Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 174

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 174
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%) of our fully-diluted outstanding capitalization on the date that is one (1) business day prior to any Annual Stock Dividend
Payment Date.

As additional consideration under the Mustang
Founders Agreement, we are required to: (i) pay an equity fee in shares of common stock, payable within five (5) business days
of the closing of any equity or debt financing that occurs after the effective date of the Mustang Founders Agreement and ending on the
date when Fortress no longer has majority voting control in our voting equity, equal to two and one-half (2.5%) of the gross amount of
any such equity or debt financing; and (ii) pay a cash fee equal to four and one-half percent (4.5%) of our annual net sales,
payable on an annual basis, within ninety (90) days of the end of each calendar year. In the event of a Change in Control, we
will pay a one-time change in control fee equal to five (5x) times the product of (A) net sales for the twelve (12) months immediately
preceding the change in control and (B) four and one-half percent (4.5%).

Effective as of March 13, 2015, we entered
into a Management Services Agreement (the “MSA”) with Fortress, pursuant to which Fortress renders advisory and consulting
services to us. The MSA has an initial term of five years and is automatically renewed for successive five-year terms unless terminated
in accordance with its provisions. Services provided under the MSA may include, without limitation, (i) advice and assistance concerning
any and all aspects of our operations, clinical trials, financial planning and strategic transactions and financings and (ii) conducting
relations on our behalf with accountants, attorneys, financial advisors and other professionals (collectively, the “Services”).
We are obligated to utilize clinical research services, medical education, communication and marketing services and investor relations/public
relation services of companies or individuals designated by Fortress, provided those services are offered at market prices. However, we
are not obligated to take or act upon any advice rendered from Fortress and Fortress shall not be liable for any of its actions or inactions
based upon their advice. Pursuant to the MSA and our Certificate of Incorporation, Fortress and its affiliates, including all members
of our Board, will have no fiduciary or other duty to communicate or present any corporate opportunities to us or to refrain from engaging
in