Fortress Biotech, Inc. → MUSTANG BIO, INC. MBIO

The Reporting Person is party to that certain Second Amended and Restated Founders Agreement with the Issuer (as amended, the "Founders Agreement"), in connection with the Issuer's formation. Pursuant to the Issuer's Amended and Restated Certificate of Incorporation (as amended, the "Charter"), the Issuer issues annually to the Reporting Person shares of common stock equal to two and one-half percent (2.5%) of the fully-diluted outstanding equity of the Issuer, as measured as of the date of such issuance (the "Annual Equity Grant"). The foregoing description of the Charter and Founders Agreement are qualified in its entirety by reference to the full text of the Charter and Founders Agreement which are incorporated herein by reference as Exhibits 7.01, 7.02, and 7.04.