Company: BWFG
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0001505732-25-000079
Chunk: 40

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 40
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 change in control benefits are paid to an executive unless his or her employment is terminated without cause or the executive resigns for “Good Reason” within 24 months of the Change in Control.

Mr. Gruseke’s agreement provides payments in an amount equal to three (3) times his average annual compensation that was includible in his gross income for the immediately preceding five (5) taxable years if his employment is terminated without Cause or he terminates his employment for “Good Reason” within 24 months of a Change in Control. If the Change in Control payments to him would subject him to the excise tax under Internal Revenue Code Section 280G (the “280G Excise Tax”), then: (i) such payments will be reduced by the minimum amount required so that no amount payable to Mr. Gruseke will be subject to the 280G Excise Tax or (ii) at Mr. Gruseke’s option, he can elect to receive the full amount of the such payments and be subject to and responsible for the payment of all taxes of any kind payable thereon, including the 280G Excise Tax.

Employment agreements with Mr. McNeill and Ms. Chivily provide for Change in Control protection consisting of a lump sum payment of (i) two (2) times the sum of the executive’s annual salary and target bonus plus (ii) a pro rated target bonus for the year of termination. The agreements also provide that if the Change in Control payments exceed the limit on such payments pursuant to Internal Revenue Code Section 280G, the executive shall receive the greatest of the following, whichever gives the executive the highest net after-tax amount (after taking into account federal, state, local and social security taxes): (i) the Change in Control payments or (ii) one dollar less than the amount of such payments that would subject the executive to the 280G Excise Tax.

Relative to the overall value of the Company, these potential change in control benefits are relatively minor. The Compensation Committee regularly reviews the aggregate amount of all our Change in Control obligations and, based upon advice historically provided by both its independent compensation consultant and investment bankers, has determined that the potential Change in Control benefits under our existing plans and agreements fall within an appropriate range of deal value.

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#### Impact of Tax and Accounting
We regularly consider the various tax and accounting implications of our compensation plans. When determining the amounts of long-term incentives and equity grants to executives and employees, the compensation costs associated