Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 104

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 104
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 8 or
if our board of directors were to opt in to the control share acquisition of the MGCL, these provisions of the MGCL could have similar
anti-takeover effects.

Indemnification and Limitation of Directors’ and Officers’ Liability

Maryland law permits a Maryland corporation to
include in its charter a provision eliminating the liability of its directors and officers to the corporation and its stockholders for
money damages except for liability resulting from actual receipt of an improper benefit or profit in money, property or services or active
and deliberate dishonesty that was established by a final judgment and was material to the cause of action. Our charter contains a provision
that eliminates the liability of our directors and officers to the maximum extent permitted by Maryland law.

The MGCL requires us (unless our charter provides
otherwise, which our charter does not) to indemnify a director or officer who has been successful, on the merits or otherwise, in the
defense of any proceeding to which he or she is made a party by reason of his or her service in that capacity. The MGCL permits us to
indemnify our present and former directors and officers, among others, against judgments, penalties, fines, settlements and reasonable
expenses actually incurred by them in connection with any proceeding to which they may be made or threatened to be made a party by reason
of their service in those or other capacities unless it is established that:

| · | act or omission of the director or officer was material                                                                        
 to the matter giving rise to the proceeding and (i) was committed in bad faith or (ii) was the result of active and deliberate 
 dishonesty;                                                                                                                    |

| · | the director or officer actually received an improper 
 personal benefit in money, property or services; or   |

| · | in the case of any criminal proceeding, the director                              
 or officer had reasonable cause to believe that the act or omission was unlawful. |

Under the MGCL, we may not indemnify a director
or officer in a suit by us or in our right in which the director or officer was adjudged liable to us or in a suit in which the director
or officer was adjudged liable on the basis that personal benefit was improperly received. Nevertheless, a court may order indemnification
if it determines that the director or officer is fairly and reasonably entitled to indemnification, even though the director or officer
did not meet the prescribed standard of conduct or was adjudged liable on the basis that personal benefit was improperly received.