Company: MBIO
Filing Date: 2025-02-13
Form Type: 424B3
Source: 0001104659-25-013030
Chunk: 5

Company: MUSTANG BIO, INC.
Filing Date: 2025-02-13
Form: 424B3
Chunk 5
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Escrow Agreement”), with Bowditch & Dewey, LLP, as escrow agent (the “Escrow Agent”), pursuant
to which the Escrow Agent will disburse the Purchase Price pursuant to the terms of the Escrow Agreement.

Pursuant
to the terms of the Escrow Agreement, the Company and AbbVie agreed that the Escrow Agent will hold the Purchase Price in accordance
with the terms and conditions of this Agreement, and as further described in the Sale/Surrender Agreement, until (i) AbbVie has given
the Company and Escrow Agent an Acceptance Notice, or (ii) AbbVie and the Company have given Escrow Agent a Joint Settlement Notice or
other joint written instructions, or (iii) AbbVie or the Company has given the other party and Escrow Agent a termination notice pursuant
to the Sale/Surrender Agreement.

First Amendment to Lease Agreement

On February
7, 2025, the Company entered into the Amendment with the Landlord. The Amendment amends the term of the Lease with respect to the Company
and facilitates a transfer of the Lease of the Premises to AbbVie.

Pursuant
to the terms of the Amendment, the Base Term of the Lease will terminate earlier than the Termination Date on the later to occur of (a)
the Transfer Date, as such term is defined in the Sale/Surrender Agreement (the “Anticipated Early Termination Date”), or
(b) the date the Company surrenders and yields up the Premises to the Landlord in the condition required by the Lease as modified by
the Amendment (the later of (a) or (b) to occur shall constitute the “Early Termination Date”).

In the
Amendment, the Company also waived its right to exercise the extension options granted under the Lease. In the event the Early Termination
Date does occur, the Company will no longer have any obligation to pay Rent, operating expenses, or other amounts payable under the Lease
excepting those amounts due and outstanding as of the Early Termination Date. If the Early Termination Date does not occur, however,
then the Base Term of the Lease shall not be subject to early termination. If the Lease is terminated pursuant to the Amendment, then
the Company estimates potential savings of approximately $2.0 million in Lease-related payments and obligations.

| Item 1.02. | Termination                         
 of a Material Definitive Agreement. |

The
disclosures set