Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 42

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 42
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 one, and our bylaws provide that the number of our directors may not be more than 15. Because our board of directors has
the power to amend our bylaws, it could modify the bylaws to change that range. Subject to the terms of any class or series of preferred
stock, vacancies on our board of directors may be filled only by a majority of the remaining directors, even if the remaining directors
do not constitute a quorum, and any director elected to fill a vacancy will hold office for the remainder of the full term of the directorship
in which the vacancy occurred and until his or her successor is duly elected and qualifies.

Except as may be provided with respect to any
class or series of our stock, under the MGCL at each annual meeting of our stockholders, each of our directors is elected by our stockholders
to serve until the next annual meeting of our stockholders and until his or her successor is duly elected and qualifies. A plurality
of the votes cast in the election of directors is sufficient to elect a director, and holders of shares of common stock have no right
to cumulative voting in the election of directors. Consequently, at each annual meeting of stockholders, the holders of a majority of
the shares of common stock entitled to vote are able to elect all of our directors.

The Series A Preferred Stock articles supplementary
provides that if dividends on the Series A Preferred Stock are in arrears for six or more quarterly periods, whether or not consecutive,
holders of shares of the Series A Preferred Stock (voting together as a class with other voting preferred stock) will be entitled
to vote for the election of two additional directors to serve on our board of directors. The Series A Preferred Stock articles supplementary
also separately provide for the election, term, removal and filling of any vacancy in the office of such directors elected by the holders
of the Series A Preferred Stock.

Removal of Directors

Our charter provides that, subject to the rights
of holders of any class or series of our preferred stock to elect or remove one or more directors, a director may be removed only with
cause and only by the affirmative vote of at least two-thirds of the votes entitled to be cast generally in the election of directors.
This provision, when coupled with the exclusive power of our board of directors to fill vacancies on our board of directors, precludes
stockholders from (i) removing incumbent directors except with cause and upon a substantial affirmative vote and (ii) filling
the vacancies created by