Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 166

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 166
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) 25% of such shares will vest upon the dosing of the first patient in the first Phase 2 clinical trial of any Company product candidate; (B) 25% of such shares will vest upon the dosing of the first patient in the first Phase 2 clinical trial of a second Company product candidate; (C) 25% of such shares will vest upon our achievement of a fully-diluted market capitalization of $500,000,000; and (D) 25% of such shares will vest upon our achievement of a fully-diluted market capitalization of $1 billion. Notwithstanding the foregoing, in the event that a Phase 2 clinical trial for either of the Company product candidates referenced in subsections (i) or (ii) of this paragraph is bypassed, the corresponding percentage of the Performance Option grant that would have otherwise vested pursuant to subsections (i) or (ii) of this paragraph will vest upon the earlier of (x) the dosing of the first patient in the first Phase 3 clinical trial for that Company product candidate, or (y) the filing of a Biologics License Application or New Drug Application with the U.S. Food and Drug Administration, or alternatively the filing of an equivalent regulatory filing with a foreign regulatory agency, with respect to that Company product candidate. |

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Table of Contents

(3) Subject to Dr. Litchman’s
continuous service, the restricted stock units vest as follows: (i) 66 shares will vest on April 24, 2025; (ii) 46 shares
will vest on April 24, 2026; and (iii) 25 shares will vest on April 24, 2027.

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Clawback Policy

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Pursuant to Nasdaq listing requirements, we have
adopted a policy providing for the recovery of erroneously awarded incentive-based compensation received by our executive officers or
the executive officers of one of our subsidiaries during an applicable recovery period (the “Clawback Policy”) in compliance
with Section 10D of the Exchange Act. Under the Clawback Policy, in the event that financial results upon which a cash or equity-based
incentive award was based becomes the subject of a financial restatement that is required because of material non-compliance with financial
reporting requirements, the Compensation Committee will conduct a review of awards covered by the Clawback Policy and recoup any erroneously
awarded