Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 107

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 107
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have full, exclusive and complete responsibility and discretion in the management and control of our Operating Partnership.

Indemnification

To the extent permitted by law, the Operating
Partnership Agreement provides for indemnification of us when acting in good faith and in the best interests of our Operating Partnership
in our capacity as general partner. It also provides for indemnification of directors, officers and other persons that we may designate
under the same conditions, and subject to the same restrictions, applicable to the indemnification of officers, directors, employees
and stockholders under our charter. See the section entitled “Certain Provisions of Maryland Law and Our Charter and Bylaws —
Indemnification and Limitation of Directors’ and Officers’ Liability.”

Issuance of Additional Units

As general partner of our Operating Partnership,
we are able to cause our Operating Partnership to issue additional units representing general and/or limited partnership interests. A
new issuance may include preferred units, which may have rights which are different than, and/or superior to, those of general partnership
interests and limited partnership interests.

Capital Contributions

The Operating Partnership Agreement provides
that, if our Operating Partnership requires additional funds at any time, or from time to time, in excess of funds available to it from
prior borrowings, operating revenue or capital contributions, we, as general partner, have the right to raise additional funds required
by our Operating Partnership by causing it to borrow the necessary funds from third parties on such terms and conditions as we deem appropriate.
As an alternative to borrowing funds required by our Operating Partnership, we may contribute the amount of such required funds as an
additional capital contribution.

Liquidation

Upon the liquidation of our Operating Partnership,
after payment of debts and obligations, any remaining assets of the partnership will be distributed to partners pro rata in accordance
with their relative percentage interest ownership.

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Distributions and Allocations

Distributions are made, and all items of net
income, net loss and any other individual items of income, gain, loss or deduction of our Operating Partnership are allocated to the
general partner and the limited partner based on their relative percentage interest ownership.

Term

Our Operating Partnership will continue in full
force and effect until December 31, 2099 or until sooner dissolved and terminated upon (i) our election to dissolve the Partnership;
(ii) the entry of a decree of judicial dissolution of our Operating Partnership; or (iii) by operation of law.

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