Exhibit 10.1






Exhibit 10.1



SEELOS THERAPEUTICS, INC. 2019 INDUCEMENT PLAN


	 	
1.
	
DEFINED TERMS




Exhibit A, which is incorporated by reference, defines the terms used in the Plan and sets forth certain operational rules related to those terms.


	 	
2.
	
PURPOSE




The Plan has been established to advance the interests of the Company by providing a material inducement for the best available individuals to join the
Company as  Employees by affording such individuals an opportunity to acquire a proprietary interest in the Company. The Company intends that the Plan be reserved for persons whom the
Company may issue Stock without stockholder approval pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules.


	 	
3.
	
ADMINISTRATION




The Administrator has discretionary authority, subject only to the express provisions of the Plan, to interpret the Plan; determine eligibility for and grant
Awards; determine, modify or waive the terms and conditions of any Award; prescribe forms, rules and procedures; and otherwise do all things necessary to carry out the purposes of the Plan.


	 	
4.
	
LIMITS ON AWARDS UNDER THE PLAN




(a)   Number of Shares. Subject to adjustment as provided in Section 7 below, the maximum number of shares of
Stock that may be delivered upon satisfaction of Equity Awards under the Plan shall be 1,000,000 shares of Stock. Notwithstanding anything to the contrary herein, and subject to adjustment as
provided in Section 7 below, in no event may more than 1,000,000 shares of Stock be delivered upon satisfaction of Equity Awards under the Plan. The number of shares of Stock delivered in
satisfaction of Equity Awards shall, for purposes of this Section 4(a), be determined net of shares of Stock withheld by the Company in payment of the exercise price of the Award or in
satisfaction of tax withholding requirements with respect to the Award and, for the avoidance of doubt, without including any shares of Stock underlying Awards settled in cash or which otherwise
expire or become unexercisable without having been exercised or are forfeited to or repurchased by the Company due to failure to vest.

(b)   Type of Shares. Shares of Stock delivered by the Company under the Plan may be authorized but unissued Stock or previously
issued Stock acquired by the Company. No fractional shares of Stock will be delivered under the Plan.


	 	
5.
	
ELIGIBILITY AND PARTICIPATION




The Administrator will select Participants from among those persons to whom the Company makes an offer of employment but only until such time as
such person commences employment with the Company or its Affiliates. Awards may be granted to an eligible person so long as the following requirements are met: (i) the eligible person was
not previously an Employee or director, or the eligible person is returning to the employment of the Company following a bona-fide period of non-employment, and (ii) the grant of an Award under
the Plan is a material inducement to the eligible person's decision to enter into the employment of the Company.


	 	
6.
	
RULES APPLICABLE TO AWARDS




(a)   In General


(1)   Award Provisions. The Administrator will determine the terms of all Awards, subject to the limitations provided herein.
By accepting (or, under such rules as the Administrator may prescribe, being deemed to have accepted) an Award, the Participant agrees to the terms of the Award and the Plan. The
Administrator will determine whether Awards are settled in shares of Stock or cash or whether the settlement or payment of Awards shall be subject to deferral.







(2)   Term of Plan; Effectiveness of Plan. This Plan was approved by the Compensation Committee or a majority of the Company's
independent directors (as defined in Rule 5605(a)(2) of the Nasdaq Listing Rules) on July 28, 2019 and shall be effective (the "Effective Date") on August 12, 2019. The Plan
will expire on, and no Award may be granted pursuant to the Plan on or after, the tenth anniversary of the date on which this Plan was approved by the Board (the "Expiration
Date"). Any Awards that are outstanding on the Expiration Date shall remain in force according to the terms of the Plan and the applicable Award agreement.

(3)   Transferability. Except as the Administrator otherwise expressly provides in accordance with the second sentence of this
Section 6(a)(3), no Awards may be transferred other than by will or by the laws of descent and distribution, and during a Participant's lifetime, except as the Administrator otherwise expressly
provides in accordance with the second sentence of this Section 6(a)(3), Equity Awards requiring exercise may be exercised only by the Participant. The Administrator may permit Awards to be
transferred by gift, subject to applicable securities and other laws and such limitations as the Administrator may impose.

(4)   Vesting, Etc. The Administrator shall determine the time or times at which an Equity Award will vest or become
exercisable and the terms on which an Equity Award requiring exercise will remain exercisable, provided that each such Equity Award shall require, as a condition of exercisability and/or vesting
that the Participant commences employment with the Company. Without limiting the foregoing, the Administrator may at any time accelerate the vesting or exercisability of an Equity Award,
regardless of any adverse or potentially adverse tax or other consequences resulting from such acceleration. Unless the Administrator expressly provides otherwise, however, the following rules
will apply if a Participant's Employment ceases:

(A)   Immediately upon the cessation of the Participant's Employment and except as provided in (B) and (C) below, each Stock Option and SAR that is
then held by the Participant or by the Participant's permitted transferees, if any, will cease to be exercisable and will terminate, and all other Awards that are then held by the Participant or by the
Participant's permitted transferees, if any, to the extent not already vested will be forfeited.

(B)   Subject to (C) and (D) below, all Stock Options and SARs held by the Participant or the Participant's permitted transferees, if any, immediately
prior to the cessation of the Participant's Employment, to the extent then exercisable, will remain exercisable for the lesser of (i) a period of three months or (ii) the period ending on the latest
date on which such Stock Option or SAR could have been exercised without regard to this Section 6(a)(4), and will thereupon immediately terminate.

(C)   All Stock Options and SARs held by a Participant or the Participant's permitted transferees, if any, immediately prior to the cessation of
Participant's Employment due to death, to the extent then exercisable, will remain exercisable for the lesser of (i) the one year period ending with the first anniversary of the Participant's death or
(ii) the period ending on the latest date on which such Stock Option or SAR could have been exercised without regard to this Section 6(a)(4), and will thereupon immediately terminate.

(D)   All Stock Options and SARs (whether or not exercisable) held by a Participant or the Participant's permitted transferees, if any, immediately prior
to the cessation of the Participant's Employment will immediately terminate upon such cessation of Employment if the termination is for Cause or occurs in circumstances that in the sole
determination of the Administrator would have constituted grounds for the Participant's Employment to be terminated for Cause.


(5)   Recovery of Compensation; Other Terms

(A)   Awards (whether or not vested or exercisable) held by a Participant are subject to forfeiture, termination and rescission, and a
Participant will be obligated to return to the Company the value received with respect to Awards (including payments made and/or Stock delivered under an Award, and any gain realized on a
subsequent sale or disposition of an Award or Stock delivered under an Award), in each case (i) to the extent provided by the Administrator in an Award agreement in connection with (A) a
breach by the Participant of a non-competition, non-solicitation, confidentiality or similar covenant or agreement or (B) an overpayment to the Participant of incentive compensation due to
inaccurate financial data; (ii) in accordance with Company policy relating to the recovery of erroneously-paid incentive compensation, as such policy may be amended and in effect from time to
time; or (iii) as otherwise required by law or applicable stock exchange listing standards, including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act.








(B)   Each Participant, by accepting an Award pursuant to the Plan, agrees to return the full amount required under this Section 6(a)(5) at such time
and in such manner as the Administrator shall determine in its sole discretion and consistent with applicable law. Neither the Administrator nor the Company will be responsible for any adverse
tax or other consequences to a Participant that may arise in connection with this Section 6(a)(5). For the avoidance of doubt, in addition to any forfeiture or other restrictions imposed by the terms
of an Award agreement, every Award issued under the Plan will be subject to potential forfeiture or "claw back" to the fullest extent called for by applicable federal or state law. In
addition, to the extent provided by the Administrator, Shares received upon settlement, vesting or exercise of an Award may be subject to stock ownership guidelines or policies established by
the Company with respect to its Employees.

(6)   Taxes. The delivery, vesting and retention of Stock under an Award are conditioned upon full satisfaction by the Participant of all
tax withholding requirements with respect to the Award. The Administrator will make such provision for the withholding of taxes as it deems necessary. The Administrator may, but need not, hold
back shares of Stock from an Award or permit a Participant to tender previously owned shares of Stock in satisfaction of tax withholding requirements (but not in excess of the minimum
withholding required by law).

(7)   Dividend Equivalents, Etc. The Administrator may provide for the payment of amounts (on terms and subject to conditions
established by the Administrator) in lieu of cash dividends or other cash distributions with respect to Stock subject to an Equity Award whether or not the holder of such Equity Award is otherwise
entitled to share in the actual dividend or distribution in respect of such Equity Award. Any entitlement to dividend equivalents or similar entitlements shall be established and administered either
consistent with exemption from, or in compliance with, the requirements of Section 409A. In addition, any amounts payable in respect of Restricted Stock (or any other Award subject to any
vesting condition) may be subject to such limits or restrictions or alternative terms as the Administrator may impose. Notwithstanding the foregoing, no dividends or dividend equivalents shall be
payable with respect to (i) any Award which is subject to vesting, unless and until such Award vests, or (ii) with respect to Stock Options or SARs.

(8)   Rights Limited. Nothing in the Plan will be construed as giving any person the right to be granted an Award or to continued
employment or service with the Company or its Affiliates, or any rights as a stockholder except as to shares of Stock actually issued under the Plan. The loss of existing or potential profit in
Awards will not constitute an element of damages in the event of termination of Employment for any reason, even if the termination is in violation of an obligation of the Company or any Affiliate
to the Participant.

(9)   Section 409A. Each Award shall contain such terms as the Administrator determines, and shall be construed and administered,
such that the Award either (i) qualifies for an exemption from the requirements of Section 409A, or (ii) satisfies such requirements.

(10)   Fair Market Value. Except as otherwise expressly provided herein, in determining the fair market value of any share of Stock
under the Plan, the Administrator shall make the determination consistent with the requirements of Section 409A, to the extent applicable; provided, that unless otherwise
determined by the Administrator, if the Stock is admitted to trading on an established securities exchange, "fair market value" shall be the closing price of a share of Stock on the date
with respect to which fair market value is being determined (or, if the Stock was not traded on such day, then the next preceding day on which the Stock was traded).

(11)   Certain Requirements of Corporate Law. Equity Awards shall be granted and administered consistent with the requirements of
applicable Nevada law relating to the issuance of stock and the consideration to be received therefor, and with the applicable requirements of the stock exchanges or other trading systems or
national market on which the Stock is listed or entered for trading, in each case as determined by the Administrator.

(b)   Awards Requiring Exercise. Equity Awards requiring exercise (including Stock Options and SARs) will be subject to the
provisions of this Section 6(b).

(1)   Time and Manner of Exercise. Unless the Administrator expressly provides otherwise, an Award requiring exercise by the holder
will not be deemed to have been exercised until the Administrator receives a notice of exercise (in form acceptable to the Administrator), which may be an electronic notice, signed (including
electronic signature in form acceptable to the Administrator) by the appropriate person and accompanied by any payment required under the Award. If the Award is exercised by any person other
than the Participant, the Administrator will require satisfactory evidence that the person exercising the Award has the right to do so.








(2)   Exercise Price. The exercise price (or the base value from which appreciation is to be measured) of each Award requiring
exercise shall be no less than 100% of the fair market value of the Stock (as provided in Section 6(a)(10)) subject to the Award, determined as of the date of grant, or such higher amount as the
Administrator may determine in connection with the grant.

(3)   Payment of Exercise Price. Where the exercise of an Award is to be accompanied by payment, payment of the exercise price
shall be by cash or check acceptable to the Administrator, or, by such other legally permissible means, if any, as may be acceptable to the Administrator.

(4)   Maximum Term. Awards requiring exercise will have a maximum term not to exceed ten (10) years from the date of grant.

(c)   Cash Awards.

(1)   A Participant who is granted a Cash Award shall be entitled to a payment, if any, under the Award only if all conditions to payment have been
satisfied in accordance with the Plan and the terms of the Award. The Administrator will determine the actual payment, if any, under each Cash Award.

(2)   The Administrator shall determine the payment dates for Cash Awards under the Plan. Except as otherwise determined by the Administrator, no
payment shall be made under a Cash Award unless the Participant's Employment continues through the date such Cash Award is paid. Payments hereunder are intended to fall under the short-
term deferral exception to Section 409A and shall be construed and administered accordingly. Notwithstanding the foregoing, (i) if the documentation establishing the Cash Award provides a
specified and objectively determinable payment date or schedule that satisfies the requirements of Section 409A, payment under an Award may be made in accordance with such date or
schedule, and (ii) the Administrator may, but need not, permit a Participant to defer payment of a Cash Award beyond the date that the Award would otherwise be
payable, provided, that any such deferral shall be made in accordance with and subject to the applicable requirements of Section 409A.


	 	
7.
	
EFFECT OF CERTAIN TRANSACTIONS




(a)   Mergers, Etc. Except as otherwise provided in an Award, the Administrator shall, in its sole discretion,
determine the effect of a Covered Transaction on Awards, which determination may include, but is not limited to, the following actions:

(1)   Assumption or Substitution. If the Covered Transaction is one in which there is an acquiring or surviving entity, the Administrator
may provide for the assumption or continuation of some or all outstanding Awards or any portion thereof or for the grant of new awards in substitution therefor by the acquiror or survivor or an
affiliate of the acquiror or survivor.

(2)   Cash-Out of Awards. If the Covered Transaction is one in which holders of Stock will receive upon consummation a payment
(whether cash, non-cash or a combination of the foregoing), then subject to Section 7(a)(5) below the Administrator may provide for payment (a "cash-out"), with respect to some or all
Awards or any portion thereof, equal in the case of each affected Equity Award or portion thereof to the excess, if any, of (A) the fair market value of one share of Stock times the number of
shares of Stock subject to the Award or such portion, over (B) the aggregate exercise or purchase price, if any, under the Award or such portion (in the case of an SAR, the aggregate base value
above which appreciation is measured), in each case on such payment terms (which need not be the same as the terms of payment to holders of Stock) and other terms, and subject to such
conditions, as the Administrator determines; provided, that the Administrator shall not exercise its discretion under this Section 7(a)(2) with respect to an Award or portion thereof
providing for "nonqualified deferred compensation" subject to Section 409A in a manner that would constitute an extension or acceleration of, or other change in, payment terms if
such change would be inconsistent with the applicable requirements of Section 409A.


(3)   Acceleration of Certain Awards. If the Covered Transaction (whether or not there is an acquiring or surviving entity) is one in
which there is no assumption, continuation, substitution or cash-out, then subject to Section 7(a)(5) below, the Administrator may provide that each Equity Award requiring exercise will become
exercisable, in full or in part, and the delivery of any shares of Stock remaining deliverable under each outstanding Award of Stock Units (including Restricted Stock Units and Performance
Awards to the extent consisting of Stock









Units) will be accelerated in full or in part, in each case on a basis that gives the holder of the Award a reasonable opportunity, as determined by the
Administrator, following exercise of the Award or the delivery of the shares, as the case may be, to participate as a stockholder in the Covered Transaction; provided, that to the
extent acceleration pursuant to this Section 7(a)(3) of an Award subject to Section 409A would cause the Award to fail to satisfy the requirements of Section 409A, the Award shall not be
accelerated and the Administrator in lieu thereof shall take such steps as are necessary to ensure that payment of the Award is made in a medium other than Stock and on terms that as nearly
as possible, but taking into account adjustments required or permitted by this Section 7, replicate the prior terms of the Award.

(4)   Termination of Awards Upon Consummation of Covered Transaction. Each Award will terminate upon consummation of the
Covered Transaction, other than the following: (i) Awards assumed pursuant to Section 7(a)(1) above; (ii) Awards converted pursuant to the proviso in Section 7(a)(3) above into an ongoing right
to receive payment other than Stock; (iii) outstanding shares of Restricted Stock (which shall be treated in the same manner as other shares of Stock, subject to Section 7(a)(5) below); and (iv)
Cash Awards that by their terms, or as a result of action taken by the Administrator, continue following such Covered Transaction.

(5)   Additional Limitations. Any share of Stock and any cash or other property delivered pursuant to Section 7(a)(2) or Section
7(a)(3) above with respect to an Equity Award may, in the discretion of the Administrator, contain such restrictions, if any, as the Administrator deems appropriate to reflect any performance or
other vesting conditions to which the Award was subject and that did not lapse (and were not satisfied) in connection with the Covered Transaction. For purposes of the immediately preceding
sentence, a cash out under Section 7(a)(2) above or the acceleration of exercisability of an Award under Section 7(a)(3) above shall not, in and of itself, be treated as the lapsing (or satisfaction)
of a performance or other vesting condition. In the case of Restricted Stock that does not vest in connection with the Covered Transaction, the Administrator may require that any amounts
delivered, exchanged or otherwise paid in respect of such Stock in connection with the Covered Transaction be placed in escrow or otherwise made subject to such restrictions as the
Administrator deems appropriate to carry out the intent of the Plan.

(b)   Changes in and Distributions With Respect to Stock

(1)   Basic Adjustment Provisions. In the event of a stock dividend, stock split or combination of shares (including a reverse
stock split), recapitalization or other change in the Company's capital structure that constitutes an equity restructuring within the meaning of FASB ASC Topic 718, the Administrator shall make
appropriate adjustments to the maximum number of shares specified in Section 4(a) that may be delivered under the Plan and shall also make appropriate adjustments to the number and kind of
shares of stock or securities subject to Equity Awards then outstanding or subsequently granted, any exercise prices relating to Equity Awards and any other provision of Awards affected by such
change.

(2)   Certain Other Adjustments. The Administrator may also make adjustments of the type described in Section 7(b)(1) above to take
into account distributions to stockholders other than those provided for in Section 7(a) and 7(b)(1), or any other event, if the Administrator determines that adjustments are appropriate to avoid
distortion in the operation of the Plan and to preserve the value of Awards made hereunder, having due regard for the requirements of Section 409A, to the extent applicable.

(3)   Continuing Application of Plan Terms. References in the Plan to shares of Stock will be construed to include any stock or
securities resulting from an adjustment pursuant to this Section 7.


	 	
8.
	
LEGAL CONDITIONS ON DELIVERY OF STOCK




The Company will not be obligated to deliver any shares of Stock pursuant to the Plan or to remove any restriction from shares of Stock previously
delivered under the Plan until: (i) the Company is satisfied that all legal matters in connection with the issuance and delivery of such shares have been addressed and resolved; (ii) if the
outstanding Stock is at the time of delivery listed on any stock exchange or national market system, the shares to be delivered have been listed or authorized to be listed on such exchange or
system upon official notice of issuance; and (iii) all conditions of the Award have been satisfied or waived. The Company may require, as a condition to exercise of the Award or delivery of shares
of Stock under an Award, such representations or agreements as counsel for the Company may consider appropriate to avoid violation of such the Securities Act of 1933, as amended, or any








applicable state or non-U.S. securities law. Any Stock required to be issued to Participants under the Plan will be evidenced in such manner as the Administrator may deem appropriate, including
book-entry registration or delivery of stock certificates. In the event that the Administrator determines that stock certificates will be issued to Participants under the Plan, the Administrator may
require that certificates evidencing Stock issued under the Plan bear an appropriate legend reflecting any restriction on transfer applicable to such Stock, and the Company may hold the
certificates pending lapse of the applicable restrictions.


	 	
9.
	
AMENDMENT AND TERMINATION




The Administrator may at any time or times amend the Plan or any outstanding Award for any purpose which may at the time be permitted by law, and
may at any time terminate the Plan as to any future grants of Awards; provided, that except as otherwise expressly provided in the Plan, the Administrator may not, without the
Participant's consent, alter the terms of an Award so as to affect materially and adversely the Participant's rights under the Award, unless the Administrator expressly reserved the right to do so
at the time of the Award.


	 	
10.
	
OTHER COMPENSATION ARRANGEMENTS





The existence of the Plan or the grant of any Award will not in any way affect the Company's right to award a person bonuses or other compensation in addition to Awards under the Plan.


	 	
11.
	
MISCELLANEOUS




(a)   Waiver of Jury Trial. By accepting an Award under the Plan, each Participant waives any right to a trial by jury
in any action, proceeding or counterclaim concerning any rights under the Plan and any Award, or under any amendment, waiver, consent, instrument, document or other agreement delivered or
which in the future may be delivered in connection therewith, and agrees that any such action, proceedings or counterclaim shall be tried before a court and not before a jury. By accepting an
Award under the Plan, each Participant certifies that no officer, representative, or attorney of the Company has represented, expressly or otherwise, that the Company would not, in the event of
any action, proceeding or counterclaim, seek to enforce the foregoing waivers. Notwithstanding anything to the contrary in the Plan, nothing herein is to be construed as limiting the ability of the
Company and a Participant to agree to submit disputes arising under the terms of the Plan or any Award made hereunder to binding arbitration or as limiting the ability of the Company to require
any eligible individual to agree to submit such disputes to binding arbitration as a condition of receiving an Award hereunder.

(b)   Limitation of Liability. Notwithstanding anything to the contrary in the Plan, neither the Company, nor any Affiliate, nor the
Administrator, nor any person acting on behalf of the Company, any Affiliate, or the Administrator, shall be liable to any Participant or to the estate or beneficiary of any Participant or to any other
holder of an Award by reason of any acceleration of income, or any additional tax (including any interest and penalties), asserted by reason of the failure of an Award to satisfy the requirements
of Section 409A or by reason of Section 4999 of the Code, or otherwise asserted with respect to the Award; provided, that nothing in this Section 11(b) shall limit the ability of the
Administrator or the Company, in its discretion, to provide by separate express written agreement with a Participant for a gross-up payment or other payment in connection with any such
acceleration of income or additional tax.


	 	
12.
	
ESTABLISHMENT OF SUB-PLANS




The Board may from time to time establish one or more sub-plans under the Plan for purposes of satisfying applicable blue sky, securities or tax laws of
various jurisdictions. The Board will establish such sub-plans by adopting supplements to the Plan setting forth (a) such limitations on the Administrator's discretion under the Plan as the Board
deems necessary or desirable and (b) such additional terms and conditions not otherwise inconsistent with the Plan as the Board deems necessary or desirable. All supplements established by
the Board will be deemed to be part of the Plan, but each supplement will apply only to Participants within the affected jurisdiction (as determined by the Administrator) and the Company will not
be required to provide copies of any supplement to Participants in any jurisdiction that is not affected.






	 	
13.
	
GOVERNING LAW





(a)   In general. Except as otherwise provided by the express terms of an Award agreement or under a sub-
plan described in Section 12 or as provided in Section 6(a)(11), the provisions of the Plan and of Awards under the Plan and all claims or disputes arising out of our based upon the Plan or any
Award under the Plan or relating to the subject matter hereof or thereof will be governed by and construed in accordance with Chapter 78 of the Nevada Revised Statutes as to matters within the
scope thereof, and as to all other matters shall be governed by and construed in accordance with the domestic substantive laws of the State of Nevada without giving effect to any choice or
conflict of laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction.


(b)   Jurisdiction. By accepting an Award, each Participant will be deemed to have: (a) submitted irrevocably and
unconditionally to the jurisdiction of the federal and state courts located within the geographic boundaries of the United States District Court for the Southern District of New York for the purpose
of any suit, action or other proceeding arising out of or based upon the Plan or any Award; (b) agreed not to commence any suit, action or other proceeding arising out of or based upon the Plan
or an Award, except in the federal and state courts located within the geographic boundaries of the United States District Court for the Southern District of New York; and (c) waived, and agreed
not to assert, by way of motion as a defense or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts that its
property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or
that the Plan or an Award or the subject matter thereof may not be enforced in or by such court.








EXHIBIT A

   

Definition of Terms

The following terms, when used in the Plan, will have the meanings and be subject to the provisions set forth below:

"Administrator": The Compensation Committee, except that the Compensation Committee may delegate (i) to one or more of its members (or
one or more other members of the Board, including the full Board) such of its duties, powers and responsibilities as it may determine; (ii) to one or more officers of the Company the power to
grant Awards to the extent permitted by the Nevada Corporations Code; and (iii) to such Employees or other persons as it determines such ministerial tasks as it deems appropriate. In the event
of any delegation described in the preceding sentence, the term "Administrator" will include the person or persons so delegated to the extent of such delegation. To the extent
necessary to comply with Rule 16b-3 of the Exchange Act, then the Compensation Committee shall take all action with respect to such Awards, and the individuals taking such action shall
consist solely of two or more non-Employee directors, each of whom is intended to qualify as a "non-employee director" as defined by Rule 16b-3 of the Exchange Act. Additionally, to
the extent required by applicable law, each of the individuals constituting the Compensation Committee shall be an "independent director" under the rules of any securities exchange
or automated quotation system on which the Shares are listed, quoted or traded. Notwithstanding the foregoing, grants of Awards must be approved by the Compensation Committee or a
majority of the Company's independent directors (as defined in Rule 5605(a)(2) of the Nasdaq Listing Rules).

"Affiliate": Any corporation or other entity that stands in a relationship to the Company that would result in the Company and such corporation or
other entity being treated as one employer under Section 414(b) and Section 414(c) of the Code.

"Award": Any or a combination of the following:

(i) Stock Options.

(ii) SARs.

(iii) Restricted Stock.

(iv) Unrestricted Stock.

(v) Stock Units, including Restricted Stock Units.

(vi) Performance Awards.

(vii) Cash Awards.

(viii) Awards (other than Awards described in (i) through (vii) above) that are convertible into or otherwise based on Stock)


"Board": The Board of Directors of the Company.

"Cash Award": An Award denominated in cash.

"Cause": In the case of any Participant who is party to an employment or severance- benefit agreement that contains a definition of "Cause," the
definition set forth in such agreement will apply with respect to such Participant under the Plan. In the case of any other Participant, "Cause" will mean (i) a willful failure of the
Participant to perform the Participant's duties and responsibilities to the Company or subsidiaries or gross negligence in the performance of such duties and responsibilities; (ii) the commission
by the Participant of a felony or a crime involving moral turpitude; (iii) the commission by the Participant of theft, fraud, embezzlement, material breach of trust or any material act of dishonesty
involving the Company or any of its subsidiaries; (iv) a significant violation by the Participant of the code of conduct of the Company or its subsidiaries or of any statutory or common law duty of
loyalty to the Company or its subsidiaries; (v) material breach of any of the terms of the Plan or any Award made under the Plan, or of the terms of any other agreement between the Company or
subsidiaries and the Participant; or (vi) other misconduct by the Participant that could be expected to be harmful to the business, interests or reputation of the Company.

"Code": The U.S. Internal Revenue Code of 1986 as from time to time amended and in effect, or any successor statute as from time to time in effect.

"Compensation Committee": The Compensation Committee of the Board.

"Company": Seelos Therapeutics, Inc.

"Covered Transaction": Any of (i) a consolidation, merger, or similar transaction or series of related transactions, including a sale or other disposition of stock, in
which the Company is not the surviving corporation or which results in the acquisition of all or substantially all of the Company's then outstanding common stock by a single person or entity or by
a group of persons and/or entities acting in concert, (ii) a sale or transfer of all or substantially all the Company's assets, or (iii) a dissolution or liquidation of the Company. Where a Covered
Transaction involves a tender offer that is reasonably expected to be followed by a merger described in clause (i) (as determined by the Administrator), the Covered Transaction shall be deemed
to have occurred upon consummation of the tender offer.

"Employee": Any person who is employed by the Company or an Affiliate.







"Employment": A Participant's employment or other service relationship with the Company and its Affiliates. Employment will be deemed to continue, unless the
Administrator expressly provides otherwise, so long as the Participant is employed by, or otherwise is providing services in a capacity described in Section 5 to the Company or its Affiliates. If a
Participant's employment or other service relationship is with an Affiliate and that entity ceases to be an Affiliate, the Participant's Employment will be deemed to have terminated when the entity
ceases to be an Affiliate unless the Participant transfers Employment to the Company or its remaining Affiliates. Notwithstanding the foregoing and the definition of "Affiliate" above, in
construing the provisions of any Award relating to the payment of "nonqualified deferred compensation" (subject to Section 409A) upon a termination or cessation of Employment,
references to termination or cessation of employment, separation from service, retirement or similar or correlative terms shall be construed to require a "separation from service" (as
that term is defined in Section 1.409A-1(h) of the Treasury Regulations) from the Company and from all other corporations and trades or businesses, if any, that would be treated as a single
"service recipient" with the Company under Section 1.409A-1(h)(3) of the Treasury Regulations. The Company may, but need not, elect in writing, subject to the applicable limitations
under Section 409A, any of the special elective rules prescribed in Section 1.409A-1(h) of the Treasury Regulations for purposes of determining whether a "separation from service"
has occurred. Any such written election shall be deemed a part of the Plan.

"Equity Award": Awards other than Cash Awards.

"Exchange Act": The Securities Exchange Act of 1934, as amended.

"Participant": A person who is granted an Award under the Plan.

"Performance Award": An Award subject to Performance Criteria.

"Performance Criteria": For a performance period, specified criteria, other than the mere continuation of Employment or the mere passage of time, the satisfaction
of which is a condition for the grant, exercisability, vesting or full enjoyment of an Award. A Performance Criterion will mean a measure of performance relating to any or any combination of
performance criteria, including, without limitation, the following (measured either absolutely or by reference to an index or indices and determined either on a consolidated basis or, as the context
permits, on a divisional, subsidiary, line of business, project or geographical basis or in combinations thereof): sales; revenues; assets; expenses; earnings before or after deduction for all or any
portion of interest, taxes, depreciation, or amortization, whether or not on a continuing operations or an aggregate or per share basis; return on equity, investment, capital or assets; one or more
operating ratios; borrowing levels, leverage ratios or credit rating; market share; capital expenditures; cash flow; stock price; stockholder return; sales of particular products or services; customer
acquisition or retention; acquisitions and divestitures (in whole or in part); joint ventures and strategic alliances; spin-offs, split-ups and the like; reorganizations; or recapitalizations,
restructurings, financings (issuance of debt or equity) or refinancings. A Performance Criterion and any targets with respect thereto determined by the Administrator need not be based upon an
increase, a positive or improved result or avoidance of loss. The Administrator may establish that in the case of any Award intended to qualify for such exception that one or more of the
Performance Criteria applicable to such Award will be adjusted in an objectively determinable manner to reflect events (for example, the impact of charges for restructurings, discontinued
operations, mergers, acquisitions, extraordinary items, and other unusual or non-recurring items, and the cumulative effects of tax or accounting changes, each as defined by U.S. generally
accepted accounting principles) occurring during the performance period that affect the applicable Performance Criterion or Criteria.

"Plan": The Seelos Therapeutics, Inc. 2019 Inducement Plan as from time to time amended and in effect.

"Restricted Stock": Stock subject to restrictions requiring that it be redelivered or offered for sale to the Company if specified conditions are not satisfied.

"Restricted Stock Unit": A Stock Unit that is, or as to which the delivery of Stock or cash in lieu of Stock is, subject to the satisfaction of specified performance or
other vesting conditions.

"SAR": A right entitling the holder upon exercise to receive an amount (payable in cash or in shares of Stock of equivalent value) equal to the excess of the fair
market value (as defined in Section 6(b)) of the shares of Stock subject to the right over the base value from which appreciation under the SAR is to be measured.

"Section 409A": Section 409A of the Code.

"Stock": Common stock of the Company, par value $0.001 per share.

"Stock Option": An option entitling the holder to acquire shares of Stock upon payment of the exercise price.

"Stock Unit": An unfunded and unsecured promise, denominated in shares of Stock or cash, to deliver Stock or cash in the future.

"Unrestricted Stock": Stock not subject to any restrictions under the terms of the Award.