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                                   EXHIBIT 10.6
 
               NON-QUALIFIED EXECUTIVE DEFERRED COMPENSATION PLAN
                              FOR ROBERT H. HALLECK































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                     MARYLAND FEDERAL BANCORP, INC.
          NON-QUALIFIED EXECUTIVE DEFERRED COMPENSATION PLAN
                        FOR ROBERT H. HALLECK


    THIS NON-QUALIFIED EXECUTIVE DEFERRED COMPENSATION PLAN ("Plan") is made 
this 16th day of May, 1996, by and between MARYLAND FEDERAL BANCORP, INC. 
("Corporation") and ROBERT H. HALLECK ("Employee").

                      Introductory Statement:

    WHEREAS, as a result of a reduction in the amount of compensation that 
may be taken into account in determining contributions to qualified 
retirement plans, the benefits that Employee will, upon retirement, be 
entitled to received pursuant to the Maryland Federal Savings and Loan 
Association Retirement Plan ("Qualified Plan") will be significantly less 
than the benefits he would have received absent such reduction, and the 
amount which the Corporation is required to contributed to the Qualified Plan 
for each of the remaining years prior to Employee's retirement will be 
significantly reduced; and

    WHEREAS, Corporation wishes to restore Employee's retirement benefits to 
approximate the amounts to which he was entitled prior to such reduction 
through provision of deferred compensation ("Deferred Compensation"), the 
receipt of which shall be in accordance with the terms of this Plan; and

    WHEREAS, the Corporation desires to establish a trust ("Trust") and to 
transfer to the Trust assets which shall be held herein for the benefit of 
the Employee; and


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    WHEREAS, it is the intention of the Corporation to make contributions to 
the Trust in such amounts as the Employee shall determine in accordance with 
the procedures set forth herein.

    NOW, THEREFORE, in consideration of the Introductory Statement and other 
good and valuable consideration, the receipt and adequacy of which are hereby 
acknowledged, the parties hereto agree as follows:

    1.  ACCRUAL OF DEFERRED COMPENSATION.

        a. During each year of Employee's employment with the Corporation, 
commencing with the year ending December 31, 1996 and continuing until 
Employee's retirement or other termination of Employment, Employee shall 
accrue deferred compensation, which deferred compensation shall be paid in 
accordance with the terms hereof.

        b. Amounts accrued each year shall be contributed by the Corporation 
to a trust established by the Corporation in the form attached hereto as 
Exhibit "A" ("Trust").  The sum of Sixty Five Thousand Dollars ($65,000) 
shall be contributed to such Trust upon final ratification of this Plan by 
the Board of Directors.  In addition, the Corporation shall contribute to the 
Trust the sum of Sixty Five Thousand Dollars ($65,000) effective December 31, 
1996 and each December 31 thereafter for so long as Employee continues to 
serve as a full time employee of the Corporation.  In the event does not 
provide a minimum of One Thousand (1,000) hours of service to the Corporation 
for any calendar year, the Corporation shall

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have no obligation to make any contribution to the Trust with respect to 
Employee for such year.

        c. All amounts set aside for the benefit of Employee hereunder shall 
remain the property of the Corporation, and shall be invested and reinvested 
as determined by the Corporation.

        d. Employee agrees on behalf of himself, his heirs, successors, 
assigns and designated beneficiaries, to assume all risk in connection with 
the increase or decrease in the value of all funds invested hereunder.

        e. Title to and beneficial ownership of the amounts set aside for 
deferred compensation shall remain in the Corporation and the Employee and 
his designated beneficiary shall not have any property interest whatsoever in 
the assets of the Corporation.

    2. PAYMENT OF DEFERRED COMPENSATION.  The Deferred Compensation accrued 
and set aside hereunder shall be paid to Employee as follows:

       a.  Payment upon Retirement.  Beginning on the first business day of 
the first month after termination of Employee's employment with the 
Corporation after attaining age 65, the Corporation shall pay the amount held 
in the Deferred Compensation Reserve to Employee, in fifteen (15) annual 
installments.  Each installment shall equal the amount then held in the 
Deferred Compensation Reserve, divided by the number of years of payment 
remaining pursuant to this Plan.
 
    For example, if the amount of the Deferred Compensation Reserve 
immediately before the first installment is to be paid to 


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Employee is $450,000, the first installment would be $30,000 ($450,000/15). 
If the amount in such Reserve appreciated to $462,000 immediately prior to 
the second installment, such second installment would be $33,000.

       b. Payments upon Death of Employee After Commencement of Deferred 
Compensation Payout.  Upon the death of Employee after Deferred Compensation 
has begun being paid, the unpaid installments shall continue to be paid to 
the Beneficiary under the same schedule and in the same manner as set forth 
in paragraph 2.a above.

       c. Payments upon Death or Total Disability of Employee Prior to 
Commencement of Deferred Compensation Payout.  Upon the death or Total 
Disability of Employee prior to the commencement of payments of Deferred 
Compensation, the Corporation shall commence payments of Deferred 
Compensation one (1) month after the date of death or determination of Total 
Disability, and shall continue to make such payments to the Beneficiary over 
a period of 15 years under the same schedule and in the same manner as set 
forth in paragraph 2.a above.

    Employee shall be deemed to be totally disabled if (1) he receives 
benefit payments from the disability insurance policy carried for his benefit 
by the Corporation and such payments have continued for a period of twelve 
(12) months, which period shall be deemed to include any waiting period under 
such policy, or (2) he is, because of a medically determinable disease, 
injury or other mental or physical disability, unable to perform 
substantially all


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of his regular duties to the Corporation (or such other entity to which 
Employee was working on a full time basis after termination of his employment 
with the Corporation for any reason) on a substantially full-time basis, such 
disability has continued after Employee has used all of his sick leave and 
for a period of at least ninety (90) days thereafter.

    3.  DESIGNATION OF BENEFICIARY.  Employee shall have the right to 
designate the Beneficiary to receive payments hereunder upon his death, by a 
instrument executed by Employee in the form attached hereto as Exhibit B.  
Employee shall have the right to name more than one Beneficiary, and in which 
event shall designate the proportions or amounts payable to each of them, and 
the right to name additional contingent Beneficiaries to take in the event of 
the death of the Beneficiary initially named. Employee may revoke or amend the
designation of Beneficially from time to time without the consent of any 
other party.  In the event that no Beneficiary has been named or is then 
living, any benefits otherwise payable to a Beneficiary shall be paid to the 
Employee's estate.

    4.  MISCELLANEOUS.

       a. Nothing contained herein shall be construed as conferring upon the 
Employee the right of continued employment with the Corporation in any 
capacity whatsoever.

       b. This Agreement shall be binding upon and inure to the benefit of 
the Corporation, it successors and assigns, and the Employee and his heirs, 
executors, administers and legal representatives.


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       c. This Agreement constitutes the entire agreement between the parties 
with respect to the subject matter hereof and supersedes all other agreements 
and understandings between the parties with respect to such subject matter.  
This Agreement may be amended or modified only by an instrument in writing 
signed by both parties.

       d. This Agreement shall be construed in accordance with and governed 
by the laws of the State of Maryland.

    IN WITNESS WHEREOF, the Corporation and the Employee have executed this 
Agreement as of the date first above written.

ATTEST:                                     MARYLAND FEDERAL BANCORP, INC.


By: /s/ Sarah M. Costlow                    By: /s/ Richard B. Bland
    ---------------------------                 -------------------------
    Secretary                                   Chairman


WITNESS:                                    EMPLOYEE:


/s/ Sarah M. Costlow                        /s/ Robert H. Halleck
-------------------------------             -----------------------------
                                            ROBERT H. HALLECK


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