**Exhibit      10.5**

**DELANCO      FEDERAL SAVINGS BANK**

**EMPLOYEE      SEVERANCE COMPENSATION PLAN**

| **A.** | **Purpose****.** |
|--------|------------------|

| **B.** | **Covered                Employees****.** |
|--------|-------------------------------------------|

| **C.** | **Limitations                on Eligibility for Change in Control Severance Benefits or Management                Restructuring Benefits****.** |
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|   | (1) | No                employee shall be eligible for a Change in Control Severance Benefit                if                (a) his or her employment is terminated for “Cause,” (b) he or she is                offered a Comparable Position and declines to accept such position,                or (c)                the employee is, at the time of termination of employment, a party                to an                individual employment agreement or change in control agreement with                the                Bank and/or Delanco Bancorp, Inc. (the “Company). |
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|  | (2) | For                purposes of this Plan, a termination of employment for “Cause” shall                include termination because of the employee's personal dishonesty,                incompetence, willful misconduct, breach of fiduciary duty involving                personal profit, intentional failure to perform stated duties, willful                violation of any law, rule, or regulation (other than traffic violations                or similar offenses) or final cease-and-desist order, or material                breach                of any provision of the Plan. |
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|   | (3) | For                purposes of this Plan, a “Comparable Position” shall mean a position that                would (a) provide the employee with base compensation and benefits                that are comparable in the aggregate to those provided to the employee                prior to the Change in Control; (b) provide the employee with an                opportunity for variable bonus compensation that is comparable to                the                opportunity provided to the employee prior to the Change in Control;                (c)                be in a location that would not require the employee to increase                his or                her daily one way commuting distance by more than thirty-five (35)                miles                as compared to the employee’s commuting distance immediately prior to the                Change in Control; and (d) have job skill requirements and duties                that are                comparable to the requirements and duties of the position held by                the                employee prior to the Change in                Control. |
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**D.**
**Definitions      of Change in Control**
**.**

|   | (1) | Merger:                The Company merges into or consolidates with another corporation,                or                merges another corporation into the Company, and as a result, less                than a                majority of the combined voting power of the resulting corporation                immediately after the merger or consolidation is held by persons                who were                stockholders of the Company immediately before the merger or                consolidation. |
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|   | (2) | Acquisition                of Significant Share Ownership:                A                report on Schedule 13D or another form or schedule (other than Schedule                13G) is filed or required to be filed under Sections 13(d) or 14(d)                of the                Securities Exchange Act of 1934, if the schedule discloses that the                filing                person or persons acting in concert has or have become the beneficial                owner(s) of 25% or more of a class of the Company’s voting securities, but                this clause (2) shall not apply to beneficial ownership of Company                voting                shares held in a fiduciary capacity by an entity of which the Company                directly or indirectly beneficially owns 50% or more of its outstanding                voting securities. |
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|   | (3) | Change                in Board Composition:                During any period of two consecutive years, individuals who constitute                the                Company’s Board of Directors at the beginning of the two-year period cease                for any reason to constitute at least a majority of the Company’s Board of                Directors; provided, however, that for purposes of this clause (3),                each                director who is first elected by the board (or first nominated by                the                board for election by the stockholders) by a vote of at least two-thirds                (2⁄3) of the directors who were directors at the beginning of the two-year                period shall be deemed to have also been a director at the beginning                of                such period; or |
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|   | (4) | Sale                of Assets:                The Company or the Bank sells to a third party all or substantially                all of                its assets. |
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**E.**
**Determination      of the Change in Control Severance Benefit**
**.**

|   | (1) | The                Change in Control Severance Benefit payable to an eligible employee                under                this Plan shall be determined under the following                schedule: |
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|   | (a) | An                eligible employee who does not receive a benefit pursuant to paragraph                (b)                of this Section shall receive a Change in Control Severance Benefit                equal                to the product of (i) the employee’s years of service from his or her hire                date (including partial years) through the termination date and (ii)                an                amount equal to two (2) weeks of the employee’s Base Compensation (as                defined below). A “year of service” shall mean each 12-month period of                service following an employee’s hire date determined without regard the                number of hours worked during such period(s). The minimum payment                to an                eligible employee under this paragraph shall be an amount equal to                two (2)                weeks of Base Compensation and the maximum payment to an eligible                employee                shall be an amount equal to six (6) months of Base                Compensation. |
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|   | (b) | An                eligible employee who held the title of Vice President or higher                immediately prior to a Change in Control shall receive a Change in                Control                Severance Benefit equal to twelve (12) months of Base Compensation. |
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|   | (c) | The                Change in Control Severance Benefit shall be paid in a lump sum not                later                than five (5) business days after the date of the employee’s termination                of employment. |
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|   | (2) | For                purpose of determinations under this paragraph E, “Base Compensation”                shall mean: |
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|   | (a) | For                salaried employees, the employee’s annual base salary at the rate in                effect on his or her termination date or, if greater, the rate in                effect                on the date immediately preceding the Change in                Control. |
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|   | (b) | For                employees whose compensation is determined in whole or in part on                the                basis of commission income, the employee’s base salary at termination (or,                if greater, the employee’s base salary on the date immediately preceding                the effective date of the Change in Control), if any, plus the commissions                earned by the employee in the twelve (12) full calendar months preceding                his or her termination date (or, if greater, the commissions earned                in the                twelve (12) full calendar months immediately preceding the effective                date                of the Change in Control). |
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|   | (c) | For                hourly employees, the employee’s total hourly wages for the twelve (12)                full calendar months preceding his or her termination date or, if                greater,                the twelve (12) full calendar months preceding the effective date                of the                Change in Control. |
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| **F.** | **Withholding****.** |
|--------|----------------------|

| **G.** | **Parachute                Payment****.** |
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| **H.** | **Adoption                by Affiliates****.** |
|--------|------------------------------------------------|

| **I.** | **Administration****.** |
|--------|-------------------------|

| **J.** | **Source                of Payments****.** |
|--------|--------------------------------------------|

| **K.** | **Inalienability****.** |
|--------|-------------------------|

| **L.** | **Governing                Law****.** |
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| **M.** | **Severability****.** |
|--------|-----------------------|

| **N.** | **No                Employment Rights****.** |
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| **O.** | **Amendment                and Termination****.** |
|--------|---------------------------------------------------|

| **P.** | **Required                Provisions****.** |
|--------|---------------------------------------------|

|   | (1) | In                the event any of the provisions of this Section P are in conflict                with the                terms of this Plan, this Section P shall                prevail. |
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|   | (2) | The                Bank’s Board of Directors may terminate an employee’s employment at any                time, but any termination by the Bank, other than termination for                Cause,                shall not prejudice an employee’s right to compensation or other benefits                under this Plan. An employee shall not have the right to receive                compensation or other benefits for any period after Termination for                Cause. |
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|   | (3) | If                an employee is suspended from office and/or temporarily prohibited                from                participating in the conduct of the Bank’s affairs by a notice served                under Section 8(e)(3) or 8(g)(1) of the Federal Deposit Insurance                Act, 12                U.S.C. §1818(e)(3) or (g)(1); the Bank’s obligations under this Plan shall                be suspended as of the date of service, unless stayed by appropriate                proceedings. If the charges in the notice are dismissed, the Bank                may in                its discretion: (i) pay the employee all or part of the compensation                withheld while their contract obligations were suspended; and (ii)                reinstate (in whole or in part) any of the obligations which were                suspended. |
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|   | (4) | If                an employee is removed and/or permanently prohibited from participating                in                the conduct of the Bank’s affairs by an order issued under Section 8(e)(4)                or 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. §1818(e)(4) or                (g)(1), all obligations of the Bank under this Plan shall terminate                as of                the effective date of the order, but vested rights of the contracting                parties shall not be affected. |
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|   | (5) | If                the Bank is in default as defined in Section 3(x)(1) of the Federal                Deposit Insurance Act, 12 U.S.C. §1813(x)(1) all obligations under this                Plan shall terminate as of the date of default, but this paragraph                shall                not affect any vested rights of the contracting                parties. |
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|   | (6) | All                obligations under this Plan shall be terminated, except to the extent                determined that continuation of the Plan is necessary for the continued                operation of the Bank: (i) by the Director of the Office of Thrift                Supervision (OTS), or his designee, at the time the Federal Deposit                Insurance Corpporation (FDIC) enters into an agreement to provide                assistance to or on behalf of the Bank under the authority contained                in                Section 13(c) of the Federal Deposit Insurance Act, 12 U.S.C. §1823(c); or                (ii) by the Director of the OTS (or his designee) at the time the                Director                (or his designee) approves a supervisory merger to resolve problems                related to the operations of the Bank or when the Bank is determined                by                the Director to be in an unsafe or unsound condition. Any rights                of the                parties that have already vested, however, shall not be affected                by such                action. |
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|   | (7) | Any                payments made to employees pursuant to this Plan, or otherwise, are                subject to and conditioned upon their compliance with 12 U.S.C. §1828(k)                and FDIC regulation 12 C.F.R. Part 359, Golden Parachute and                Indemnification Payments. |
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|                                                               | **DELANCO              FEDERAL SAVINGS BANK**        |
|                                                          |                                            |                                         |
| Attest:    /s/ Robert M.              Notigan  | By:                                        | /s/ John              W.              Seiber |
|                                                                    | For              the Entire Board of Directors  |
|                                                               |                                                      |

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