Document:

Exhibit 10.9

 

mustang
bio, INC.

NON-EMPLOYEE
DIRECTORS COMPENSATION PLAN

 

ARTICLE 1

PURPOSE

 

1.1. Purpose.
The purpose of the Mustang Bio, Inc. Non-Employee Directors Compensation Plan is to attract, retain and compensate highly-qualified
individuals who are not employees of Mustang Bio, Inc. or any of its Subsidiaries or Affiliates for service as members of the Board
by providing them with competitive compensation and an opportunity to participate in the Company’s future growth through
the granting of stock-based incentive awards. The Company intends that the Plan will benefit the Company and its stockholders by
allowing Non-Employee Directors to have a personal financial stake in the Company through an ownership interest in the Stock and
will closely associate the interests of Non-Employee Directors with that of the Company’s stockholders.

 

1.2. ELIGIBILITY.
All Non-Employee Directors shall automatically be participants in the Plan.

 

ARTICLE 2

DEFINITIONS

 

2.1. DEFINITIONS.
Capitalized terms used herein and not otherwise defined shall have the meanings given such terms in the LTIP.  Unless
the context clearly indicates otherwise, the following terms shall have the following meanings:

 

	 	(a)	“Annual Equity Award” means stock options, stock awards, restricted stock, restricted stock units, stock appreciation rights, or other awards based on or derived from the Stock which are authorized under this Plan for award to Non-Employee Directors under Section 6.2 of the Plan.

 

	 	(b)	“Award” means any Initial Equity Award or Annual Equity Award granted to a Non-Employee Director under Article 6 of the Plan.

 

	 	(c)	“Basic Cash Retainer” means the annual cash retainer (excluding any Supplemental Cash Retainer, Meeting Fees and expenses) payable by the Company to a Non-Employee Director pursuant to Section 5.1 hereof for service as a director of the Company, as established from time to time by the Board and set forth in Schedule I hereto.

 

	 	(d)	“Company” means Mustang Bio, Inc., a Delaware corporation.

 

	 	(e)	“Initial Equity Award” means stock options, stock awards, restricted stock, restricted stock units, stock appreciation rights, or other awards based on or derived from the Stock which are authorized under this Plan for award to Non-Employee Directors under Section 6.1 of the Plan.

 

	 	(f)	“LTIP” means the Mustang Bio, Inc. Amended and Restated 2015 Incentive Plan, or any subsequent equity compensation plan approved by the Board and designated as the LTIP for purposes of this Plan.

 

	 	(g)	“Meeting Fees” means fees for attending a meeting of the Board or one of its Committees as set forth in Section 5.3 hereof.

 

	 	(h)	“Non-Employee Director” means a director of the Company who is not an employee of the Company or any of its Subsidiaries or Affiliates.

 

	 	(i)	“Plan” means the Mustang Bio, Inc. Non-Employee Directors Compensation Plan, as amended from time to time.

 

	 	(j)	“Plan Year(s)” means the approximate twelve-month periods between annual meetings of the stockholders of the Company.

 

	 	(k)	“Supplemental Cash Retainer” means the supplemental annual cash retainer (excluding Basic Cash Retainer, Meeting Fees and expenses) payable by the Company to a Non-Employee Director pursuant to Section 5.2 hereof for service as Chairman of the Board, Lead Director, or chair of a committee of the Board, as established from time to time by the Board and set forth in Schedule I hereto.

 

     

     

    

  

ARTICLE 3

ADMINISTRATION

 

3.1. ADMINISTRATION.
The Plan shall be administered by the Board, or, at the discretion of the Board from time to time, the Plan may be administered
by a committee of the Board. Subject to the provisions of the Plan, the Board shall be authorized to interpret the Plan, to establish,
amend and rescind any rules and regulations relating to the Plan, and to make all other determinations necessary or advisable for
the administration of the Plan. The Board’s interpretation of the Plan, and all actions taken and determinations made by
the Board pursuant to the powers vested in it hereunder, shall be conclusive and binding upon all parties concerned including the
Company, its stockholders and persons granted awards under the Plan. The Board may appoint a plan administrator to carry out the
ministerial functions of the Plan, but the administrator shall have no other authority or powers of the Board. To the extent the
Board has delegated any authority and responsibility under this Plan to a committee of the Board, such committee shall have the
powers and protections of the Board hereunder, and any reference herein to the Board (other than in this Section 4.1) shall include
such committee. To the extent any action of the Board under the Plan conflicts with actions taken by such committee, the actions
of the Board shall control.

 

3.2. RELIANCE. In
administering the Plan, the Board may rely upon any information furnished by the Company, its public accountants and other experts.
No individual will have personal liability by reason of anything done or omitted to be done by the Company or the Board in connection
with the Plan.

 

3.3. INDEMNIFICATION.
Each person who is or has been a member of the Board or who otherwise participates in the administration or operation of the Plan
shall be indemnified by the Company against, and held harmless from, any loss, cost, liability or expense that may be imposed upon
or incurred by him or her in connection with or resulting from any claim, action, suit or proceeding in which such person may be
involved by reason of any action taken or failure to act under the Plan and shall be fully reimbursed by the Company for any and
all amounts paid by such person in satisfaction of judgment against him or her in any such action, suit or proceeding, provided
he or she will give the Company an opportunity, by written notice to the Board, to defend the same at the Company’s own expense
before he or she undertakes to defend it on his or her own behalf. This right of indemnification shall not be exclusive of any
other rights of indemnification.

 

ARTICLE 4

SHARES

 

4.1. SOURCE OF SHARES
FOR THE PLAN. The Awards and shares of Stock that may be issued pursuant to the Plan shall be issued under the LTIP,
subject to all of the terms and conditions of the LTIP, including but not limited to Section 5.1 of the LTIP, which provides that
the maximum aggregate number of Shares associated with any Award granted under this Plan in any calendar year to any one Non-Employee
Director shall be 100,000 Shares. The terms contained in the LTIP are incorporated into and made a part of this Plan with respect
to Awards granted pursuant hereto, and any such Awards shall be governed by and construed in accordance with the LTIP. In the event
of any actual or alleged conflict between the provisions of the LTIP and the provisions of this Plan, the provisions of the LTIP
shall be controlling and determinative. The Plan is considered to be and shall be operated as a subplan of the LTIP, and does not
constitute a separate source of shares for the grant of the Awards provided herein.

 

ARTICLE 5

CASH COMPENSATION

 

5.1. BASIC CASH RETAINER.
 Each Non-Employee Director shall be paid a Basic Cash Retainer for service as a director during each Plan Year, payable in
advance, on the first business day following each annual meeting of stockholders. The amount of the Basic Cash Retainer shall be
established from time to time by the Board. The amount of the Basic Cash Retainer is set forth in Schedule I, as amended
from time to time by the Board. Each person who first becomes an Non-Employee Director on a date other than an annual meeting date
shall be paid a pro rata amount of the Basic Cash Retainer for that Plan Year to reflect the actual number of days served in the
Plan Year.

 

5.2. SUPPLEMENTAL CASH
RETAINER.  The Chairman of the Board, Lead Director, and chairs of each committee of the Board may be paid a Supplemental
Cash Retainer during a Plan Year, payable at the same times as installments of the Basic Cash Retainer are paid. The amount of
the Supplemental Cash Retainers shall be established from time to time by the Board, and shall be set forth in Schedule I,
as amended from time to time by the Board. A pro rata Supplemental Cash Retainer will be paid to any Non-Employee Director who
is elected by the Board to a position eligible for a Supplemental Cash Retainer on a date other than the beginning of a Plan Year,
to reflect the actual number of days served in such eligible capacity during the Plan Year.

 

     

     

    

  

5.3. MEETING FEES. 
Each Non-Employee Director may be paid a fee for each meeting of the Board or committee thereof in which he or she
participates. The amount of the fees, if any, shall be established from time to time by the Board and shall be set forth in Schedule
I, as amended from time to time by the Board. For purposes of this provision, casual or unscheduled conferences among directors
shall not constitute an official meeting.

 

5.4. EXPENSE REIMBURSEMENT.
All Non-Employee Directors shall be reimbursed for reasonable travel and out-of-pocket expenses in connection with attendance
at meetings of the Board and its committees, or other Company functions at which the Chief Executive Officer, Chairman of the Board,
or Lead Director requests the director to participate.

 

ARTICLE 6

EQUITY AWARDS

 

6.1 INITIAL EQUITY AWARD.
Subject to share availability under the LTIP, on the first date a Non-Employee Director is initially elected or appointed to the
Board, he or she shall be granted an Initial Equity Award. The Initial Equity Award is set forth in Schedule I, as amended
from time to time by the Board. Such Initial Equity Award shall be subject to the terms and restrictions described in Schedule
I and below in this Article 6.

 

6.2 ANNUAL EQUITY AWARD.
Subject to share availability under the LTIP, on the day following each annual meeting of the Company’s stockholders, each
Non-Employee Director serving as such on that date (other than a director who first became a Non-Employee Director at the stockholders
meeting held on the previous day) shall be granted an Annual Equity Award. The Annual Equity Award is set forth in Schedule
I, as amended from time to time by the Board. Such Annual Equity Award shall be subject to the terms and restrictions described
in Schedule I and below in this Article 6.

 

6.3 TERMS AND CONDITIONS
OF AWARDS. Awards granted under this Article 6 shall be subject to the terms and conditions described below and in the LTIP.

 

	 	(a)	Vesting. Each Award granted under this Plan shall vest as provided in Schedule I, as amended from time to time by the Board; provided, however, that each Award shall become fully vested upon the occurrence of a Change of Control.

 

	 	(b)	Effect of Termination of Directorship. Upon termination of a Non-Employee Director’s membership on the Board for any reason (including without limitation, by reason of death, Disability, retirement or failure to be re-nominated or re-elected as a director), the Non-Employee Director shall forfeit all of his or her right, title and interest in and to any unvested portion of the Initial Equity Award or Annual Equity Award, as the case may be.

 

	 	(c)	Award Certificates. All Awards shall be evidenced by a written Award Certificate between the Company and the Non-Employee Director, which shall include such provisions, not inconsistent with the Plan or the LTIP, as may be specified by the Board.

 

6.4 ADJUSTMENTS.
The adjustment provisions of the LTIP shall apply with respect to Awards granted pursuant to this Plan. Without limiting the foregoing,
in the event of a subdivision of the outstanding Stock (stock-split), a declaration of a dividend payable in shares of Stock, or
a combination or consolidation of the outstanding Stock into a lesser number of shares of Stock, the number of Awards to be granted
to Non-Employee Directors in accordance with Article 6 hereof shall be adjusted proportionately and the shares of Stock then subject
to each Award shall automatically be adjusted proportionately without any change in the aggregate purchase price therefore.

 

ARTICLE 7

Amendment,
Modification and Termination

 

7.1. AMENDMENT, MODIFICATION
AND TERMINATION. The Board may, at any time and from time to time, amend, modify or terminate the Plan without stockholder
approval; provided, however, that if an amendment to the Plan would, in the reasonable opinion of the Board, require stockholder
approval under applicable laws, policies or regulations or the applicable listing or other requirements of a securities exchange
on which the Stock is listed or traded, then such amendment shall be subject to stockholder approval; and provided further, that
the Board may condition any other amendment or modification on the approval of stockholders of the Company for any reason.

 

     

     

    

  

ARTICLE 8

General
Provisions

 

8.1. EXPENSES OF THE
PLAN. The expenses of administering the Plan shall be borne by the Company.

 

8.2. EFFECTIVE DATE
AND DURATION OF THE PLAN. The Plan shall be effective as of the date it is approved by the Board. The Plan shall remain in
effect until terminated by the Board.

 

	 	MUSTANG BIO, Inc.

 

	 	By:	/s/ Michael S. Weiss
	 	 	Michael S. Weiss
	 	 	Executive Chairman and Chief Executive Officer

 

     

     

    

  

SCHEDULE I

 

Effective as of January 8, 2016

 

The following shall remain in effect until
changed by the Board:

 

	Basic Cash Retainer:	$50,000, paid quarterly in advance ($12,500 per quarter).
	 	 
	
        Supplemental Cash 

        Retainer for Audit Chair:
	 $10,000, paid quarterly in advance ($2,500 per quarter).
	 	 
	Initial Equity Award:	50,000 shares of Restricted Stock, which shares shall vest and become non-forfeitable in equal annual installments over three years, beginning on the third (3rd) anniversary of the Grant Date, subject to the Non-Employee Director’s continued service on the Board on such date.
	 	 
	Annual Equity Award:	The greater of (i) a number of shares of Restricted Stock having a fair market value on the Grant Date of $50,000, or (ii) 10,000 shares of Restricted Stock, which shares shall vest and become non-forfeitable on the third (3rd) anniversary of the Grant Date, subject to the Non-Employee Director’s continued service on the Board on such date.Exhibit 10.10 

 

 

LETTER OF AGREEMENT

Date: April 8, 2016

 

Section 1. Services to be Rendered.
The purpose of this letter is to set forth the terms and conditions on which Chord Advisors, LLC (“Chord”) agrees to
provide Mustang Bio, Inc. (the “Company”) comprehensive outsourced CFO support, accounting policy and financial
reporting services. David Horin, Managing Partner at Chord, will sign as the Principal Accounting Officer/CFO. These services may
include, but are not limited to, all items listed in “Addendum A.” Chord will depend on the Company to provide information
needed to perform the services and will rely on the Company for the accuracy and completeness of such information.

 

Section 2. Engagement Period. Unless
sooner terminated as provided herein, the term of this agreement (the “Engagement Period”) shall commence on
April 11, 2016 and shall continue until terminated by either party. The Company represents that it is duly organized, validly
existing and in good standing under the laws of its jurisdiction of organization and is duly qualified as a foreign corporation
and in good standing in all jurisdictions in which the nature of its activities requires such qualification. The Company further
represents to Chord: (1) that it has full power and authority to carry on its business as presently or proposed to be conducted
and to enter into and perform its obligations under this Agreement; (2) that this Agreement has been duly authorized by all necessary
corporate actions; and (3) that this Agreement constitutes the valid and binding obligation of the Company, enforceable against
the Company in accordance with its terms (except as such enforcement may be limited by bankruptcy, creditors’ rights laws
or general principles of equity). Chord represents that it is validly existing under the laws of its jurisdiction of organization.
Chord further represents to the Company: (1) that it has full power and authority to enter into and perform its obligations under
this agreement; and (2) that this agreement constitutes the valid and binding obligation of Chord, enforceable against Chord in
accordance with its terms (except as such enforcement may be limited by bankruptcy, creditors’ rights laws or general principles
of equity).

 

Section
3. Fees. (a) The Company shall pay to Chord for its services hereunder an advisory fee (the “Advisory Fee”)
of up to $5,000 per month prior to filing its public filing and $7,500 per month thereafter. Advisory Fees shall
be payable on or before the 15th day of each calendar month which occurs during the Engagement Period. The monthly fees prior to
its public filing will be based upon the following rates: $350 for partners/senior managing directors, $250 for directors
and $100 for associates.

 

Section 4. Expenses. In addition to
all other fees payable to Chord hereunder, the Company hereby agrees to reimburse Chord for all reasonable out-of-pocket expenses
incurred in connection with the performance of services hereunder. No individual expenses over $50 per month will be expended without
the prior written approval of the Company.

 

    	Confidential	 	Page 1

     

    

 

 

 

Section 5. Confidentiality. From time
to time during the term of this agreement, the Company may disclose or make available to Chord information about its business affairs,
finances, customers, products, services, technology, intellectual property, trade secrets, third-party confidential information
and other sensitive or proprietary information, whether orally or in written, electronic or other form or media (collectively,
“Confidential Information”). Chord shall: (a) protect and safeguard the confidentiality of the Confidential Information
with at least the same degree of care as Chord would protect its own Confidential Information, but in no event with less than a
commercially reasonable degree of care; (b) not use the Confidential Information, or permit it to be accessed or used, for any
purpose other than to perform its obligations under this agreement; and (c) not disclose any such Confidential Information to any
person or entity other than its employees on a need to know basis who are participating in this engagement, are advised of the
confidentiality thereof and who are subject to maintain the confidentiality thereof. In the event that Chord or its representative
is required by law or legal process to disclose any Confidential Information, Chord will, to the extent legally permitted, provide
Company with prompt written notice of such requirement so that Company may seek an appropriate protective order or confidential
treatment. If in the absence of a protective order or confidential treatment, Chord or its representative is required by law or
legal process to disclose Confidential Information, Chord shall use commercially reasonable efforts to limit such disclosure to
that portion of the Confidential Information that Chord or its representative is legally required to disclose. In such case, Chord
or its representative will exercise commercially reasonable efforts to obtain assurance that confidential treatment will be accorded
such Confidential Information.

 

Section 6. Indemnification. Each of
the Company and Chord agrees to defend, indemnify and hold the other and its respective affiliates, stockholders, directors officers,
agents, employees, successors and assigns (each an "Indemnified Person") harmless from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements of any kind
whatsoever (including, without limitation, reasonable attorneys' fees) which arise from the Company's or Chord's (as the case may
be) breach of its obligations hereunder or any representation or warranty made by it herein. It is further agreed that the foregoing
indemnity shall be in addition to any rights that either party may have at common law or otherwise, including, but not limited
to, any right to contribution. Notwithstanding the foregoing, the indemnifying party is not obligated to indemnify, hold harmless
or defend any Indemnified Person against any Claims (whether direct or indirect) if and to the extent such Claims arise out of
or result from, in whole or in part, the: (a) negligence or more culpable act or omission (including recklessness or willful misconduct)
of an Indemnified Person, or (b) bad faith failure to materially comply with any of the obligations set forth in this agreement
of an Indemnified Person.

 

    	Confidential	 	Page 2

     

    

  

 

 

Section 7. Termination of Agreement.
(a) Subject to paragraph (b) below, either party may terminate this Agreement and Chord’s engagement hereunder, with or without
cause, upon 30 days written notice given to the other party at any time during the Engagement Period hereunder. In such event,
all compensation accrued to Chord prior to such cancellation, whether in the form of Advisory Fees, reimbursement for expenses
or otherwise, will become due and payable promptly upon such termination and Chord shall be relieved of any and all further obligation
to provide any services hereunder.

 

(b) Notwithstanding anything
to the contrary herein contained, Sections 4, 5, 6, 7, 8, 9, 10, 11 and 12 shall survive any termination or breach of this agreement
by either party.

 

Section 8. Severability. In case any
provision of this letter agreement shall be invalid, illegal, or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not be affected or impaired thereby.

 

Section
9. Consent to Jurisdiction. This agreement shall be governed and construed in accordance with the laws of the State
of California without regard to conflicts of laws principles.

 

Section 10. Other Services. If the Company
desires additional services not provided for in this agreement, any such additional services shall be covered by a separate agreement
between the parties hereto.

 

Section 11. Entire Agreement. This letter
agreement contains the entire agreement of the Company and Chord, and supersedes any and all prior discussions and agreements,
whether oral or written, with respect to the matters addressed herein.

 

Section 12. Counterparts. This letter
agreement may executed in two or more counterparts, each of which shall be considered an original and all of which, taken together,
shall be considered as one and the same instrument.

 

Please evidence your acceptance
of the provisions of this letter by signing below and returning a copy to Chord Advisors, LLC.

 

Very truly yours,

 

	 	/s/ David Horin	 
	 	David Horin	 
	 	Managing Partner	 
	 	Chord Advisors, LLC	 

 

    	Confidential	 	Page 3

     

    

 

 

 

ACCEPTED AND AGREED

AS OF THE DATE FIRST ABOVE WRITTEN:

 

	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	Confidential	 	Page 4

     

    

 

 

 

ADDENDUM
“A”

 

Chord will perform the following functions,
if applicable:

 

		·	Review the Company’s system generated trial balance, balance sheet and statement of operations after the Company has
completed its closing procedures.

 

		·	Review balance sheet account reconciliations and rollforwards prepared by the Company (i.e., cash reconciliations, PP&E
rollforwards, debt rollforwards, etc.).

 

		·	Review significant new contracts executed by the Company in the normal course of business (customer agreements, financings,
employment agreements, vendor contracts, option agreements, etc.), as provided by the Company, and identify accounting and disclosure
implications

 

		·	Advise on accounting for complex transactions, including those featuring options, warrants derivatives and other forms of equity
enhancements

 

		·	Document and implement new and existing accounting policies

 

		·	Prepare valuations needed to recognize stock-based compensation and prepare footnotes and schedules for inclusion in the financial
statements. If valuations require use of any model other than Black-Sholes (i.e., financial instruments issued as stock-based compensation
whose valuation requires the use of a binomial option pricing model or Monte Carlo option model) such valuations are excluded from
these services.

 

		·	Prepare valuations needed to recognize warrants and other equity-linked financial instruments. If valuations require use of
any model other than Black-Sholes (i.e., binomial option pricing model or Monte Carlo option model) such valuations are excluded
from these services.

 

		·	Provide accounting policy for corporate finance transactions

 

		·	Based on information received from the Company, prepare US GAAP financial statements and footnotes for the year ending December
31, 2015. Prepare schedules supporting the financial statement footnotes, with information provided by the Company.

 

		·	Draft 10-Q's and 10K’s

 

		·	Support the Company’s response to audit requests and comments

 

		·	Audit committee support

 

		·	Respond to SEC comment letters, if any

 

    	Confidential	 	Page 5

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