Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 101

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 101
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 restriction on, or prohibition                                                                                                   
 against, any transfer or assignment that would either result in a termination or reclassification of the entity for federal or state 
 tax purposes or that would violate any state or federal statute, regulation, court order, judicial decree or rule of law;            |

| · | any requirement that not less than                                                                                                   
 a minimum number of shares or units of such security be transferred or assigned by any investor, provided that such requirement does 
 not prevent transfer of all of the then remaining shares or units held by an investor;                                               |

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| · | any prohibition against transfer                                                                         
 or assignment of such security or rights in respect thereof to an ineligible or unsuitable investor; and |

| · | any requirement that reasonable                                                      
 transfer or administrative fees be paid in connection with a transfer or assignment. |

Our structure has been established with the intent
to satisfy the criteria to be a “publicly-offered security”, however, there is no assurance that our securities will meet
such requirement.

Exception for Insignificant Participation by Plan Investors. The Plan Assets Regulation provides that the assets of
an entity will not be deemed to be the assets of a Plan investing in such entity if equity participation in the entity by employee benefit
plans, including Plans, is not significant. The Plan Assets Regulation provides that equity participation in an entity by Plan investors
is “significant” if at any time 25% or more of the value of any class of equity interest is held by Plan investors. In calculating
the value of a class of equity interests, the value of any equity interests held by us or any of our affiliates must be excluded. We
cannot provide any assurance that Plan investors will hold less than 25% of the value of our securities.

Other Prohibited Transactions

Regardless of whether our securities qualify
for the “publicly-offered securities” exception of the Plan Assets Regulation, a prohibited transaction could occur if we,
our advisors, any selected broker-dealer or any of their affiliates is a fiduciary (within the meaning of Section 3(21) of ERISA)
with respect to any Plan purchasing our securities. Accordingly, unless an administrative or statutory exemption applies, securities
should not be purchased by a Plan with respect to which any of the above persons is a fiduciary.

Further, certain employee benefit plans, such
as governmental, non-U.S. or church plans, generally are not subject to the requirements of Title I of ERISA of relevant Code