Document:

Subscription Agreement

Subscription Agreement

 

Notes Incorporation

 

1. Investment:

 

The undersigned (“Buyer”) subscribes for _____________________ shares of common stock of Notes Incorporation at $ ________________ per share.

 

Total subscription price ($ _________________ times number of Shares): = $ _____________________.

 

2. Investor information:

 

	 

 

Name (type or print):

 

 

	 

	 

 

Address:

 

 

	 

	 

 

Telephone:

 

 

	 

	 

 

E-mail address:

 

 

	 

	 

 

SSN/EIN/Taxpayer I.D.:

 

 

	 

 

3. Type of ownership: (You must check one box)

 

	o Individual 

	o Tenants in Common 

	o Joint Tenants with rights of Survivorship 

	o Partnership (Limited Partnerships use “Corporation”) 

	o Corporation (Inc., LLC, LP) – Please List all officers, directors, partners, managers, etc.: 

	o Trust  

	o Community Property 

	o Other (please explain) 

 

Please make payment by check or money order payable to Notes Incorporation.

 

4. Further Representations, Warrants and Covenants. Buyer hereby represents warrants, covenants and agrees as follows:

1

 

(a) Buyer is at least eighteen (18) years of age with an address as set forth in this Subscription Agreement. 

 

(b) Except as set forth in the prospectus and the exhibits thereto, no representations or warranties, oral or otherwise, have been made to buyer by the company or any other person, whether or not associated with the company or this offering. In entering into this transaction, buyer is not relying upon any information, other than that contained in the prospectus and the exhibits thereto and the results of any independent investigation conducted by buyer at buyer’s sole discretion and judgment. 

 

(c) Buyer is under no legal disability nor is buyer subject to any order, which would prevent or interfere with buyer’s execution, delivery and performance of this Subscription Agreement or his or her purchase of the Shares. The shares are being purchased solely for buyer’s own account and not for the account of others and for investment purposes only, and are not being purchased with a view to or for the transfer, assignment, resale or distribution thereof, in whole or part. Buyer has no present plans to enter into any contract, undertaking, agreement or arrangement with respect to the transfer, assignment, resale or distribution of any of the shares. 

 

5. Acceptance of Subscription:

 

(a) It is understood that this subscription is not binding upon the company until accepted by the company, and that the company has the right to accept or reject this subscription, in whole or in part, in its sole and complete discretion. If this subscription is rejected in whole, the company shall return to buyer, without interest, the payment tendered by buyer, in which case the company and buyer shall have no further obligation to each other hereunder. In the event of a partial rejection of this subscription, buyer’s payment will be returned to buyer, without interest, whereupon buyer agrees to deliver a new payment in the amount of the purchase price for the number of shares to be purchased hereunder following a partial rejection of this subscription. 

 

6. Governing Law:

 

(a) This Subscription Agreement shall be governed and construed in all respects in accordance with the laws of the State of Nevada without giving effect to any conflict of laws or choice of law rules. 

 

IN WITNESS WHEREOF, this Subscription Agreement has been executed and delivered by the buyer and by the company on the respective dates set forth below.

 

 

 

 Investor subscription agreement accepted as of 

______________________________________ __________ day of ____________, 2017. 

Signature of buyer

 Notes Incorporation, 

 

______________________________________ By: ______________________________ 

Printed Name

 President: ________________________ 

 

______________________________________

Date

 

Deliver completed subscription agreements and checks to:

 

Notes Incorporation

112 North Curry Street 

Carson City, NV 89703

2Exhibit 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Executive
Employment Agreement (this “Agreement”) is made and entered into as of April 7, 2017 by and
between Mustang Bio, Inc. (the “Company”) and Manuel
Litchman (“Executive”). The Company and Executive are hereinafter collectively referred to
as the “Parties”, and either may be individually referred to as a “Party”.

 

Recitals

 

WHEREAS the Company
desires to employ Executive and Executive desires to accept such employment, on the terms and conditions set forth in this Agreement;

 

WHEREAS, in his position,
Executive will have access to confidential information concerning the Company’s business, its customers and employees; and

 

WHEREAS, the Company
wishes to protect itself from unauthorized use of this information and to protect its investment in its employees, customer relationships
and confidential information.

 

NOW, THEREFORE, in
consideration of the foregoing, the mutual agreements contained herein, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

Agreement

 

		1.	Employment.

 

1.1       Title.
Effective as of the Effective Date, Executive is employed by the Company in the position of President and Chief Executive Officer
(“CEO”), subject to the terms and conditions set forth in this Agreement.

 

1.2       Term.
The term of this Agreement shall begin on April 24, 2017 (the “Effective Date”), and shall continue until
it is terminated pursuant to Section 4 herein (the “Term”).

 

1.3       Duties.
Executive shall do and perform all services, acts or things necessary or advisable to conduct the business of the Company and
that are normally associated with the position of President and CEO. In his capacity as President and CEO, Executive shall report
to the Company’s Board of Directors (the “Board”).

 

1.4       Location.
Executive’s principal place of business for performance of the services under this Agreement shall be in New York, New York,
provided, however, that the Company may from time to time require the Executive to travel temporarily to other locations
(domestic and international) in connection with the Company’s business.

 

    	-1- 

     

    

 

1.5       Board
Seat. As soon as practicable following the Effective Date, the Company shall use its best efforts to cause the Executive to
be appointed to the Board. During the Term the Company shall use its best efforts to cause the Executive to be nominated and reelected
to the Board. Upon any termination of the Executive’s employment with the Company by the Executive or by the Company for
any reason, the Executive’s service on the Board (and any board of directors of any Affiliate of the Company) shall immediately
terminate, and the Executive will execute and return to the Company all letters and documents that the Company may reasonably require
in order to evidence such resignation(s). In furtherance of the foregoing, Executive hereby grants the appropriate officer(s) of
the Company the Executive’s power of attorney to execute such documentation in furtherance of such termination.

 

1.6       Policies
and Practices. Executive will abide by the policies and practices established by the Company and/or the Board (or any designated
committee thereof). In the event that the terms of this Agreement differ from or are in conflict with the Company’s policies
or practices or the Company’s Employee Handbook, this Agreement shall control.

 

		2.	Loyalty; Noncompetition; Nonsolicitation.

 

2.1       Loyalty.
During Executive’s employment by the Company, Executive shall devote Executive’s full business energies, interest,
abilities and productive time to the proper and efficient performance of Executive’s duties under this Agreement. Notwithstanding
the above, Executive may, on his own time, at his own expense and to the extent consistent with and non-deleterious to his duties
and responsibilities at the Company: (i) participate in civic, educational, charitable or fraternal organizations; (ii) manage
his personal investments which includes an advisory role in preexisting investments including the IP listed in Exhibit A;
(iii) with prior approval of the Executive Chairman, serve as a consultant to, or on the board of directors of, other companies
that do not compete with the Company.

 

2.2       Agreements
Protecting Confidential and Proprietary Information. In connection with and as a material condition of the Company’s
decision to offer Executive employment, Executive understands, acknowledges and agrees to promptly execute and be bound by certain
restrictive covenants during and after his employment with the Company, as contained in the Company’s Proprietary Information
and Inventions Agreement (“PIIA”). A copy of the PIIA is attached to this Agreement as Exhibit B.

 

2.3       Non-Competition
and Non-Solicitation.

 

2.3.1       Purpose.
Executive understands and agrees that the purpose of this Section 2.3 is solely to protect the Company’s legitimate business
interests, including, but not limited to its confidential and proprietary information, customer relationships and goodwill, and
the Company’s competitive advantage, and is not intended to impair, nor will it impair, Executive’s ability or right
to work or earn a living. Therefore, Executive agrees to be subject to restrictive covenants under the following terms.

 

2.3.2       Definitions.
As used in this Agreement, the following terms have the meanings given to such terms below.

 

(i)       “Affiliate”
means, with respect to any specific entity, any other entity that, directly or indirectly, through one or more intermediaries,
controls, is controlled by or is under common control with such specified entity.

 

    	-2- 

     

    

 

(ii)       “Business”
means the business(es) in which the Company or its Affiliates are or were engaged at the time of, or during the 12 month period
prior to, the termination of Executive’s employment with the Company for any reason. Excluded from the definition of “Business”
for purposes of this agreement are oncology companies that do not engage in Chimeric Antigen Receptor research.

 

(iii)       “Customer”
means any person or entity who is or was a customer or client of the Company or its Affiliates at the time of, or during the 12
month period prior to, the termination of Executive’s employment with the Company for any reason.

 

(iv)       “Company
Employee” means any person who is or was an employee of the Company or its Affiliates at the time of, or during the twelve
(12) month period prior to, the termination of Executive’s employment with the Company for any reason.

 

(v)       “Restricted
Period” means the period commencing on the date of termination of Executive’s employment with the Company for any
reason and ending six (6) months after such date provided, however, that the period shall be tolled and shall not run during any
time Executive is in violation of this Section 2.3, it being the intent of the parties that the Restricted Period shall be extended
for any period of time in which Executive is in violation of this Section 2.3.

 

(vi)       “Territory”
means the United States of America, it being understood that the Company’s business is nationwide in scope and a nationwide
restriction is reasonable and necessary to protect the Company’s interests.

 

2.3.3       Non-Participation
with the Company’s Competitors. During his employment with the Company and during the Restricted Period, Executive will
not, on his own behalf or on behalf of any other person, engage in any Business competitive with or adverse to that of the Company.
In addition, during his employment with the Company and during the Restricted Period, Executive will not acquire, assume or participate
in, directly or indirectly, any position, investment or interest known by Executive to be adverse or antagonistic to the Company,
its Business, or prospects, financial or otherwise, or in any company, person, or entity that is, directly or indirectly, in competition
with the Business of the Company or any of its Affiliates (as defined above). Ownership by Executive, in professionally managed
funds over which the Executive does not have control or discretion in investment decisions, or as a passive investment, of less
than two percent (2%) of the outstanding shares of capital stock of any corporation with one or more classes of its capital stock
listed on a national securities exchange or publicly traded on a national securities exchange or in the over-the-counter market
shall not constitute a breach of this Section 2.3.3.

 

2.3.4       Non-Competition.
During his employment with the Company and during the Restricted Period, Executive will not, directly or indirectly, (i) engage
in the Business in the Territory (other than on behalf of the Company), or (ii) hold a position based in or with responsibility
for all or part of the Territory, with any person or entity engaging in the Business, whether as an employee, consultant, or otherwise,
in which Executive will have duties, or will perform or be expected to perform services for such person or entity, that is or are
the same as or substantially similar to the position held by Executive or those duties or services actually performed by Executive
for the Company within the twelve (12) month period immediately preceding the termination of Executive’s employment with
the Company, or in which Executive will use or disclose or be reasonably expected to use or disclose any confidential or proprietary
information of the Company for the purpose of providing, or attempting to provide, such person or entity with a competitive advantage
with respect to the Business.

 

    	-3- 

     

    

 

2.3.5       Non-Solicitation.
During his employment with the Company and during the Restricted Period, Executive will not, directly or indirectly, on Executive’s
own behalf or on behalf of any other party (except on behalf of the Company):

 

		(i)	Call upon, solicit, divert, encourage or attempt to call upon, solicit, divert, or encourage any
Customer for purposes of marketing, selling, or providing products or services to such Customer that are similar to or competitive
with those offered by the Company;

 

		(ii)	Accept as a customer any Customer for purposes of marketing, selling, or providing products or
services to such Customer that are similar to or competitive with those offered by the Company;

 

		(iii)	Induce, encourage, or attempt to induce or encourage any Customer to reduce, limit, or cancel its
business with the Company; or

 

		(iv)	Solicit, induce, or attempt to solicit or induce any Company Employee to terminate his or her employment
with the Company.

 

2.3.6       Reasonableness
of Restrictions. Executive acknowledges and agrees that (i) his services to the Company under this Agreement are unique and
extraordinary; (ii) the restrictive covenants in this Agreement are essential elements of Executive’s employment by the Company
and are reasonable given Executive’s access to the Company’s confidential information and the substantial knowledge
and goodwill Executive will acquire with respect to the business of the Company as a result of his employment with the Company,
and the unique and extraordinary services to be provided by Executive to the Company; (iii) the restrictive covenants contained
in this Agreement are reasonable in time, territory, and scope, and in all other respects; and (iv) enforcement of the restrictions
contained herein will not deprive the Executive of the ability to earn a reasonable living.

 

2.3.7       Judicial
Modification. Should any part or provision of this Section 2.3 be held invalid, void, or unenforceable in any court of competent
jurisdiction, such invalidity, voidness, or unenforceability shall not render invalid, void, or unenforceable any other part or
provision of this Agreement. The parties further agree that if any portion of this Section 2.3 is found to be invalid or unenforceable
by a court of competent jurisdiction because its duration, territory, or other restrictions are deemed to be invalid or unreasonable
in scope, the invalid or unreasonable terms shall be replaced by terms that are valid and enforceable and that come closest to
expressing the intention of such invalid or unenforceable terms.

 

    	-4- 

     

    

 

2.3.8       Enforcement.
Executive acknowledges and agrees that the Company will suffer irreparable harm in the event that Executive breaches any of Executive’s
obligations under this Section 2.3 and that monetary damages would be inadequate to compensate the Company for such breach. Accordingly,
Executive agrees that, in the event of a breach by Executive of any of Executive’s obligations under this Section 2.3, the
Company will be entitled to obtain from any court of competent jurisdiction preliminary and permanent injunctive relief, and expedited
discovery for the purpose of seeking relief, in order to prevent or to restrain any such breach. Executive agrees to waive any
requirement for the securing or posting of any bond in connection with such remedies. The Company will be entitled to recover its
costs incurred in connection with enforcing this Section 2.3, including reasonable attorneys’ fees and expenses.

 

		3.	Compensation of Executive.

 

3.1       Base
Salary. The Company shall pay Executive a base salary at the annualized rate of Three Hundred and Ninety Five Thousand Dollars
($395,000.00) (the “Base Salary”), less all applicable taxes, deductions and withholdings, to be paid
in equal installments in accord with the Company’s normal payroll practices. The Base Salary shall be prorated for any partial
year of employment on the basis of a 365-day fiscal year and may be changed in the discretion of the Board. The Base Salary may
only be decreased in connection with a Company-wide decrease in executive compensation; provided, however that Executive shall
not be subject to any greater percentage reduction than any other Company executive. The Board shall review annually and may increase
the Base Salary thereby setting a new level for the entirety of this Agreement.

 

3.2       Annual
Bonus. At the sole discretion of the Board or the compensation committee of the Board, if established (the “Compensation
Committee”), following each calendar year of the Company while employed hereunder, Executive will be eligible to
receive an additional target cash bonus of up to fifty percent (50%) of the Base Salary (the “Annual Bonus”).
The amount of the Annual Bonus to be paid shall be based on Executive’s attainment of certain financial, clinical development,
and/or business milestones (the “Milestones”) to be established annually by the Board or the Compensation
Committee. The determination of whether Executive has met or exceeded the Milestones, and if so, the bonus amount (if any) that
will be paid, shall be determined by the Board or the Compensation Committee in its sole discretion. Except as described in Sections
4.5.2, 4.5.4, or 4.5.5 below, Executive must remain employed by the Company through and including the last day of the applicable
calendar year in order to be eligible to earn or receive any Annual Bonus for that year. The Annual Bonus for any given calendar
year will be paid in cash as a single lump-sum payment no later than March 15 of the year following the conclusion of the calendar
year to which the Annual Bonus relates.

 

    	-5- 

     

    

 

3.3       Equity.
Subject to approval by the Board, the Company shall grant to Executive an option to purchase 1,041,675 shares of the Company’s
common stock, subject to vesting (the “Option”). The Option will have an exercise price per share equal
to the fair market value of a share the Company’s common stock on the date of the grant of the stock option (which the Company
believes, as of April 7, 2017, is $5.73 per share). One-half of the Option will vest over time (the “Time Based Option”),
with twenty five percent (25%) of the Time Based Option vesting after twelve (12) months of employment, and the remaining shares
vesting in twelve (12) equal quarterly installments thereafter, subject to Executive’s Continuous Service (as defined in
the Company’s 2016 Incentive Plan) to the Company on each vesting date. The remaining one-half of the Option (the “Performance
Option”) will vest and become exercisable upon the occurrence of the following milestones being achieved: (i) 25%
of the Performance Option grant will vest upon the dosing of the first patient in the first Phase 2 clinical trial of any Company
product candidate, (ii) 25% of the Performance Option grant will vest upon the dosing of the first patient in the first Phase 2
clinical trial of a second Company product candidate, (iii) 25% of the Performance Option grant will vest upon the Company’s
achievement of a fully-diluted Market Capitalization of $500,000,000, and (iv) 25% of the Performance Option grant will vest upon
the Company’s achievement of a fully-diluted Market Capitalization of $1,000,000,000; in each case subject to Executive’s
Continuous Service to the Company on the date of such occurrences. Notwithstanding the foregoing, in the event that a Phase 2 clinical
trial for either of the Company product candidates referenced in subsections 3.3(i) or 3.3(ii) herein is bypassed, the corresponding
percentage of the Performance Option grant that would have otherwise vested pursuant to subsections 3.3(i) or 3.3(ii) herein 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 (“BLA”) or New Drug Application (“NDA”)
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. Vesting of the Option will terminate upon the termination of the Executive’s
Continuous Service, except as described in Sections 4.5.4 and 4.5.5 below. In addition, all of the shares subject to the Option
will automatically vest in their entirety upon a Change in Control (as defined in the Plan) provided that Executive provides Continuous
Service to the Company through such date. The Option will be subject to the Plan and the execution of an Option Agreement to be
entered between the Company and Executive. “Market Capitalization” shall be determined by multiplying
the total shares of the Company’s common stock that are outstanding (including common stock issuable upon conversion, exchange
or exercise of any derivative security, including without limitation, options, warrants, convertible equity or debt or restricted
equity) by the last reported closing price of the Company’s common stock on a nationally recognized exchange or in the over-the-counter
market.

 

3.4       Expense
Reimbursements. The Company will reimburse Executive for all reasonable business expenses incurred by Executive in connection
with the performance of his duties hereunder, subject to the Company’s reimbursement policies in effect from time to time.

 

3.5       Benefits.
Executive shall, in accordance with Company policy and the applicable plan documents, be eligible to participate in benefits under
any benefit plan or arrangement that may be in effect from time to time and made available to the Company’s senior management
employees.

 

3.6       Holidays
and Vacation. Executive shall be eligible to accrue up to four (4) weeks of paid vacation per year and will receive paid Company
holidays in accordance with Company policy. Unless otherwise required by law, accrued but unused vacation time is not carried forward
from one year to the next, and is not paid out upon termination of employment for any reason. All available time off must be used
in accord with the Company’s policies and procedures. To the extent Executive would be entitled to a greater number of vacation
days or personal days under any other Company policy, such other policy shall govern.

 

3.7       Withholdings.
The Company may withhold from any amounts payable under this Agreement such federal, state and local taxes as the Company determines
are required to be withheld pursuant to any applicable law along with any other amount properly requested by Executive.

 

    	-6- 

     

    

 

		4.	Termination.

 

4.1       Termination
by the Company. Executive’s employment with the Company is at will and may be terminated by the Company at any time and
for any reason, or for no reason, including, but not limited to, under the following conditions:

 

4.1.1       Termination
by the Company for Cause. The Company may terminate Executive’s employment under this Agreement for “Cause”
(as defined below) by delivery of written notice to Executive in accordance with the procedures set forth in Section 4.6.2 below.
Any notice of termination given pursuant to this Section 4.1.1 shall effect termination as of the date of the notice or as of such
other date as specified in the notice, subject to Section 4.6.2.

 

4.1.2       Termination
by the Company without Cause. The Company may terminate Executive’s employment under this Agreement without Cause at
any time and for any reason or for no reason. Such termination shall be effective on the date Executive is so informed or as otherwise
specified by the Company.

 

4.2       Termination
by Resignation of Executive. Executive’s employment with the Company is at will and may be terminated by Executive at
any time and for any reason or for no reason, including via a resignation for Good Reason in accordance with the procedures set
forth in Section 4.6.3 below.

 

4.3       Termination
for Death or Complete Disability. Executive’s employment with the Company shall terminate effective upon the date of
Executive’s death or Complete Disability (as defined below).

 

4.4       Termination
by Mutual Agreement of the Parties. Executive’s employment with the Company may be terminated at any time upon a mutual
agreement in writing of the Parties. Any such termination of employment shall have the consequences specified in such agreement.

 

4.5       Compensation
Upon Termination. 

 

4.5.1       Generally.
When this Agreement is terminated for any reason, Executive, or his estate, as the case may be, will be entitled to receive the
compensation and benefits earned through the effective date of termination, including, but not limited to, as applicable, any Base
Salary earned by Executive, expense reimbursement amounts owed to Executive, all unpaid amounts of the Annual Bonus for the prior
year, if any, Executive earned prior to the termination date by meeting the conditions set forth in Section 3.2, less standard
deductions and withholdings.

 

4.5.2       Death
or Complete Disability. If Executive’s employment under this Agreement is terminated by his death or Complete Disability,
then, in addition to the amounts described in Section 4.5.1, and conditioned upon Executive (or his estate or heirs as applicable)
executing and not revoking a release of claims in the form attached as Exhibit C (the “Release”))
within the time periods specified therein, the Company will provide the following separation benefits: (i) the Company will continue
Executive’s Base Salary (at the rate in effect as of the termination) for a period of ninety (90) days beginning on the sixtieth
(60th) day following the termination of Executive’s employment with the Company, provided that the first installment
will include all installments that would have been paid from the date of termination had the initial payment not be delayed, and
(ii) Executive shall be entitled to a pro-rata share of the Annual Bonus, to be paid when and if such Annual Bonus would have been
paid under this Agreement.

 

    	-7- 

     

    

 

4.5.3       Termination
For Cause or Resignation without Good Reason. If Executive’s employment is terminated by the Company for Cause, or Executive
resigns his employment hereunder without Good Reason, the Company shall pay Executive the amounts described in Section 4.5.1. The
Company shall thereafter have no further obligations to Executive under this Agreement, except as otherwise provided by law.

 

4.5.4       Termination
Without Cause or Resignation For Good Reason Not In Connection with a Change in Control. If Executive’s employment under
this Agreement is terminated by the Company without Cause or Executive resigns for Good Reason, at any time other than at the time
of, or within twelve (12) months following a Change in Control, then, in addition to the amounts described in Section 4.5.1, and
conditioned upon Executive executing and not revoking the Release within the time periods specified therein, the Company will provide
the following separation benefits: (i) the Company will continue Executive’s Base Salary (at the rate in effect as of the
termination) for a period of twelve (12) months, beginning on the sixtieth (60th) day following the termination of Executive’s
employment with the Company, provided that the first installment will include all installments that would have been paid from the
date of termination had the initial payment not be delayed; (ii) if Executive timely elects continued health insurance coverage
under COBRA, the Company shall pay the entire premium necessary to continue such coverage for Executive and Executive’s eligible
dependents until the conclusion of the time when Executive is receiving continuation of Base Salary payments or until Executive
becomes eligible for group health insurance coverage under another employer’s plan, whichever occurs first, provided however
that the Company has the right to terminate such payment of COBRA premiums on behalf of Executive and instead pay Executive a lump
sum amount equal to the COBRA premium times the number of months remaining in the specified period if the Company determines in
its discretion that continued payment of the COBRA premiums is or may be discriminatory under Section 105(h) of the Internal Revenue
Code; (iii) Executive shall be entitled to a pro-rata share of the Annual Bonus for the year in which the termination occurred,
to be paid when and if such Annual Bonus would have been paid under this Agreement; and (iv) immediate partial accelerated vesting
of all unvested time-based equity awards with respect to the same number of shares that would have vested if Executive had continued
in employment for one year after the termination date.

 

4.5.5       Termination
Without Cause or Resignation For Good Reason In Connection with a Change in Control. If the Company terminates Executive’s
employment without Cause, or if Executive resigns for Good Reason, upon the occurrence of, or within the twelve (12) months following,
the effective date of a Change in Control, then, in addition to the amounts described in Section 4.5.1, and conditioned upon Executive
executing and not revoking the Release within the time periods specified therein, the Company will provide the following separation
benefits: (i) the Company will continue Executive’s Base Salary (at the rate in effect as of the termination) for a period
of twelve (12) months, beginning on the sixtieth (60th) day following the termination of Executive’s employment
with the Company, provided that the first installment will include all installments that would have been paid from the date of
termination had the initial payment not be delayed; (ii) if Executive timely elects continued health insurance coverage under COBRA,
the Company shall pay the entire premium necessary to continue such coverage for Executive and Executive’s eligible dependents
until the conclusion of the time when Executive is receiving continuation of Base Salary payments or until Executive becomes eligible
for group health insurance coverage under another employer’s plan, whichever occurs first, provided however that the Company
has the right to terminate such payment of COBRA premiums on behalf of Executive and instead pay Executive a lump sum amount equal
to the COBRA premium times the number of months remaining in the specified period if the Company determines in its discretion that
continued payment of the COBRA premiums is or may be discriminatory under Section 105(h) of the Internal Revenue Code; (iii) Executive
shall be entitled to a pro-rata share of the Annual Bonus for the year in which the termination occurred, to be paid when and if
such Annual Bonus would have been paid under this Agreement; and (iv) immediate accelerated vesting of all unvested equity awards
such that, on the effective date of the Release, the Executive shall be vested in one hundred percent (100%) of all such equity
awards.

 

    	-8- 

     

    

 

4.6       Definitions.
For purposes of this Agreement, the following terms shall have the following meanings:

 

4.6.1       Complete
Disability. As used herein, “Complete Disability” means the inability of Executive, due to the condition
of his physical, mental or emotional health, effectively to perform the essential functions of his job with or without reasonable
accommodation for a continuous period of more than 90 days or for 90 days in any period of 180 consecutive days, as determined
by the Board in consultation with an independent physician retained for such purpose. For purposes of making a determination as
to whether a Complete Disability exists, at the Board’s request Executive agrees to make himself available and to cooperate
in a reasonable examination by the independent physician retained by the Board and to authorize the disclosure and release to the
Board of all medical records related to such examination.

 

4.6.2       Cause.
As used herein, “Cause” means: (i) Executive’s fraud, embezzlement or misappropriation with respect
to the Company, (ii) Executive’s material breach of this Agreement, (iii) Executive’s material breach of the PIIA,
(iv) Executive’s breach of fiduciary duties to the Company, (v) Executive’s willful failure or refusal to perform his
material duties under this Agreement or failure to follow any specific lawful instructions of the Board, (vi) Executive’s
conviction or plea of nolo contendere in respect of a felony or of a misdemeanor involving moral turpitude, or (vii) Executive’s
willful or negligent misconduct that has a material adverse effect on the property, business, or reputation of the Company. Prior
to terminating Executive’s employment for Cause pursuant to clauses (ii), (iii), (iv), (v) or (vii), Executive shall have
thirty (30) days after Executive’s receipt of written notice thereof from the Company to cure any such failure, action or
breach, to the extent subject to being cured.

 

4.6.3       Good
Reason. For purposes of this Agreement, “Good Reason” means the occurrence of any of the following
events without Executive’s consent: (i) a material reduction of Executive’s Base Salary (except in connection with
a Company-wide decrease in executive compensation, as provided in Section 3.1 of this Agreement) (ii) a material diminution of
Executive’s authority, duties, responsibilities, or line of reporting (iii) the relocation of Executive’s then-principal
place of employment, without Executive’s consent, in a manner that lengthens his one-way commute distance by fifty (50) miles
from his then-current principal place of employment immediately prior to such relocation, or (iv) the Company’s material
breach of this Agreement. In order for Executive to resign for Good Reason, Executive must provide written notice to the Company
of the existence of the Good Reason condition within thirty (30) days of the date on which Executive discovers, or reasonably should
have discovered, the existence of such Good Reason condition. Upon receipt of such notice, the Company will have thirty (30) days
during which it may remedy the Good Reason condition and not be required to provide for the benefits described in Section 4.5.4
or 4.5.5 as applicable as a result of such proposed resignation. If the Good Reason condition is not remedied within such thirty
(30) day period, Executive may resign based on the Good Reason condition specified in the notice effective immediately upon the
expiration of the thirty (30) day cure period.

 

    	-9- 

     

    

 

4.6.4       Change
in Control. For purposes of this Agreement, “Change in Control” has the meaning provided to such
term in the Company’s 2016 Incentive Plan.

 

4.7       Survival
of Certain Sections. Sections 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17, and 18 of this Agreement will survive the termination
of this Agreement.

 

4.8       Parachute
Payment. If any payment or benefit the Executive would receive pursuant to this Agreement, either alone or together with other
payments and benefits provided to him by the Company (the “Total Payments”) would (i) constitute
a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”),
and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”),
then the Total Payments shall be reduced if and to the extent that a reduction in the Total Payments would result in Executive
retaining a larger amount than if Executive received all of the Total Payments, in each case measured on an after-tax basis (taking
into account federal, state, and local income taxes, and, if applicable, the Excise Tax). The determination of any reduction in
the Total Payments will be made at the Company’s expense by the Company’s independent public accountants or a law or
consulting firm selected by the Company, applying reasonable, good faith interpretations regarding the applicability of Section
280G and Section 4999, along with any other applicable portions of the Code or other tax laws. If a reduction in the Total Payment
is necessary, such reduction shall occur in the following order: (i) reduction of cash payments; (ii) cancellation of
accelerated vesting of equity awards other than stock options; (iii) cancellation of accelerated vesting of stock options;
and (iv) reduction of other benefits paid to Executive. Within any such category of payments and benefits (that is, (i), (ii),
(iii) or (iv)), a reduction shall occur first with respect to amounts that are not “deferred compensation” within
the meaning of Section 409A (as defined in Section 4.9 below) and then with respect to amounts that are. In the event
that acceleration of compensation from Executive’s equity awards is to be reduced, such acceleration of vesting shall be
canceled, subject to the immediately preceding sentence, in the reverse order of the date of grant.

 

    	-10- 

     

    

 

4.9       Section
409A Compliance. The Parties intend that all provisions of this Agreement and the payments made pursuant thereto will comply
with, or be exempt from, the application of Section 409A of the Code and the regulations and other guidance thereunder and any
state law of similar effect (collectively “Section 409A”), and all provisions of this Agreement will
be construed, to the maximum extent possible, in a manner consistent with the requirements for avoiding taxes or penalties under
Section 409A. Notwithstanding anything to the contrary set forth herein, any payments and benefits provided under this Section
4 that constitute “deferred compensation” within the meaning of Section 409A will not commence in connection with Executive’s
termination of employment unless and until Executive has also incurred a “separation from service” (as such term is
defined in Treasury Regulation Section 1.409A-1(h)), unless the Company reasonably determines that such amounts may be provided
to Executive without causing Executive to incur the additional 20% tax under Section 409A. The parties intend that each installment
of the separation benefits payments provided for in this Agreement is a separate “payment” for purposes of Section
409A. For the avoidance of doubt, the parties intend that payments of the Separation Benefits set forth in this Agreement satisfy,
to the greatest extent possible, the exemptions from the application of Section 409A provided under Treasury Regulation Sections
1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). Executive and the Company agree to use their best efforts to amend the terms
of this Agreement from time to time as may be necessary to avoid the imposition of penalties or additional taxes under Section
409A of the Internal Revenue Code; provided, however, any such amendment will provide Executive substantially equivalent economic
payments and benefits as set forth herein and will not in the aggregate, materially increase the cost to, or liability of, the
Company hereunder. However, if the Company determines that the Separation Benefits constitute “deferred compensation”
under Section 409A and Executive is, on the termination of service, a “specified employee” of the Company or any successor
entity thereto, as such term is defined in Section 409A, then, solely to the extent necessary to avoid the incurrence of the adverse
personal tax consequences under Section 409A, the timing of the Separation Benefits payments will be delayed until the earlier
to occur of: (i) the date that is six months and one day after Executive’s separation from service, or (ii) the date of Executive’s
death (such applicable date, the “Specified Employee Initial Payment Date”), and the Company (or the
successor entity thereto, as applicable) will (A) pay to Executive a lump sum amount equal to the sum of the Separation Benefits
payments that Executive would otherwise have received through the Specified Employee Initial Payment Date if the commencement of
the payment of the Separation Benefits had not been so delayed pursuant to this Section, and (B) commence paying the balance of
the separation benefits in accordance with the applicable payment schedules set forth in this Agreement.

 

		5.	Assignment and Binding Effect.

 

This Agreement shall
be binding upon and inure to the benefit of Executive and Executive’s heirs, executors, personal representatives, assigns,
administrators and legal representatives. Because of the unique and personal nature of Executive’s duties under this Agreement,
neither this Agreement nor any rights or obligations under this Agreement shall be assignable by Executive. This Agreement shall
be binding upon and inure to the benefit of the Company and its successors, assigns and legal representatives. Any such successor
of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. For this purpose,
“successor” means any person, firm, corporation or other business entity which at any time, whether by purchase, merger
or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.

 

    	-11- 

     

    

 

		6.	Notices.

 

All notices or demands
of any kind required or permitted to be given by the Company or Executive under this Agreement shall be given in writing and shall
be personally delivered (and receipted for) or mailed by certified mail, return receipt requested, postage prepaid, addressed as
follows:

 

If to the
Company:

 

Mustang Bio, Inc.

2 Gansevoort Street, 9th Floor

New York, New York 10014

Attn: Chairman of the Board

 

If to Executive:

 

Mustang
Bio, Inc.

2 Gansevoort Street, 9th Floor

New York, New York 10014

Attn: Manuel Litchman

  

Any such written notice
shall be deemed given on the earlier of the date on which such notice is personally delivered or three (3) days after its deposit
in the United States mail as specified above. Either Party may change its address for notices by giving notice to the other Party
in the manner specified in this Section.

 

		7.	Choice of Law.

  

This Agreement shall
be construed and interpreted in accordance with the internal laws of the State of New York without regard to its conflict of laws
principles.

  

		8.	Integration.

  

This Agreement, including
all documents referenced herein, contains the complete, final and exclusive agreement of the Parties relating to the terms and
conditions of Executive’s employment and the termination of Executive’s employment, and supersedes all prior and contemporaneous
oral and written employment agreements or arrangements between the Parties.

  

		9.	Amendment.

  

This Agreement cannot
be amended or modified except by a written agreement signed by Executive and the Company.

  

		10.	Waiver.

  

No term, covenant or
condition of this Agreement or any breach thereof shall be deemed waived, except with the written consent of the Party against
whom the wavier is claimed, and any waiver or any such term, covenant, condition or breach shall not be deemed to be a waiver of
any preceding or succeeding breach of the same or any other term, covenant, condition or breach.

 

    	-12- 

     

    

 

		11.	Severability.

 

The finding by a court
of competent jurisdiction of the unenforceability, invalidity or illegality of any provision of this Agreement shall not render
any other provision of this Agreement unenforceable, invalid or illegal. Such court shall have the authority to modify or replace
the invalid or unenforceable term or provision with a valid and enforceable term or provision, which most accurately represents
the Parties’ intention with respect to the invalid or unenforceable term, or provision.

 

		12.	Interpretation; Construction.

 

The headings set forth
in this Agreement are for convenience of reference only and shall not be used in interpreting this Agreement. This Agreement has
been drafted by legal counsel representing the Company, but Executive has been encouraged to consult with, and has consulted with,
Executive’s own independent counsel and tax advisors with respect to the terms of this Agreement. The Parties acknowledge
that each Party and its counsel has reviewed and revised, or had an opportunity to review and revise, this Agreement, and any
rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in
the interpretation of this Agreement.

 

		13.	Attorneys’ Fees.

 

Except as otherwise prohibited
by law, in the event a Party brings an action to enforce the terms of this Agreement, in addition to any other remedies, the prevailing
party will be entitled to recovery of its reasonable attorneys’ fees and costs incurred by it arising out of such breach
or the defense thereof.

 

		14.	Representations and Warranties.

 

14.1       Obligations
to Prior Employers. Executive represents and warrants to the Company that Executive is not obligated or restricted under any
agreement (including any non-competition or confidentiality agreement), judgment, decree, order or other restraint of any kind
that could impair Executive’s ability to perform the duties and obligations required of Executive hereunder. Executive further
represents and warrants to the Company that he has not violated any confidentiality agreement or other similar obligation that
he has to any former employer and that he has not disclosed any confidential or trade secret information belonging to any former
employer to the Company or its agents. Executive agrees that he will not use confidential information and/or trade secrets belonging
to any former employer in his employment with the Company or otherwise as a resource for building the business of the Company and
will structure his and the Company’s work environment and practices in such a way to ensure that any such information will
not be used or disclosed during the course of his relationship with the Company.

 

14.2       Litigation
Support. Both during and after Executive’s employment with the Company, if the Company is evaluating, pursuing, contesting
or defending any proceeding, charge, complaint, claim, demand, notice, action, suit, litigation, hearing, audit, investigation,
arbitration or mediation, in each case whether initiated by or against the Company (collectively, a “Proceeding”),
other than a Proceeding initiated by or against Executive, Executive will reasonably cooperate with the Company and its counsel
in the evaluation, pursuit, contest or defense of the Proceeding and provide such testimony and access to books and records as
may be necessary in connection therewith. Any such cooperation shall be done at times mutually convenient for Executive and the
Company, and the Company will ensure that any such cooperation does not interfere with any duties or obligations that Executive
may have to a third party, including any future employer. The Company will reimburse Executive for Executive’s reasonable
out-of-pocket expenses related to such cooperation.

 

    	-13- 

     

    

 

14.3       Future
Employment. In the event of Executive’s separation from the Company, regardless of the reason or cause of that separation,
Executive agrees that for a period of twelve (12) months from the date his employment terminates, he will provide the Company with
no fewer than three (3) business days’ notice of his intent to accept employment with or for an organization other than Company
for the express purpose of allowing the Company to determine if such proposed employment interferes with any of Executive’s
surviving obligations under this Agreement. The notice of intent to accept employment will identify the new employer, list Executive’s
anticipated title and describe his anticipated duties.

 

		15.	Indemnification.

 

The Company shall defend
and indemnify Executive in his capacity as President and CEO of the Company to the fullest extent permitted under the Delaware
General Corporate Law.

 

		16.	Counterparts.

  

This Agreement may be
executed in two counterparts, each of which shall be deemed an original, all of which together shall contribute one and the same
instrument. Signatures to this Agreement transmitted by fax, by email in “portable document format” (“.pdf”)
or by any other electronic means intended to preserve the original graphic and pictorial appearance of this Agreement shall have
the same effect as physical delivery of the paper document bearing original signature.

 

		17.	Jurisdiction; Venue.

 

The Parties agree that
any litigation arising out of or related to this Agreement or Executive’s employment by the Company shall be brought exclusively
in any state or federal court in New York, New York. Each Party (i) consents to the personal jurisdiction of said courts, (ii)
waives any venue or inconvenient forum defense to any proceeding maintained in such courts, and (iii) except as otherwise provided
in this Agreement, agrees not to bring any proceeding arising out of or relating to this Agreement or Executive’s employment
by the Company in any other court.

 

		18.	Legal Fees.

 

The Company shall reimburse
Executive for his reasonable and documented legal expenses incurred in connection with the review and preparation of this Agreement
up to $10,000.

 

    	-14- 

     

    

 

		19.	Advertising Waiver.

 

Executive agrees to permit
the Company, and persons or other organizations authorized by the Company, to use, publish and distribute advertising or sales
promotional literature concerning the products and/or services of the Company, or the machinery and equipment used in the provision
thereof, in which Executive’s name and/or pictures of Executive taken in the course of Executive’s provision of services
to the Company appear. Executive hereby waives and releases any claim or right Executive may otherwise have arising out of such
use, publication or distribution.

 

 

[Signature page follows]

 

 

    	-15- 

     

    

 

In
Witness Whereof, the Parties have executed this Agreement as of the date first above written.

 

Mustang
Bio, Inc.

 

 

	/s/ Michael S. Weiss	 	Date:	4/7/17	 
	Name: Michael S. Weiss	 	 	 	 
	 	 	 	 	 
	Title: Executive Chairman	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Executive:	 	 	 	 
	 	 	Date:	4/9/17	 
	/s/ Manuel Litchman	 	 	 	 
	Manuel Litchman	 	 	 	 

 

 

    	-16- 

     

    

 

EXHIBIT
A

 

Executive’s
Existing Intellectual Property Investment

as Referenced in Section 2.1

 

 

 

 

 

    	 

     

    

 

EXHIBIT
B

 

Form
of Proprietary Information and Inventions Agreement

 

 

MUSTANG
BIO, INC.

EMPLOYEE PROPRIETARY INFORMATION

AND INVENTIONS AGREEMENT

 

 

In consideration of
my employment by Mustang Bio, Inc. (the "Company"), the compensation
to be paid to me, and other valuable consideration, I hereby agree as follows:

 

 

		1.	Nondisclosure

 

1.1       Recognition
of Company's Rights; Nondisclosure. At all times during my employment with the Company and thereafter, I will hold in strictest
confidence and will not disclose, use, distribute, lecture upon, or publish any of the Company's and/or its Affiliates’ Proprietary
Information (defined below), except as may be required in connection with my work for the Company, or unless an officer of the
Company expressly authorizes such in writing. I will obtain the Company's written approval before publishing or submitting for
publication any material (written, verbal, or otherwise) that relates to my work at the Company and/or incorporates any Proprietary
Information. I hereby assign to the Company any rights I may have or acquire in such Proprietary Information and recognize that
all Proprietary Information shall be the sole property of the Company and its assigns. For purposes of this Agreement, “Affiliate”
means, with respect to any specific entity, any other entity that, directly or indirectly, through one or more intermediaries,
controls, is controlled by or is under common control with such specified entity. For purposes of clarification, the Company and
Coronado Biosciences, Inc. are Affiliates.

 

1.2       Proprietary
Information. The term "Proprietary Information" shall mean any and all confidential and/or proprietary knowledge,
data or information of the Company and/or its Affiliates. By way of illustration but not limitation, "Proprietary Information"
includes (a) trade secrets, inventions, mask works, ideas, processes, formulas, screening and/or diagnostic techniques or
tests, source and object codes, data, programs, other works of authorship, know-how, improvements, discoveries, developments, designs
and techniques (hereinafter collectively referred to as "Inventions"); and (b) information, plans, strategies,
and/or data regarding research, development, new products, marketing and selling, business plans, budgets and unpublished financial
statements, licenses, prices and costs, suppliers and customers; and (c) information regarding the skills, potential, performance,
and/or compensation of other employees of the Company and/or its Affiliates. Notwithstanding the foregoing, it is understood that
I am free to use information which is generally known in the trade or industry, and which is not gained as a result of a breach
of this Agreement. Notwithstanding the foregoing, pursuant to 18 U.S.C. Section 1833(b), I shall not be held criminally or civilly
liable under any Federal or State trade secret law for the disclosure of a trade secret that: (1) is made in confidence to a Federal,
State, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting
or investigating a suspected violation of law; or (2) is made in a complaint or other document filed in a lawsuit or other proceeding,
if such filing is made under seal.

 

1.3       Third
Party Information. I understand, in addition, that the Company has received and in the future will receive from third parties
confidential or proprietary information ("Third Party Information") subject to a duty on the Company's part to
maintain the confidentiality of such information and to use it only for certain limited purposes. During the term of my employment
and thereafter, I will hold Third Party Information in the strictest confidence and will not disclose to anyone (other than Company
personnel who need to know such information in connection with their work for the Company) or use, except in connection with my
work for the Company, Third Party Information unless expressly authorized by an officer of the Company in writing.

 

1.4       No
Improper Use of Information of Prior Employers and Others. During my employment by the Company I will not improperly use or
disclose any confidential information or trade secrets, if any, of any former employer or any other person to whom I have an obligation
of confidentiality, and I will not bring onto the premises of the Company any unpublished documents or any property belonging to
any former employer or any other person to whom I have an obligation of confidentiality unless consented to in writing by that
former employer or person. I will use in the performance of my duties only information which is generally known and used by persons
with training and experience comparable to my own, which is common knowledge in the industry or otherwise legally in the public
domain, or which is otherwise provided or developed by the Company.

 

    	1 

     

    

 

		2.	Assignment
of Inventions.

 

2.1       Proprietary
Rights. The term "Proprietary Rights" shall mean all trade secret, patent, copyright, mask work and other
intellectual property rights throughout the world.

 

2.2       Prior
Inventions. Inventions, if any, patented or unpatented, which I made prior to the commencement of my employment with the Company
are excluded from the scope of this Agreement. To preclude any possible uncertainty, Exhibit A hereto contains a complete
list of all Inventions that I have, alone or jointly with others, conceived, developed or reduced to practice or caused to be conceived,
developed or reduced to practice prior to the commencement of my employment with the Company, that I consider to be my property
or the property of third parties and that I wish to have excluded from the scope of this Agreement (collectively referred to as
"Prior Inventions"). If no Inventions are listed in Exhibit A, I represent that there are no Prior Inventions.
If, in the course of my employment with the Company, I incorporate a Prior Invention into a Company product, process or machine,
the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license (with rights
to sublicense through multiple tiers of sublicensees) to make, have made, modify, use and sell such Prior Inventions. Notwithstanding
the foregoing, I agree that I will not incorporate, or permit to be incorporated, Prior Inventions in any Company Inventions without
the Company's prior written consent.

 

2.3       Assignment
of Inventions. Subject to Sections 2.4, and 2.6, I hereby assign and agree to assign in the future (when any such Inventions
or Proprietary Rights are first reduced to practice or first fixed in a tangible medium, as applicable) to the Company all my right,
title and interest in and to any and all Inventions (and all Proprietary Rights with respect thereto) whether or not patentable
or registrable under copyright or similar statutes, made or conceived or reduced to practice or learned by me, either alone or
jointly with others, during the period of my employment with the Company. Inventions assigned to the Company, or to a third party
as directed by the Company pursuant to this Section 2, are hereinafter referred to as "Company Inventions."

 

2.4       Nonassignable
Inventions. This Agreement does not apply to any Invention that qualifies fully as a nonassignable Invention under the laws
of the state where I am domiciled.

 

2.5       Obligation
to Keep Company Informed. During the period of my employment and for six (6) months after termination of my employment with
the Company, I will promptly disclose to the Company fully and in writing all Inventions authored, conceived or reduced to practice
by me, either alone or jointly with others.

 

2.6       Government
or Third Party. I also agree to assign all my right, title and interest in and to any particular Company Invention to a third
party, including without limitation the United States, as directed by the Company.

 

2.7       Works
for Hire. I acknowledge that all original works of authorship which are made by me (solely or jointly with others) within the
scope of my employment and which are protectable by copyright are "works made for hire," pursuant to United States Copyright
Act (17 U.S.C., Section 101).

 

2.8       Enforcement
of Proprietary Rights. I will assist the Company in every proper way to obtain, and from time to time enforce, United States
and foreign Proprietary Rights relating to Company Inventions in any and all countries. To that end I will execute, verify and
deliver such documents and perform such other acts (including appearances as a witness) as the Company may reasonably request for
use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary Rights and the assignment thereof.
In addition, I will execute, verify and deliver assignments of such Proprietary Rights to the Company or its designee. My obligation
to assist the Company with respect to Proprietary Rights relating to such Company Inventions in any and all countries shall continue
beyond the termination of my employment, but the Company shall compensate me at a reasonable rate after my termination for the
time actually spent by me at the Company's request on such assistance.

 

In the event the Company
is unable for any reason, after reasonable effort, to secure my signature on any document needed in connection with the actions
specified in the preceding paragraph, I hereby irrevocably designate and appoint the Company and its duly authorized officers and
agents as my agent and attorney in fact, which appointment is coupled with an interest, to act for and in my behalf to execute,
verify and file any such documents and to do all other lawfully permitted acts to further the purposes of the preceding paragraph
with the same legal force and effect as if executed by me. I hereby waive and quitclaim to the Company any and all claims, of any
nature whatsoever, which I now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the Company.

 

3.             Records.
I agree to keep and maintain adequate and current records (in the form of notes, sketches, drawings and in any other form that
may be required by the Company) of all Proprietary Information developed by me and all Inventions made by me during the period
of my employment with the Company, which records shall be available to and remain the sole property of the Company at all times.

 

    	2 

     

    

 

4.             Additional
Activities. I agree that during the period of my employment by the Company I will not, without the Company's express
written consent, engage in any employment or business activity which is competitive with, or would otherwise conflict with, my
employment by the Company.

 

5.             No
Conflicting Obligation. I represent that my performance of all the terms of this Agreement and as an employee of the
Company does not and will not breach any agreement to keep in confidence information acquired by me in confidence or in trust prior
to my employment by the Company. I have not entered into, and I agree I will not enter into, any agreement either written or oral
in conflict herewith.

 

6.             Return
of Company Documents. When I leave the employ of the Company, I will deliver to the Company any and all drawings, notes,
memoranda, specifications, devices, formulas, and documents, together with all copies thereof, and any other material containing
or disclosing any Company Inventions, Third Party Information or Proprietary Information of the Company. I further agree that any
property situated on the Company's premises and owned by the Company, including but not limited to all storage media of any type,
computer and related equipment, filing cabinets or other work areas, is subject to inspection by Company personnel at any time
with or without notice. Prior to leaving, I will cooperate with the Company in completing and signing the Company's termination
statement.

 

7.             Legal
and Equitable Remedies. Because my services are personal and unique and because I may have access to and become acquainted
with the Proprietary Information of the Company, the Company shall have the right to enforce this Agreement and any of its provisions
by injunction, specific performance or other equitable relief, without bond and without prejudice to any other rights and remedies
that the Company may have for a breach of this Agreement.

 

8.             Notices.
Any notices required or permitted hereunder shall be given to the appropriate party at the address specified below or at such other
address as the party shall specify in writing. Such notice shall be deemed given upon personal delivery to the appropriate address
or if sent by certified or registered mail, three (3) days after the date of mailing.

 

9.             Notification
of New Employer. In the event that I leave the employ of the Company, I hereby consent to the notification of my new
employer of my rights and obligations under this Agreement.

 

10.           General
Provisions.

 

10.1       Governing
Law; Consent to Personal Jurisdiction. This Agreement will be governed by and construed according to the laws of the State
of New York, as such laws are applied to agreements entered into and to be performed entirely within New York between residents
of New York, without regard to conflict of law principles. I hereby expressly consent to the personal jurisdiction of the state
and federal courts located in New York, New York for any lawsuit filed there against me by Company arising from or related to this
Agreement.

 

10.2       Severability.
In case any one or more of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement,
and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. If
moreover, any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as
to duration, geographical scope, activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable
to the extent compatible with the applicable law as it shall then appear.

 

10.3       Successors
and Assigns. This Agreement will be binding upon my heirs, executors, administrators and other legal representatives and will
be for the benefit of the Company, its successors, and its assigns.

 

10.4       Survival.
The provisions of this Agreement shall survive the termination of my employment and the assignment of this Agreement by the Company
to any successor in interest or other assignee.

 

10.5       Employment.
I agree and understand that nothing in this Agreement shall confer any right with respect to continuation of employment by the
Company, nor shall it interfere in any way with my right or the Company's right to terminate my employment at any time, with or
without cause.

 

10.6       Waiver.
No waiver by the Company of any breach of this Agreement shall be a waiver of any preceding or succeeding breach. No waiver by
the Company of any right under this Agreement shall be construed as a waiver of any other right. The Company shall not be required
to give notice to enforce strict adherence to all terms of this Agreement.

 

    	3 

     

    

 

10.7       Entire
Agreement. This Agreement, along with my Employment Agreement with the Company, constitutes the final, complete agreement of
the parties with respect to the subject matter hereof and supersedes and merges all prior discussions between me and the Company,
except as specifically noted herein. No modification of or amendment to this Agreement, nor any waiver of any rights under this
Agreement, will be effective unless in writing and signed by me and the Chief Executive Officer of the Company. Any subsequent
change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement.

 

This Agreement shall be effective as of
the first day of my employment with the Company.

 

 

 

 

 

 

 

I
have read this Agreement carefully and understand its terms. 

 

	 	 
	(Signature)	 
	 	 
	Manuel Litchman	 
	(Printed Name)	 

 

	Date:	 	 

  

Address of Residence:

	 	 
	 	 
	 	 

  

Accepted
and Agreed To:

 

Mustang
Bio, Inc.

 

	By:	 	 
	 	 	 
	Title:	 	 

 

Date: April 7, 2017

 

Address:

 

2 Gansevoort, 9th Floor

 

New York, NY 10014

 

    	4 

     

    

 

Exhibit
A

 

Prior Inventions Disclosure

 

 

 

The following is a complete list of all
Prior Inventions:

 

		 ̈	None

 

		 ̈	See immediately below:

 

 

 

 

 

 

    	 

     

    

 

EXHIBIT
C

 

RELEASE OF CLAIMS

  

THIS RELEASE OF
CLAIMS (this “Release”) is made by Manuel Litchman (“Executive”) as of the date it is
signed by Executive, as indicated on the signature page hereof.

 

Executive acknowledges that he previously
executed an Executive Employment Agreement (the “Agreement”) that included, among other items, a promise of
severance pay and other benefits by Mustang Bio, Inc. (the “Company”) in certain situations, contingent upon
Executive’s execution of a release of claims. Pursuant to the terms of the Agreement and Company’s promise to provide
severance pay and other benefits, Executive executes this Release.

 

Executive, on his own behalf and on
behalf of his heirs, personal representatives, successors and assigns, hereby releases and forever discharges the Company and each
of its Affiliates and each and every one of their respective present and former shareholders, directors, officers, members, employees,
agents, insurers, predecessors, successors and assigns (the “Released Parties”), of and from any and all claims,
demands, actions, causes of action, damages, costs and expenses which Executive now has or may have by reason of anything occurring,
done or omitted to be done as of or prior to date he signs this Release including, but not limited to, (i) any and all claims related
to Executive’s employment with Company and the termination of same; (ii) any and all claims for additional compensation or
benefits other than the compensation and benefits set forth in the Agreement, including but not limited to wages, commissions,
deferred compensation, bonuses, or other benefits of any kind; (iii) any and all claims relating to employment practices or policies
of Company or its Affiliates; (iv) any common law claims, including but not limited to wrongful discharge, breach of contract,
negligent or intentional infliction of emotional distress, or negligent supervision or retention; and (v) any and all claims arising
under any state or federal legislation, including, but not limited to, claims under the Employee Retirement Income Security Act,
the Family Medical Leave Act, Title VII of the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, the Age Discrimination
in Employment Act, the Americans with Disabilities Act, as amended, the Older Workers Benefit Protection Act, the New York Human
Rights Law, N.Y. Exec. Law § 290 et seq., the New York City Human Rights Law, N.Y.C. Admin. Code § 8-101
et seq., N.Y. Civ. Rights Law § 40-c et seq. (New York anti-discrimination law), N.Y. Lab. Law § 190
(New York wage payment law), N.Y. Lab. Law § 740 (New York whistleblower protection law), and any other federal,
state or local law or regulation prohibiting employment discrimination or otherwise governing the employment relationship between
Executive and Company (the “Released Claims”), except that notwithstanding anything contained in this Release,
Executive understands that he is not releasing (i) any claim for indemnification or advancement by the Company, whether pursuant
to law, the Company’s bylaws, or under any directors and officers insurance policy maintained by the Company; or (ii) any
claims which cannot by law be released.

 

    	 

     

    

 

Executive further covenants and agrees
that he will not sue or make any claim against any of the Released Parties on any ground arising out of or related to any of the
Released Claims. Executive acknowledges and agrees that this covenant does not preclude him from filing a charge or complaint with,
or cooperating in an investigation by, any government agency (including but not limited to the U.S. Equal Employment Opportunity
Commission), to the extent permitted by law, but Executive expressly releases, waives, and disclaims any right to monetary damages,
attorneys’ fees and/or costs related to or arising from any charge, complaint or lawsuit filed by Executive or on his behalf,
individually or collectively, involving the Released Parties, before the Equal Employment Opportunity Commission, the Department
of Labor, or any analogous federal, state or other government agency.

 

In making this Release, Executive further
represents and acknowledges that:

 

(b)       He
is voluntarily entering into and signing this Release;

 

(c)       The
claims waived, released and discharged in the above Release include any and all claims Executive has or may have arising out of
or related to his employment with the Company and the termination of that employment, including any and all claims under the Age
Discrimination in Employment Act;

 

(d)       Those
claims waived, released and discharged in this Release do not include, and Executive is not waiving, releasing or discharging,
any claims that may arise after the date he signs this Release;

 

(e)       The
payments and benefits conditioned upon Executive’s execution of this Release constitute consideration that Executive was
not entitled to receive before the effective date of this Release absent the execution of this Release;

 

(f)       Executive
was given twenty-one (21) days within which to consider this Release;

 

(g)       The
Company has advised Executive of his right to consult with an attorney regarding this Release before executing the Release and
encouraged him to exercise that right;

 

(h)       Executive
may revoke this Release at any time within seven (7) days after the date he signs this Release, and this document will not become
effective or enforceable until the eighth (8th) day after the date he signs this Release (on which day this Release will automatically
become effective and enforceable unless previously revoked within that seven (7) day period); and

 

(i)       EXECUTIVE
HAS CAREFULLY READ THIS DOCUMENT, AND FULLY UNDERSTANDS EACH AND EVERY TERM.

 

I hereby execute this Release on the ___
day of _______, ______.

 

	
          

	Manuel Litchman

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