Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 164

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 164
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 in which the termination occurred, to be paid
when and if such bonus would have been paid under the employment agreement. In each case, the severance benefits are conditioned upon
Dr. Litchman’s execution and non-revocation of a release of claims against us and compliance with certain non-solicitation and non-competition
covenants during his employment and for a period of six months thereafter. Also, the severance benefits are subject to reduction
to avoid the imposition of excise taxes under Sections 280G and 4999 of the Code, provided that such reduction would result
in a better after-tax result for Dr. Litchman.

Mr. Murphy provided consulting services to
us pursuant to a consulting agreement between us and Danforth Advisors, LLC and received no compensation directly from us.

Annual Cash Incentive Bonus

In 2024, Dr. Litchman was eligible to earn a target
annual cash incentive equal to 50% of his base salary per the terms of his Employment Agreement.

Dr. Litchman’s annual cash incentive bonus
is based upon our performance against pre-established corporate goals and objectives, which included a combination of clinical and nonclinical
goals related to our products as well as other corporate development goals, and his individual performance based upon subjective performance
reviews. In 2024, the Compensation Committee decided not to pay 2023 and 2024 annual cash incentive bonuses to preserve our limited cash
resources.

Equity Awards

The Company maintains the Mustang Bio, Inc. 2016
Incentive Plan (the “2016 Plan”), pursuant to which it may, from time to time, grant equity awards to its service providers,
including its executive officers and directors. However, no equity awards were granted in 2024.

<div align='center'>Outstanding Equity Awards at Fiscal Year-Ended December 31, 2024</div>

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 Option Awards 
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     Number of 
    securities 
    underlying 
   unexercised 
   options (#) 
   exercisable | ​    
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     Number of 
    securities 
    underlying 
   unexercised 
   options (#) 
 unexercisable | ​    
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