Company: SACH
Filing Date: 2025-04-30
Form Type: DEF 14A
Source: 0001104659-25-042273
Chunk: 41

Company: Sachem Capital Corp.
Filing Date: 2025-04-30
Form: DEF 14A
Chunk 41
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5, if this proposal is not approved by our shareholders, we generally will not be able to continue to issue stock-based incentive compensation to our directors, employees, consultants and other service providers subject to certain exceptional circumstances such as inducement awards for new hires. As a result, we would lose an important compensation tool that enables us to compete for, incentivize and retain employees, directors and consultants. If this proposal is not approved by our shareholders, we believe our ability to attract and retain key talent in the competitive market for human capital would be significantly and negatively impacted, and this could affect our long-term success. In assessing this proposal, we encourage you to consider these factors and the potential negative impact on the Company if the 2025 Plan is not approved. Accordingly, we believe approving the 2025 Plan is in the best interest of our shareholders, and the Board unanimously recommends approval of the 2025 Plan. We have determined the size of the 2025 Plan taking into account a range of factors, including our historical equity grant practices as well as anticipated future needs of our business. Based on current information and assumptions about our future business and strategic actions, we have sized the 2025 Plan in terms of share availability with the objective that it be sufficient for our needs for the next three to five years of equity awards. The exact rate at which we use shares under the 2025 Plan may be more or less than our anticipated future usage and will depend upon various unknown factors, such as market price of our Common Shares, participation levels, long-term incentive award mix and vehicles, and forfeiture rates. 25

Information Regarding 2025 Plan Share Reserve and Outstanding Awards Under Prior Plan The 2025 Plan provides for the issuance of up to 2,936,762 Common Shares pursuant to awards granted under the 2025 Plan, plus shares underlying any awards under the 2025 Plan and under the Prior Plan that are forfeited, canceled or otherwise terminated (other than by exercise). As of April 28, 2025, 436,762 Common Shares remained available for issuance under the Prior Plan. No equity awards have been granted under the Prior Plan since March 10, 2025, and we will not grant any additional awards under the Prior Plan if the 2025 Plan is approved by our shareholders. The table below shows all awards granted under the Prior Plan that were outstanding as of April 28, 2025. There are no outstanding equity awards relating to our Common Shares granted under any other equity plan