Exhibit 10.16


  


INDEMNIFICATION AGREEMENT


 


This Indemnification Agreement
(the “Agreement”), dated as of November 20, 2013, is entered into by and among Bankwell Financial Group, Inc.,
a Connecticut corporation (the “Company”), its wholly-owned subsidiary, Bankwell Bank, a Connecticut state commercial
bank (the “Bank”), and ___________________ (the “Indemnitee”). Unless a distinction is appropriate,
the term “Company” in this Agreement shall include the Bank.


 


WHEREAS, the Company desires
to attract and retain highly qualified individuals, such as the Indemnitee, to serve the Company;


 


WHEREAS, the Company and
the Indemnitee recognize the significant risk of personal liability for Agents (as defined herein) of companies that are or may
become public companies;


 


WHEREAS, there are questions
concerning the adequacy and reliability of the protection that might be afforded to the Company’s Agents from directors’
and officers’ liability insurance policies that the Company may acquire;


 


WHEREAS, the Company and
Indemnitee recognize that plaintiffs often seek damages in such large amounts and the costs of litigation may be so enormous (whether
or not the case is meritorious), that the defense and/or settlement of such litigation is often beyond the personal resources of
the directors;


 


WHEREAS, it is reasonable,
prudent and necessary for the Company to obligate itself contractually to indemnify Indemnitee so that Indemnitee will serve or
continue to serve the Company free from undue concern that Indemnitee will not be adequately protected;


 


WHEREAS, the Indemnitee
is willing to continue to serve the Company, subject to certain conditions, including execution and delivery of this Agreement
by the Company in order that the Indemnitee be furnished the indemnity provided for herein;


 


WHEREAS, contracts between
the Company and its Agents with respect to indemnification of such Agents by the Company are not inconsistent with the Company’s
Certificate of Incorporation (the “Charter”) or By-Laws (the “By-Laws”);


 


WHEREAS, Section 33-778
of the Connecticut Business Corporation Act (“Section 33-778”) provides that the Company may, by a contract
approved by its board of directors or shareholders, obligate itself in advance of the act or omission giving rise to a Proceeding
(as defined herein) to provide indemnification to its Agents in accordance with Section 33-771 of the Connecticut Business Corporation
Act or to advance funds to pay for or reimburse expenses of its Agents in accordance with Section 33-773 of the Connecticut Business
Corporation Act;


 




    	 



    	 



    

  


WHEREAS, this Agreement
has been approved by the Company’s Board of Directors, and in accordance with Section 33-778, this Agreement shall be deemed
to satisfy the requirements for authorization referred to in Section 33-773(c) and Section 33-775(c) of the Connecticut Business
Corporation Act;


 


WHEREAS, Section 33-636(b)(4)
of the Connecticut Business Corporation Act allows a Connecticut corporation to include in its certificate of incorporation a provision
limiting the personal liability of a director to the Company or its shareholders for monetary damages in respect of claims for
breach of duty as a director, and the Company has provided in its Charter that each director’s liability shall be limited
to the amount of the compensation received by such director for serving the Company during the year of the violation, provided
the director’s meets the standard of care set forth in the Charter;


 


WHEREAS, the Board of Directors
has determined that contractual indemnification as set forth herein is not only reasonable and prudent but also promotes the best
interests of the Company and its shareholders;


 


WHEREAS, in view of such
considerations, this Agreement is intended to provide indemnification and the Expense Advances (as defined herein) to the fullest
extent permitted by law; and


 


WHEREAS, in the event the
Company becomes a public company, any provisions herein applicable to public companies, shall apply to the Company.


 


NOW, THEREFORE, to induce
the Indemnitee to continue to serve the Company and in consideration of these premises and the mutual agreements set forth in this
Agreement, as well as other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Company and the Indemnitee hereby agree as follows:


 


1.            Definitions.   For the purposes of this Agreement,


 


(a)          “Agent”
means any person (i) who is, becomes or was a director of the Company, or (ii) who, while a director of the Company, is, becomes
or was serving at the request of the Company as a director, officer, partner, trustee, employee or agent of another domestic or
foreign corporation, partnership, joint venture, trust, employee benefit plan or other entity, or (iii) unless the context requires
otherwise, the estate or personal representative of an Agent. The Company agrees that Indemnitee’s service on behalf of or
with respect to any Subsidiary of the Company shall be deemed to be at the request of the Company. The use of the term “Agent”
shall not be construed to alter the legal relationship between an Agent, as defined herein, and the Company.


 


(b)          “Change
in Control” means the occurrence of any of the following events:


 


(i)          The
acquisition by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act
of 1934, as amended (the


 




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“Exchange Act”)) of 50%
or more of either (x) the then outstanding shares of Common Stock of the Company (the “Outstanding Company Common Stock”)
or (y) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election
of directors (the “Outstanding Company Voting Securities”); provided, however; that for purposes of this Subparagraph
(i), the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company, (B) any
acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the
Company or any corporation controlled by the Company or (D) any acquisition by any corporation pursuant to a transaction which
complies with clauses (A), (B) and (C) of paragraph (iii) below; or


 


(ii)         Members
of the Incumbent Board cease for any reason to constitute at least a majority of the Board of Directors; or


 


(iii)        Consummation
of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company
or an acquisition of assets of another corporation (a “Business Combination”), in each case, unless, following
such Business Combination, (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively,
of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may
be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result
of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or
more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of
the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any
employee benefit plan (or related trust) of the Company or the corporation resulting from such Business Combination) beneficially
owns, directly or indirectly, 50% or more of, respectively, the then outstanding shares of common stock of the corporation resulting
from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except
to the extent that such ownership results solely from ownership of the Company that existed prior to the Business Combination and
(C) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board of Directors,
providing for such Business Combination; or


 


(iv)        Approval
by the shareholders of the Company of a complete liquidation or dissolution of the Company.


 


(c)          “Disinterested
Directors” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification
is sought by Indemnitee.


 


(d)          “Expenses”
means all costs and liabilities of any type or nature whatsoever (including, without limitation, all attorneys’ fees and
related disbursements and other


 




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out-of-pocket costs, judgments, fines, penalties
and amounts paid in settlements) paid or incurred by or imposed upon the Indemnitee in the investigation, defense, settlement or
appeal of, or otherwise in connection with, a Proceeding (including, without limitation, being a witness) or in establishing or
enforcing a right to indemnification under this Agreement, the Company’s Charter or By-Laws, the Connecticut Business Corporation
Act or otherwise.


 


(e)          “Expense
Advance” means a payment to the Indemnitee of Expenses in advance of the final disposition on any Proceeding.


 


(f)          “Incumbent
Board” means the individuals who, as of the date of this Agreement, constitute the Board of Directors and any other individual
who becomes a director of the Company after that date and whose election or appointment by the Board of Directors or nomination
for election by the Company’s shareholders was approved by a vote of at least a majority of the directors then comprising
the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result
of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the Incumbent Board.


 


(g)          “Indemnifiable
Event” means any event or occurrence related to the fact that the Indemnitee is, or was, an Agent or by reason of anything
done or not done, or allegedly done or not done, by the Indemnitee in the capacity of an Agent.


 


(h)          “Potential
Change in Control” shall mean that any of the following have occurred: (i) any person publicly announces an intention
to take or to consider taking actions which if consummated might result in a Change in Control, (ii) any “person” (as
such term is used in Section 13(d) and 14(d)(2) of the Exchange Act) acquires beneficial ownership, directly or indirectly, of
securities of the Company representing 25% or more of the Outstanding Company Voting Securities, or (iii) the Company’s Board
of Directors adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control has occurred.


 


(i)          “Proceeding”
means any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, arbitrative or
investigative and whether formal or informal, with respect to an Indemnifiable Event.


 


(j)          “Reviewing
Party” means the person or body appointed by the Company’s Board of Directors pursuant to Section 12(c) and in
accordance with applicable law, which person or body shall be either members of the Company’s Board of Directors who are
Disinterested Directors or Special Legal Counsel. If there has been a Change in Control, the Reviewing Party shall be Special Legal
Counsel.


 


(k)          “Special
Legal Counsel” means an attorney or firm of attorneys, selected in accordance with the provisions of Section 8, whether
or not in the event of a Change in Control.


 




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(l)          “Subsidiary”
means any corporation, limited liability company, partnership, joint venture, trust or other entity of which more than 50% of the
Outstanding Company Voting Securities are owned directly or indirectly by the Company, by the Company and one or more other Subsidiaries,
or by one or more other Subsidiaries.


 


(m)          “Voting
Securities” means any securities that vote generally in the election of directors, in the admission of general partners,
or in the selection of any other similar governing body.


 


2.            Agreement
to Serve.   The Indemnitee agrees to serve the Company as an Agent, at its will (or under separate agreement, if such agreement
exists), in the capacity in which the Indemnitee has been requested to serve by the Company, so long as the Indemnitee is duly
appointed or elected and qualified in accordance with the Charter and By-Laws of the Company, or until such time as the Indemnitee
tenders the Indemnitee’s resignation in writing, provided, however, that nothing contained in this Agreement is intended
to create any right to continued service by the Indemnitee.


 


3.            Basic
Indemnification.   Subject to the terms of this Agreement:


 


(a)          Proceedings
Successfully Defended.   The Company shall indemnify the Indemnitee against all reasonable Expenses incurred in a Proceeding
to the extent that he has been wholly successful on the merits or otherwise in the defense of the Proceeding.


 


(b)          Proceedings
Not Covered by Section 3(a).   Provided the Indemnitee conducted himself/herself in good faith, reasonably believed (1) in the
case of conduct in his/her official capacity, that his/her conduct was in the best interests of the Company, (2) in all other cases,
that his/her conduct was at least not opposed to the best interests of the Company, and (3) in the case of criminal proceedings,
he/she had no reasonable cause to believe his/her conduct was unlawful, the Company shall indemnify the Indemnitee against all
Expenses incurred in a Proceeding not covered by Section 3(a) above, unless the liability was incurred because the Indemnitee breached,
or failed to perform, a duty owed to the Company or its shareholders and such breach or failure to perform constitutes any one
of the following:


 


(i)          a
knowing and culpable violation of the law;


 


(ii)         a
transaction from which the Indemnitee or his/her associate (as defined in Section 33-840 of the Connecticut Business Corporations
Act) received an improper personal gain;


 


(iii)        a
failure to act in good faith and a conscious disregard for the duty of the Indemnitee to the Company under circumstances in which
the Indemnitee was aware that his/her conduct or omission created an unjustifiable risk of serious injury to the Company;


 


(iv)        a
sustained and unexcused pattern of inattention that amounted to an abdication of the Indemnitee's duties to the Company; or


 




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(v)         created
liability under Section 33-757 of the Connecticut Business Corporations Act.


 


(c)          Indemnification
for Expenses as a Witness.   To the extent Indemnitee is, by reason of Indemnitee’s status as an Agent of the Company,
a witness in any proceeding, the Company shall indemnify Indemnitee against all reasonable Expenses in connection therewith.


 


(d)          Success
on the Merits or Otherwise.   The term “wholly successful on the merits or otherwise” shall be deemed to include,
without limitation, a dismissal of a Proceeding, a withdrawal of a Proceeding and a settlement not involving any payment or assumption
of liability.


 


(e)          Payment.
Indemnification payable under this Agreement shall be paid to the Indemnitee as soon as practicable after receipt of written demand
but in any event no later than 60 days after resolution of any Proceeding pursuant to a final, non-appealable order from a court
of competent jurisdiction.


 


4.            Additional
Indemnification.   The Company further agrees to indemnify the Indemnitee in connection with any Proceeding and, upon the written
request of the Indemnitee, to make Expense Advances to the Indemnitee, in each case to the fullest extent as may be provided for
under the Company’s Charter, By-Laws, vote of the shareholders or disinterested directors and/or applicable law notwithstanding
that any such indemnification or Expense Advance is not specifically authorized by the other provisions of this Agreement. It is
the intent of the parties hereto that in the event of any change, after the date of this Agreement, in any applicable law which
expands the right of a Connecticut corporation to indemnify or make Expense Advances to an Agent to a greater degree than would
be afforded currently under the Company’s Charter, By-Laws, vote of the shareholders or Disinterested Directors and this
Agreement, the Indemnitee shall enjoy by this Agreement the greater benefits afforded by such change.


 


5.            Exclusions
and Acknowledgments.   Any other provision of this Agreement to the contrary notwithstanding, the Company shall not be obligated
to indemnify or provide Expenses Advances to the Indemnitee:


 


(a)          to
the extent any such indemnification or Expense Advance would be unlawful;


 


(b)          to
the extent that the Indemnitee actually received from any other source (including an insurer) amounts otherwise payable hereunder;


 


(c)          with
respect to an action, suit or proceeding (or part thereof) initiated by Indemnitee, except with respect to an action, suit or proceeding
brought to establish or enforce a right to indemnification (which shall be governed by the provisions of Section 16 of this Agreement),
unless such action, suit or proceeding (or part thereof) was authorized or consented to by the Board of Directors of the Company;


 




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(d)          in
connection with a Proceeding by or in the right of the Company, except that the Company shall provide reasonable Expenses incurred
in connection with the Proceeding if it is determined the Indemnitee has met the relative standard of conduct set forth in Section 3(b);


 


(e)          on
account of any proceeding with respect to which final judgment is rendered against Indemnitee for payment or an accounting of profits
arising from the purchase or sale by Indemnitee of securities in violation of Section 16(b) of the Exchange Act or any similar
successor statute;


 


(f)          in
connection with proceedings or claims involving the enforcement of non-competition and/or non-disclosure agreements or the non-competition
and/or non-disclosure provisions of employment, consulting or similar agreements that the Indemnitee may be a party to with the
Company, or any subsidiary of the Company or any other applicable foreign or domestic corporation, partnership, joint venture,
trust or other enterprise, if any; or


 


(g)          indemnify
or advance funds to Indemnitee for Indemnitee's reimbursement to the Company of any bonus or other incentive-based or equity-based
compensation previously received by Indemnitee or payment of any profits realized by Indemnitee from the sale of securities of
the Company, as required in each case under the Exchange Act (including any such reimbursements under Section 304 of the Sarbanes-Oxley
Act of 2002 in connection with an accounting restatement of the Company or the payment to the Company of profits arising from the
purchase or sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act).


 


Indemnitee acknowledges
that in certain instances, applicable law (including applicable federal law that may preempt or override applicable state law)
or public policy may prohibit the Company from indemnifying the Agents of the Company under this Agreement or otherwise. For example,
Indemnitee acknowledges that the U.S. Securities and Exchange Commission has taken the position that indemnification of directors,
officers and controlling persons of the Company for liabilities arising under federal securities laws is against public policy
and, therefore, unenforceable. Indemnitee understands and acknowledges that the Company may be required in the future to undertake
with the Securities and Exchange Commission to submit the question of indemnification to a court in certain circumstances for a
determination of the Company’s right under public policy to indemnify Indemnitee. Further, the regulations of the Federal
Deposit Insurance Corporation (12 CFR Section 359) prohibit indemnification of institution affiliated parties in certain circumstances,
including final orders or settlements pursuant to an administrative or civil enforcement action brought by a federal banking agency.
Further in addition, Indemnitees acknowledge that federal law prohibits indemnifications for certain violations of the Employee
Retirement Income Security Act of 1974, as amended. Nothing herein shall be construed to provide indemnification where such indemnification
is prohibited as described above.


 


6.            Expense
Advances.   If Indemnitee requests an Expense Advance, the Company shall pay such amounts within two business days after receipt
of such request. The Indemnitee shall affirm to the Company his/her good faith belief that the relevant standard of conduct


 




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described in Section 3(b) has been met by Indemnitee
or that the Proceeding involves conduct for which liability has been limited by the Company’s Charter, and Indemnitee shall
agree to reimburse the Company for all Expense Advances paid by the Company to Indemnitee in the event and only to the extent that
it shall ultimately be determined that the Indemnitee is not entitled to indemnification under this Agreement.


 


7.            Non-Exclusivity;
Continuation.   The indemnification and Expense Advances pursuant to this Agreement shall not be deemed exclusive of any other
rights to which the Indemnitee may be entitled under the Company’s Charter or By-Laws, any vote of the Company’s shareholders
or Disinterested Directors, any other agreement, any law or otherwise, both as to actions in the Indemnitee’s official capacity
and as to actions in another capacity while an Agent. All agreements and obligations of the Company contained in this Agreement
shall continue as to the Indemnitee while the Indemnitee is an Agent and after the Indemnitee has ceased to be an Agent.


 


8.            Change
in Control.   The Company agrees that if there is a Change in Control, then with respect to all matters concerning the rights
of the Indemnitee to indemnification and Expense Advances under this Agreement, the Company’s Charter or By-Laws, any vote
of the Company’s shareholders or Disinterested Directors, any other agreement, any law or otherwise, the Company shall seek
legal advice only from Special Legal Counsel. For all purposes of this Agreement, such Special Legal Counsel shall be such person
or firm selected by the Indemnitee and approved by the Company (which approval shall not be reasonably withheld) which has not
otherwise performed services for the Company or the Indemnitee within the prior three years (other than in connection with such
matters). The Special Legal Counsel shall, among other things, render its written opinion to the Company and the Indemnitee as
to whether and to what extent the Indemnitee is permitted to be indemnified and receive Expense Advances. The Company agrees to
pay the fees and expenses of the Special Legal Counsel relating to its engagement pursuant to this Agreement.


 


9.            Establishment
of Trust.   In the event of a Potential Change in Control, the Company may create a trust for the benefit of the Indemnitee (either
alone or together with one or more other indemnitees, a “Trust”) and from time to time fund such Trust in such
amounts as the Company’s Board of Directors may determine to satisfy Expenses reasonably anticipated to be incurred in connection
with investigating, preparing for and defending any Proceeding, and all judgments, fines, penalties and settlement amounts of all
Proceedings from time to time paid or claimed, reasonably anticipated or proposed to be paid. The terms of any Trust established
pursuant hereto shall provide that upon a Change in Control (i) the Trust shall not be revoked or the principal thereof invaded,
without the written consent of the Indemnitee, (ii) the Trustee shall advance, within two business days of a request by the Indemnitee,
all Expenses to the Indemnitee (and the Indemnitee hereby agrees to reimburse the Trust under the circumstances under which the
Indemnitee would be required to reimburse the Company under Section 6 of this Agreement), (iii) the Trustee shall promptly pay
to the Indemnitee all amounts for which the Indemnitee shall be entitled to indemnification pursuant to this Agreement or otherwise,
and (iv) all unexpended funds in such Trust shall revert to the Company upon a final determination by the Reviewing Party or a
court of competent jurisdiction, as the case may be, that the Indemnitee has been fully indemnified under the terms of this Agreement.
The Trustee shall be a person or entity


 




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satisfactory to the Indemnitee. Nothing in
this Section 9 shall relieve the Company of any of its obligations under this Agreement.


 


10.          Partial
Indemnification.   If the Indemnitee is entitled under any provision of this Agreement or otherwise to indemnification or Expense
Advances by the Company for a portion, but not all, of any Expenses incurred by the Indemnitee, the Company shall indemnify or
provide Expense Advances to the Indemnitee (as the case may be) for the portion thereof to which the Indemnitee is entitled.


 


11.          Contribution.
If indemnification is unavailable by reason of a court decision described in Section 12(d) based on grounds other than those set
forth in Section 5(a), then in respect of any Proceeding in which the Company is jointly liable with the Indemnitee (or would be
if joined in such Proceeding), the Company shall contribute to the amount of the Indemnitee’s Expenses in such proportion
as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and by the Indemnitee on the other
hand from the transaction from which such Proceedings arose, and (ii) the relative fault of the Company on the one hand and of
the Indemnitee on the other hand in connection with the events which resulted in such Expenses, as well as any other relevant equitable
considerations. The relative fault of the Company on the one hand and of the Indemnitee on the other shall be determined by reference
to, among other things, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
the circumstances resulting in such Expenses. The Company agrees that it would not be just and equitable if contribution pursuant
to this Section 11 were determined by pro rata allocation or any other method of allocation which does not take account of the
foregoing equitable considerations.


 


12.          Procedures.


 


(a)          Notice
and Demand.   Promptly after receipt by the Indemnitee of notice of the commencement, or the threat of commencement, of any Proceeding,
the Indemnitee shall, if the Indemnitee believes that indemnification or Expense Advances with respect thereto may be sought from
the Company by the Indemnitee pursuant to this Agreement, notify the Company of the commencement or threat of commencement thereof;
the Indemnitee’s notice to the Company may, but need not, be substantially in the form attached hereto as Exhibit 1. Any
failure of the Indemnitee to provide such notice to the Company shall not, however, relieve the Company of any liability which
it may have to the Indemnitee unless and to the extent such failure causes a material adverse effect upon the ability of the Company
to meet such obligations. If, at the time it receives such notice from the Indemnitee, the Company has directors’ and officers’
liability insurance in effect, the Company shall give prompt notice of the commencement, or the threat of commencement, of such
Proceeding to the Company’s insurers in accordance with the procedures set forth in the respective applicable insurance policies.
The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee,
all amounts payable as a result of such Proceeding in accordance with the terms of such policies; provided that no such payments
by such insurers shall relieve the Company of any liability or obligation which it may have to the Indemnitee except as and to
the extent expressly provided under this Agreement.


 




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(b)          Assumption
of Defense.   The Indemnitee shall be entitled to employ his/her own separate counsel and assume the defense of any Proceeding
against the Indemnitee, provided the Indemnitee delivers notice to the Company of his/her election to do so within a reasonable
time after consummation of such Proceeding. In the event a Proceeding is brought against more than one director, the decision to
assume the defense and employ separate counsel shall be made by a majority vote of such directors – such directors shall
select one counsel to represent them collectively unless and only to the extent that a potential conflict is present that causes
such joint counsel to conclude that it cannot represent all of the affected directors. Provided such notice is delivered to the
Company within a reasonable time after consummation of the Proceeding, all reasonable fees and expenses of such separate counsel
shall be borne by the Company in accordance with this Agreement. In the event Indemnitee fails to provide the Company with reasonable
notice of his/her election to assume the defense, the Company shall be entitled to assume the defense of such Proceeding upon the
delivery to the Indemnitee of notice of its election to do so. After delivery of such notice, the Company will not be liable to
the Indemnitee under this Agreement for any fees and expenses of counsel subsequently incurred by the Indemnitee with respect to
the same Proceeding, provided that (i) the Indemnitee shall have the right to employ the Indemnitee’s own counsel in connection
with any Proceeding at the Indemnitee’s expense; (ii) if (A) the employment of counsel by the Indemnitee shall have been
previously authorized by the Company, (B) the Indemnitee shall have concluded, based on the written opinion of Indemnitee’s
counsel (such counsel to be approved by the Company, whose approval shall not be unreasonably withheld) that there may be a conflict
of interest between the Company and the Indemnitee in the conduct of such defense, or (C) the Company shall not, in fact, have
employed counsel to assume the defense of such Proceeding, then in each such case the fees and expenses of the Indemnitee’s
counsel shall be paid by the Company in accordance with this Agreement; and (iii) the Company shall not settle any Proceeding in
any manner which would impose any penalty, limitation or unindemnified Expense on the Indemnitee without the Indemnitee’s
consent. The Company shall not be entitled to assume Indemnitee’s defense of any claim brought by the Company or as to whether
Indemnitee shall have made the conclusion provided for in clause (B) above.


 


(c)          Determination
of Entitlement to Indemnification.   In the event of any notice under Section 12(a) by the Indemnitee for indemnification under
this Agreement or otherwise, the Board of Directors of the Company shall, by a majority vote of Disinterested Directors, promptly
designate a Reviewing Party. The Reviewing Party shall determine that indemnification is proper if it finds that the Indemnitee’s
actions meet the standard of care in Section 3(b) above, the Indemnitee has not engaged in conduct of the type set forth in Section
3(b)(i)-(v) above and that indemnification is not prohibited pursuant to Section 5. If the Reviewing Party consists of members
of the Company’s Board of Directors, it shall act by a majority vote of Disinterested Directors. If the Reviewing Party is
Special Legal Counsel, the determination of such Reviewing Party shall be rendered in the form of a written legal opinion. Subject
to Sections 12(d) and 13, any indemnification under Sections 3, 4 or 10 (unless ordered by a court) shall be made by the Company
only as authorized in the specific case and upon the determination of the Reviewing Party that the Indemnitee is entitled to indemnification
in the circumstances because the Indemnitee’s actions meet the standard of care in Section 3(b) above, the Indemnitee has
not engaged in conduct of the type set forth in Sections 3(b)(i)-(v) above and that indemnification is not prohibited pursuant
to Section 5. The Indemnitee’s demand for


 




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indemnification shall create a presumption
that the Indemnitee is entitled to indemnification and the Reviewing Party shall have 30 days from the date of receipt of the Indemnitee’s
demand in which to render in writing and deliver to the Indemnitee its determination. If the Reviewing Party determines, which
determination shall be based upon clear and convincing evidence sufficient to rebut the aforesaid presumption of entitlement, that
the Indemnitee is not entitled to indemnification, in whole or in part, in the circumstances because the Indemnitee’s actions
failed to meet the standard of care in Section 3(b) above, the Indemnitee has engaged in conduct of the type set forth in Section
3(b)(i)-(v) above or because the indemnification is prohibited pursuant to Section 5, the Indemnitee shall be entitled to obtain
a favorable determination or to appeal such negative determination in the manner provided in Sections 12(d) and 13.


 


(d)          Indemnitee’s
Rights on Unfavorable Determination.   Notwithstanding a determination by a Reviewing Party or any forum listed in Section 13
that the Indemnitee is not entitled to indemnification with respect to a specific Proceeding, or any claim, issue or matter therein,
the Indemnitee shall have the right to apply to the Superior Court of the State of Connecticut or any other court of competent
jurisdiction for the purpose of determining and enforcing the Indemnitee’s right to indemnification pursuant to this Agreement
or otherwise and the Company hereby consents to service of process and agrees to appear in any such proceeding.


 


13.          Appeal
of a Reviewing Party’s Determination of No Right to Indemnification.


 


(a)          The
Indemnitee shall be entitled to select from the following alternatives a forum in which the validity of a Reviewing Party’s
determination that the Indemnitee is not entitled to indemnification will be heard:


 


(i)          Disinterested
Directors, acting by a majority vote;


 


(ii)         Special
Legal Counsel, in a written opinion; or


 


(iii)        those
shareholders of the Company who are disinterested parties with respect to the Proceeding, acting by a majority vote.


 


(b)          As
soon as practicable, and in no event later than 30 days after notice of the Indemnitee’s choice of forum pursuant to Section
13(a), the Company shall, at its own expense, submit to the selected forum in such manner as the Indemnitee or the Indemnitee’s
counsel may reasonably request, the basis for the determination that the Indemnitee is not entitled to indemnification, and the
Company shall act in the utmost good faith to assure the Indemnitee a complete opportunity to defend against and appeal such determination.


 


14.          Liability
Insurance; Settlement.


 


(a)          The
Company shall maintain an insurance policy or policies providing liability insurance for directors, officers, employees, agents
or fiduciaries of the Company or for individuals serving at the request of the Company as a director, officer, partner, trustee,
employee or agent of another domestic or foreign corporation, partnership, joint venture, trust, employee benefit plan or other
entity, and Indemnitee shall be covered by such policy or policies


 




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in accordance with its or their terms to the
maximum extent of the coverage available for any such director, officer, employee, agent or fiduciary under such policy or policies.


 


(b)          The
Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the
extent that Indemnitee has otherwise actually received such payment under the Company’s Charter or By-Laws or any insurance
policy, contract, agreement or otherwise.


 


(c)          The
parties hereto recognize that the Company shall procure or maintain insurance or other similar arrangements, at its expense, to
protect itself and any person, including Indemnitee, who is or was an officer, employee or agent of the Company or who is or was
serving at the request of the Company as a director, officer, partner, trustee, employee or agent of another domestic or foreign
corporation, partnership, joint venture, trust, employee benefit plan or other entity against any expense, liability or loss asserted
against or incurred by such person, in such a capacity or arising out of the person’s status as such a person, whether or
not the Company would have the power to indemnify such person against such expense or liability or loss. In considering the cost
and availability of such insurance, the Company (through the exercise of the business judgment of its directors and officers) may,
from time to time, purchase insurance which provides for certain (i) deductibles, (ii) limits on payments required to be made by
the insurer, or (iii) coverage which may not be as comprehensive as that previously included in insurance purchased by the Company
or its predecessors.


 


(d)          The
Company shall have no obligation to indemnify Indemnitee under this Agreement for amounts paid in settlement of a Proceeding or
claim without the Company’s prior written consent. The Company shall not settle any Proceeding or claim in any manner that
would impose any fine or other obligation on Indemnitee without Indemnitee’s prior written consent. Neither the Company nor
Indemnitee shall unreasonably withhold their consent to any proposed settlement.


 


15.          Binding
Effect; Successors and Assigns.   This Agreement shall bind and inure to the benefit of the successors, heirs, personal and legal
representatives and assigns of the parties hereto, including any direct or indirect successor by purchase, merger, consolidation
or otherwise to all, substantially all or a substantial part of the business or assets of the Company. The Company shall require
and cause any successor (whether direct or indirect, and whether by purchase, merger, consolidation or otherwise) to all, substantially
all or a substantial part of the business or assets of the Company, by written agreement in form and substance satisfactory to
the Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company
would be required to perform if no such succession had taken place.


 


16.          Expenses
and Expense Advances to Enforce the Agreement.   It is the intent of the Company that the Indemnitee shall not be required to
incur any Expenses arising from any effort to enforce the Indemnitee’s rights under this Agreement, because incurring such
Expenses would substantially detract from the benefits intended to be extended to the Indemnitee hereunder. Notwithstanding the
foregoing, the Company shall not be obligated pursuant to this Agreement to indemnify Indemnitee for any expenses incurred by Indemnitee
with respect to any action, suit


 




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or proceeding instituted by Indemnitee to enforce
or interpret this Agreement, unless Indemnitee is successful in establishing Indemnitee’s right to indemnification in such
action, suit or proceeding, in whole or in part, or unless and to the extent that the court in such action, suit or proceeding
shall determine that, despite Indemnitee’s failure to establish their right to indemnification, Indemnitee is entitled to
indemnity for such expenses; provided, however, that nothing in this Section 16 is intended to limit the Company’s obligation
with respect to the advancement of expenses to Indemnitee in connection with any such action, suit or proceeding instituted by
Indemnitee to enforce or interpret this Agreement, as provided in Section 6 hereof.


 


17.           Notices.
All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed duly given
(i) when delivered by hand or (ii) if mailed by certified or registered mail with postage prepaid, on the third business day after
the mailing date. Addresses for notice to either party shall be as show in Section 26 of this Agreement or as subsequently modified
by the addressee by such written notice.


 


18.           Severability.
If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever,
(i) the validity, legality and enforceability of the remaining provisions of the Agreement (including, without limitation, all
portions of any paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are
not themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby, (ii) to the fullest extent
possible, the provisions of this Agreement (including, without limitation, all portions of any paragraph of this Agreement containing
any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall
be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable and (iii) to
the fullest extent possible, any such provision held to be invalid, illegal or unenforceable shall be reformed so as to be valid,
legal and enforceable and to give effect to the intent manifested by such provision.


 


19.           Modifications,
Amendments, and Waivers.   No modification or amendment of this Agreement, or waiver of any of the provisions hereof, shall be
binding unless executed in writing by both of the parties hereto, in the case of a modification or amendment, or by the waiving
party, in the case of a waiver. No waiver of any such provision shall be deemed to constitute a waiver of such provision on any
other occasion or a waiver of any other provision.


 


20.           Consent
to Jurisdiction.   The Company and the Indemnitee each hereby irrevocably consent to the nonexclusive jurisdiction of Connecticut
for any purpose in connection with any action or proceeding that arises out of or relates to this Agreement.


 


21.           Governing
Law.   This Agreement shall be governed by and construed in accordance with the internal laws of Connecticut, as applied to contracts
between Connecticut residents entered into and to be performed entirely within Connecticut.


 


22.           Subrogation.
In the event of payment by the Company under this Agreement, the Company shall be subrogated to the extent of such payment to all
of the rights of recovery of the Indemnitee, who agrees, at the sole expense of the Company, to execute all papers reasonably required
and to do all other acts and things that may be reasonably necessary on the part of the


 




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Indemnitee to secure such rights, including the execution
of documents necessary to enable the Company to bring suit to enforce such rights. 


 


23.           Integration
and Entire Agreement.   This Agreement sets forth the entire understanding between the parties hereto and supersedes and merges
all previous written and oral negotiations, commitments, understandings and agreements relating to the subject matter hereof.


 


24.           Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together
shall constitute one and the same instrument.


 


25.           Amendments
to Indemnification Rights.   The Company shall not adopt any amendment to its Charter or By-Laws the effect of which would be
to deny, diminish or encumber Indemnitee’s rights to indemnify pursuant to the Charter, By-Laws, the laws of Connecticut
or any other applicable law as applied to any act or failure to act occurring in whole or in part prior to the date (the “Effective
Date”) upon which the amendment was approved by the Company’s Board of Directors or shareholders, as the case may
be. In the event that the Company shall adopt any amendment to the Charter or By-Laws the effect of which is to change Indemnitee’s
rights to indemnity under such instruments, such amendment shall apply only to acts or failures to act occurring entirely after
the Effective Date thereof. The Company shall give written notice to Indemnitee of any proposal with respect to any such amendment
no later than the date such amendment is first presented to the Board of Directors (or any committee thereof) for consideration,
and shall provide a copy of any such amendment to Indemnitee promptly after its adoption.


 


26.           Notices.
All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given or made to the
respective parties at their addresses set forth below:


 


	If to the Company, at:	
        If to Indemnitee, at: 

	 	 
	Bankwell Financial Group, Inc.	The address last appearing
	222 Elm Street	on the personnel records of
	New Canaan, Connecticut 06840	the Company.
	Attn: __________________________	 


 


[Remainder of Page Intentionally
Left Blank]


 




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IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the date first above written.


 


	 	BANKWELL FINANCIAL GROUP, INC.
	 	 	 
	 	By:	 





	 	Name:	 





	 	Title:	 


 


	 	BANKWELL BANK 



	 	 	 
	 	By:	 





	 	Name:	 





	 	Title:	 


 


	 	INDEMNITEE:
	 	 
	 	 
	 	[Name of Indemnitee]


 




    	15



    	 



    

 


Exhibit 1


 


NOTICE AND DEMAND FOR INDEMNIFICATION


 


1.          This
Notice and Demand for Indemnification is submitted pursuant to the Indemnification Agreement, dated as of _________________, between
Bankwell Financial Group, Inc., a Connecticut corporation (the “Company”), and the undersigned (the “Agreement”).
Capitalized terms used but not defined herein shall have the respective meanings set forth in the Agreement.


 


2.          I
am notifying the Company as to the following Proceeding:_____________________________________________ 



 


 






 


 






 





 



 





 



_______________________________________________________.


 


3.          I
am requesting indemnification and Expense Advances with respect to such Proceeding to the full extent provided for in the Agreement
or to which I may otherwise be entitled.


 


	 	Signed:	 


 


	 	Dated: