Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 38

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 38
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 had 
 not occurred.                                                                                                                       |

Covenant Defeasance and Events of Default

In the event we exercise our option to effect
covenant defeasance with respect to any series of debt securities and the debt securities of that series are declared due and payable
because of the occurrence of any Event of Default, the amount of money and/or U.S. government obligations or money and/or Foreign Government
Obligations on deposit with the trustee will be sufficient to pay amounts due on the debt securities of that series at the time of their
stated maturity but may not be sufficient to pay amounts due on the debt securities of that series at the time of the acceleration resulting
from the Event of Default. In such a case, we would remain liable for those payments.

“Foreign Government Obligations”
means, with respect to debt securities of any series that are denominated in a currency other than U.S. dollars, direct obligations of,
or obligations guaranteed by, the government that issued or caused to be issued such currency for the payment of which obligations its
full faith and credit is pledged and which are not callable or redeemable at the option of the issuer thereof.

Satisfaction and Discharge

The indenture will be discharged and will cease
to be of further effect (except as to surviving rights or registration of transfer or exchange of the debt securities, as expressly provided
for in the indenture) as to all outstanding debt securities when:

either:

| · | all the debt securities theretofore authenticated and                                                                            
 delivered (except lost, stolen or destroyed debt securities which have been replaced or paid) have been delivered to the trustee 
 for cancellation; or                                                                                                             |

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| · | all debt securities not theretofore delivered to the                                                                                         
 trustee for cancellation have become due and payable or will become due and payable at their maturity within one year, have been             
 called for redemption or are to be called for redemption within one year, or are deemed paid and discharged pursuant to the legal            
 defeasance provisions of the indenture, and we have irrevocably deposited or caused to be irrevocably deposited with the trustee             
 as trust funds in trust cash or noncallable U.S. government obligations in an amount sufficient to pay and discharge the entire indebtedness 
 on such debt securities not theretofore delivered to the trustee for cancellation, for principal and interest to the date of such            
 deposit (in the case of debt securities which have become due