Exhibit 10.3


 


Mustang Bio, Inc. 


 


FUTURE ADVANCE PROMISSORY NOTE


 


FOR AMOUNTS ADVANCED AS SHOWN


ON EXHIBIT A ATTACHED HERETO


 


1.          Principal
and Interest. Mustang Bio, Inc. (the “Company”), for value received, pursuant to this Future Advance Promissory
Note (the “Note”) hereby promises to pay to the order of Fortress Biotech, Inc. (“Fortress”), in lawful
money of the United States of America, the principal amount as may be advanced from time to time by Fortress as shown on Exhibit
A attached hereto, with interest from the date of each advance at 8% per annum on the unpaid balance until paid. Interest shall
be accrued and added to principal. Such principal and accrued interest shall be due and payable on demand. All unpaid principal
and interest on this Note may be prepaid at any time without penalty.


 


2.          Advances.
Advances under this Note shall be subject to the following terms and conditions:


 


		(a)	draws may be made upon request by the Company with at least
three (3) days advance notice to Fortress;



 


		(b)	in its sole and absolute discretion, Fortress may refuse
to make any advance hereunder;



 


		(c)	all advances, at the time made, shall be noted on Exhibit
A of this Note and shall be signed by an authorized officer of the Company.



 


3.          Company
Assumption of Fortress Debt. At the option of Fortress, the Company may satisfy all or a portion of the outstanding principal
and accrued but unpaid interest under this Note by assuming indebtedness of Fortress to a third party.


 


4.          Attorneys’
Fees. If the indebtedness represented by this Note or any part thereof is collected in bankruptcy, receivership or other judicial
proceedings or if this Note is placed in the hands of attorneys for collection after default, the Company agrees to pay, in addition
to the principal and interest payable hereunder, reasonable attorneys' fees and costs incurred by Fortress.


 


5.          Notices.
Any notice, other communication or payment required or permitted hereunder shall be in writing and shall be deemed to have been
given upon receipt by the other party.


 


6.          Acceleration.
This Note shall become immediately due and payable if (i) the Company commences any proceeding in bankruptcy or for dissolution,
liquidation, winding-up, composition or other relief under state or federal bankruptcy laws; or (ii) such proceedings are commenced
against the Company, or a receiver or trustee is appointed for the Company or a substantial part of its property; or (iii) there
is any material breach of any material covenant, warranty, representation or other term or condition of this Note at any time that
is not cured within the time periods permitted therein, or if no cure period therein, within five (5) days after the date on which
such breach occurs.


 




     


     


    

 


7.          No
Dilution or Impairment. The Company will not, by amendment of its charter documents or through any reorganization, transfer
of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid
the observance or performance of any of the terms of this Note, but will at all times in good faith assist in the carrying out
of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the
holder of this Note.


 


8.          Waivers.
Company hereby waives presentment, demand for performance, notice of nonperformance, protest, notice of protest and notice of dishonor.
No delay on the part of Fortress in exercising any right hereunder shall operate as a waiver of such right or any other right.
This Note is being delivered in and shall be construed in accordance with the laws of the State of Delaware, without regard to
the conflicts of laws provisions thereof.


 


9.          Governing
Law. This Note is being delivered in and shall be construed in accordance with the laws of the State of New York, without regard
to the conflicts of laws provisions thereof.


 


ISSUED as of May 5th, 2016.


 


	 	Mustang Bio, Inc.
	 	 	 
	 	By:	/s/  Michael S. Weiss
	 	Name: Michael S. Weiss
	 	Title: Executive Chairman and Interim CEO


 




     


     


    

 


EXHIBIT
A


 


SCHEDULE OF ADVANCES


 





	Date of Advance	 	Amount Advanced	 	Signature
	 	 	 	 	 
	 	 	 	 	 
	September 30, 2015	 	$3,041,425.14	 	 
	 	 	 	 	 
	 	 	 	 	 
	October 28, 2015	 	$500,000.00	 	 
	 	 	 	 	 
	 	 	 	 	 
	October 30, 2015	 	$14,190.40	 	 
	 	 	 	 	 
	 	 	 	 	 
	November 30, 2015	 	$6,136.42	 	 
	 	 	 	 	 
	 	 	 	 	 
	December 31, 2015	 	$9,377.31	 	 
	 	 	 	 	 
	 	 	 	 	 
	January 29, 2015	 	$524,357.84	 	 
	 	 	 	 	 
	 	 	 	 	 
	February 29, 2015	 	$3,046.60	 	 
	 	 	 	 	 
	 	 	 	 	 
	March 31, 2015	 	$53,609.47