Document:

Exhibit 10.1

 

SECOND AMENDED AND RESTATED FOUNDERS AGREEMENT

 

THIS SECOND AMENDED
AND RESTATED FOUNDERS AGREEMENT (this “Agreement”) is effective as of July 26, 2016 (the “Effective Date”)
by and between Fortress Biotech, Inc., a Delaware corporation (the “Founder”), and Mustang Bio, Inc. (the “Company”).

 

WHEREAS, Founder formed
Company on March 13, 2015, for the purpose of acquiring, licensing, developing and commercializing specialty pharmaceutical products
(the “Business”) and Founder and the Company previously entered into a Founders Agreement, which was amended and restated
on May 17, 2016 (the “Existing Founders Agreement”).

 

NOW, THEREFORE, in consideration
of the mutual representations, warranties, covenants and agreements contained in this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

		1.	Funding and Payment.

 

		1.1	Formation of the Company. Founder has organized and completed the formation of the Company,
expended time and capital in such formation and identified specific assets the acquisition of which would benefit the Company and
its business purpose.

 

		1.2	In exchange for the consideration contained in paragraph 1.1:

 

		(a)	Founder shall receive 250,000 shares of Class A Preferred Stock of the Company and 2,000,000 shares
of Common Stock of the Company;

 

		(b)	Company shall assume in the future all of Founder’s liabilities, obligations, rights, title
and interest in that certain indebtedness described on Schedule A (the “Indebtedness”);

 

		(c)	[Reserved].

 

		(d)	Founder shall receive an equity fee payable in shares of Common Stock equal to two and one-half
percent (2.5%) of the gross amount of any equity or debt financing, payable within five (5) business days of the closing of
any equity or debt financing for the Company or any of its respective subsidiaries that occurs after the date hereof and ending
on the date when Founder no longer has majority voting control in Company’s voting equity. In calculating the number of shares
payable hereunder, in the case of an equity financing, the number of shares issuable will be based on the share price of the equity
in such round; and (ii) in the case of a debt financing, the number of shares issuable will be based on the closing price of the
common shares of the company on the day prior to the closing of the debt financing or if not publicly-traded, the price of the
common shares in the last equity financing.

 

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		(e)	In the event of a Change in Control, Founder shall receive a one-time change in control fee equal
to five times the product of (i) Net Sales (defined below) for the twelve (12) months immediately preceding the Change in Control
and (ii) 4.5%.

 

For purposes of this Agreement,
“Change of Control” shall mean the occurrence of any of the following events:

 

		(i)	during any consecutive 12-month period, individuals who, at the beginning of such period, constitute
the board of directors of the Company (the “Incumbent Directors”) cease for any reason to constitute at least a majority
of such Board, provided that any person becoming a director after the beginning of such 12-month period and whose election or nomination
for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board shall be an Incumbent Director;
provided, however, that no individual initially elected or nominated as a director of the Company as a result of
an actual or threatened election contest with respect to the election or removal of directors (“Election Contest”)
or other actual or threatened solicitation of proxies or consents by or on behalf of any “person” (as such term is
defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the “1934 Act”) and as used in Section 13(d)(3)
and 14(d)(2) of the 1934 Act) other than the Board (“Proxy Contest”), including by reason of any agreement intended
to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director;

 

		(ii)	any person becomes a “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act),
directly or indirectly, of either (A) 35% or more of the then-outstanding shares of common stock of the Company (“Company
Common Stock”) or (B) securities of the Company representing 35% or more of the combined voting power of the Company’s
then-outstanding securities eligible to vote for the election of directors (the “Company Voting Securities”); provided,
however, that for purposes of this subsection (ii), the following acquisitions of Company Common Stock or Company Voting
Securities shall not constitute a Change of Control: (i) an acquisition directly from the Company, (ii) an acquisition by the Company
or any corporation, limited liability company, partnership or other entity of which a majority of the outstanding voting stock
or voting power is beneficially owned directly or indirectly by the Company (a “Subsidiary”), (iii) an acquisition
by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, or (iv) an acquisition
pursuant to a Non-Qualifying Transaction (as defined in subsection (iii) below);

 

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		(iii)	the consummation of a reorganization, merger, consolidation, statutory share exchange or similar
form of corporate transaction involving the Company or a subsidiary (a “Reorganization”), or the sale or other disposition
of all or substantially all of the Company’s assets (a “Sale”) or the acquisition of assets or stock of another
corporation or other entity (an “Acquisition”), unless immediately following such Reorganization, Sale or Acquisition:
(A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the outstanding Company
Common Stock and outstanding Company Voting Securities immediately prior to such Reorganization, Sale or Acquisition beneficially
own, directly or indirectly, more than 35% of, respectively, the then outstanding shares of common stock and the combined voting
power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of
the entity resulting from such Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result
of such transaction owns the Company or all or substantially all of the Company’s assets or stock either directly or through
one or more subsidiaries, the “Surviving Entity”) in substantially the same proportions as their ownership, immediately
prior to such Reorganization, Sale or Acquisition, of the outstanding Company Common Stock and the outstanding Company Voting Securities,
as the case may be, and (B) no person (other than (x) the Company or any Subsidiary, (y) the Surviving Entity or its ultimate parent
entity, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing) is the beneficial
owner, directly or indirectly, of 35% or more of the total common stock or 35% or more of the total voting power of the outstanding
voting securities eligible to elect directors of the Surviving Entity, and (C) at least a majority of the members of the board
of directors of the Surviving Entity were Incumbent Directors at the time of the Board’s approval of the execution of the
initial agreement providing for such Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies
all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or

 

		(iv)	approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

 

		(f)	Founder shall receive a cash fee equal to four percent (4.5%) of annual Net Sales, payable on an
annual basis, within 90 days of the end of each calendar year. For purposes of this Agreement, “Net Sales” shall mean
the gross amount invoiced or otherwise charged by Company, its Affiliates and Licensees (“Selling Party”)
to third parties in arm’s length transactions for sales of any Product during a calendar year, less:

 

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		(i)	Normal and customary trade, quantity, cash and discounts and credits allowed and taken;

 

		(ii)	Discounts, refunds, rebates, chargebacks, retroactive price adjustments, and any other allowances
given and taken which effectively reduce the net selling price (other than such which have already diminished the gross amount
invoiced such as those outlined in Section 1.2(f)(i) above), including, without limitation, Medicaid rebates, institutional
rebates or volume discounts;

 

		(iii)	Product returns and allowances granted to such third party;

 

		(iv)	Administrative fees paid to group purchasing organizations (e.g., Medicare) and government-mandated
rebates;

 

		(v)	Shipping, handling, freight, postage, insurance and transportation charges, but all only to the
extent included as a separate line item in the gross amount invoiced;

 

		(vi)	Any tax, tariff or duties imposed on the production, sale, delivery or use of the Product, including,
without limitation, sales, use, excise or value added taxes and customs and duties, but all only to the extent included as a separate
line item (e.g., “taxes”) in the gross amount invoiced; and

 

		(vii)	Bad debt actually written off during the accounting period, as reported by the Selling Party in
accordance with GAAP, applied on a consistent basis (provided, that any bad debt write-off so taken which is later reversed shall
be added back to Net Sales in the accounting period in which the reversal occurs.)

 

Products are considered “sold”
when billed out or invoiced or, in the event such Products are not billed out or invoiced, when the consideration for sale of the
Products is received. If a sale, transfer or other disposition with respect to Products involves consideration other than cash
or is not at arm’s length, then the Net Sales from such sale, transfer or other disposition shall be calculated from the
average selling price for such Product during the calendar quarter in the country where such sale, transfer or disposition took
place. Notwithstanding the foregoing, Net Sales shall not include, and shall be deemed zero with respect to, (i) Products used
by Company, its Affiliates, or Licensees for their internal use, (ii) the distribution of promotional samples of Products provided
free of charge, (iii) Products provided for clinical trials or research, development, or evaluation purposes, or (iv) sales of
Products among Company and its Licensees and their respective Affiliates for resale.

 

“Product” means any product, (i)
owned by Company or (ii) exclusively licensed to Company.

 

“License” means
granting a third party or Affiliate a right to make, have made, use, offer for sale, sell or import a Product.

 

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“Licensee” means a person or entity
granted a License.

 

		1.3	Reports; Audits:

 

		(a)	Within ninety (90) days following the last day of each calendar year, Company shall provide to
Founder a written statement (i) stating (as applicable) the aggregate Net Sales, by country, of each Product sold during the relevant
calendar year by Company, its Affiliates and Licensees, and (ii) detailing the calculation of amounts due pursuant to Section
1.2(f) for such calendar year.

 

		(b)	Company shall keep or cause to be kept such records as are reasonably required to determine the
amounts due under this Agreement; such records must be kept for a minimum of three (3) years following the calendar year to which
such records pertain. At the request (and expense) of Founder, Company shall permit Founder to engage an independent certified
public accounting firm reasonably acceptable to Company, at reasonable times not more than once a year and upon reasonable notice,
to examine only those records as may be necessary to determine, with respect to any calendar year ending not more than three (3)
years prior to Founder’s request, the correctness or completeness of any payment made under this Agreement. Founder shall
promptly provide a copy of the results of any such audit or examination to Company. Founder shall bear the full cost of the performance
of any such audit or examination, unless such audit or examination discloses an underpayment exceeding ten percent (10%) of the
amount actually due hereunder with respect to any particular calendar year, in which case Company shall bear the reasonable, documented
cost of the performance of such audit or examination. Company shall promptly pay to Founder the amount of any underpayment of royalties
revealed by such an examination and review. Any overpayment by Company revealed by an examination and review shall be refunded
to Company within thirty (30) calendar days of its request.

 

		2.	Representations and Warranties of the Parties. Each of the parties hereto hereby
represents and warrants to the other as follows:

 

		2.1	Each party may execute, deliver, and perform this Agreement without the necessity of obtaining
any consent, approval, authorization, registration, filing, or waiver or giving any notice, other than those already obtained;

 

		2.2	This Agreement has been duly authorized by all necessary actions of the party and constitutes the
legal, valid, and binding obligation of such party; and

 

		2.3	Each party has the full right, power, and authority to enter into this Agreement and to consummate
the transactions contemplated hereby.

 

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		3.	Notices. All notices hereunder must be in writing and will be deemed to have been
duly given upon receipt of hand delivery, upon electronic transmission with confirmation of receipt, or upon receipt of registered
mail, return receipt requested, addressed to the address set forth for each party, respectively, on the signature page of this
Agreement or to such other address as may be designated by written notice.

 

		4.	Entire Agreement. This Agreement constitutes the entire agreement of the parties
with respect to the transactions contemplated herein. All prior agreements among the parties concerning the subject matter hereof,
whether written or oral, are merged herein and shall be of no force or effect. This Agreement cannot be altered, modified, or discharged
orally but only by an agreement in writing.

 

		5.	Benefit. This Agreement shall be binding upon and shall inure to the benefit of the
parties, their legal representatives, and assigns.

 

		6.	Severability. If any provision contained in this Agreement is or becomes invalid,
illegal, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions contained herein
will not in any way be affected or impaired thereby.

 

		7.	Further Assurances. The parties hereby agree to execute and deliver such further
instruments and do such further acts as may be required to carry out the intent and purposes of this Agreement.

 

		8.	Counterparts. This Agreement may be executed separately by each party in multiple
originals, and each original of this Agreement separately executed by one party, when assembled with one or more copies of this
Agreement separately executed by the other parties, shall be and constitute a fully executed original of this Agreement.

 

		9.	Survival. All representations and warranties made herein by the parties will survive
the execution of this Agreement.

 

		10.	Governing Law. This Agreement shall be governed by and construed in accordance with
the substantive laws of the state of New York, without giving effect to any choice of law or conflict of law provision or rule
that would cause the application of the laws of any jurisdiction other than the state of New York.

 

		11.	Term.  This Agreement shall be in effect for a period equal to fifteen (15) years
from the Effective Date (the “Initial Term”). Upon expiration of the Initial Term, this Agreement shall be automatically
renewed for successive periods of one (1) year (together with the Initial Term, the “Term”), unless terminated by Founder
by a letter sent by recorded delivery to the Company at least six (6) months prior to the end of the contractual period in force.
In the event of Change in Control, as defined by this Agreement, termination is governed in accordance with that provision and
subject to the one-time change in control fee.

  

		12.	Amendment and Restatement. The terms and provisions of the Existing Founders Agreement
are hereby amended and restated in their entirety by the terms and provisions of this Second Amended and Restated Founders Agreement
and shall supersede all provisions of the Existing Founders Agreement as of the date hereof. From and after the date hereof, all
references made to the Existing Founders Agreement in any document shall, without more, be deemed to refer to this Second Amended
and Restated Founders Agreement. 

 

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IN WITNESS WHEREOF,
this Agreement has been duly executed by the parties effective for all purposes as of the date first written above.

 

	FORTRESS BIOTECH, INC.	 
	 	 	 
	By: 	/s/  Lindsay A. Rosenwald	 
	Name:	Lindsay A. Rosenwald, MD	 
	Title:	President Address for Notice:	 
	 	 
	2 Gansevoort Street, 9th Floor	 
	New York, NY 10014	 
	Attn: Lindsay A. Rosenwald, MD	 
	lr@fortressbiotech.com	 
	 	 
	MUSTANG BIO, inc.	 
	 	 
	By:	/s/  Michael S. Weiss	 
	Name:	Michael S. Weiss	 
	Title:	Executive Chairman	 
	 	 
	Address for Notice:	 
	 	 
	2 Gansevoort Street, 9th Floor	 
	New York, NY 10014	 
	Attn: Michael S. Weiss	 
	msw@opuspointpartners.com	 

 

[Signature Page to Second Amended and Restated Founders Agreement ]

 

     

     

    

  

SCHEDULE A

 

Indebtedness

 

		1.	$3,600,000.00 (three million six hundred thousand dollars) of the indebtedness to NSC
                                                                Biotech Venture                                                                 Fund I,
                                                                LLC owed                                                                                                            by
                                                                Founder.

 

     Schedule AExhibit 10.2

 

MANAGEMENT SERVICES AGREEMENT

 

THIS MANAGEMENT SERVICES
AGREEMENT (this “Agreement”) is effective as of March 13, 2015 by and between Mustang Bio, Inc., a Delaware
corporation (the “Company”), and Fortress Biotech, Inc., a Delaware corporation (the “Manager”
and individually a “Party” or collectively the “Parties”).

 

WHEREAS, on the terms and
subject to the conditions contained in this Agreement, the Company desires to obtain certain management, advisory and consulting
services from the Manager, and the Manager has agreed to perform such management, advisory and consulting services;

 

WHEREAS, the Parties are
also entering into as of the date hereof the Founders Agreement for the one-time non-refundable license fee and other operating
capital as needed to meet the Company’s initial requirements, and the execution of this Agreement is a condition to the willingness
of the Manager to transfer the asset.

 

WHEREAS, this Agreement
has been approved by the Company’s Board of Directors.

 

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

 

		1.	Management, Advisory and Consulting Services.

 

1.1           Board
of Directors Supervision. The activities of the Manager to be performed under this Agreement shall be subject to the supervision
of the Board of Directors (“Board”) and subject to reasonable policies not inconsistent with the terms of this
Agreement adopted by the Board and in effect from time-to-time. Where not required by applicable law or regulation, the Manager
shall not require the prior approval of the Board to perform its duties under this Agreement. Notwithstanding the foregoing, the
Manager shall not have the authority to bind the Company, and nothing contained herein shall be construed to create an agency relationship
between the Company and the Manager.

 

1.2           Services.
Subject to any limitations imposed by applicable law or regulation, the Manager shall render or cause to be rendered management,
advisory and consulting services to the Company, which services may include advice and assistance concerning any and all aspects
of the operations, clinical trials, financial planning and strategic transactions and financings of the Company and conducting
relations on behalf of the Company with accountants, attorneys, financial advisors and other professionals (collectively, the “Services”).
The Manager shall provide and devote to the performance of this Agreement such employees, Affiliates and agents of the Manager
as the Manager shall deem appropriate to the furnishing of the Services hereunder. Additionally, at the request of Manager, the
Company will utilize clinical research services, medical education, communication and marketing services and investor relations/public
relation services of companies or individuals designated by Manager, including Affiliates, employees or consultants of Manager,
provided those services are offered at market prices. “Affiliate” means a person or entity that controls, is controlled
by or is under common control with a party, but only for so long as such control exists. For the purposes of this Section 1.1,
the word “control” (including, with correlative meaning, the terms “controlled by” or “under common
control with”) means the actual power, either directly or indirectly through one or more intermediaries, to direct the management
and policies of such person or entity, whether by the ownership of at least 50% of the voting stock of such entity, or by contract
or otherwise.

 

     

     

    

 

1.3           Non-exclusivity,
Freedom to Pursue Opportunities and Limitation on Liability.

 

1.3.1           Non
Exclusivity. The Manager shall devote such time and efforts to the performance of Services contemplated hereby as the Manager
deems reasonably necessary or appropriate; provided, however, that no minimum number of hours is required to be devoted by the
Manager on a weekly, monthly, annual or other basis. The Company acknowledges that the Manager’s Services are not exclusive
to the Company and that the Manager will render similar Services to other persons and entities.

 

1.3.2           Freedom
to Pursue Opportunities. In recognition that the Manager and its Affiliates currently have, and will in the future have or
will consider acquiring, investments in numerous companies with respect to which the Manager or its Affiliates may serve as an
advisor, a director or in some other capacity, and in recognition that the Manager and its Affiliates have a myriad of duties to
various investors, and in anticipation that the Company and the Manager (or one or more Affiliates or clients of the Manager) may
engage in the same or similar activities or lines of business and have an interest in the same areas of corporate opportunities,
and in recognition of the benefits to be derived by the Company hereunder and in recognition of the difficulties that may confront
any manager who desires and endeavors fully to satisfy such manager’s duties in determining the full scope of such duties
in any particular situation, the provisions of this Section 1.3.2 are set forth to regulate, define and guide the conduct
of certain affairs of the Company as they may involve the Manager.

 

Except as the Manager may
otherwise agree in writing after the date hereof:

 

(i) the Manager will have
the right: (A) to directly or indirectly engage in any business including, without limitation, any business activities or lines
of business that are the same as or similar to those pursued by, or competitive with, any of the Company’s, (B) to directly
or indirectly do business with any client or customer of the Company, (C) to take any other action that the Manager believes in
good faith is necessary to or appropriate to fulfill its obligations as described in the first sentence of this Section 1.3.2,
and (D) not to present potential transactions, matters or business opportunities to the Company, and to pursue, directly or indirectly,
any such opportunity for itself, and to direct any such opportunity to another person.

 

(ii) the Manager and its
officers, directors, employees, partners, members, other clients, Affiliates and other associated entities will have no duty (contractual
or otherwise) to communicate or present any corporate opportunities to the Company or to refrain from any action specified in Section
1.3.2(i), and the Company on its own behalf and on behalf of its Affiliates, hereby renounces and waives any right to require
the Manager or any of its Affiliates to act in a manner inconsistent with the provisions of this Section 1.3.2.

 

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(iii) Neither the Manager
nor any officer, director, employee, partner, member, stockholder, Affiliate or associated entity thereof will be liable to the
Company for breach of any duty (contractual or otherwise) by reason of any activities or omissions of the types referred to in
this Section 1.3.2 or of any such person’s participation therein.

 

1.3.3           Limitation
of Liability. In no event will the Manager or any of its Affiliates be liable to the Company for any indirect, special, incidental
or consequential damages, including, without limitation, lost profits or savings, whether or not such damages are foreseeable,
or for any third party claims (whether based in contract, tort or otherwise), relating to the Services to be provided by the Manager
hereunder. The Manager’s liability shall be limited to direct damages not to exceed the total fees paid to Manager for the
Services provided to the Company through the date of any claim.

 

2.          Term.
The Manager shall provide the Services set forth in Section 1 above from the effective date hereof until the earlier of
(a) termination of this Agreement by mutual agreement of the Manager and the Company and (b) the 5th anniversary of
this Agreement; provided that this Agreement shall be automatically extended for additional five year periods unless the
Manager or the Company provides written notice of its desire not to automatically extend the term of this Agreement to the other
Parties hereto at least ninety (90) days prior to such date (such period, the “Term”).

 

No termination of this Agreement,
whether pursuant to this Section 2 or otherwise, will affect the Company’s duty to pay any Management Fee (as defined
herein in Section 3) accrued, or to reimburse any cost or expense incurred pursuant to Section 4 hereof, prior
to the effective date of such termination. Upon termination of this Agreement, the Manager’s right to receive any further
Management Fee or reimbursement for costs and expenses that have not accrued or been incurred to the date of termination shall
cease and terminate. Additionally, the obligations of the Company under Section 4 (Expenses), Section 7 (Indemnification),
the provisions of Section 1.3.2 above (whether in respect of or relating to Services rendered prior to termination of this
Agreement or in respect of or relating to any Services provided after termination of this Agreement) and the provisions of Section
14 (Governing Law) will also survive any termination of this Agreement to the maximum extent permitted under applicable law.

 

		3.	Compensation.

 

3.1           In
consideration of the management, consulting and financial services to be rendered, the Company will pay to the Manager:

 

an annual base management
and consulting fee in cash in the aggregate amount of five hundred thousand dollars ($500,000) (the “Annual Consulting
Fee”), payable in advance in equal quarterly installments on the first business day of each calendar quarter in each
year, provided, that such Annual Consulting Fee shall be increased to $1,000,000 for each calendar year in which the Company
has Net Assets in excess of $100,000,000 at the beginning of the calendar year. For purposes of this Agreement, “Net Assets”
shall mean the difference between total assets on the one hand and current liabilities and non-capitalized long-term liabilities on
the other hand. The fees due to Manager pursuant to this Section 3.1 shall be collectively referred to as the “Management
Fee.” Notwithstanding the foregoing, the first Annual Consulting Fee payment shall be made on the first business day
of the calendar quarter immediately following the completion of the first equity financing for the Company that is in excess of
$10,000,000 in gross proceeds. The first payment shall include all amounts in arrears from the date hereof through such payment
as well as the amounts in advance for such first quarterly payment.

 

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3.2           Any
payment pursuant to this Section 3 shall be made in cash by wire transfer(s) of immediately available funds to or among
one or more accounts as designated from time-to-time by the Manager to the Company in writing.

 

4.          Expenses.
Actual and direct out-of-pocket expenses reasonably incurred by the Manager and its personnel in performing the Services shall
be reimbursed to the Manager by the Company upon the delivery to the Company of an invoice, receipt or such other supporting data
as the Company reasonably shall require. The Company shall reimburse the Manager by wire transfer of immediately available funds
for any amount paid by the Manager, which shall be in addition to any other amount payable to the Manager under this Agreement.

 

		5.	Reserved.

 

		6.	Decisions and Authority of the Manager.

 

6.1           No
Liability. The Company reserves the right to make all decisions with regard to any matter upon which the Manager has rendered
advice and consultation, and there shall be no liability of the Manager for any such advice accepted by the Company pursuant to
the provisions of this Agreement. The Manager will not be liable for any mistakes of fact, errors of judgment or losses sustained
by the Company or for any acts or omissions of any kind (including acts or omissions of the Manager), except to the extent caused
by intentional misconduct of the Manager as finally determined by a court of competent jurisdiction.

 

6.2           Independent
Contractor. The Manager shall act solely as an independent contractor and shall have complete charge of its respective personnel
engaged in the performance of the Services under this Agreement. Neither the Manager nor its officers, directors, employees or
agents will be considered employees or agents of the Company or any of its respective subsidiaries as a result of this Agreement.
As an independent contractor, the Manager shall have authority only to act as an advisor to the Company and shall have no authority
to enter into any agreement or to make any representation, commitment or warranty binding upon the Company or to obtain or incur
any right, obligation or liability on behalf of the Company. Nothing contained in this Agreement shall result in the Manager or
any of its partners or members or any of their Affiliates, investment managers, investment advisors or partners being a partner
of or joint venturer with the Company.

 

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		7.	Indemnification.

 

7.1           Indemnification.
The Company shall (i) indemnify the Manager and its respective Affiliates, directors, officers, employees and agents (collectively,
the “Indemnified Party”), to the fullest extent permitted by law, from and against any and all actions, causes
of action, suits, claims, liabilities, losses, damages and costs and expenses in connection therewith, including without limitation
reasonable attorneys’ fees and expenses (“Indemnified Liabilities”) to which the Indemnified Party may
become subject, directly or indirectly caused by, related to or arising out of the Services or any other advice or Services contemplated
by this Agreement or the engagement of the Manager pursuant to, and the performance by such Manager of the Services contemplated
by, this Agreement, and (ii) promptly reimburse the Indemnified Party for Indemnified Liabilities as incurred, in connection with
the investigation of, preparation for or defense of any pending or threatened claim or any action or proceeding arising therefrom,
whether or not such Indemnified Party is a party and whether or not such claim, action or proceeding is initiated or brought by
or on behalf of the Company or Manager and whether or not resulting in any liability. If and to the extent that the foregoing undertaking
may be unenforceable for any reason, the Company hereby agrees to make the maximum contribution to the payment and satisfaction
of each of the Indemnified Liabilities that is permissible under applicable law.

 

7.2           Limited
Liability. The Company shall not be liable under the indemnification contained in Section 7.1 hereof with respect to
the Indemnified Party to the extent that such Indemnified Liabilities are found in a final non-appealable judgment by a court of
competent jurisdiction to have resulted directly from the Indemnified Party’s willful misconduct or gross negligence. The
Company further agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract, tort or otherwise)
to the Company, holders of its securities or its creditors related to or arising out of the engagement of the Manager pursuant
to, or the performance by the Manager of the Services contemplated by, this Agreement.

 

8.          Notices.
All notices, demands, or other communications to be given or delivered under or by reason of the provisions of this Agreement shall
be in writing and shall be deemed to have been given or made when (i) delivered personally to the recipient, (ii) telecopied
to the recipient (with a hard copy sent to the recipient by reputable overnight courier service (charges prepaid)) if telecopied
before 5:00 p.m. Eastern Standard Time on a business day, and otherwise on the next business day, (iii) one (1) business day
after being sent to the recipient by reputable overnight courier service (charges prepaid) or (iv) received via electronic
mail by the recipient if received via electronic mail before 5:00 p.m. Eastern Standard Time on a business day, and otherwise on
the next business day after such receipt. Such notices, demands and other communications shall be sent to the address for such
recipient indicated below or to such other address or to the attention of such other person as the recipient party has specified
by prior written notice to the sending party.

 

Notices to
the Manager

 

2 Gansevoort Street,
9th Floor

New York, NY 10014

Attn: Lindsay
A. Rosenwald, MD

lr@fortressbiotech.com

 

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Notices to
the Company:

 

2 Gansevoort Street, 9th Floor

New York, NY 10014

Attn: Michael
S. Weiss

msw@opuspointpartners.com

 

9.          Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the Parties hereto shall use their best efforts
to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term,
provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the Parties that they would have
executed the remaining terms, provisions, covenants and restrictions without including any such terms, provisions, covenants and
restrictions which may be hereafter declared invalid, illegal, void or unenforceable.

 

10.         Entire
Agreement. This Agreement contains the entire understanding of the Parties with respect to the subject matter hereof and supersedes
any prior communication or agreement with respect thereto.

 

11.         Counterparts.
This Agreement may be executed in multiple counterparts, and any Party may execute any such counterpart, each of which when executed
and delivered will thereby be deemed to be an original and all of which counterparts taken together will constitute one and the
same instrument. The delivery of this Agreement may be effected by means of an exchange of facsimile or portable document format
(.pdf) signatures.

 

12.         Amendments
and Waiver. No amendment or waiver of any term, provision or condition of this Agreement will be effective, unless in writing
and executed by both the Company and the Manager. No waiver on any one occasion will extend to, effect or be construed as a waiver
of any right or remedy on any future occasion. No course of dealing of any person nor any delay or omission in exercising any right
or remedy will constitute an amendment of this Agreement or a waiver of any right or remedy of any Party hereto.

 

13.         Successors
and Assigns. All covenants and agreements contained in this Agreement by or on behalf of any of the Parties hereto will bind
and inure to the benefit of the respective successors and assigns of the Parties hereto whether so expressed or not. Neither the
Company nor the Manager may assign its rights or delegate its obligations hereunder without the prior written consent of the other
Party, which consent shall not be unreasonably withheld; provided, that the Manager may assign this Agreement to any of its Affiliates.

 

14.         Governing
Law. This Agreement shall be governed by and construed in accordance with the substantive laws of the state of New York, without
giving effect to any choice of law or conflict of law provision or rule that would cause the application of the laws of any jurisdiction
other than the state of New York.

 

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15.         Waiver
of Jury Trial. To the extent not prohibited by applicable law which cannot be waived, each of the Parties hereto hereby waives,
and covenants that it will not assert (whether as plaintiff, defendant or otherwise), any right to trial by jury in any forum in
respect of any issue, claim, demand, cause of action, action, suit or proceeding arising out of or based upon this Agreement or
the subject matter hereof, in each case whether now existing or hereafter arising and whether in contract or tort or otherwise.
Any of the Parties hereto may file an original counterpart or a copy of this Agreement with any court as written evidence of the
consent of each of the Parties hereto to the waiver of its right to trial by jury.

 

16.         No
Strict Construction. The Parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the
Parties hereto, and no presumption or burden of proof will arise favoring or disfavoring any Party by virtue of the authorship
of any of the provisions of this Agreement.

 

17.         Headings;
Interpretation. The headings in this Agreement are for convenience and reference only and shall not limit or otherwise affect
the meaning hereof. The use of the word “including” in this Agreement will be by way of example rather than by limitation.

 

* * * * * *

 

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IN WITNESS WHEREOF, the Parties
hereto have executed this Management Services Agreement as of the date first written above.

 

	 	MUSTANG BIO, INC.
	 	 	 
	 	By:	/s/  Michael S. Weiss
	 	Name:	Michael S. Weiss
	 	Title:	President & Chief Executive Officer
	 	 	 
	 	FORTRESS BIOTECH, INC.
	 	 	 
	 	By: 	/s/  Lindsay A. Rosenwald
	 	Name:	Lindsay A. Rosenwald, MD
	 	Title:	Chief Executive Officer

 

Signature Page to

Management Services Agreement

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