Exhibit 10.5


 


PRIVATE
PLACEMENT UNIT SUBSCRIPTION AGREEMENT


 


This PRIVATE PLACEMENT UNIT
SUBSCRIPTION AGREEMENT (this “Agreement”) is made as of the [*]th day of April 2022, by and between Abri SPAC 2, Inc., a Delaware
corporation (the “Company”), and Abri Ventures 2, LLC, a Delaware limited liability company (the “Subscriber”).


 


WHEREAS, the Company desires
to sell to the Subscriber on a private placement basis (the “Offering”) an aggregate of 450,000 units (or up to 495,000 units
if the over-allotment option in connection with the IPO (as defined below) is exercised in full) (the “Units”) of the Company,
each Unit comprised of one share of common stock of the Company, par value $0.0001 per share (“Common Stock”), one warrant,
each warrant exercisable to purchase one share of Common Stock (“Warrant”), and one right to receive one-tenth of one share
of common stock upon the consummation of an initial business combination (the “Rights”), for a purchase price of $10.00 per
Unit. The shares of Common Stock underlying the Warrants are hereinafter referred to as the “Warrant Shares”. The shares of
Common Stock underlying the Units (excluding the Warrant Shares) are hereinafter referred to as the “Placement Shares.” The
Warrants underlying the Units are hereinafter referred to as the “Placement Warrants.” The Units, Placement Shares,
Placement Warrants and Warrant Shares and Rights, collectively, are hereinafter referred to as the “Securities.” Each Placement
Warrant is exercisable to purchase one share of Common Stock at an exercise price of $11.50 during the period commencing on the later
of (i) twelve (12) months from the date of the closing of the Company’s initial public offering of units (the “IPO”),
or up to eighteen months (18) months if the period of time to consummate a business combination is extended, and (ii) the consummation
of the Company’s initial business combination (the “Business Combination”), as such term is defined in the registration
statement in connection with the IPO, as amended at the time it becomes effective (the “Registration Statement”), and expiring
on the fifth anniversary of the consummation of the Business Combination; and


 


WHEREAS, the Subscriber wishes
to purchase 450,000 Units (or up to 495,000 Units if the over-allotment option in connection with the IPO is exercised in full), and the
Company wishes to accept such subscription from Subscriber.


 


NOW, THEREFORE, in consideration
of the premises and the mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and Subscriber hereby agree as follows:


 


1. Agreement to Subscribe


 


1.1. Purchase
and Issuance of the Units. Upon the terms and subject to the conditions of this Agreement, the Subscriber hereby agrees to purchase
from the Company, and the Company hereby agrees to sell to the Subscriber, on the Initial Closing Date (as defined below) 450,000 Units
in consideration of the payment of the Purchase Price (as defined below). On the Initial Closing Date, the Company shall, at its option,
deliver to the Subscriber the certificates representing the Securities purchased or effect such delivery in book-entry form.


 


1.2. Purchase
Price. The Subscriber shall pay $4,500,000 (the “Purchase Price”) by wire transfer of immediately available funds or by
such other method as may be reasonably acceptable to the Company, to the trust account (the “Trust Account”)
at a financial institution to be chosen by the Company, maintained by Continental Stock Transfer & Trust Company, acting as trustee,
at least one (1) business day prior to the date of effectiveness of the Registration Statement.


 


1.3. Initial
Closing. The closing of the purchase and sale of 450,000 Units shall take place simultaneously with the closing of the IPO (the “Initial
Closing Date”). The closing of such Units shall take place at the offices of Loeb & Loeb LLP, 345 Park Avenue, New York, New
York 10154, or such other place as may be agreed upon by the parties hereto.


 






     


     


    

 


1.4. Purchase
and Issuance of Additional Units. Upon the terms and subject to the conditions of this Agreement, the Subscriber hereby agrees to
purchase from the Company, and the Company hereby agrees to sell to the Subscriber, on the Over-allotment Closing Date (as defined below)
up to an aggregate of 45,000 Units in consideration of the payments of the Over-allotment Purchase Price (as defined below) and in the
same proportion as the amount of the over-allotment option in connection with the IPO is exercised. On the Over-allotment Closing Date,
the Company shall, at its option, deliver to the Subscriber the certificates representing the Securities purchased or effect such delivery
in book-entry form.


 


1.5. Purchase
Price. The Subscriber shall pay up to $450,000 (if the over-allotment option in connection with the IPO is exercised in full) (the
“Over-allotment Purchase Price”) by wire transfer of immediately available funds or by such other method as may be reasonably
acceptable to the Company, to the Trust Account on the date of the consummation of the closing of the over-allotment option, and concurrently
with the consummation thereof, or on such earlier time and date as may be mutually agreed by the Company and the Subscriber (each such
date, an “Over-allotment Closing Date”; together with the Initial Closing Date, the “Closing Dates” and each,
a “Closing Date”).


 


1.6. Over-Allotment
Closing. The Over-allotment Closing Date shall take place at the offices of Loeb & Loeb LLP, 345 Park Avenue, New York, New York
10154, or such other place as may be agreed upon by the parties hereto.


 


1.7. Termination.
This Agreement and each of the obligations of the undersigned shall be null and void and without effect if a Closing does not occur prior
to December 31, 2022.


 


2. Representations and Warranties of Subscriber


 


Subscriber represents and warrants to the Company
that:


 


2.1. No Government
Recommendation or Approval. Subscriber understands that no federal or state agency has passed upon or made any recommendation or endorsement
of the Company or the Offering of the Securities.


 


2.2. Accredited
Investor. Subscriber represents that it is an “accredited investor” as such term is defined in Rule 501(a) of Regulation
D under the Securities Act of 1933, as amended (the “Securities Act”), and acknowledges that the sale contemplated hereby
is being made in reliance, among other things, on a private placement exemption to “accredited investors” under the Securities
Act and similar exemptions under state law.


  


2.3. Intent.
Subscriber is purchasing the Securities solely for investment purposes, for Subscriber’s own account (and/or for the account or
benefit of its members or affiliates, as permitted, pursuant to the terms of an agreement (the “Insider Letter”) to be entered
into with respect to the Securities between, among others, Subscriber and the Company, as described in the Registration Statement), and
not with a view to the distribution thereof and Subscriber has no present arrangement to sell the Securities to or through any person
or entity except as may be permitted under the Insider Letter. Subscriber shall not engage in hedging transactions with regard to the
Securities unless in compliance with the Securities Act.


 


2.4. Restrictions
on Transfer. Subscriber acknowledges and understands the Units are being offered in a transaction not involving a public offering
in the United States within the meaning of the Securities Act. The Securities have not been registered under the Securities Act and, if
in the future Subscriber decides to offer, resell, pledge or otherwise transfer the Securities, such Securities may be offered, resold,
pledged or otherwise transferred only (A) pursuant to an effective registration statement filed under the Securities Act, (B) pursuant
to an exemption from registration under Rule 144 promulgated under the Securities Act, if available, or (C) pursuant to any other
available exemption from the registration requirements of the Securities Act, and in each case in accordance with any applicable securities
laws of any state or any other jurisdiction. Notwithstanding the foregoing, Subscriber acknowledges and understands the Securities are
subject to transfer restrictions as described in Section 8 hereof. Subscriber agrees that if any transfer of its Securities
or any interest therein is proposed to be made, as a condition precedent to any such transfer, Subscriber may be required to deliver to
the Company an opinion of counsel satisfactory to the Company with respect to such transfer. Absent registration or another available
exemption from registration, Subscriber agrees it will not resell the Securities (unless otherwise permitted pursuant to the Insider Letter,
as described in the Registration Statement). Subscriber further acknowledges that because the Company is a shell company, Rule 144 may
not be available to Subscriber for the resale of the Securities until the one year anniversary following consummation of the initial Business
Combination of the Company, despite technical compliance with the requirements of Rule 144 and the release or waiver of any contractual
transfer restrictions.


 






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2.5. Sophisticated
Investor.


 


(i) Subscriber
is sophisticated in financial matters and is able to evaluate the risks and benefits of the investment in the Securities.


 


(ii) Subscriber
is aware that an investment in the Securities is highly speculative and subject to substantial risks because, among other things, the
Securities are subject to transfer restrictions and have not been registered under the Securities Act and therefore cannot be sold unless
subsequently registered under the Securities Act or an exemption from such registration is available. Subscriber is able to bear the economic
risk of its investment in the Securities for an indefinite period of time.


 


2.6. Independent
Investigation. Subscriber, in making the decision to purchase the Units, has relied upon an independent investigation of the Company
and has not relied upon any information or representations made by any third parties or upon any oral or written representations or assurances
from the Company, its officers, directors or employees or any other representatives or agents of the Company, other than as set forth
in this Agreement. Subscriber is familiar with the business, operations and financial condition of the Company and has had an opportunity
to ask questions of, and receive answers from the Company’s officers and directors concerning the Company and the terms and conditions
of the offering of the Units and has had full access to such other information concerning the Company as Subscriber has requested. Subscriber
confirms that all documents that it has requested have been made available and that Subscriber has been supplied with all of the additional
information concerning this investment which Subscriber has requested.


 


2.7. Organization
and Authority. Subscriber is duly organized, validly existing and in good standing under the laws of the State of Delaware and it
possesses all requisite power and authority necessary to carry out the transactions contemplated by this Agreement.


 


2.8. Authority.
This Agreement has been validly authorized, executed and delivered by Subscriber and is a valid and binding agreement enforceable in accordance
with its terms, subject to the general principles of equity and to bankruptcy or other laws affecting the enforcement of creditors’
rights generally.


 


2.9. No Conflicts.
The execution, delivery and performance of this Agreement and the consummation by Subscriber of the transactions contemplated hereby do
not violate, conflict with or constitute a default under (i) Subscriber’s charter documents, (ii) any agreement or instrument
to which Subscriber is a party or (iii) any law, statute, rule or regulation to which Subscriber is subject, or any agreement, order,
judgment or decree to which Subscriber is subject.


 


2.10. No Legal
Advice from Company. Subscriber acknowledges it has had the opportunity to review this Agreement and the transactions contemplated
by this Agreement and the other agreements entered into between the parties hereto with Subscriber’s own legal counsel and investment
and tax advisors. Except for any statements or representations of the Company made in this Agreement and the other agreements entered
into between the parties hereto, Subscriber is relying solely on such counsel and advisors and not on any statements or representations
of the Company or any of its representatives or agents for legal, tax or investment advice with respect to this investment, the transactions
contemplated by this Agreement or the securities laws of any jurisdiction.


 






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2.11. Reliance
on Representations and Warranties. Subscriber understands the Units are being offered and sold to Subscriber in reliance on exemptions
from the registration requirements under the Securities Act, and analogous provisions in the laws and regulations of various states, and
that the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings
of Subscriber set forth in this Agreement in order to determine the applicability of such provisions.


 


2.12. No General
Solicitation. Subscriber is not subscribing for the Units as a result of or subsequent to any general solicitation or general advertising,
including but not limited to any advertisement, article, notice or other communication published in any newspaper, magazine, or similar
media or broadcast over television or radio, or presented at any seminar or meeting or in a registration statement with respect to the
IPO filed with the Securities and Exchange Commission (“SEC”).


 


2.13. Legend.
Subscriber acknowledges and agrees the certificates evidencing each of the Securities shall bear a restrictive legend (the “Legend”),
in form and substance substantially as set forth in Section 4 hereof.


 


3. Representations, Warranties
and Covenants of the Company


 


The Company represents and
warrants to, and agrees with, Subscriber that:


 


3.1. Valid Issuance
of Capital Stock. The total number of shares of all capital stock which the Company has authority to issue is 100,000,000 shares of
Common Stock and 1,000,000 shares of preferred stock, $0.0001 par value per share (“Preferred Stock”). As of the date hereof,
the Company has issued and outstanding 2,875,000 shares of Common Stock
(of which up to 375,000 shares are subject to forfeiture as described in the Registration Statement) and no shares of Preferred Stock.
All of the issued shares of capital stock of the Company have been duly authorized, validly issued, and are fully paid and non-assessable.


 


3.2. Title to
Securities. Upon issuance in accordance with, and payment pursuant to, the terms hereof and that certain warrant agreement to be entered
into between the Company and Continental Stock Transfer & Trust Company, as warrant agent (the “Warrant Agreement”), as
the case may be, each of the Units, Placement Shares, Placement Warrants and Warrant Shares will be duly and validly issued, fully paid
and non-assessable. On the date of issuance of the Units, the Warrant Shares shall have been reserved for issuance. Upon issuance in accordance
with, and payment pursuant to, the terms hereof and the Warrant Agreement, as the case may be, Subscriber will have or receive good title
to the Units, Placement Shares and Placement Warrants, free and clear of all liens, claims and encumbrances of any kind, other than (i)
transfer restrictions hereunder and pursuant to the Insider Letter and (ii) transfer restrictions under federal and state securities
laws.


 


3.3. Organization
and Qualification. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State
of Delaware and has the requisite corporate power to own its properties and assets and to carry on its business as now being conducted.


 


3.4. Authorization;
Enforcement. (i) The Company has the requisite corporate power and authority to enter into and perform its obligations under this
Agreement and to issue the Securities in accordance with the terms hereof, (ii) the execution, delivery and performance of this Agreement
by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary corporate
action, and no further consent or authorization of the Company or its Board of Directors or stockholders is required, and (iii) this Agreement
constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, moratorium, reorganization, or similar laws
relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by equitable principles of general application
and except as enforcement of rights to indemnity and contribution may be limited by federal and state securities laws or principles of
public policy.


 






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3.5. No Conflicts.
The execution, delivery and performance of this Agreement and the consummation by the Company of the transactions contemplated hereby
do not (i) result in a violation of the Company’s certificate of incorporation or by-laws, (ii) conflict with, or constitute
a default under any agreement or instrument to which the Company is a party or (iii) conflict with any law statute, rule or regulation
to which the Company is subject or any agreement, order, judgment or decree to which the Company is subject. Other than any SEC or state
securities filings which may be required to be made by the Company subsequent to any Closing Date, and any registration statement which
may be filed pursuant thereto, the Company is not required under federal, state or local law, rule or regulation to obtain any consent,
authorization or order of, or make any filing or registration with, any court or governmental agency or self-regulatory entity in order
for it to perform any of its obligations under this Agreement or issue the Units, Placement Shares, Placement Warrants or Warrant Shares
in accordance with the terms hereof.


 


4. Legends


 


4.1. Legend.
The Company will issue the Units, Placement Shares and Placement Warrants, and when issued, the Warrant Shares, purchased by the Subscriber
in the name of the Subscriber. The Securities will bear the following Legend and appropriate “stop transfer” instructions:


 


“THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS AND NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL FOR THIS CORPORATION, IS AVAILABLE.”


 


“THE SECURITIES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO LOCKUP PURSUANT TO AN INSIDER LETTER BETWEEN, AMONG OTHERS, ABRI SPAC 2, INC. AND ABRI
VENTURES 2, LLC AND MAY ONLY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED DURING THE TERM OF THE LOCKUP PURSUANT TO THE
TERMS SET FORTH IN THE INSIDER LETTER.”


 


4.2. Subscriber’s
Compliance. Nothing in this Section 4 shall affect in any way Subscriber’s obligations and agreements to comply
with all applicable securities laws upon resale of the Securities.


 


4.3. Company’s
Refusal to Register Transfer of the Securities. The Company shall refuse to register any transfer of the Securities, if in the sole
judgment of the Company such purported transfer would not be made (i) pursuant to an effective registration statement filed under the
Securities Act, or pursuant to an available exemption from the registration requirements of the Securities Act and (ii) in compliance
herewith and with the Insider Letter.


 


4.4. Registration
Rights. The Subscriber will be entitled to certain registration rights which will be governed by a registration rights agreement (“Registration
Rights Agreement”) to be entered into between, among others, the Subscriber and the Company, on or prior to the effective date of
the Registration Statement.


 


5. Waiver of Liquidation
Distributions.


 


In connection with the Securities
purchased pursuant to this Agreement, Subscriber hereby waives any and all right, title, interest or claim of any kind in or to any distributions
of the amounts in the Trust Account with respect to the Securities, whether (i) in connection with the exercise of redemption rights if
the Company consummates the Business Combination, (ii) in connection with any tender offer conducted by the Company prior to a Business
Combination, (iii) upon the Company’s redemption of shares of Common Stock sold in the Company’s IPO upon the Company’s
failure to timely complete the Business Combination or (iv) in connection with a stockholder vote to approve an amendment to the Company’s
amended and restated certificate of incorporation (A) to modify the substance or timing of the Company’s obligation to redeem 100%
of the Company’s public shares if the Company does not timely complete the Business Combination or (B) with respect to any other
provision relating to stockholders’ rights or pre-Business Combination activity. In the event a Subscriber purchases shares of Common
Stock in the IPO or in the aftermarket, any additional shares so purchased shall be eligible to receive the redemption value of such shares
of Common Stock upon the same terms offered to all other purchasers of Common Stock in the IPO in the event the Company fails to consummate
the Business Combination; provided, for the avoidance of doubt, this sentence shall not apply to any founder shares (as described in the
Registration Statement) acquired by the Subscriber.


  






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6. Terms of Placement Warrants. Each Placement
Warrant shall have the terms set forth in the Warrant Agreement.


 


7. Intentionally Omitted


 


8. Terms of the Units and
Placement Warrants


 


8.1. The Units and
their component parts are substantially identical to the units to be offered in the IPO except that: (i) the Units and component parts
will not be transferable, assignable or salable until 30 days after the completion of our initial business combination, subject to the
transfers to Permitted Transferees, as set forth below, (ii) the Placement Warrants will be non-redeemable, and may be exercisable on
a “cashless” basis at the election of the holder and (iii) the Units and component parts are being purchased pursuant to an
exemption from the registration requirements of the Securities Act and will become freely tradable only after the expiration of the lockup
described above in clause (i) and they are registered pursuant to the Registration Rights Agreement to be signed on or before the date
of the Prospectus or an exemption from registration is available.


The aforementioned
transfer restrictions shall not apply to transfers by the Subscriber or by the recipient of any below-described transfer (such recipient,
a "Permitted Transferee"):


 


(1) to the Company's
insiders, officers, directors, advisors and employees, any affiliates or family members of the Company's officers or directors, any members
of the Subscriber, or any affiliates of the Subscriber;


 


(2) transfers to
an insider’s affiliates or its members upon its liquidation;


 


(3) transfers to
relatives and trusts for estate planning purposes;


 


(4) transfers by
virtue of the laws of descent and distribution upon death,;


 


(5) transfers pursuant
to a qualified domestic relations order;


 


(6) private sales
made at prices no greater than the price at which the securities were originally purchased; or


 


(7) transfers to
us for cancellation in connection with the consummation of an initial business combination;


 


in each case (except
for clause (7)) where the Permitted Transferee agrees to the terms of the escrow agreement, as described in the registration statement,
and forfeiture, as the case may be, as well as the other applicable restrictions and agreements of the holders of the insider shares.
If dividends are declared and payable in shares of common stock, such dividends will also be placed in escrow. If we are unable to effect
a business combination and liquidate, there will be no liquidation distribution with respect to the insider shares.


 


8.2. Subscriber
agrees to vote the Placement Shares in accordance with the terms of the Insider Letter and as otherwise described in the Registration
Statement.


 


9. Governing Law; Jurisdiction; Waiver of Jury
Trial


 


This Agreement shall be governed
by and construed in accordance with the laws of the State of New York for agreements made and to be wholly performed within such state.
The parties hereto hereby waive any right to a jury trial in connection with any litigation pursuant to this Agreement and the transactions
contemplated hereby.


 






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10. Assignment; Entire Agreement; Amendment


 


10.1. Assignment.
Neither this Agreement nor any rights hereunder may be assigned by any party to any other person other than by a Subscriber to a person
agreeing to be bound by the terms hereof.


 


10.2. Entire
Agreement. This Agreement sets forth the entire agreement and understanding between the parties as to the subject matter thereof and
merges and supersedes all prior discussions, agreements and understandings of any and every nature among them.


 


10.3. Amendment.
Except as expressly provided in this Agreement, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated
other than by a written instrument signed by all of the parties hereto.


 


10.4. Binding
upon Successors. This Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective heirs,
legal representatives, successors and permitted assigns.


  


11. Notices


 


11.1. Notices.
Unless otherwise provided herein, any notice or other communication to a party hereunder shall be sufficiently given if in writing and
personally delivered or sent by facsimile or other electronic transmission with copy sent in another manner herein provided or sent by
courier (which for all purposes of this Agreement shall include Federal Express or other recognized overnight courier) or mailed to said
party by certified mail, return receipt requested, at its address provided for herein or such other address as either may designate for
itself in such notice to the other. Communications shall be deemed to have been received when delivered personally, on the scheduled arrival
date when sent by next day or 2nd-day courier service, or if sent by facsimile upon receipt of confirmation of transmittal or, if sent
by mail, then three days after deposit in the mail. If given by electronic transmission, such notice shall be deemed to be delivered (a)
if by electronic mail, when directed to an electronic mail address at which the stockholder has consented to receive notice; (b) if by
a posting on an electronic network together with separate notice to the stockholder of such specific posting, upon the later of (1) such
posting and (2) the giving of such separate notice; and (c) if by any other form of electronic transmission, when directed to the stockholder.


 


12. Counterparts


 


This Agreement may be executed
in one or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign
the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “pdf”
format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature
is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.


 


13. Survival; Severability


 


13.1. Survival.
The representations, warranties, covenants and agreements of the parties hereto shall survive the Closing Dates.


 


13.2. Severability.
In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, this Agreement shall continue in full force and effect without said provision; provided that no such severability shall be effective
if it materially changes the economic benefit of this Agreement to any party.


 


14. Headings.


 


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.


 


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IN WITNESS WHEREOF, the parties
hereto have executed this Agreement to be effective as of the date first set forth above.


 


	 	COMPANY:
	 	 
	 	ABRI SPAC 2, INC.

a Delaware corporation
	 	 
	 	By:	     
	 	Name:	Jeffrey Tirman
	 	 	Chief Executive Officer and Chairman of the Board
	 	 
	 	PURCHASER:
	 	 
	 	ABRI VENTURES 2, LLC

a Delaware limited liability company
	 	 
	 	By:	     
	 	Name:	 
	 	Title:	 


 


[Signature Page of the Unit Subscription Agreement]


 


 


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