Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 108

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 108
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 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. However,
indemnification for an adverse judgment in a suit by us or in our right, or for a judgment of liability on the basis that personal benefit
was improperly received, is limited to expenses.

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In addition, the MGCL permits us to advance reasonable
expenses to a director or officer upon our receipt of:

| · | written affirmation by the director or officer of his                                                            
 or her good faith belief that he or she has met the standard of conduct necessary for indemnification by us; and |

| · | a written undertaking by the director or officer or                                                                    
 on the director’s or officer’s behalf to repay the amount paid or reimbursed by us if it is ultimately determined that 
 the director or officer did not meet the standard of conduct.                                                          |

Our charter authorizes us to obligate ourselves
and