Document:

Exhibit 10.3

 

LIMITED LIABILITY
COMPANY AGREEMENT

OF

IIP-AZ
2 LLC

 

a Delaware limited liability company

 

Effective as of September 4, 2019

 

    

     

    

 

LIMITED LIABILITY COMPANY AGREEMENT

of

IIP-AZ
2 LLC

 

This LIMITED LIABILITY COMPANY AGREEMENT (“Agreement”)
of IIP-AZ 2 LLC (the “Company”) is effective as of the 4th day of September, 2019.

 

1.                 
Formation of Limited Liability Company. IIP Operating Partnership, LP, a Delaware limited partnership (the “Member”),
through its attorney in fact, formed the Company as a limited liability company pursuant to the provisions of the Delaware Limited Liability
Company Act (as such may be amended or succeeded from time to time, the “Act”). The rights and obligations of the Member
and the administration of the Company shall be governed by this Agreement and the Act. To the extent this Agreement is inconsistent in
any respect with the Act, this Agreement shall control.

 

2.                 
Member. The Member is the sole member of the Company.

 

3.                 
Purpose. The Company may engage in any and all businesses or activities in which a limited liability company may be engaged
under applicable law (including, without limitation, the Act).

 

4.                 
Name. The name of the Company shall be “IIP-AZ 2 LLC.”

 

5.                 
Principal Place of Business; Other Places of Business. The principal place of business of the Company is 11440 West Bernardo
Court, Suite 220, San Diego, CA 92127. The Company may have such other offices as the Member may designate from time to time.

 

6.                 
Designated Agent for Service of Process. The agent for service of process in Delaware as of the effective date of this Agreement
is The Corporation Trust Company, 1209 Orange Street, Wilmington, Delaware 19801.

 

7.                 
Term of Company. The Company commenced on the date the Certificate of Formation was properly filed with the Secretary of
State of the State of Delaware and shall exist in perpetuity or until its business and affairs are earlier wound up following proper dissolution.

 

8.                 
Management of Company. All decisions relating to the business, affairs, and properties of the Company shall be made by
the Member. The Member may appoint one or more managers and/or officers of the Company using any titles and may delegate all or some
decision-making duties and responsibilities to such persons. Any such managers and/or officers shall serve at the pleasure of the Member.
To the extent delegated by the Member, managers and/or officers shall have the authority to act on behalf of, bind, and execute and deliver
documents in the name and on behalf of the Company. In addition, unless otherwise determined by the Member, any officer(s) so appointed
shall have such authority and responsibility as is generally attributable to the holders of such offices in corporations incorporated
under the laws of the State of Delaware. No delegation of authority hereunder shall cause the Member to cease to be a Member. The following
individuals are hereby designated as the initial officers of the Company:

 

    1

     

    

 

	Name	 	Title
	Alan Gold	 	Executive Chairman
	 	 	 
	Paul Smithers	 	President and Chief Executive Officer
	 	 	 
	Catherine Hastings	 	Chief Financial Officer, Chief Accounting Officer and Treasurer
	 	 	 
	Brian Wolfe	 	Vice President, General Counsel and Secretary

 

9.                 
Other Activities. The Member and its agents, representatives and affiliates may engage or invest in, and devote their time
to, any other business venture or activity of any nature and description (independently or with others), whether or not such other activity
may be deemed or construed to be in competition with the Company. The Company shall not have any right by virtue of this Agreement or
the relationship created hereby in or to such other venture or activity (or to the income or proceeds derived therefrom), and the pursuit
thereof, even if competitive with the business of the Company, shall not be deemed wrongful or improper.

 

10.             
Standards of Conduct. Whenever the Member is required or permitted to make a decision, take or approve an action, or omit
to do any of the foregoing, then the Member shall be entitled to consider only such interests and factors, including its own, as it desires,
and shall have no duty or obligation to consider any other interests or factors whatsoever. To the extent that the Member has, at law
or in equity, duties (including, without limitation, fiduciary duties) to the Company or other person bound by the terms of this Agreement,
the Member acting in accordance with this Agreement shall not be liable to the Company or any such other person for its good faith reliance
on the provisions of this Agreement. The provisions of this Agreement, to the extent that they restrict the duties of the Member otherwise
existing at law or in equity, replace such other duties to the greatest extent permitted under applicable law.

 

11.             
Limited Liability. Except as otherwise required by any non-waivable provision of the Act or other applicable law, the Member
shall not be personally liable in any manner whatsoever for any debt, liability, or other obligation of the Company, whether such debt,
liability, or other obligation arises in contract, tort, or otherwise.

 

12.             
Contributions. The capital contributions of the Member are reflected on the books and records of the Company.

 

13.             
Distributions. Each distribution of cash or other property by the Company shall be made 100% to the Member. Each item of
income, gain, loss, deduction, credit, and other tax items of the Company shall be allocated 100% to the Member.

 

    2

     

    

 

14.             
Indemnification. The Company shall indemnify and hold harmless the Member to the full extent permitted by law from and
against any and all losses, claims, demands, costs, damages, liabilities, expenses of any nature (including attorneys’ fees and
disbursements), judgments, fines, settlements, and other amounts (collectively, “Costs”) arising from any and all
claims, demands, actions, suits, or proceedings (civil, criminal, administrative, or investigative) (collectively, “Actions”)
in which the Member may be involved, or threatened to be involved as a party or otherwise, relating to the performance or nonperformance
of any act concerning the activities of the Company. In addition, to the extent permitted by law, the Member may cause the Company to
indemnify and hold harmless any managers and/or officers from and against any and all Costs arising from any or all actions arising in
connection with the business of the Company or by virtue of such person’s capacity as an agent of the Company. Notwithstanding
the foregoing, any and all indemnification obligations of the Company shall be satisfied only from the assets of the Company, and the
Member shall have no liability or responsibility therefor.

 

15.             
Dissolution and Winding Up. The Company shall dissolve and its business and affairs shall be wound up pursuant to a written
instrument executed by the Member. In such event, after satisfying creditors, all remaining assets shall be distributed to the Member.

 

16.             
Amendments. This Agreement may be amended or modified from time to time only by a written instrument executed by the Member.

 

17.             
Governing Law. The validity and enforceability of this Agreement shall be governed by and construed in accordance with the
laws of Delaware without regard to other principles of conflicts of law.

 

[Remainder of page intentionally left blank]

 

    3

     

    

 

IN WITNESS
WHEREOF, the parties hereto have duly executed this Agreement effective as of the date first set forth above.

 

	MEMBER	 	 
	 	 	 
	IIP Operating Partnership, LP	 	 
	a Delaware limited partnership	 	 
	 	 	 
	 	By: 	Innovative Industrial Properties, Inc.,	 	 
	 	 	its sole general partner	 	 
	 	 	 
	 	 	By: 	/s/ Brian Wolfe	 	 
	 	 	Name:   	Brian Wolfe	 	 
	 	 	Title: 	Vice President	 	 
	 	 	 
	COMPANY	 	 
	 	 	 
	IIP-AZ 2  LLC,	 	 
	a Delaware limited liability company	 	 
	 	 	 
	By: IIP Operating Partnership, LP,	 	 
	its sole Member	 	 
	 	 	 
	 	By: 	Innovative Industrial Properties, Inc.,	 	 
	 	 	its sole general partner	 	 
	 	 	 
	 	 	By: 	/s/ Brian Wolfe	 	 
	 	 	Name:  	Brian Wolfe	 	 
	 	 	Title: 	Vice President	 	 

 

    4Exhibit 10.4

 

LIMITED PARTNERSHIP AGREEMENT

OF

IIP-CA
1 LP

 

This LIMITED PARTNERSHIP AGREEMENT (as amended
from time to time, this “Agreement”) of IIP-CA 1 LP, a Delaware limited partnership (the “Partnership”),
is entered into as of March 15, 2019, by and between IIP-GP LLC, a Delaware limited liability company, as the initial general partner
(in such capacity, the “General Partner”), and IIP Operating Partnership, LP, a Delaware limited partnership, as limited
partner (the “Limited Partner”).

 

RECITALS

 

WHEREAS, the General Partner and the Limited Partner
have formed a limited partnership pursuant to and in accordance with the Delaware Revised Uniform Limited Partnership Act (6 Del. C. § 17-101,
et seq.), as amended from time to time (the “Act”); and

 

WHEREAS, the General Partner and the Limited Partner
desire to enter into this Agreement to provide for the Partnership’s management and to provide for certain other matters, all as
permitted under the Act.

 

NOW, THEREFORE, in consideration of the covenants
and promises contained herein and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged,
the parties hereto agree as follows:

 

1.                 
Formation. Upon the filing of the Certificate of Limited Partnership in the Office of the Secretary of State of the State of Delaware
as required by the Act, the Partnership was formed as a limited partnership under the Act for the purposes and upon the terms and conditions
hereinafter set forth.

 

2.                 
Name. The name of the limited partnership formed hereby is “IIP-CA 1 LP”.

 

3.                 
Purpose. The purpose of the Partnership is to engage in any and all lawful businesses, purposes or activities and exercise any
powers in which a limited partnership may be engaged under applicable law (including, without limitation, the Act).

 

4.                 
Registered Office. The address of the registered office of the Partnership in the State of Delaware is c/o The Corporation Trust
Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801.

 

5.                 
Registered Agent. The name and address of the registered agent of the Partnership for service of process on the Partnership in
the State of Delaware are The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801.

 

6.                 
Partners. The names and the business, residence or mailing addresses of the General Partner and the Limited Partner are as follows:

 

    1

     

    

 

General Partner

 

IIP-GP LLC

11440 West Bernardo Court, Suite 220

San Diego, California 92127

 

Limited Partner

 

IIP Operating Partnership, LP

11440 West Bernardo Court, Suite 220

San Diego, California 92127

 

7.                 
Addition, Substitution and Removal of General Partners. The party serving as General Partner shall serve in such capacity at the
pleasure of the Limited Partner, and the Limited Partner in its sole and absolute discretion may at any time and from time to time designate
one or more new or additional general partners of the Partnership, replace the General Partner with a substitute general partner of the
Partnership, and/or otherwise remove any General Partner from the Partnership. Each person or entity designated by the Limited Partner
to serve as a general partner of the Partnership shall be referred to as the “General Partner” hereunder for so long as such
person or entity serves in such capacity. Any party so designated as an additional or substitute General Partner shall become a party
to this Agreement upon its execution of a counterpart signature page or joinder to this Agreement in any form approved by the Limited
Partner, as evidenced by the Limited Partner’s written approval thereof, and any additional, substitute or replacement General Partner
shall continue the activities of the Partnership without dissolution of the Partnership. Any removal, substitution or replacement of a
General Partner by the Limited Partner shall be evidenced by the Limited Partner in writing, and following its removal, substitution or
replacement, the prior General Partner shall have no rights or interests of any kind in respect of the Partnership. In connection with
any addition, removal, substitution or replacement of any general partner(s) of the Partnership, the partners of the Partnership will
cause all necessary filings to be made with the Secretary of State of the State of Delaware.

 

8.                 
Dissolution. The Partnership shall dissolve, and its affairs shall be wound up, at such time as (a) the partners of the Partnership
unanimously approve in writing, (b) an event of withdrawal of a general partner has occurred under the Act, (c) there are no
limited partners of the Partnership unless the Partnership is continued in accordance with the Act, or (d) an entry of a decree of
judicial dissolution has occurred under Section 17-802 of the Act; provided, however, the Partnership shall not be dissolved
and required to be wound up upon an event of withdrawal of a general partner described in Section 8(b) if (i) at the time of the
occurrence of such event there is at least one remaining general partner of the Partnership who is hereby authorized to and does carry
on the business of the Partnership, or (ii) within 90 days after the occurrence of such event, a majority of the limited partners
of the Partnership agree in writing or vote to continue the business of the Partnership and to the appointment, effective as of the date
of such event, if required, of one or more additional general partners of the Partnership.

 

9.                 
Capital Contributions. The Limited Partner and General Partner have made capital contributions to the Partnership as set forth
in the books and records of the Partnership.

 

    2

     

    

 

10.             
Additional Contributions. The partners of the Partnership shall make additional capital contributions to the Partnership only at
such times and upon such terms and conditions as may be mutually agreed by all partners, each acting in its sole and absolute discretion.

 

11.             
Allocations of Profit and Losses. The Partnership’s profits and losses shall be allocated in proportion to the capital contributions
of the partners of the Partnership.

 

12.             
Capital Accounts. A capital account shall be maintained for each partner of the Partnership in accordance with Treasury Regulations
Section 1.704-1(b)(2)(iv).

 

13.             
Distributions. At any time determined by the General Partner, the General Partner may cause the Partnership to distribute any cash
held by it to the partners of the Partnership that is not reasonably necessary for the operation of the Partnership. Such distributions
shall be made to the partners in proportion to their then current positive capital account balances. Notwithstanding anything to the contrary
contained in this Agreement, the Partnership, and the General Partner on behalf of the Partnership, shall not be required to make a distribution
to any partner on account of its interest in the Partnership if such distribution would violate the Act or other applicable law.

 

14.             
Management of Partnership. Subject to Section 7, the General Partner shall have exclusive control over the business of the Partnership
and shall have all rights, powers and authority generally conferred by law or necessary, advisable or consistent in connection therewith.
The General Partner may, in its discretion, appoint such officers of the Partnership as the General Partner may deem necessary or advisable
to manage the day-to-day business affairs of the Partnership (the “Officers”). The Officers shall serve at the pleasure
of the General Partner. To the extent delegated by the General Partner, the Officers shall have the authority to act on behalf of, bind
and execute and deliver documents in the name and on behalf of the Partnership. No such delegation shall cause the General Partner to
cease to be a partner of the Partnership. Such Officers shall have such authority and responsibility as is generally attributable to the
holders of such offices in corporations incorporated under the laws of Delaware. The Limited Partner shall have no right to participate
in or vote upon any Partnership matters except as specifically provided by this Agreement or required by any mandatory provision of the
Act. Notwithstanding any other provision of this Agreement, the General Partner has the authority to bind the Partnership and is authorized
to execute and deliver any document on behalf of the Partnership without any vote or consent of any other partner or other person or entity.

 

15.             
Transfer or Pledge. A partner’s interest in the Partnership shall not be assigned, pledged, sold or otherwise transferred,
in whole or in part, without the prior written consent of the General Partner, which consent may be given or withheld in the General Partner’s
sole and absolute discretion. No assignee of a partner’s interest in the Partnership shall be admitted into the Partnership as a
substituted partner without: (a) the prior written consent of the General Partner, which consent may be given or withheld in the General
Partner’s sole and absolute discretion; and (b) such assignee executing a counterpart to this Agreement.

 

16.             
Withdrawal. No partner of the Partnership may withdraw from the Partnership without the consent of the General Partner.

 

    3

     

    

 

		17.	Additional Limited Partners.

 

(a)    Additional limited partners may be admitted
to the Partnership only with the unanimous written consent of the existing partners of the Partnership.

 

(b)    After the admission of any additional
limited partners pursuant to this Section 17, the Partnership shall continue as a limited partnership under the Act without dissolution.

 

(c)    The admission of additional limited partners
to the Partnership pursuant to this Section 17 shall be accomplished by the execution of a counterpart signature page or joinder to this
Agreement executed by such additional limited partner and if necessary the amendment of this Agreement and any other actions as may be
required by the Act.

 

17.             
Governing Law. This Agreement, and all rights and remedies in connection therewith, shall be governed by, and construed under,
the laws of the State of Delaware, without regard to otherwise governing principles of conflicts of law or choice of laws.

 

18.             
Amendments. This Agreement may be amended or modified from time to time only by a written instrument executed by the General
Partner.

 

19.             
Indemnification. The Partnership shall indemnify and hold harmless the partners to the full extent permitted by law from and against
any and all losses, claims, demands, costs, damages, liabilities, expenses of any nature (including attorneys’ fees and disbursements),
judgments, fines, settlements, and other amounts (collectively, “Costs”) arising from any and all claims, demands,
actions, suits, or proceedings (civil, criminal, administrative, or investigative) (collectively, “Actions”) in which
any partner may be involved, or threatened to be involved as a party or otherwise, relating to the performance or nonperformance of any
act concerning the activities of the Partnership. In addition, to the extent permitted by law, the General Partner may cause the Partnership
to indemnify and hold harmless any officers of the Partnership from and against any and all Costs arising from any or all actions arising
in connection with the business of the Partnership or by virtue of such person’s capacity as an agent of the Partnership. The rights
of indemnification contained in this Section 19 shall be cumulative of, and in addition to, any and all rights, remedies and recourse
to which any indemnified party shall be entitled, whether pursuant to the provisions of this Agreement, at law or in equity. All rights
to indemnification hereunder shall survive the dissolution of the Partnership and the death, retirement, incompetency, insolvency or bankruptcy
of any partner.

 

20.             
Counterparts. This Agreement may be executed in any number of multiple counterparts, each of which shall be deemed to be an
original copy and all of which together shall constitute one agreement, binding on all parties hereto.

 

 

(Signature Page Follows)

 

    4

     

    

 

IN WITNESS WHEREOF, the parties hereto, intending
to be bound hereby, have duly executed this Agreement as of the date first set forth above.

 

	 	GENERAL PARTNER
	 	 	 
	 	IIP-GP LLC
	 	 	 
	 	By:	/s/ Brian Wolfe
	 	Name:  	Brian Wolfe
	 	Title:	Vice President, General Counsel and Secretary
	 	 	 
	 	LIMITED PARTNER
	 	 	 
	 	IIP OPERATING PARTNERSHIP, LP
	 	 	 
	 	By:	/s/ Brian Wolfe
	 	Name:  	Brian Wolfe
	 	Title:	Vice President, General Counsel and Secretary

 

    S-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00330-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00330-of-00352.parquet"}]]