Item 5.02 Departure of Directors or Certain Officers; Election of Directors;


          Appointment of Certain Officers; Compensatory Arrangements of Certain
          Officers.

(e) On December 30, 2019, Severn Bancorp, Inc. (the "Company"), and its savings bank subsidiary, Severn Savings Bank, FSB (the "Bank") entered into a change in control agreement with Alan J. Hyatt, President and Chief Executive Officer (the "Executive"). The agreement has an initial one-year term which will automatically renew for an additional year unless either the Company, the Bank or the Executive provides written notice that the term will not be renewed at least sixty (60) days prior to the end of the initial term or extended term of the agreement.

Under the agreement, if within twelve (12) months following a change in control (as defined in the agreement), Executive's employment is terminated without cause (as defined in the agreement) or Executive terminates his employment for good reason (as defined in the agreement), the Company or its successor will pay Executive a payment in an amount equal to the sum of (i) eighteen (18) months of Executive's base salary that is in effect at the time immediately preceding the termination of Executive's employment, or if higher, the base salary in effect immediately prior to a change in control and (ii) the amount of the bonus paid to Executive for the preceding calendar year, or if higher, the amount of the bonus paid to Executive for the calendar year preceding the change in control. Such payment will be paid in a lump sum within ten (10) days of the termination of Executive's employment. Notwithstanding the foregoing, the payment required under the agreement will be reduced to the extent necessary to avoid penalties under Section 280G of the Internal Revenue Code.

The foregoing description of the agreement does not purport to be complete and is qualified in its entirety by reference to the agreement attached hereto as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 5.02.

Item 9.01. Financial Statements and Exhibits.

(a) Financial Statements of Business Acquired. Not applicable.

(b) Pro Forma Financial Information. Not applicable.

(c) Shell Company Transactions. Not applicable.





(d) Exhibits.

Exhibit No.     Description
   10.1         Change in Control Agreement by and among Severn Bancorp, Inc.,
                Severn Savings Bank, FSB and Alan J. Hyatt, dated December 30, 2019

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