Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 20

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 20
---
 trust will be paid by the recipient to the charitable trust upon demand by the charitable
trustee. These rights will be exercised for the exclusive benefit of the charitable beneficiary.

Subject to Maryland law, effective as of the
date that the shares have been transferred to the charitable trust, the charitable trustee will have the authority, at the charitable
trustee’s sole discretion:

| · | to rescind as void any vote cast by a prohibited owner                                    
 prior to our discovery that the shares have been transferred to the charitable trust; and |

| · | to recast the vote in accordance with the desires of                         
 the charitable trustee acting for the benefit of the charitable beneficiary. |

However, if we have already taken irreversible
action, then the charitable trustee may not rescind and recast the vote.

If our board of directors determines in good
faith that a proposed transfer would violate the restrictions on ownership and transfer of our stock set forth in our charter, our board
of directors may take such action as it deems advisable to refuse to give effect to or to prevent such transfer, including, but not limited
to, causing us to redeem shares of stock, refusing to give effect to the transfer on our books or instituting proceedings to enjoin the
transfer.

Every owner of more than 5% (or such lower percentage
as required by the Code or the regulations promulgated thereunder) of the outstanding shares of all classes or series of our stock, including
common stock, will be required to give written notice to us within 30 days after the end of each taxable year stating the name and address
of such owner, the number of shares of each class and series of our stock that the person beneficially owns and a description of the
manner in which such shares are held. Each such owner will be required to provide to us such additional information as we may request
in order to determine the effect, if any, of such beneficial ownership on our qualification as a REIT and to ensure compliance with the
ownership limits. In addition, each stockholder will, upon demand, be required to provide to us such information as we may request, in
good faith, in order to determine our qualification as a REIT and to comply with the requirements of any taxing authority or governmental
authority or to determine such compliance.

<div align='center'>11</div>

Any certificates representing shares of our stock,
or any written statements of information delivered in lieu of certificates, will bear a legend referring to the restrictions described
above.