficiary  and to receive the balance of any unpaid deferred  compensation
and related earnings.


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*    The Participant shall be treated as having  terminated  service upon ending
     all duties and positions with the Company  (including  those of an honorary
     director).

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     3. With respect to amounts deferred while this Agreement is in effect,  the
elections made hereunder shall be irrevocable,  except that a Participant may at
any time and from time to time prospectively  change (i) the investment election
made in paragraph 1.b.  hereof,  and (ii) the  beneficiary  designation  made in
paragraph 2 hereof.  A  Participant  may at any time file a new  agreement  that
supersedes  this  Agreement  with respect to amounts earned from the date of the
superseding agreement forward.

     4. The Company agrees to make payment of the amount due the  Participant in
accordance  with the terms of the Plan and the elections made by the Participant
herein.

     IN WITNESS  WHEREOF,  the parties  hereto have hereunto set their hands the
day and year first above-written.

                                        PARTICIPANT

                                        _______________________________________
                                        Participant

                                        PATAPSCO BANCORP, INC.

                                        By_____________________________________
                                          Its__________________________________



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