Document:

Exhibit 10.2

 

Execution Version

 

 

REGISTRATION
RIGHTS AGREEMENT

 

This Registration
Rights Agreement (this “Agreement”) is made and entered into as of September 1, 2020 by and among
Entasis Therapeutics Holdings Inc., a Delaware corporation (the “Company”), and the “Investors”
named in the Securities Purchase Agreement, dated August 27, 2020, by and among the Company and the Investors identified on
Exhibit A attached thereto (the “Purchase Agreement”). Capitalized terms used herein have the respective
meanings ascribed thereto in the Purchase Agreement unless otherwise defined herein.

 

The parties hereby agree as follows:

 

1.            Certain
Definitions.

 

As used in this Agreement, the following
terms shall have the following meanings:

 

“Closing Date” has the
meaning ascribed to it in the Purchase Agreement.

 

“Closing Securities”
has the meaning ascribed to it in the Purchase Agreement.

 

“Investors” means the
Investors identified in the Purchase Agreement and any Affiliate or permitted transferee of any such Investor who is a subsequent
holder of Registrable Securities.

 

“Prospectus” means (i) the
prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and by all other amendments
and supplements to the prospectus, including post-effective amendments and all material incorporated by reference in such prospectus,
and (ii) any “free writing prospectus” as defined in Rule 405 under the 1933 Act.

 

“Register,” “registered”
and “registration” refer to a registration made by preparing and filing a Registration Statement or similar
document in compliance with the 1933 Act, and the declaration or ordering of effectiveness of such Registration Statement or document.

 

“Registrable Securities”
means (i) the Shares and Warrant Shares (ii) any other shares of Common Stock issued as a dividend or other distribution
with respect to, in exchange for or in replacement of the Shares or Warrant Shares, (iii) the Warrants and (iv) any options,
warrants or other rights to acquire, and any securities received as a dividend or distribution in respect of, any of the securities
described in clauses (i), (ii) and (iii) above; provided, however, that any such Registrable Securities
shall cease to be Registrable Securities (and the Company shall not be required to maintain the effectiveness of any, or file another,
Registration Statement hereunder with respect thereto) upon the first to occur of (A) a Registration Statement with respect
to the sale of such Registrable Securities being declared effective by the SEC under the 1933 Act and such Registrable Securities
having been disposed of or transferred by the holder thereof in accordance with such effective Registration Statement, (B) such
Registrable Securities having been previously sold or transferred in accordance with Rule 144 (or another exemption from the
registration requirements of the 1933 Act) and (C) such securities becoming eligible for resale without volume or manner-of-sale
restrictions and without current public information requirements pursuant to Rule 144.

 

    

     

    

 

“Registration Statement”
means any registration statement of the Company under the 1933 Act that covers the resale of any of the Registrable Securities
pursuant to the provisions of this Agreement, amendments and supplements to such Registration Statement, including post-effective
amendments, all exhibits and all material incorporated by reference in such Registration Statement.

 

“SEC” means the U.S.
Securities and Exchange Commission.

 

“SEC
Guidance” means (i) any publicly-available written or oral guidance of the SEC staff, or any comments, requirements
or requests of the SEC staff and (ii) the 1933 Act.

 

“Shares” means the shares
of Common Stock purchased by the Investors pursuant to the Purchase Agreement.

 

“Warrant Shares” has
the meaning ascribed to it in the Purchase Agreement.

 

2.            Registration.

 

(a)  Registration Statements.

 

(i)  Promptly following the Closing
Date but no later than forty-five (45) calendar days after the Closing Date (the “Filing Deadline”), the Company
shall prepare and file with the SEC one Registration Statement covering the resale of all of the Registrable Securities. Subject
to any SEC comments, such Registration Statement shall include the plan of distribution, substantially in the form and substance,
set forth in Part III of each Investor’s Selling Stockholder Questionnaire. Such Registration Statement also shall cover,
to the extent allowable under the 1933 Act and the rules promulgated thereunder (including Rule 416), such indeterminate
number of additional shares of Common Stock resulting from stock splits, stock dividends or similar transactions with respect to
the Registrable Securities. The Company will, (A) at least three (3) Business Days prior to the anticipated filing of
a Registration Statement or any related Prospectus or any amendment or supplement thereto (including any documents incorporated
by reference therein), furnish to the Investors and their respective counsel copies of all such documents proposed to be filed
and make such representatives of the Company as shall be reasonably requested by the Investors available for discussion of such
documents, (B) use its reasonable best efforts to address in each such document prior to being so filed with the SEC such
comments as an Investor or its counsel reasonably shall propose within two (2) Business Days of receipt of such copies by
the Investors and (C) not file any Registration Statement or any related Prospectus or any amendment or supplement thereto
containing information regarding an Investor to which such Investor objects, unless such information is required to comply with
any applicable law or regulation. If a Registration Statement covering the Registrable Securities is not filed with the SEC on
or prior to the fifth Business Day following the Filing Deadline, the Company will make pro rata payments to each Investor, as
liquidated damages and not as a penalty, in an amount equal to 1% of the aggregate amount paid pursuant to the Purchase Agreement
by such Investor for such Registrable Securities then held by such Investor for each 30-day period or pro rata for any portion
thereof following the Filing Deadline for which no Registration Statement is filed with respect to the Registrable Securities.
Such payments shall constitute the Investors’ exclusive monetary remedy for such events, but shall not affect the right of
the Investors to seek injunctive relief. Such payments shall be made to each Investor in cash no later than five (5) Business
Days after the end of each 30-day period (the “Payment Date”). Interest shall accrue at the rate of 1% per month
on any such liquidated damages payments that shall not be paid by the Payment Date until such amount is paid in full. Notwithstanding
the foregoing, the Company will not be liable for any liquidated damages under this Section 2(a)(i) with respect to any
Warrant Shares prior to their issuance.

 

    

     

    

 

(ii)  The Company shall take reasonable
best efforts to register the Registrable Securities on Form S-3 following the date such form is available for use by the Company,
provided that if at such time the Registration Statement is on Form S-1, the Company shall maintain the effectiveness of the
Registration Statement then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities
has been declared effective by the SEC.

 

(b)  Expenses. The Company will
pay all expenses associated with each Registration Statement, including filing and printing fees, the Company’s counsel and
accounting fees and expenses, costs associated with clearing the Registrable Securities for sale under applicable state securities
laws and listing fees, but excluding discounts, commissions, fees of underwriters, selling brokers, dealer managers or similar
securities industry professionals with respect to the Registrable Securities being sold. Except as provided in Section 6 hereof,
the Company shall not be responsible for legal fees incurred by holders of Registrable Securities in connection with the performance
of its rights and obligations under the Transaction Documents.

 

(c)  Effectiveness.

 

(i)  The Company shall use reasonable
best efforts to have the Registration Statements declared effective as soon as practicable. The Company shall notify the Investors
by e-mail as promptly as practicable, and in any event, within forty-eight (48) hours, after any Registration Statement is
declared effective and shall simultaneously provide the Investors with access to a copy of any related Prospectus to be used in
connection with the sale or other disposition of the securities covered thereby. Subject to Section 2(d), if (A) a Registration
Statement covering the Registrable Securities is not declared effective by the SEC prior to the earlier of (x) ten (10) Business
Days after the SEC informs the Company that no review of such Registration Statement will be made or that the SEC has no further
comments on such Registration Statement and (y) the 90th day after the Closing Date (or the 120th day if the SEC reviews such
Registration Statement) (the “Effectiveness Deadline”), or (B) after a Registration Statement has been
declared effective by the SEC, sales cannot be made pursuant to such Registration Statement for any reason (including without limitation
by reason of a stop order, or the Company’s failure to update such Registration Statement), but excluding any Allowed Delay
(as defined below) or, if the Registration Statement is on Form S-1, for a period of twenty (20) days following the date on
which the Company files a post-effective amendment to incorporate the Company’s Annual Report on Form 10-K (a “Maintenance
Failure”), then the Company will make pro rata payments to each Investor then holding Registrable Securities, as liquidated
damages and not as a penalty, in an amount equal to 1% of the aggregate amount paid pursuant to the Purchase Agreement by such
Investor for such Registrable Securities then held by such Investor for each 30-day period or pro rata for any portion thereof
following the date by which such Registration Statement should have been effective (the “Blackout Period”).
Such payments shall constitute the Investors’ exclusive monetary remedy for such events, but shall not affect the right of
the Investors to seek injunctive relief. The amounts payable as liquidated damages pursuant to this paragraph shall be paid no
later than five (5) Business Days after each such 30-day period following the commencement of the Blackout Period until the
termination of the Blackout Period (the “Blackout Period Payment Date”). Such payments shall be made to each
Investor in cash. Interest shall accrue at the rate of 1% per month on any such liquidated damages payments that shall not be paid
by the Blackout Payment Date until such amount is paid in full. Notwithstanding the foregoing, the Company will not be liable for
any liquidated damages under this Section 2(c)(i) with respect to any Warrant Shares prior to their issuance.

 

    

     

    

 

(ii)  Notwithstanding anything to the
contrary contained herein, the Company may, upon written notice to any holder of Registrable Securities included in a Registration
Statement, suspend the use of any Registration Statement, including any Prospectus that forms a part of a Registration Statement,
if the Company (A) determines that it would be required to make disclosure of nonpublic material information in the Registration
Statement that would otherwise not be required to be disclosed at that time that would be materially adverse to the Company, or
(B) the Company determines it must amend or supplement the Registration Statement or the related Prospectus so that such Registration
Statement or Prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in the case of the Prospectus in light of the circumstances under which
they were made, not misleading; provided, however, in no event shall holders of Registrable Securities be suspended
from selling Registrable Securities pursuant to the Registration Statement for a period that exceeds 30 consecutive Trading Days
or 60 total Trading Days in any 360-day period (any such suspension contemplated by this Section 2(c)(ii), an “Allowed
Delay”). Upon disclosure of such information or the termination of the condition described above, the Company shall provide
prompt notice to holders whose Registrable Securities are included in the Registration Statement, and shall promptly terminate
any suspension of sales it has put into effect and shall take such other reasonable actions to permit registered sales of Registrable
Securities as contemplated hereby.

 

(d)  Rule 415; Cutback. If
at any time the SEC takes the position that the offering of some or all of the Registrable Securities in a Registration Statement
is not eligible to be made on a delayed or continuous basis under the provisions of Rule 415 under the 1933 Act (provided,
however, the Company shall be obligated to use diligent efforts to advocate with the SEC for the registration of all of
the Registrable Securities in accordance with the SEC Guidance, including without limitation, Compliance and Disclosure Interpretation
612.09) or requires any Investor to be named as an “underwriter,” the Company shall (i) promptly notify each holder
of Registrable Securities thereof and (ii) make reasonable best efforts to persuade the SEC that the offering contemplated
by such Registration Statement is a valid secondary offering and not an offering “by or on behalf of the issuer” as
defined in Rule 415 and that none of the Investors is an “underwriter.” The Investors shall have the right to
select one legal counsel designated jointly by the Investors to review and oversee any registration or matters pursuant to this
Section 2(d), including participation in any meetings or discussions with the SEC regarding the SEC’s position and to
comment on any written submission made to the SEC with respect thereto. No such written submission with respect to this matter
shall be made to the SEC to which the Investors’ counsel reasonably objects. In the event that, despite the Company’s
reasonable best efforts and compliance with the terms of this Section 2(d), the SEC refuses to alter its position, the Company
shall (A) remove from such Registration Statement such portion of the Registrable Securities (the “Cut Back Shares”)
and/or (B) agree to such restrictions and limitations on the registration and resale of the Registrable Securities as the
SEC may require to assure the Company’s compliance with the requirements of Rule 415 (collectively, the “SEC
Restrictions”); provided, however, that the Company shall not agree to name any Investor as an “underwriter”
in such Registration Statement without the prior written consent of such Investor. In the event of a cutback hereunder, the Company
shall give the Investor at least five (5) Business Days prior written notice along with the calculations as to such Investor’s
allotment. Any cutback imposed on the Investors pursuant to this Section 2(d) shall be allocated among the Investors
on a pro rata basis and shall be applied first to any of the Registrable Securities of such Investor as such Investor shall designate,
unless the SEC Restrictions otherwise require or provide or the Investors otherwise agree. No liquidated damages shall accrue as
to any Cut Back Shares until such date as the Company is able to effect the registration of such Cut Back Shares in accordance
with any SEC Restrictions applicable to such Cut Back Shares (such date, the “Restriction Termination Date”).
In furtherance of the foregoing, each Investor shall provide the Company with prompt written notice of its sale of substantially
all of the Registrable Securities under such Registration Statement such that the Company will be able to file one or more additional
Registration Statements covering the Cut Back Shares. From and after the Restriction Termination Date applicable to any Cut Back
Shares, all of the provisions of this Section 2 (including the Company’s obligations with respect to the filing of a
Registration Statement and its obligations to use reasonable best efforts to have such Registration Statement declared effective
within the time periods set forth herein and the liquidated damages provisions relating thereto) shall again be applicable to such
Cut Back Shares; provided, however, that (x) the Filing Deadline for such Registration Statement including such
Cut Back Shares shall be ten (10) Business Days after such Restriction Termination Date, and (y) the date by which the
Company is required to obtain effectiveness with respect to such Cut Back Shares shall be the 60th day immediately after the Restriction
Termination Date (or the 90th day if the SEC reviews such Registration Statement).

 

    

     

    

 

(e)  Other Limitations. Notwithstanding
any other provision herein or in the Purchase Agreement, (i) the Filing Deadline and each Effectiveness Deadline for a Registration
Statement shall be extended and any Maintenance Failure shall be automatically waived by no action of the Investors, in each case,
without default by or liquidated damages payable by the Company hereunder in the event that the Company’s failure to make
such filing or obtain such effectiveness or a Maintenance Failure results from the failure of an Investor to timely provide
the Company with information requested by the Company and necessary to complete a Registration Statement in accordance with the
requirements of the 1933 Act (in which case any such deadline would be extended, and a Maintenance Failure waived, with respect
to all Registrable Securities until such time as the Investor provides such requested information) and (ii) in no event shall
the aggregate amount of liquidated damages (or interest thereon) paid hereunder exceed, in the aggregate, 8% of the aggregate purchase
price of the Closing Securities purchased by the Investors under the Purchase Agreement.

 

3.            Company
Obligations. The Company will use reasonable best efforts to effect the registration of the Registrable Securities in accordance
with the terms hereof, and pursuant thereto the Company will, as expeditiously as possible:

 

(a)  use reasonable best efforts to cause
such Registration Statement to become effective and to remain continuously effective until such time as there are no longer Registrable
Securities held by the Investors (the “Effectiveness Period”) and advise the Investors promptly in writing when
the Effectiveness Period has expired;

 

(b)  prepare and file with the SEC such
amendments and post-effective amendments to such Registration Statement and the related Prospectus as may be necessary to keep
such Registration Statement effective for the Effectiveness Period and to comply with the provisions of the 1933 Act and the 1934
Act with respect to the distribution of all of the Registrable Securities covered thereby;

 

(c)  permit, upon request, any counsel
designated by an Investor to review each Registration Statement and all amendments and supplements thereto prior to their filing
with the SEC;

 

(d)  furnish to each Investor whose Registrable
Securities are included in any Registration Statement (i) promptly after the same is prepared and filed with the SEC, if requested
by the Investor, one (1) copy of any Registration Statement and any amendment thereto, each preliminary prospectus and Prospectus
and each amendment or supplement thereto, and each letter written by or on behalf of the Company to the SEC or the staff of the
SEC, and each item of correspondence from the SEC or the staff of the SEC, in each case relating to such Registration Statement
(other than any portion of any thereof which contains information for which the Company has sought confidential treatment), and
(ii) such number of copies of a Prospectus, including a preliminary prospectus, and all amendments and supplements thereto
and such other documents as each Investor may reasonably request in order to facilitate the disposition of the Registrable Securities
owned by such Investor (it being understood and agreed that such documents, or access thereto, may be provided electronically);

 

(e)  use reasonable best efforts to (i) prevent
the issuance of any stop order or other suspension of effectiveness and, (ii) if such order is issued, obtain the withdrawal
of any such order at the earliest possible moment;

 

(f)  prior to any public offering of
Registrable Securities, use reasonable best efforts to assist or cooperate with the Investors and their counsel in connection with
their registration or qualification of such Registrable Securities for the offer and sale under the securities or blue sky laws
of such jurisdictions reasonably requested by the Investors; provided, however, that the Company shall not be required
in connection therewith or as a condition thereto to (i) qualify to do business in any jurisdiction where it would not otherwise
be required to qualify but for this Section 3(f), (ii) subject itself to general taxation in any jurisdiction where it
would not otherwise be so subject but for this Section 3(f), or (iii) file a general consent to service of process in
any such jurisdiction;

 

(g)  use reasonable best efforts to cause
all Registrable Securities covered by a Registration Statement to be listed on the Nasdaq Global Market (or the primary securities
exchange, interdealer quotation system or other market on which the Common Stock then listed);

 

    

     

    

 

(h)  promptly notify the Investors, at
any time prior to the end of the Effectiveness Period, upon discovery that, or upon the happening of any event as a result of which,
the Prospectus includes an untrue statement of a material fact or omits to state any material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the circumstances then existing, and promptly prepare, file
with the SEC and furnish to such holder a supplement to or an amendment of such Prospectus as may be necessary so that such Prospectus
shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading in light of the circumstances then existing;

 

(i)  otherwise use reasonable best efforts
to comply with all applicable rules and regulations of the SEC under the 1933 Act and the 1934 Act, including, without limitation,
Rule 172 under the 1933 Act, file any final Prospectus, including any supplement or amendment thereof, with the SEC pursuant
to Rule 424 under the 1933 Act, promptly inform the Investors in writing if, at any time during the Effectiveness Period,
the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof, the Investors are required to
deliver a Prospectus in connection with any disposition of Registrable Securities and take such other actions as may be reasonably
necessary to facilitate the registration of the Registrable Securities hereunder;

 

(j)  with a view to making available
to the Investors the benefits of Rule 144 (or its successor rule) and any other rule or regulation of the SEC that may
at any time permit the Investors to sell shares of Common Stock to the public without registration, the Company covenants and agrees
to: (i) make and keep public information available, as those terms are understood and defined in Rule 144, until the
earlier of (A) six months after such date as all of the Registrable Securities may be sold without restriction by the holders
thereof pursuant to Rule 144 or any other rule of similar effect or (B) such date as there are no longer Registrable
Securities; (ii) file with the SEC in a timely manner all reports and other documents required of the Company under the 1934
Act; and (iii) furnish electronically to each Investor upon request, as long as such Investor owns any Registrable Securities,
(A) a written statement by the Company that it has complied with the reporting requirements of the 1934 Act, (B) a copy
of or electronic access to the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q,
and (C) such other information as may be reasonably requested in order to avail such Investor of any rule or regulation
of the SEC that permits the selling of any such Registrable Securities without registration; and

 

(k)  if
requested by an Investor, cooperate with such Investor to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to an effective Registration Statement, which certificates shall
be free, to the extent permitted by the Purchase Agreement and applicable law, of all restrictive legends, and to enable such certificates
to be in such denominations and registered in such names as any such Investor may request.

 

    

     

    

 

4.            Due
Diligence Review; Information. If any Investor is required under applicable securities laws to be described in a Registration
Statement as an “underwriter,” the Company shall, upon reasonable prior notice, make available, during normal business
hours, for inspection and review by the Investors, advisors to and representatives of the Investors (who may or may not be affiliated
with the Investors and who are reasonably acceptable to the Company) (collectively, the “Inspectors”), all pertinent
financial and other records, and all other corporate documents and properties of the Company (collectively, the “Records”)
as may be reasonably necessary for the purpose of such review, and cause the Company’s officers, directors and employees,
within a reasonable time period, to supply all such information reasonably requested by the Inspectors (including, without limitation,
in response to all questions and other inquiries reasonably made or submitted by any of them), prior to and from time to time after
the filing and effectiveness of such Registration Statement for the sole purpose of enabling such Investor and its accountants
and attorneys to conduct such due diligence solely for the purpose of establishing a due diligence defense to underwriter liability
under the 1933 Act; provided, however, that each Inspector shall agree to hold in strict confidence and shall not
make any disclosure (except to such Investor) or use of any Record or other information which the Company determines in good faith
to be confidential, and of which determination the Inspectors are so notified, unless (a) the disclosure of such Records is
necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under the 1933
Act, (b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government
body of competent jurisdiction, or (c) the information in such Records has been made generally available to the public other
than by disclosure in violation of this Agreement or the Purchase Agreement. Each Investor agrees that it shall, upon learning
that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through other means,
give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure
of, or to obtain a protective order for, the Records deemed confidential. Nothing herein (or in any other confidentiality agreement
between the Company and any Investor) shall be deemed to limit the Investors’ ability to sell Registrable Securities in a
manner which is otherwise consistent with applicable laws and regulations.

 

Notwithstanding the foregoing, the Company
shall not disclose material nonpublic information to the Investors, or to advisors to or representatives of the Investors, unless
prior to disclosure of such information the Company identifies such information as being material nonpublic information and provides
the Investors, such advisors and representatives with the opportunity to accept or refuse to accept such material nonpublic information
for review and any Investor wishing to obtain such information enters into an appropriate confidentiality agreement with the Company
with respect thereto.

 

5.            Obligations
of the Investors.

 

(a)  Each Investor shall execute and
deliver a Selling Stockholder Questionnaire prior to the Closing Date. Each Investor shall additionally furnish in writing to the
Company such other information regarding itself, the Registrable Securities held by it and the intended method of disposition of
the Registrable Securities held by it, as shall be reasonably required to effect the registration of such Registrable Securities
and shall execute such documents in connection with such registration as the Company may reasonably request. At least five (5) Business
Days prior to the first anticipated filing date of any Registration Statement, the Company shall notify each Investor of the additional
information the Company requires from such Investor if such Investor elects to have any of the Registrable Securities included
in such Registration Statement (the “Registration Information Notice”). An Investor shall provide such information
to the Company no later than two (2) Business Days following receipt of a Registration Information Notice if such Investor
elects to have any of the Registrable Securities included in such Registration Statement. It is agreed and understood that it shall
be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect
to the Registrable Securities of a particular Investor that (i) such Investor furnish to the Company such information regarding
itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as
shall be reasonably required to effect the effectiveness of the registration of such Registrable Securities, and (ii) the
Investor execute such documents in connection with such registration as the Company may reasonably request, including, without
limitation, a waiver of its registration rights hereunder to the extent an Investor elects not to have any of its Registrable Securities
included in a Registration Statement.

 

    

     

    

 

(b)  Each Investor, by its acceptance
of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company in connection with the
preparation and filing of a Registration Statement hereunder, unless such Investor has notified the Company in writing of its election
to exclude all of its Registrable Securities from such Registration Statement.

 

(c)  Each Investor agrees that, upon
receipt of any notice from the Company of either (i) the commencement of an Allowed Delay pursuant to Section 2(c)(ii) or
(ii) the happening of an event pursuant to Section 3(h) hereof, such Investor will immediately discontinue disposition
of Registrable Securities pursuant to any Registration Statement covering such Registrable Securities, until the Investor is advised
by the Company that such dispositions may again be made.

 

(d)  Each Investor covenants and agrees
that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to it or an exemption therefrom in
connection with sales of Registrable Securities pursuant to any Registration Statement.

 

6.            Indemnification.

 

(a)  Indemnification by the Company.
The Company will indemnify and hold harmless each Investor and its Affiliates and their respective officers, directors, members,
employees and agents, successors and assigns, against any losses, claims, costs (including reasonable costs of preparation and
reasonable attorneys’, accountants’ and experts’ fees), expenses, judgements, fines, damages or liabilities,
joint or several, interest, settlements or any other amounts to which they may become subject under the 1933 Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of, result from, relate to, or
are based upon (i) any untrue statement or alleged untrue statement or omission or alleged omission of any material fact contained
in any Registration Statement, any preliminary Prospectus or final Prospectus, or any amendment or supplement thereof or (ii) any
violation or alleged violation by the Company or any of its Subsidiaries of the 1933 Act, the 1934 Act, any state securities law
or any rule or regulation promulgated under the 1933 Act, the 1934 Act or any federal, state, foreign or common law rule or
regulation in connection with such Registration Statement, disclosure document or related document or report or any offering covered
by such Registration Statement; provided, however, that the Company will not be liable in any such case if and to
the extent that any such loss, claim, damage or liability arises out of or is based upon (i) an untrue statement or alleged
untrue statement or omission or alleged omission so made in conformity with information furnished by such Investor or any such
controlling person in writing specifically for use in such Registration Statement or Prospectus, (ii) the use by an Investor
of an outdated or defective Prospectus after the Company has notified such Investor in writing that such Prospectus is outdated
or defective or (iii) an Investor’s failure to send or give a copy of the Prospectus or supplement (as then amended
or supplemented), if required (and not exempted) to the Persons asserting an untrue statement or omission or alleged untrue statement
or omission at or prior to the written confirmation of the sale of Registrable Securities.

 

    

     

    

 

(b)  Indemnification by the Investors.
Each Investor agrees, severally but not jointly, to indemnify and hold harmless, to the fullest extent permitted by law, the Company,
its directors, officers, employees, stockholders and each person who controls the Company (within the meaning of the 1933 Act)
against any losses, claims, damages, liabilities and expense (including reasonable attorney fees) resulting from any untrue statement
of a material fact or any omission of a material fact required to be stated in any Registration Statement or Prospectus or preliminary
Prospectus or amendment or supplement thereto or necessary to make the statements therein not misleading, to the extent, but only
to the extent, that such untrue statement or omission is contained in any information regarding such Investor and furnished in
writing by such Investor to the Company specifically for inclusion in such Registration Statement or Prospectus or amendment or
supplement thereto. In no event shall the liability of an Investor be greater than the dollar amount of the proceeds received by
such Investor upon the sale of the Registrable Securities included in such Registration Statement giving rise to such indemnification
obligation.

 

(c)  Conduct of Indemnification Proceedings.
Any person entitled to indemnification hereunder shall (i) give prompt notice to the indemnifying party of any claim with
respect to which it seeks indemnification and (ii) permit such indemnifying party to assume the defense of such claim with
counsel reasonably satisfactory to the indemnified party; provided, that any person entitled to indemnification hereunder
shall have the right to employ separate counsel and to participate in the defense of such claim, but the fees and expenses of such
counsel shall be at the expense of such person unless (A) the indemnifying party has agreed to pay such fees or expenses,
(B) the indemnifying party shall have failed to assume the defense of such claim and employ counsel reasonably satisfactory
to such person or (C) in the reasonable judgment of any such person, based upon written advice of its counsel, a conflict
of interest exists between such person and the indemnifying party with respect to such claims (in which case, if the person notifies
the indemnifying party in writing that such person elects to employ separate counsel at the expense of the indemnifying party,
the indemnifying party shall not have the right to assume the defense of such claim on behalf of such person); and provided,
further that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party
of its obligations hereunder, except to the extent that such failure to give notice shall materially adversely affect the indemnifying
party in the defense of any such claim or litigation. It is understood that the indemnifying party shall not, in connection with
any proceeding in the same jurisdiction, be liable for fees or expenses of more than one separate firm of attorneys at any time
for all such indemnified parties. No indemnifying party will, except with the consent of the indemnified party, which shall not
be unreasonably withheld or conditioned, consent to entry of any judgment or enter into any settlement that does not include as
an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability
in respect of such claim or litigation.

 

    

     

    

 

(d)  Contribution. If for any
reason the indemnification provided for in the preceding paragraphs (a) and (b) is unavailable to an indemnified party
or insufficient to hold it harmless, other than as expressly specified therein, then the indemnifying party shall contribute to
the amount paid or payable by the indemnified party as a result of such loss, claim, damage or liability in such proportion as
is appropriate to reflect the relative fault of the indemnified party and the indemnifying party, as well as any other relevant
equitable considerations. No person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the
1933 Act shall be entitled to contribution from any person not guilty of such fraudulent misrepresentation. In no event shall the
contribution obligation of a holder of Registrable Securities be greater in amount than the dollar amount of the proceeds received
by it upon the sale of the Registrable Securities giving rise to such contribution obligation.

 

7.            Miscellaneous.

 

(a)  Amendments and Waivers. This
Agreement may be amended only by a writing signed by the Company and each of the Investors. The Company may take any action herein
prohibited, or omit to perform any act herein required to be performed by it, only if the Company shall have obtained the written
consent to such amendment, action or omission to act, of each Investor.

 

(b)  Notices. All notices and
other communications provided for or permitted hereunder shall be made as set forth in Section 9.4 of the Purchase Agreement.

 

(c)  Assignments and Transfers by
Investors. The provisions of this Agreement shall be binding upon and inure to the benefit of the Investors and their respective
successors and assigns. An Investor may transfer or assign, in whole or from time to time in part, to one or more persons its rights
hereunder in connection with the transfer of Registrable Securities by such Investor to such person, provided that (i) the
Investor agrees in writing with the transferee or assignee to assign such rights and a copy of such agreement is furnished to the
Company within a reasonable time after such assignment; (ii) the Company is, within a reasonable time after such transfer
or assignment, furnished with written notice of (A) the name and address of such transferee or assignee and (B) the securities
with respect to which such registration rights are being transferred or assigned; (iii) immediately following such transfer
or assignment the further disposition of such securities by the transferee or assignee is restricted under the 1933 Act or applicable
state securities laws; (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of
this sentence the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained herein;
(v) such transfer shall have been made in accordance with the applicable requirements of the Purchase Agreement and (vi) unless
the transferee or assignee is an Affiliate of, and after such transfer or assignment continues to be an Affiliate of, such Investor,
the amount of Registrable Securities transferred or assigned to such transferee or assignee represents at least $5.0 million of
Registrable Securities (based on the then-current market price of the Common Stock).

 

    

     

    

 

(d)  Assignments and Transfers by
the Company. This Agreement may not be assigned by the Company (whether by operation of law or otherwise) without the prior
written consent of each Investor, provided, however, that in the event that the Company is a party to a merger, consolidation,
share exchange or similar business combination transaction in which the Common Stock is converted into the equity securities of
another Person, from and after the effective time of such transaction, such Person shall, by virtue of such transaction, be deemed
to have assumed the obligations of the Company hereunder, the term “Company” shall be deemed to refer to such Person
and the term “Registrable Securities” shall be deemed to include the securities received by the Investors in connection
with such transaction unless such securities are otherwise freely tradable by the Investors after giving effect to such transaction.

 

(e)  Benefits of the Agreement.
The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective permitted successors
and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the
parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason
of this Agreement, except as expressly provided in this Agreement.

 

(f)  Counterparts. This Agreement
may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. This Agreement may also be executed via e-mail, which shall be deemed an original.

 

(g)  Titles and Subtitles. The
titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting
this Agreement.

 

(h)  Severability. Any provision
of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted as
if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereby waive any provision of law which renders any provisions hereof prohibited or unenforceable
in any respect.

 

(i)  Further Assurances. The parties
shall execute and deliver all such further instruments and documents and take all such other actions as may reasonably be required
to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained.

 

(j)  Entire Agreement. This Agreement
is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject matter contained herein. This Agreement supersedes
all prior agreements and understandings between the parties with respect to such subject matter.

 

    

     

    

 

(k)  Governing Law; Consent to Jurisdiction;
Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State
of New York without regard to the choice of law principles thereof (other than sections 5-1401 and 5-1402 of the General Obligations
Law). Each of the parties hereto irrevocably submits to the exclusive jurisdiction of the courts of the State of New York located
in New York County and the United States District Court for the Southern District of New York for the purpose of any suit, action,
proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby. Service of process
in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods
as are specified for the giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction
of any such court in any such suit, action or proceeding and to the laying of venue in such court. Each party hereto irrevocably
waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives
any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. EACH OF
THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS
THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

(l)  Filing Restrictions. The
Company will register the resale of Registrable Securities representing Cut Back Shares on an effective Registration Statement
prior to or concurrent with registering the resale of its securities by a selling security holder not holding Registrable Securities;
provided, however, that this Section 7(l) shall not apply to Registrable Securities representing Cut Back
Shares that were excluded from any such Registration Statement on account of the failure of a holder of such Registrable Securities
to comply with the provisions hereof, including, but not limited to, the requirement of a holder to provide information required
to be included in a Registration Statement.

 

(m)  Independent Nature of Investors’
Obligations and Rights. The obligations of each Investor hereunder are several and not joint with the obligations of any other
Investor hereunder, and no Investor shall be responsible in any way for the performance of the obligations of any other Holder
hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any
Investor pursuant hereto or thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture
or any other kind of group or entity, or create a presumption that the Holders are in any way acting in concert or as a group or
entity with respect to such obligations or the transactions contemplated by this Agreement or any other matters, and the Company
acknowledges that the Investors are not acting in concert or as a group, and the Company shall not assert any such claim, with
respect to such obligations or transactions. Each Investor shall be entitled to protect and enforce its rights, including without
limitation the rights arising out of this Agreement, and it shall not be necessary for any other Investor to be joined as an additional
party in any proceeding for such purpose. The use of a single agreement with respect to the obligations of the Company contained
was solely in the control of the Company, not the action or decision of any Investor, and was done solely for the convenience of
the Company and not because it was required or requested to do so by any Holder. It is expressly understood and agreed that each
provision contained in this Agreement is between the Company and an Investor, solely, and not between the Company and the Investors
collectively and not between and among Investors.

 

    

     

    

 

(n)  Registration Rights. The
Company covenants that it will not, and it will cause its Subsidiaries not to, grant any right of registration under the 1933 Act
to any Person other than pursuant to this Agreement, unless the rights so granted to another Person do not limit or restrict the
rights of the Investors hereunder.

 

(o)  Gross-Up.
For the avoidance of doubt, the amount of any liquidated damages or indemnification payments payable to an Investor pursuant to
this Agreement shall include a gross-up to take into account such Investor’s and its Affiliates’ equity ownership in
the Company such that, after payment of the grossed-up amount, the Investor has received the full value of such payment, taking
into account the value of its equity ownership in the Company.

 

(p)  No
Recourse. Notwithstanding anything that may be expressed or implied in this Agreement, each Party covenants, agrees and acknowledges
that no recourse under this Agreement or any documents or instruments delivered in connection with this Agreement shall be had
against any of the Company’s or an Investor’s former, current or future direct or indirect equity holders, controlling
persons, stockholders, directors, officers, employees, agents, Affiliates, members, financing sources, managers, general or limited
partners or assignees (each, a “Related Person” and collectively, the “Related Persons”),
in each case other than the Company, an Investor or any of their respective permitted assigns under this Agreement, whether by
the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any applicable law, it being expressly
agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise be incurred by any of
the Related Persons, as such, for any obligation or liability of the Company or an Investor under this Agreement or any documents
or instruments delivered in connection herewith for any claim based on, in respect of or by reason of such obligations or liabilities
or their creation; provided, however, nothing in this Section 7(o) shall relieve or otherwise limit the
liability of the Company or an Investor, as such, for any breach or violation of its obligations under this Agreement or such agreements,
documents or instruments. For the avoidance of doubt, none of the Parties will have any recourse, be entitled to commence any proceeding
or make any claim under this Agreement or in connection with the transactions contemplated hereby except against any of the Parties
or their respective successors and permitted assigns, as applicable.

 

[remainder of page intentionally left
blank]

 

    

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Agreement or caused their duly authorized officers to execute this Agreement as of the date first above written.

 

	COMPANY:	
        ENTASIS THERAPEUTICS HOLDINGS INC.

         

	 	By:	  /s/ Manoussos Perros, Ph.D.
	 	 	Name: Manoussos Perros, Ph.D.
	 	 	Title:   President and Chief Executive Officer

 

    

     

    

 

	INVESTOR:	ARMISTICE CAPITAL MASTER FUND LTD.
	 	 
	 	By:	    /s/ Steven Boyd
	 	 	Name: Steven Boyd
	 	 	Title:   CIO of Armistice Capital, LLC, the Investment Manager

 

    

     

    

 

	INVESTOR:	INNOVIVA, INC.
	 	 
	 	By:	    /s/ Pavel Raifeld
	 	 	Name: Pavel Raifeld
	 	 	Title:   Chief Executive OfficerExhibit 10.6

 

COMMODITY SUB-ADVISORY AGREEMENT

 

AGREEMENT dated as of the
day of , 2019, between Volatility Shares, LLC, a limited liability company with its principal place of business in New York (herein
called the “Sponsor”), and Csat Investment Advisory, L.P. d/b/a Exponential ETFs, a limited partnership with its principal
place of business in Michigan (herein called the “Commodity Sub-Adviser”) (the “Agreement”).

 

WHEREAS, the Sponsor is the
sponsor of VS Trust, a Delaware statutory trust (herein called the “Trust”), a trust that will issues publicly offered
shares in exchange-traded investment products;

 

WHEREAS, the Sponsor wishes
to retain the Commodity Sub-Adviser to assist the Sponsor in providing advisory services in connection with such series of the
Trust as now or hereafter may be identified on Exhibit B hereto as such schedule may be amended from time to time with the consent
of the parties hereto (each herein called a “Fund”); and

 

WHEREAS, the Commodity Sub-Adviser
is willing to provide such services to the Sponsor upon the terms and conditions and for the compensation set forth below.

 

NOW, THEREFORE, in consideration
of the premises and mutual covenants herein contained, and intending to be legally bound hereby, it is agreed between the parties
hereto as follows:

 

1. Appointment. Sponsor
hereby appoints Commodity Sub-Advisor to provide commodity sub-advisory services to each Fund in the management of the Fund’s
commodity investments for the period commencing on the Effective Date and Time (as defined in Section 13 below) and on the terms
set forth in this Agreement. Commodity Sub-Advisor accepts such appointment and agrees to furnish the services herein set forth
for the compensation herein provided.

 

2. Services to be Performed.
Subject always to the supervision of Sponsor, Commodity Sub-Advisor will furnish an investment program in respect of, make investment
decisions for, and place all orders for the purchase and sale of futures contracts, forward contracts, options on futures contracts
and other commodity interests (“Commodity Interests”), all on behalf of the Fund and as described in the Fund’s
effective registration statement (the “Registration Statement”), consistent with the investment objectives and
restrictions of the Fund described therein. In the performance of its duties, Commodity Sub-Advisor will satisfy its fiduciary
duties to the Fund, will select and monitor the Fund’s investments in Commodity Interests and will comply with the provisions
of the Fund’s Trust Agreement (the “Trust Agreement”) as filed with the Registration Statement, as the
Trust Agreement may be amended from time to time (to the extent Commodity Sub-Advisor has been notified in writing of such amendments
at least 90 days prior to effectiveness), and the Fund’s investment objectives, policies and restrictions as disclosed in
the Registration Statement, as such investment objectives, policies and restrictions may be amended from time to time (to the extent
Commodity Sub-Advisor has been notified in writing of such amendments at least 90 days prior to effectiveness). Sponsor will provide
Commodity Sub-Advisor with current copies of the Fund’s organizational documents, prospectus and any amendments thereto,
and any written objectives (as contained in the investment guidelines, if any), policies, procedures or limitations not appearing
therein as they may be relevant to Commodity Sub-Advisor’s performance under this Agreement, all of which will be binding
on Commodity Sub-Advisor upon receipt thereof from Sponsor at least 90 days prior to effectiveness. Commodity Sub-Advisor and Sponsor
will each make its officers and employees available to the other from time to time at reasonable times to review investment policies
of the Fund and to consult with each other regarding the investment affairs of the Fund. Commodity Sub-Advisor will report to Sponsor
with respect to Commodity Sub-Advisor’s services hereunder.

 

     

     

    

 

All commissions and expenses arising from the
trading of Commodity Interests, or other transactions in the course of the administration of the Fund’s account, shall be
charged to the Fund’s account with its clearing broker(s). If requested by Commodity Sub-Advisor, Sponsor shall deliver to
Commodity Sub-Advisor, and renew when necessary, a commodity trading authorization appointing Commodity Sub-Advisor as the Fund’s
agent and attorney-in-fact for the purpose of trading Commodity Interests on behalf of the Fund. All trades for the account of
the Fund directed by Commodity Sub-Advisor shall be made through such clearing broker or brokers as agreed between Sponsor and
Commodity Sub-Adviser (each, a “clearing broker”). Notwithstanding the foregoing, Commodity Sub-Advisor may
place orders for Commodity Interest transactions for the Fund through executing brokers or floor brokers selected by Commodity
Sub-Advisor and may execute on behalf of the Fund “give-up” agreements with such executing brokers or floor brokers
where necessary; provided that Commodity Sub-Advisor will provide Sponsor and the Fund on a quarterly basis with a list of the
executing brokers or floor brokers Commodity Sub-Advisor is then using, and Sponsor may, within 5 days of receiving such list after
consultation with Commodity Sub-Advisor, object to the use of an executing broker or floor broker because the Sponsor reasonably
believes the use of such executing broker or floor broker would be detrimental to the Fund and its investors, and Commodity Sub-Advisor
shall cease using such broker on behalf of the Fund. Any over-the-counter contracts in Commodity Interests transacted for the Fund’s
account will be effected through the clearing broker or its affiliates, as agreed upon between Commodity Sub-Advisor and Sponsor.
Commodity Sub-Advisor from time to time may select other dealers through which any such contracts will be traded, with the prior
written consent of Sponsor.

 

Commodity Sub-Advisor further agrees that it:

 

		(a)	will use the same degree of skill and care in providing
such services as it uses in providing services to fiduciary accounts for which it has investment responsibilities;

		 	 

		(b)	will conform to all applicable rules and regulations
of the United States Commodity Futures Trading Commission (the “CFTC”) in all material respects and in addition
will conduct its activities under this Agreement in accordance with any applicable regulations of any governmental or self-regulatory
authority pertaining to its commodity trading advisory activities;

 

    2

     

    

 

		(c)	will report regularly to Sponsor and will make appropriate
persons available for the purpose of reviewing with representatives of Sponsor on a regular basis the management of the Fund’s
Commodity Interests, including, without limitation, review of the general investment strategies of the Fund with respect to Commodity
Sub-Advisor’s management of the Fund’s Commodity Interests and the performance of the Fund’s Commodity Interests
in relation to standard industry indices and passively managed commodity index tracking funds and general conditions affecting
the marketplace, and will provide various other reports from time to time as reasonably requested by Sponsor;

		 	 

		(d)	will not, without the prior written approval of Sponsor,
materially deviate or change the Fund’s guidelines governing diversification, concentration and portfolio rebalancing of
the Fund’s investments in individual commodities and commodity groups;

		 	 

		(e)	will monitor the pricing of the Fund’s Commodity
Interests, and events relating to the commodity markets in which the Fund trades, and will notify Sponsor promptly of any market
events or other situations that come to its attention (particularly those that may occur after the close of a foreign market in
which the Fund’s Commodity Interests may primarily trade but before the time at which the Fund’s Commodity Interests
are priced on a given day) that may materially impact the pricing of one or more of the Fund’s Commodity Interests. In addition,
Commodity Sub-Advisor will assist Sponsor in evaluating the impact that such an event may have on the net asset value of the Fund
and in determining a recommended fair value of the affected asset or assets; and

 

		(f)	will prepare such books and records with respect to
the Fund’s Commodity Interests as reasonably requested by Sponsor and will furnish Sponsor such periodic and special reports
as Sponsor may reasonably request.

 

3. Preparation of Materials.
Commodity Sub-Advisor will cooperate with the Fund in the Fund’s endeavors to prepare and update, or cause to be prepared
and updated, if necessary, the Registration Statement and a prospectus and disclosure document included therein (the “Prospectus”),
promotional brochures or other marketing materials as well as any other materials reasonably requested or required by Sponsor in
connection with the organization, operation, or marketing of the Fund or the registration or renewal of registration of the Shares
(as defined in the Prospectus) for sale to the public in all applicable jurisdictions (collectively, with the Registration Statement
and Prospectus, the “Materials”). In this regard, Commodity Sub-Advisor will furnish to Sponsor such information
as may be reasonably requested for inclusion in such Materials. Moreover, Commodity Sub-Advisor agrees to provide to Sponsor such
information as Sponsor requests in order for Sponsor to make all necessary disclosures regarding Commodity Sub-Advisor, its principals,
its trading performance, customer accounts and otherwise as are required in the reasonable judgment of Sponsor to be made in such
Materials.

 

    3

     

    

 

4. Representations and
Warranties of Sponsor. Sponsor hereby represents and warrants to Commodity Sub-Advisor that:

 

		(a)	Sponsor is duly formed and validly existing as a Delaware
limited liability company, with full power to carry out its obligations under this Agreement and the Trust Agreement.

		 	 

		(b)	This Agreement has been duly and validly authorized,
executed and delivered by, and is a valid and binding contract of, Sponsor, enforceable in accordance with its terms.

		 	 

		(c)	Sponsor has met, and will continue to meet for so
long as this Agreement remains in effect, any applicable federal or state requirements, or the applicable requirements of any
regulatory agency or self-regulatory organization, necessary to be met in order to perform services for the Fund pursuant to this
Agreement.

		 	 

		(d)	Sponsor is a commodity pool operator duly registered
with the CFTC and is a member in good standing of the National Futures Association (“NFA”). Sponsor shall maintain
such registration and membership in good standing during the term of this Agreement.

		 	 

		(e)	The Materials do not and will not contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances in which they are made, not misleading, or omit to state any material information required
to be disclosed therein under the Commodity Exchange Act of 1936 (“CEA”), the Securities Act of 1933, and the rules
promulgated thereunder; provided, however, that this representation and warranty shall not apply to any statements or omissions
made in reliance upon and in conformity with information furnished to Sponsor by or on behalf of Commodity Sub-Advisor as to it,
including, without limitation, all references to Commodity Sub-Advisor and its affiliates, controlling persons, members, directors,
officers and employees, as well as to Commodity Sub-Advisor’s trading approach and past performance record, which has been
or may be provided by Commodity Sub-Advisor for inclusion in the Materials.

		 	 

		(f)	Shares of the Fund will be offered and sold in compliance
with the requirements set forth in the Registration Statement, the Prospectus, the Trust Agreement and CFTC Regulation 4.12(c)
(“Rule 4.12(c)”). In connection with the offer and sale of the Shares, Sponsor will, and Sponsor will use its
reasonable efforts to ensure that any third party selling agents will, comply fully at all times with all federal, state and foreign
securities laws, the CEA, Rule 4.12(c), and all rules and regulations applicable to the offer and sale of the Shares to the public.

		 	 

		(g)	The representations and warranties made in this Agreement
by Sponsor shall be continuing during the term of this Agreement, and if at any time any event has occurred which would make or
tend to make any of the foregoing not true, Sponsor will promptly notify Commodity Sub-Advisor.

 

    4

     

    

 

5. Representations and
Warranties of Commodity Sub-Advisor. Commodity Sub-Advisor hereby represents and warrants to the Fund and Sponsor that:

 

		(a)	The information and materials relating to Commodity
Sub-Advisor, its businesses, principals, and past performance record that has been requested by Sponsor, has been delivered to
Sponsor and is current, accurate and complete in all material respects, and the Commodity Sub-Advisor is in compliance with all
federal and state applicable laws, rules and regulations. Commodity Sub-Advisor will provide Sponsor with updated or amended copies
of any such materials when and if such materials are updated or amended.

		 	 

		(b)	Commodity Sub-Advisor has met, and will continue to
meet for so long as this Agreement remains in effect, any applicable federal or state requirements, or the applicable requirements
of any regulatory agency or industry self-regulatory organization, necessary to be met in order to perform services for the Fund
pursuant to this Agreement.

		 	 

		(c)	Commodity Sub-Advisor is a commodity trading advisor
duly registered with the CFTC and is a member in good standing of the NFA. Commodity Sub-Advisor shall maintain such registration
and membership in good standing during the term of this Agreement. Further, Commodity Sub-Advisor agrees to notify Sponsor promptly
upon (i) a statutory disqualification of Commodity Sub-Advisor under Sections 8a(2) or 8a(3) of the CEA, (ii) a suspension, revocation
or limitation of Consultant’s commodity trading advisor or commodity pool operator registration or NFA membership, or (iii)
the institution of an action or proceeding that could lead to a statutory disqualification under the CEA or an investigation by
any governmental agency or self-regulatory organization of which Commodity Sub-Advisor is subject or has been advised it is a
target (which investigation shall not include routine compliance examinations).

		 	 

		(d)	There are no material actions that are required to
be disclosed pursuant to CFTC Rule 4.24(l), except for the actions identified on Exhibit A hereto.

		 	 

		(e)	Commodity Sub-Advisor has valid fidelity bond and
errors and omissions insurance covering its obligations under this Agreement.

		 	 

		(f)	Commodity Sub-Advisor is a Delaware limited liability
company with full power and authority to enter into this Agreement.

		 	 

		(g)	This Agreement has been duly and validly authorized,
executed and delivered by, and is a valid and binding contract of, Commodity Sub-Advisor enforceable in accordance with its terms.

		 	 

		(h)	The representations and warranties made in this Agreement
by Commodity Sub-Advisor shall be continuing during the term of this Agreement, and if at any time any event has occurred which
would make or tend to make any of the representations and warranties in this Agreement not true, Commodity Sub-Advisor will promptly
notify Sponsor.

 

    5

     

    

 

6. Expenses. During
the term of this Agreement, Commodity Sub-Advisor will pay all expenses incurred by it in connection with its activities under
this Agreement other than the cost of investments (including brokerage commissions and other related expenses) purchased or sold
for the Fund.

 

7. Compensation. For
the services provided and the expenses assumed pursuant to this Agreement, Sponsor will pay Commodity Sub-Advisor, and Commodity
Sub-Advisor agrees to accept as full compensation therefor, an annual management fee based on the Fund’s average daily net
assets (total assets of the Fund, minus the sum of its accrued liabilities) calculated as follows:

 

	Average Daily Net Assets	 	Annual Management Fee	 
	For the first $35 million	 	 	0.00	%
	For net assets over $35 million	 	 	0.05	%

 

Sponsor shall pay a minimum fee to Commodity Sub-Advisor
of $20,000 per annum, waived for the first 18 months of any Fund’s operations.

 

The management fee shall accrue on each calendar
day, and shall be payable monthly in arrears on the first business day of the next succeeding calendar month. The daily fee accrual
shall be computed by multiplying the fraction of one divided by the number of days in the calendar year by the applicable annual
rate of fee, and multiplying this product by the net assets of the Fund (not reduced by its cash reserves) as of the close of business
on the last preceding business day on which the Fund’s net asset value was determined. The Fund’s net asset value for
this purpose shall be calculated as provided in the Fund’s prospectus then in effect.

 

The Fund pays all other costs and expenses of
its operations, including custody fees, transfer agent expenses, legal fees, expenses of independent auditors, expenses of preparing,
printing and distributing shareholder reports, notices, proxy statements, reports to governmental agencies or self-regulatory organizations
and taxes, if any.

 

For the month and year in which this Agreement
becomes effective or terminates, there shall be an appropriate proration on the basis of the number of days that the Agreement
is in effect during the month and year, respectively.

 

8. Independence of Commodity
Sub-Advisor. Commodity Sub-Advisor shall for all purposes herein be deemed to be an independent contractor and shall, unless
otherwise expressly provided or authorized herein, have no authority to act for or represent Sponsor or the Fund in any way or
otherwise be deemed an agent of Sponsor or the Fund. Commodity Sub-Advisor shall not offer or sell or solicit any offers to purchase
the Shares. However, when requested by Sponsor at such reasonable times and upon adequate notice as mutually agreed to, Commodity
Sub-Advisor will assist in the general explanation and presentation of Commodity Sub-Advisor’s trading strategies and methods
solely to the employees of Sponsor or its affiliates and to the Fund’s selling agents or to other agents of Sponsor; provided,
however, that nothing in this section will require Commodity Sub-Advisor to disclose confidential and proprietary information concerning
its trading strategies and methods. The parties acknowledge that Commodity Sub-Advisor, individually or in conjunction with Sponsor,
has not been an organizer or promoter of the Fund. Nothing herein contained shall be deemed to require the Fund to take any action
contrary to the Trust Agreement, Rule 4.12(c), or any applicable statute, regulation or exchange rule.

 

    6

     

    

 

9. Right to Advise Others;
Position Limits.

 

		(a)	Commodity Sub-Advisor’s present business is
advising with respect to the purchase and sale of Commodity Interests. The services provided by Commodity Sub-Advisor under this
Agreement are not to be deemed exclusive. Sponsor acknowledges that, subject to the terms of this Agreement, Commodity Sub-Advisor
may render advisory, consulting and management services to other clients. Commodity Sub-Advisor shall be free to advise others
and manage other Commodity Interest trading accounts, including accounts owned by it or its principals, during the term of this
Agreement and to use the same or different information, computer programs and trading strategy which it obtains, produces or utilizes
in the performance of services for the Fund. In that connection, however, Commodity Sub-Advisor represents and warrants that:
(i) in rendering consulting, advisory and management services to other Commodity Interest trading accounts and entities, it will
use its best efforts to achieve an equitable treatment of all accounts and will use a fair and reasonable system of order entry
for all accounts, and (ii) it will not deliberately use any investment strategies for the Fund which it or its principals know
are inferior to those currently offered by Commodity Sub-Advisor and employed by Commodity Sub-Advisor for other accounts. In
respect of the preceding sentence, the Sponsor recognizes that the Commodity Sub-Advisor employs other investment strategies not
utilized by the Fund that have higher return characteristics but with higher fees, volatility and risk.

		 	 

		(b)	Commodity Sub-Advisor agrees to comply with the position
limits imposed on certain Commodity Interest contracts by the CFTC or applicable contract market. If, at any time during the term
of this Agreement, Commodity Sub-Advisor is required to aggregate the Fund’s Commodity Interest positions with the positions
of any other person for purposes of applying the CFTC or exchange imposed speculative position limits, Commodity Sub-Advisor will
promptly notify Sponsor if the Fund’s positions are included in an aggregate amount which exceeds the applicable speculative
position limit. Commodity Sub-Advisor represents that, if speculative position limits are reached in any Commodity Interest contract,
it will modify the trading instructions to the Fund’s account and its other accounts in a reasonable and good faith effort
to achieve an equitable treatment of all accounts. Commodity Sub-Advisor currently believes and represents that such speculative
limits will not materially affect its investment recommendations or strategy for the Fund given Commodity Sub-Advisor’s
current accounts and all proposed accounts for which Commodity Sub-Advisor has a contract to act as a commodity trading advisor
and its ability to rely on the CFTC’s independent account controller exemption from aggregation in Part 150 of the CFTC
regulations.

 

    7

     

    

 

10. Records of the Fund.
Sponsor will instruct the Fund’s clearing broker(s) to furnish copies of all trade confirmations and monthly trading reports
to Commodity Sub-Advisor. Commodity Sub-Advisor will maintain a record of all trading orders for the Fund’s account that
have been filled and will monitor the Fund’s open positions. Upon the request of Sponsor, Commodity Sub-Advisor shall permit
Sponsor or its agents to inspect such information as Sponsor may reasonably request for the purpose of confirming that the Fund
has been treated equitably with respect to trading conducted during the term of this Agreement with all client accounts controlled
by Commodity Sub-Advisor. With respect to the principals, Commodity Sub-Advisor will provide records of the proprietary accounts
of its principals traded pursuant to a long/short strategy, to show that such principals’ accounts have been traded equitably
with other client accounts, including the Fund; provided that any transactions relating to a long/short strategy may be extracted
from such records to preserve the confidentiality of the principals’ trading in other programs or transactions. Commodity
Sub-Advisor shall permit Sponsor or its agents reasonable inspection rights to the trading records of Commodity Sub-Advisor and
other clients for the purpose of confirming that the Fund is being treated equitably by Commodity Sub-Advisor, including with respect
to any modifications of trading or investment strategies resulting from speculative position limits and with respect to the assignment
of priorities of order entry to Commodity Sub-Advisor’s accounts, and Sponsor shall keep such information confidential; provided,
however, that Commodity Sub-Advisor may, in its discretion, withhold from any such inspection the name of the client for whom such
account is maintained.

 

11. Indemnity.

 

		(a)	In any threatened, pending or completed action, suit,
or proceeding to which Commodity Sub-Advisor, its members, officers, directors, employees or associated persons (collectively,
“its affiliates”) was or is a party or is threatened to be made a party by reason of the fact that Commodity
Sub-Advisor is or was a commodity trading advisor of the Fund or otherwise, the Fund and the Sponsor, jointly and severally, shall
indemnify and hold harmless, subject to subsection (d) below, Commodity Sub-Advisor and its affiliates against any loss, liability,
damage, cost, expenses (including attorneys’ fees and accountants’ fees), judgments and amounts paid in settlement
actually and reasonably incurred by it or its affiliates in connection with any action, suit or proceeding if Commodity Sub-Advisor
acted in good faith and in a manner it reasonably believed to be in or not opposed to the best interests of the Fund, and provided
that its conduct does not constitute willful misfeasance, bad faith, negligence or reckless disregard of its obligations and duties
under this Agreement. The termination of any action, suit or proceeding by judgment, order or settlement shall not, of itself,
create a presumption that Commodity Sub-Advisor did not act in good faith or in a manner which it reasonably believed to be in
or not opposed to the best interests of the Fund.

 

    8

     

    

 

		(b)	Expenses incurred in defending a threatened or pending
civil, administrative or criminal action, suit or proceeding against Commodity Sub-Advisor or its affiliates may, in the sole
discretion of Sponsor, be paid by the Fund in advance of the final disposition of such action, suit or proceeding, if and to the
extent that the person on whose behalf such expenses are paid shall agree to reimburse the Fund in the event indemnification is
not permitted under this Section.

		 	 

		(c)	Commodity Sub-Advisor agrees to indemnify, defend
and hold harmless the Fund, Sponsor and its affiliates (as defined above) against any loss, liability, damage, cost, expenses
(including attorneys’ fees and accountants’ fees), judgments and amounts paid in settlement actually and reasonably
incurred by it or its affiliates by reason of any act or omission of Commodity Sub-Advisor relating to the Fund (including costs
and expenses of investigating and defending any claims, demand or suit and attorneys’ and accountants’ fees) if such
act or omission materially violated the terms of this Agreement or involved willful misfeasance, bad faith or negligence on the
part of Commodity Sub-Advisor in the performance of its duties under this Agreement, or by reason of its reckless disregard of
its obligations and duties under this Agreement.

		 	 

		(d)	Any indemnification under subsections (a) or (c) above,
unless ordered by a court or administrative forum, shall be made only as authorized in the specific case and only upon a determination
by independent legal counsel in a written opinion that indemnification is proper in the circumstances because the party claiming
indemnification (the “Indemnitee”) has met the applicable standard of conduct set forth in subsection (a) or
(c), as the case may be. To the extent that the Indemnitee or its affiliates have been successful on the merits or otherwise in
defense of any action, suit or proceeding referred to in subsection (a) or (c) above, or in defense of any claim, issue or matter
therein, the immediately preceding sentence of this subsection (d) shall not apply and the party obligated to indemnify the other
party (the “Indemnitor”) shall indemnify the Indemnitee or its affiliates against the expenses, including attorneys’
and accountants’ fees, actually and reasonably incurred by it or its affiliates in connection therewith.

		 	 

		(e)	In the event that any claim, dispute or litigation
arises between Commodity Sub-Advisor and any party other than the Fund or Sponsor, which claim, dispute or litigation is unrelated
to the Fund’s business, and if the Fund or Sponsor are made a party to such claim, dispute or litigation by such other party,
Commodity Sub-Advisor shall defend any actions brought in connection therewith on behalf of the Fund and/or Sponsor each of whom
agree to cooperate in such defense, and Commodity Sub-Advisor shall indemnify and hold harmless the Fund and Sponsor from and
with respect to any amounts awarded to such other party. If any claim, dispute or litigation arises between the Fund and/or Sponsor
and any party other than Commodity Sub-Advisor which claim, dispute or litigation is unrelated to Commodity Sub-Advisor’s
duties under this Agreement, and if Commodity Sub-Advisor is made a party to such claim, dispute or litigation by such other party,
the Fund and/or Sponsor, as the case may be, shall defend any actions brought in connection therewith on behalf of Commodity Sub-Advisor
or its principals, each of whom agree to cooperate in such defense and the Fund and/or Sponsor, as the case may be, shall
indemnify and hold harmless Commodity Sub-Advisor and its affiliates from and with respect to any amounts awarded to such other
party. Notwithstanding any other provision of this subsection (e), if, in any claim as to which indemnity is or may be available,
any indemnified party reasonably determines that its interests are or may be, in whole or in part, adverse to the interests of
the indemnifying party, the indemnified party may retain its own counsel in connection with such claim and shall be indemnified
by the indemnifying party for any legal or any other expenses reasonably incurred in connection with investigating or defending
such claim.

 

    9

     

    

 

		(f)	None of the foregoing provisions for indemnification
shall be applicable with respect to default judgments, confessions of judgment or settlements entered into by the Indemnitee without
the prior consent of the Indemnitor; provided, however, that should the Indemnitor refuse to consent to a settlement approved
by the Indemnitee, the Indemnitee may effect such settlement, pay such amount in settlement as it shall deem reasonable and seek
a judicial or regulatory determination with respect to reimbursement by the Indemnitor of any loss, liability, damage, cost or
expenses (including reasonable attorneys’ and accountants’ fees) incurred by the Indemnitee in connection with such
settlement to the extent such loss, liability, damage, cost or expense (including reasonable attorneys’ and accountants’
fees) was caused by or resulted from a material violation of this Agreement by the Indemnitor or violation of the standard of
conduct or the representations and warranties set forth herein. Notwithstanding the foregoing, the Indemnitor shall, at all times,
have the right to offer to settle any matters, and if the Indemnitor successfully negotiates a settlement and tenders payment
therefor to the Indemnitee, the Indemnitee must either use its best efforts to dispose of the matter in accordance with the terms
and conditions of the proposed settlement or the Indemnitee may refuse to settle the matter and continue its defense in which
latter event the maximum liability of the Indemnitor to the Indemnitee shall be the amount of said proposed settlement.

		 	 

		(g)	The foregoing provisions for indemnification shall
survive the termination of this Agreement.

		 	 

		(h)	Commodity Sub-Advisor acknowledges as to it that the
indemnities provided in this Agreement by Sponsor and the Fund to Commodity Sub-Advisor shall be inapplicable in the event of
any liability accruing to the extent, if any, caused by or based upon Commodity Sub-Advisor’s misrepresentations, omissions
or breach of any warranty in this Agreement.

		 	 

		(i)	The Fund and Sponsor acknowledge as to each of them
that the indemnities provided in this Agreement by the Commodity Sub-Advisor to the Fund and Sponsor shall be inapplicable in
the event of any liability accruing to the extent, if any, caused by or based upon the Fund’s or Sponsor’s misrepresentations,
omissions or breach of any warranty in this Agreement.

 

		(j)	Notwithstanding anything in this Agreement to the
contrary, all securities laws impose liabilities under certain circumstances on persons who act in good faith, and, therefore,
nothing in this Agreement shall constitute a waiver or limitation of liability under such laws to the extent (but only to the
extent) such liability may not be waived, modified or limited.

 

    10

     

    

 

12. Term; Termination;
Amendment. This Agreement shall become effective with respect to the Fund as of the day and time the initial public offering
of the Fund’s shares pursuant to the Registration Statement closes and shall remain in effect until otherwise terminated
pursuant to this Section.

 

This Agreement may be terminated at any time,
without penalty, by either Sponsor or Commodity Sub-Advisor upon 120 days written notice.

 

This Agreement may be terminated, without penalty,
by Commodity Sub-Advisor upon 90 days written notice to Sponsor in the event either (i) there are amendments to the Fund’s
Amended and Restated Trust Agreement or to the Fund’s investment objectives, policies and restrictions that are not reasonably
acceptable to Commodity Sub-Advisor, or (ii) Sponsor objects to the use of an executing broker or floor broker that the Commodity
Sub-Advisor represents to Sponsor is critical to implement the Fund’s investment program and whose brokerage commission rates
are competitive with other recognized and experienced executing brokers or floor brokers.

 

Termination of this Agreement shall not affect
the right of Commodity Sub-Advisor to receive payments on any unpaid balance of the compensation described in Section 7 earned
prior to the effective date of such termination.

 

If the Sponsor terminates the Agreement, for any
reason other than for cause, in the first eighteen (18) months of the Fund’s operations, the Sponsor will pay the Commodity
Sub-Adviser the minimum fee of $20,000 per annum as described in Section 7.

 

13. Notice. Any notice
under this Agreement shall be in writing, addressed and delivered or mailed, using overnight delivery service with a trackable
service, to the other party

 

	
        If to Sponsor:

         

        Justin Young

        Volatility Shares LLC

        100 S. Bedford Road, Suite 340

        Mt. Kisco, NY 10549
	
        If to Commodity Sub-Advisor:

         

        Charles Ragauss

        Exponential ETFs

        625 Avid Drive

        Ann Arbor, MI 48108

 

or such address as
each such party may later designate for the receipt of such notice.

 

    11

     

    

 

14. Assignment and Successors.
This Agreement may not be assigned nor the duties hereunder delegated by either party without the express written consent of the
other party. This Agreement is made solely for the benefit of, and shall be binding upon, the parties and their respective successors
and assigns, and no other person shall have any right or obligation under it.

 

15. Notice of Threatened,
Pending or Completed Actions, Suits or Proceedings.

 

		(a)	Sponsor will promptly give written notice to Commodity
Sub-Advisor of: (i) any threatened, pending or completed action, suit or proceedings (including without limitation any reparations
or administrative proceeding threatened or instituted under the CEA) to which Sponsor or the Fund was or is a party or is threatened
to be a party; and (ii) any judgments or amounts paid by Sponsor or the Fund in settlement in connection with any such threatened,
pending or completed action, suit or proceeding.

		 	 

		(b)	Commodity Sub-Advisor will promptly give written notice
to Sponsor of: (i) any overtly threatened, pending or completed action, suit or proceeding (including without limitation any reparations
or administrative proceeding overtly threatened or instituted under the CEA) to which Commodity Sub-Advisor was or is a party
or is threatened to be a party; and (ii) any judgments or amounts paid by Commodity Sub-Advisor in settlement in connection with
any such threatened, pending or completed action, suit or proceeding.

		 	 

		(c)	Written notices required to be given pursuant to this
Section 16 shall contain all pertinent information concerning the threatened, pending or completed action, suit or proceeding
and, in the case of any pending or completed action suit or proceeding, shall include a copy of the complaint, petition or similar
documents asserting a claim.

		 	 

		(d)	Sponsor and Commodity Sub-Advisor agree to use their
best efforts to maintain the confidentiality of notices received pursuant to this Section 16 and agree not to disclose the contents
of such notices to persons other than their affiliates and advisors, or except as may be required, in their good faith judgment,
by any applicable law or regulation.

 

16. Miscellaneous.
The captions in this Agreement are included for convenience of reference only and in no way define or delimit any of the provisions
hereof or otherwise affect their construction or effect. If any provision of this Agreement is held or made invalid by a court
decision, statute, rule or otherwise, the remainder of this Agreement will not be affected thereby.

 

17. Applicable Law, Entire
Agreement, Amendments, Arbitration. This Agreement shall be construed in accordance with applicable federal law and the laws
of the State of Illinois. This Agreement is the entire agreement of the parties in respect of the subject matter and may be amended
only by a writing signed by the parties. All disputes not resolved by negotiation shall be exclusively resolved by confidential
binding arbitration in New York in accordance with the then rules of the American Arbitration Association by a panel of three arbitrators,
one selected by each party and the third by the two so selected. The arbitrators shall have no authority to amend this Agreement.
Any award by the arbitrators may be entered as a judgment by any court having jurisdiction.

 

    12

     

    

 

18. Obligations of Fund
Only. This Agreement is executed on behalf of the Fund by officers of the Sponsor as officers and not individually and the
obligations imposed upon the Fund by this Agreement are not binding upon any of the Trust’s officers individually, the Fund’s
shareholders individually or any other Fund, but are binding only upon the assets and property of each Fund separately.

 

19. Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but such counterparts
shall, together, constitute only one instrument.

 

[SIGNATURES ON THE FOLLOWING PAGE]

  

    13

     

    

 

IN WITNESS WHEREOF, Sponsor
and Commodity Sub-Advisor have caused this Agreement to be executed as of the day and year first above written.

 

	VOLATILITY SHARES, LLC,

                                                                     a Delaware limited liability company
	 	CSAT INVESTMENT ADVISORY, L.P. (d/b/a Exponential ETFs), a Delaware limited partnership
	 	 	 	 	 
	By:	            	 	By:	                  
	Name:	Justin P. Young	 	Name:	 
	Title:	President	 	Title:	 

 

[Signature page to Commodity Sub-Advisory Agreement]

 

    14

     

    

 

EXHIBIT A

 

(Section 5e)

(List Administrative, Civil
or Criminal Actions, Pending or Concluded, or Indicate “None”)

 

 

 

 

 

 

 

 

 

    15

     

    

 

EXHIBIT B

 

Fund (ticker symbol)

 

-1x Short VIX Futures ETF (SVIX)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16

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