16. Stock-Based Compensation and Employee Benefits

Stock-Based Compensation

On October 27, 2016, the Company adopted the 2016 Equity Compensation Plan (the “Plan”), the purpose of which is to align the interests of the Company’s officers, other employees, advisors and consultants or any subsidiary, if any, with those of the Company’s shareholders and to afford an incentive to such officers, employees, consultants and advisors to continue as such, to increase their efforts on the Company’s behalf and to promote the success of the Company’s business. The Plan is administered by the Compensation Committee. The maximum number of common shares reserved for the grant of awards under the Plan is 1,500,000, subject to adjustment as provided in Section 5 of the Plan. The number of securities remaining available for future issuance under the Plan as of December 31, 2022 was 1,188,468.

During the years ended December 31, 2022 and 2021, the Company granted an aggregate of 163,967 and 109,681 restricted common shares under the Plan, respectively. With respect to the restricted common shares granted in 2022, (i) 20,598 shares vested immediately on the date of grant, an additional 20,597 shares will vest on each of the first and second anniversaries of the date of grant and 3,750 shares will vest on the fourth anniversary of the date of grant, and (ii) 32,808 shares will vest on January 1, 2023, 32,808 shares will vest on January 1, 2024 and 32,809 shares will vest on January 1, 2025. With respect to the restricted common shares

granted in 2021, (i) 29,976 shares vested on each of January 1, 2022 and January 1, 2023 and an additional 29,976 shares will vest on January 1, 2024, (ii) 3,750 shares vested immediately on the date of grant, an additional 3,750 shares will vest on each of the first, second and third anniversaries of the date of grant and (iii) 4,753 shares became fully-vested when the Company waived the restrictions on such shares upon the retirement of its then executive vice president and chief operating officer in January 2022.

As of December 31, 2022, there were 47,788 restricted common shares that remain unvested, not including the unvested shares disclosed in footnote 12.

Employee Benefits

On April 16, 2018, the Company’s Board of Directors approved the adoption of the Sachem Capital Corp. 401(k) Profit Sharing Plan (the “401(k) Plan”). All employees who meet the participation criteria are eligible to participate in the 401(k) Plan. Under the terms of the 401(k) Plan, the Company is obligated to contribute 3% of a participant’s compensation to the 401(k) Plan on behalf of an employee-participant. For the years ended December 31, 2022 and 2021, the 401(k) Plan expense was $92,831 and $47,164, respectively.