Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 98

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 98
---
 circumstances                                                         
 pertaining to the Plan in question, the fiduciary’s responsibility to the Plan has been satisfied; |

| · | whether the investment will produce                                                     
 an unacceptable amount of “unrelated business taxable income” (“UBTI”) to the Plan; and |

| · | the need to value the assets of 
 the Plan annually.              |

Under ERISA, a Plan fiduciary’s responsibilities
include the following duties:

| · | to act solely in the interest of                                                                                                 
 plan participants and beneficiaries and for the exclusive purpose of providing benefits to them, as well as defraying reasonable 
 expenses of plan administration;                                                                                                 |

| · | to invest plan assets prudently; |

| · | to diversify the investments of                      
 the plan, unless it is clearly prudent not to do so; |

| · | to ensure sufficient liquidity for 
 the plan;                          |

| · | to ensure that plan investments                 
 are made in accordance with plan documents; and |

| · | to consider whether an investment                                                             
 would constitute or give rise to a non-exempt prohibited transaction under ERISA or the Code. |

ERISA also requires that, with certain exceptions,
the assets of an employee benefit plan be held in trust and that the trustee, or a duly authorized named fiduciary or investment manager,
have exclusive authority and discretion to manage and control the assets of the plan. In considering an investment in our securities,
a Plan fiduciary should consider whether such an investment is appropriate for the Plan, taking into account such fiduciary obligations
described above.

<div align='center'>52</div>

Prohibited Transactions

Generally, both ERISA and the Code prohibit Plans
from engaging in certain transactions involving Plan assets with specified parties, such as sales or exchanges or leasing of property,
loans or other extensions of credit, furnishing goods or services, or transfers to, or use of, plan assets, unless an exemption is available.
The specified parties are referred to as “parties-in-interest” under ERISA and as “disqualified persons” under
the Code. A party in interest or disqualified person who engages in a non-exempt prohibited transaction may be subject to excise taxes
and other penalties and liabilities under ERISA and the Code. In addition, the fiduciary of a Plan that engages in a non-exempt prohibited
transaction may be subject to penalties and liabilities under ERISA and the Code, including an obligation to restore to the Plan any
profits they