Document:

Exhibit 10.4

 

WESTERN ACQUISITION VENTURES CORP.

 

SUBSCRIPTION AGREEMENT FOR PRIVATE PLACEMENT UNITS

 

This SUBSCRIPTION AGREEMENT
FOR PRIVATE PLACEMENT UNITS (this “Agreement”) is made as of the 11th day of January, 2022, by and between Western Acquisition
Ventures Corp., a Delaware corporation (the “Company”), having its principal place of business at 42 Broadway, 12th
Floor, New York, New York 10004, and the subscriber set forth on Schedule A hereto (the “Subscriber”).

 

WHEREAS, the Company desires
to sell on a private placement basis (the “Offering”) 361,000 units (or up to 376,000 units depending on the extent to which
the underwriters’ over-allotment option is exercised), (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”), and one redeemable warrant, with each warrant
(each, a “Warrant”) entitling the holder to purchase one share of Common Stock, for a purchase price of $3,610,000 (or up
to $3,760,000 depending on the extent to which the underwriters’ over-allotment option is exercised), or $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, collectively, are hereinafter referred to as the “Securities.” Placement Warrants may be exercised only to the extent
that, when aggregated with other Placement Warrants being exercised, the exercise is for a whole share or whole shares; no fractional
shares of Common Stock shall be issuable. The exercise price for any Warrant Share shall be $11.50. Subject to the foregoing, the Placement
Warrants are exercisable beginning on the later of: one year after the date that the registration statement (the “Registration Statement”)
filed in connection with the Company’s initial public offering (the “IPO”) is declared effective by the SEC; and (ii) the
consummation of the Company’s initial business combination (the “Business Combination”), as such term is defined in
the Registration Statement filed in connection with the IPO, as amended at the time it becomes effective, and expiring on the fifth anniversary
of the consummation of the Business Combination; and

 

WHEREAS, the Subscriber wishes
to purchase the number of Units set forth on Schedule A hereto and the Company wishes to accept such subscription from the 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 the 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 Closing Date (as defined below), the number of Units
set forth on Schedule A for the purchase price of $3,760,000 (the “Purchase Price”).

 

1.2   Delivery
of the Purchase Price. Upon execution of this Agreement, the Company is bound to fulfill its obligations hereunder and the Subscriber
hereby irrevocably commits to deliver either directly into a trust account (the “Trust Account”) held at J.P. Morgan Chase
Bank, N.A., or any other financial institution chosen by the Company, with American Stock Transfer & Trust Company acting as
trustee (“Trustee”), the Purchase Price in immediately available funds by wire transfer or such other form of payment as shall
be acceptable to the Trustee, in its sole and absolute discretion, one (1) business day prior to the effective date of the Registration
Statement.

 

1.3    Closing.
The closing of the Offering (the “Closing”) shall take place simultaneously with the closing of the IPO (the “Closing
Date”), at the offices of Reed Smith LLP, 599 Lexington Avenue, 22nd Floor, New York, NY 10022, or such other place as may be agreed
upon by the parties hereto.

 

1.4    Termination.
This Agreement and each of the obligations of the undersigned shall be null and void and without effect if the Closing does not occur
prior to [•].

 

    -1-

     

    

 

		2.	Representations and Warranties of Subscriber

 

The 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 U.S. 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 such 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 “Letter Agreement”) 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 Letter Agreement. 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 transfer the Securities (unless otherwise permitted pursuant to the Letter
Agreement, 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 Business
Combination, despite technical compliance with the requirements of Rule 144 and the release or waiver of any contractual transfer
restrictions.

 

2.5   Sophisticated
Investor.

 

(i)    Subscriber’s
manager and members are individually accredited investors and are sophisticated in financial matters and 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, (a) 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 and (b) Subscriber has waived
its redemption rights with respect to the Securities as set forth in Section 5 hereof, and the Securities held by Subscriber are
not entitled to, and have no right, interest or claim to any monies held in the Trust Account, and accordingly Subscriber may suffer
a loss of a portion or all of its investment in the Securities. 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.

 

    -2-

     

    

 

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 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, 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.

 

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 review, 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.

 

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, the Subscriber that:

 

    -3-

     

    

 

3.1    Valid
Issuance of Capital Stock. The total number of shares of capital stock which the Company has authority to issue is 50,000,000 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),
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 an agreement to be entered into with respect
to the Placement Warrants between, among others, Subscriber and the Company, as described in the Registration Statement (the “Warrant
Agreement”) , as the case may be, each of the Units, Placement Shares, Placement Warrants and the 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,
the 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 resulting from actions of, or any failure to act by, the Company, other than (i) transfer restrictions
hereunder and pursuant to the Letter Agreement 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 a 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.

 

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 by which
it is bound or (iii) violate 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 the Closing, 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 the 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 Subscriber
in the name of 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 THESE 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.”

 

    -4-

     

    

 

“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER PURSUANT TO A LETTER AGREEMENT AMONG WESTERN ACQUISITION VENTURES CORP. AND
THE OTHER PARTIES THERETO AND MAY ONLY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF DURING THE TERM THEREOF PURSUANT
TO THE TERMS SET FORTH IN THE LETTER AGREEMENT.”

 

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 (ii) pursuant to an available exemption from the registration requirements of the Securities Act and applicable
state securities laws and (iii) in compliance herewith and with the Letter Agreement.

 

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, the Subscriber hereby waives any and

 

all right, title, interest or claim of any kind in or to any distributions
with respect to the Securities in connection with

 

(i) the exercise of redemption rights in
connection with the Company’s consummation of the Business Combination, or (ii) upon the Company’s redemption of shares
of Common Stock sold in connection with the IPO upon the Company’s failure to consummate the Business Combination within 12 months
(or if extended, up to 18 months as described in the Company’s Amended and Restated Certificate of Incorporation) from the completion
of the IPO or the liquidation of the Company prior to the expiration of such 12th month (or up to such 18th month) period, or such later
period approved by the Company’s stockholders in accordance with the Company’s Amended and Restated Charter. In the event
Subscriber purchases shares of Common Stock in the IPO or in the aftermarket (“Public Shares”), the Subscriber hereby waives
any and all right, title, interest or claim of any kind in or to any distributions with respect to any Public Shares in connection with
the exercise of redemption rights in connection with the Company’s consummation of the Business Combination. For the avoidance of
doubt, the Subscriber shall be eligible to redeem any Public Shares 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, or liquidates, within 12 months (or up to 18 months)
from the completion of the IPO.

 

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

 

		7.	Rescission Right Waiver and Indemnification.

 

7.1    The
Subscriber understands and acknowledges an exemption from the registration requirements of the Securities Act requires there be no
general solicitation of purchasers of the Units. In this regard, if the IPO were deemed to be a general solicitation with respect to
the Units, the offer and sale of such Units may not be exempt from registration and, if not, the Subscriber may have a right to
rescind its purchases of the Units. In order to facilitate the completion of the Offering and in order to protect the Company, its
stockholders and the amounts in the Trust Account from claims that may adversely affect the Company or the interests of its
stockholders, Subscriber hereby agrees to waive, to the maximum extent permitted by applicable law, any claims, right to sue or
rights in law or arbitration, as the case may be, to seek rescission of its purchase of the Units. The Subscriber acknowledges and
agrees this waiver is being made in order to induce the Company to sell the Units to Subscriber. The Subscriber agrees the foregoing
waiver of rescission rights shall apply to any and all known or unknown actions, causes of action, suits, claims or proceedings
(collectively, “Claims”) and related losses, costs, penalties, fees, liabilities and damages, whether compensatory,
consequential or exemplary, and expenses in connection therewith, including reasonable attorneys’ and expert witness fees and
disbursements and all other expenses reasonably incurred in investigating, preparing or defending against any Claims, whether
pending or threatened, in connection with any present or future actual or asserted right to rescind the purchase of the Units
hereunder or relating to the purchase of the Units and the transactions contemplated hereby.

 

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7.2    The
Subscriber agrees not to seek recourse against the Trust Account for any reason whatsoever in connection with its purchase of the Units
or any Claim that may arise now or in the future.

 

7.3    The
Subscriber acknowledges and agrees that the stockholders of the Company are and shall be third-party beneficiaries of this Section 7.

 

7.4    The
Subscriber agrees that, to the extent any waiver of rights under this Section 7 is ineffective as a matter of law, the Subscriber
has offered such waiver for the benefit of the Company as an equitable right that shall survive any statutory disqualification or bar
that applies to a legal right. The Subscriber acknowledges the receipt and sufficiency of consideration received from the Company hereunder
in this regard.

 

		8.	Terms of the Units and Placement Warrant

 

The Units and their component parts
are substantially identical to the units to be offered in the IPO except that:

 

(i) the Units and their component parts will
be subject to transfer restrictions, except in limited circumstances, until 30 days following the consummation of the Business Combination,
(ii) the Placement Warrants will be identical to the “Public Warrants” (as defined in the Registration Statement), and
(iii) the Units and their component parts are being purchased pursuant to an exemption from the registration requirements of the
Securities Act and will become freely tradable only after they are registered or an exemption from registration is available, and the
restrictions described above in clause (i) have expired.

 

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.

 

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 Subscriber to a person agreeing to be bound by the terms hereof, including the waiver contained in Section 7 hereof.

 

10.2
Entire Agreement. This Agreement sets forth the entire agreement and understanding between the parties as to the subject
matter hereof 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 the party against whom enforcement of any such amendment,
waiver, discharge or termination is sought.

 

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.

 

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		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
Subscriber has consented to receive notice; (b) if by a posting on an electronic network together with separate notice to the
Subscriber 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 Subscriber.

 

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.

 

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.

 

[remainder of page intentionally left blank]

 

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Accepted and agreed on the date set forth above.

 

	 	WESTERN ACQUISITION VENTURES CORP.
	 	 
	 	By:	/s/ Stephen Christoffersen
	 	 	Name: Stephen Christoffersen
	 	 	Title: Chief Executive Officer
	 	 
	Accepted and agreed on the date set forth above.
	 	 
	 	SUBSCRIBER:
	 	 
	 	WESTERN
    ACQUISITION VENTURES SPONSOR LLC
	 	 
	 	By:	/s/ William Lischak
	 	 	Name: William Lischak
	 	 	Title: Managing Member

 

[Western
Acquisition Ventures Sponsor LLC - Placement Unit Subscription Agreement]

 

     

     

    

 

SCHEDULE A

 

	NAME OF SUBSCRIBER	 	NUMBER OF UNITS	 
	Western Acquisition Ventures Sponsor LLC	 	 	376,000Exhibit 10.5

 

STOCK ESCROW AGREEMENT

 

STOCK ESCROW AGREEMENT,
dated as of January 11, 2022 (“Agreement”), by and among Western Acquisition Ventures Corp., a Delaware corporation
(“Company”), each stockholder of the Company listed on Exhibit A hereto (the “Stockholders” and each, a
 “Stockholder”), and American Stock Transfer & Trust Company, a New York limited purpose trust company (“Escrow
Agent”).

 

WHEREAS, the Company was
formed for the purpose of completing a merger, stock exchange, asset acquisition, stock purchase, recapitalization, reorganization or
other similar business combination (a “Business Combination”) with one or more businesses or entities.

 

WHEREAS, On June 9,
2021, Western Acquisition Ventures Sponsor LLC (“Sponsor”) purchased 4,312,500 shares of the Company’s Common Stock
(“Common Stock”), par value $0.0001 per share, for an aggregate purchase price of $25,000, which includes 1,207,500 representative
shares transferred from the Sponsor to an affiliate of A.G.P./Alliance Global Partners (“A.G.P.”) on June 16, 2021 for
$ 7,000 (up to 157,500 of which are subject to forfeiture to the extent that the underwriters’ over-allotment option is not exercised
in full or in part). On November 22, 2021, the Company effected a 2:3 split of its Common Stock, and A.G.P. sold back to the Sponsor
55,000 founder shares for $478.26, such that the Sponsor owns 2,125,000 founder shares, and A.G.P. owns 750,000 founder shares (of which
277,174 founder shares and 97,826 founder shares, respectively, are subject to forfeiture to the extent that the over-allotment option
is not exercised in full or in part so that the initial stockholders will collectively own 20% of the Company’s issued and outstanding
shares after this offering).

 

WHEREAS, the Company has
entered into an Underwriting Agreement, dated January 11, 2022 (“Underwriting Agreement”), with A.G.P. (the “Representative”)
acting as representative of the several underwriters (collectively, the “Underwriters”), pursuant to which, among other matters,
the Underwriters have agreed to purchase 10,000,000 units (“Units”) of the Company, excluding an additional 1,150,000 Units
if the Representative exercises the over-allotment option in full. Each Unit consists of one share of Common Stock and one warrant (“Warrant”).
Each Warrant entitles the holder to purchase one (1) share of Common Stock at a price of $11.50 per whole share, subject to adjustment.
The Company’s Common Stock, Units, and Warrants are more fully described in the Company’s final Prospectus, dated January 5,
2022 (“Prospectus”) comprising part of the Company’s Registration Statement on Form S-1 (File No. 333 -260384)
under the U.S. Securities Act of 1933, as amended (“Registration Statement”), declared effective on January 11, 2022
(“Effective Date”).

 

WHEREAS, the Sponsor and
A.G.P., as the Stockholders hereunder, have agreed as a condition of the sale of the Units to deposit their shares of Common Stock of
the Company in escrow as hereinafter provided.

 

WHEREAS, the Company and
each Stockholder desire that the Escrow Agent accept the shares of Common Stock, in escrow, to be held and disbursed as hereinafter provided.

 

IT IS AGREED:

 

1.    Appointment of Escrow Agent. The Company and the Stockholders hereby appoint the Escrow Agent to act in accordance
with and subject to the terms of this Agreement and the Escrow Agent hereby accepts such appointment and agrees to act in accordance
with and subject to such terms.

 

2.     Deposit
of Shares. On or before the Effective Date, each Stockholder’s shares of Common Stock set forth on Exhibit A hereto shall
be deposited in escrow, to be held and disbursed subject to the terms and conditions of this Agreement. Each Stockholder acknowledges
that the shares deposited in escrow will be legended to reflect the deposit of such shares under this Agreement.

 

3.     Disbursement of the Escrow Shares.

 

3.1     If
the over-allotment option to purchase all or a portion of the additional 1,150,000 Units of the Company is not exercised in full within
45 days of the date of the Prospectus (as described in the Underwriting Agreement), each Stockholder agrees that the Escrow Agent shall
return to the Company for cancellation, at no cost, the number of shares of Common Stock determined by multiplying 375,000 by a fraction,
(i) the numerator of which is 1,150,000 minus the number of shares of Common Stock included in the Units purchased by the Underwriters
upon the exercise of the over-allotment option, and (ii) the denominator of which is 1,150,000. The Company shall promptly provide
notice to the Escrow Agent of the expiration or termination of the over-allotment option and the number of Units, if any, purchased by
the Underwriters in connection with the exercise thereof.

 

    

     

    

 

3.2     Except
as otherwise set forth herein, the Escrow Agent shall hold the shares remaining after any cancellation required pursuant to Section 3.1
above (such remaining shares to be referred to herein as the “Escrow Shares”) until the earlier of (i) the one year
after the date of the consummation of the Company’s initial Business Combination or (ii) the date on which the Company completes
a liquidation, merger, stock exchange or other similar transaction after the Company’s initial Business Combination that results
in all of the Company’s public stock holders to have the right to exchange their shares of Common Stock for cash, securities or
other properties. Notwithstanding the foregoing, the shares of the Company’s Common Stock held in escrow will be released from
the escrow account if, on the date on which the closing price of the Common Stock equals or exceeds $12.00 per share (as adjusted for
share splits, share dividends, reorganizations and recapitalizations) for any 20 trading days within a 30-trading day period following
150 days after the consummation of the initial Business Combination, or earlier if, subsequent to the initial Business Combination, the
Company consummates a liquidation, merger, stock exchange or other similar transaction which results in all of the Company’s stockholders
having the right to exchange their shares of Common Stock for cash, securities or other property (such period of time during which the
Escrow Shares are held in escrow, the “Escrow Period”). Upon the achievement of any of the conditions set forth above, the
Company shall promptly provide notice to the Escrow Agent, in form reasonably acceptable to the Escrow Agent. Upon completion of the
Escrow Period, the Escrow Agent shall disburse such amount of each Stockholder’s Escrow Shares to each Stockholder. The Escrow
Agent shall have no further duties hereunder after the disbursement of the Escrow Shares in accordance with this Section 3.2.

 

3.3     Notwithstanding
the provisions of Section 3.2, if the Escrow Agent is notified by the Company pursuant to Section 6.7 hereof that the Company’s
Trust Account (as defined in that certain Investment Management Trust Agreement, dated as of the date hereof, by and between the Company
and the Escrow Agent as trustee thereunder) is being liquidated, then the Escrow Agent shall deliver the certificates representing the
Escrow Shares of each Stockholder promptly after the public stockholders are paid the liquidating distributions and shall have no further
duties hereunder.

 

4.     Rights of Stockholders in Escrow Shares.

 

4.1     Voting
Rights as a Stockholder. Subject to the terms of the Insider Letter described in Section 4.4 hereof and except as herein provided,
each Stockholder shall retain all of its rights as a stockholder of the Company as long as any shares are held in escrow pursuant to
this Agreement, including, without limitation, the right to vote such shares.

 

4.2     Dividends and Other Distributions in Respect of the Escrow Shares. For as long as any shares are held in escrow pursuant
to this Agreement, all dividends payable in cash with respect to the Escrow Shares shall be paid to each Stockholder, but all dividends
payable in stock or other non-cash property (“Non-Cash Dividends”) shall be delivered to the Escrow Agent to hold in accordance
with the terms hereof. As used herein, the term “Escrow Shares” shall be deemed to include the Non-Cash Dividends distributed
thereon, if any.

 

4.3     Restrictions on Transfer. During the Escrow Period, the only permitted transfers of the Escrow Shares will be (i) to
officers, directors, consultants, or affiliates of each Stockholder or the Company, (ii) to the Stockholders or their respective
affiliates, or to the Company’s officers, directors, advisors and employees, or as a distribution to a Stockholder’s partners,
stockholders or members upon its liquidation, (iii) by bona fide gift to a member of holder’s immediate family or to a trust,
the beneficiary of which is a holder or a member of a holder immediate family for estate planning purposes, (iv) by virtue of the
laws of descent and distribution upon death of a holder, (v) pursuant to a qualified domestic relations order binding on a Sponsor,
(vi) by certain pledges to secure obligations incurred in connection with purchases of the Company’s securities, (vii) to
the Company for no value for cancellation in connection with the consummation of a Business Combination or (vii) by private sales
of the Escrow Shares made at or prior to the consummation of a Business Combination at prices no greater than the price at which the
Escrow Shares were originally purchased; provided, however, that except for clause (vii) or with the Company’s prior written
consent, such permitted transfers may be implemented only upon the respective transferee’s written agreement to be bound by the
terms and conditions of this Agreement and of the Insider Letter signed by each Stockholder transferring the shares.

 

    

     

    

 

4.4     Insider Letter. Each Stockholder has executed a letter agreement with the Company and the Representative, dated as
of the date hereto, the form of which is filed as an exhibit to the Registration Statement (“Insider Letter”), respecting
the rights and obligations of each Stockholder in certain events, including, but not limited to, the liquidation of the Company.

 

5.     Concerning the Escrow Agent.

 

5.1     Good
Faith Reliance. The Escrow Agent shall not be liable for any action taken or omitted by it in good faith and in the exercise of its
own best judgment, and may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or
advice of counsel (including counsel chosen by the Escrow Agent), statement, instrument, report or other paper or document (not only
as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information
therein contained) which is believed by the Escrow Agent in good faith to be genuine and to be signed or presented by the proper person
or persons. The Escrow Agent shall not be bound by any notice or demand, or any waiver, modification, termination or rescission of this
Agreement unless evidenced by a writing delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights
of the Escrow Agent are affected, unless it shall have given its prior written consent thereto.

 

5.2     Indemnification. Subject to Section 5.8 below, the Escrow Agent shall be indemnified and held harmless by the
Company from and against any expenses, including reasonable counsel fees and disbursements, or loss suffered by the Escrow Agent in connection
with any action, suit or other proceeding involving any claim which in any way, directly or indirectly, arises out of or relates to this
Agreement, the services of the Escrow Agent hereunder, or the Escrow Shares held by it hereunder, other than expenses or losses arising
from the gross negligence, fraud or willful misconduct of the Escrow Agent. Promptly after the receipt by the Escrow Agent of notice
of any demand or claim or the commencement of any action, suit or proceeding, the Escrow Agent shall notify the other parties hereto
in writing. In the event of the receipt of such notice, the Escrow Agent, in its sole discretion, may commence an action in the nature
of interpleader in an appropriate court to determine ownership or disposition of the Escrow Shares or it may deposit the Escrow Shares
with the clerk of any appropriate court or it may retain the Escrow Shares pending receipt of a final, non-appealable order of a court
having jurisdiction over all of the parties hereto directing to whom and under what circumstances the Escrow Shares are to be disbursed
and delivered. The provisions of this Section 5.2 shall survive in the event the Escrow Agent resigns or is discharged pursuant
to Sections 5.5 or 5.6 below.

 

5.3     Compensation.
Subject to Section 5.8 below, the Escrow Agent shall be entitled to reasonable compensation from the Company for all services rendered
by it hereunder. The Escrow Agent shall also be entitled to reimbursement from the Company for all reasonable expenses paid or incurred
by it in the administration of its duties hereunder including, but not limited to, all counsel, advisors’ and agents’ fees
and disbursements and all taxes or other governmental charges.

 

5.4     Further
Assurances. From time to time on and after the date hereof, the Company and each Stockholder shall deliver or cause to be delivered
to the Escrow Agent such further documents and instruments and shall do or cause to be done such further acts as the Escrow Agent shall
reasonably request to carry out more effectively the provisions and purposes of this Agreement, to evidence compliance herewith or to
assure itself that it is protected in acting hereunder.

 

5.5     Resignation.
The Escrow Agent may resign at any time and be discharged from its duties as escrow agent hereunder by its giving the other parties hereto
written notice and such resignation shall become effective as hereinafter provided. Such resignation shall become effective at such time
that the Escrow Agent shall turn the Escrow Shares over to a successor escrow agent appointed by the Company and approved by the Representative,
which approval will not be unreasonably withheld, conditioned or delayed. If no new escrow agent is so appointed within the 60-day period
following the giving of such notice of resignation, the Escrow Agent may deposit the Escrow Shares with any court it reasonably deems
appropriate in the State of New York.

 

    

     

    

 

5.6     Discharge
of Escrow Agent. The Escrow Agent shall resign and be discharged from its duties as escrow agent hereunder if so requested in writing
at any time by all of the other parties hereto; provided, however, that such resignation shall become effective only upon the appointment
of a successor escrow agent selected by the Company and approved by the Representative, which approval will not be unreasonably withheld,
conditioned or delayed.

 

5.7     Liability.
Notwithstanding anything herein to the contrary, the Escrow Agent shall not be relieved from liability hereunder for its own gross negligence,
fraud or willful misconduct.

 

5.8     Waiver.
The Escrow Agent hereby waives any right of set-off or any other right, title, interest or claim of any kind (“Claim”) in,
or to any distribution of, the Trust Account and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim
against the Trust Account for any reason whatsoever.

 

6.     Miscellaneous.

 

6.1     Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without
giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. The
parties hereto consent to the jurisdiction and venue of any state or federal court located in the City of New York, Borough of Manhattan,
for purposes of resolving any disputes hereunder. As to any claim, cross-claim, or counterclaim in any way relating to this Agreement,
each party waives the right to trial by jury.

 

6.2     Third
Party Beneficiaries. Each of the parties to this Agreement hereby acknowledges that the Representative is a third party beneficiary
of this Agreement.

 

6.3     Entire Agreement. This Agreement contains the entire agreement of the parties hereto with respect to the subject matter
hereof and, except as expressly provided herein, may only be changed, amended, or modified by a writing signed by each of the parties
hereto.

 

6.4     Headings.
The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
thereof.

 

6.5     Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the respective parties hereto and their legal representatives,
successors and assigns.

 

6.6     Notices.
Any notice, consent or request to be given in connection with any of the terms or provisions of this Agreement shall be in writing and
shall be sent by express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery, by
email or by facsimile transmission:

 

If to the Company, to:

 

Western Acquisition Ventures Corp.

42
Broadway, 12th Floor

New York, New York 10004

Attn: Stephen Christoffersen

E-mail: schristoffersen@westacqventures.com

 

with a copy to:

 

Reed Smith LLP

599 Lexington Avenue

New York, New York 10022

Attn: Aron Izower, Esq., Wendy Grasso, Esq. and
Marc Hauser, Esq.

Email:AIzower@reedsmith.com;
WGrasso@reedsmith.com; and
MHauser@reedsmith.com

 

If to each Stockholder, to its address set forth in Exhibit A.

 

    

     

    

 

and if to the Escrow Agent, to:

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

Attn: Relationship Management

Email: admin12@astfinancial.com

 

A copy of any notice sent hereunder
shall be sent to:

A.G.P./Alliance Global Partners.

590 Madison Avenue, 28th Floor

New York, NY 10022

Attn: Thomas J. Higgins

Email: thiggins@allianceg.com

 

with a copy to:

Sullivan & Worcester LLP

1633 Broadway

New York, New York 10019

Attn: Oded Har-Even, Esq. and Ron Ben-Bassat, Esq.

E-mail: ohareven@sullivanlaw.com;
rbenbassat@sullivanlaw.com

 

The parties may change the
persons and addresses to which the notices or other communications are to be sent by giving written notice to any such change in the
manner provided herein for giving notice.

 

6.7     Liquidation of the Trust Account. The Company shall give the Escrow Agent written notification of the liquidation of
the Trust Account in the event that the Company fails to consummate a Business Combination within the time period specified in the Company’s
Amended and Restated Certificate of Incorporation, as the same may be amended from time to time.

 

6.8     Counterparts.
This Agreement may be executed in several counterparts, each one of which shall constitute an original and may be delivered by facsimile
transmission and together shall constitute one instrument.

 

[Signature Page Follows]

 

    

     

    

 

WITNESS the execution of this Agreement as of the date
first above written.

 

	 	WESTERN ACQUISITION VENTURES CORP.

 

	 	By:	/s/ Stephen Christoffersen

	 	Name:	Stephen Christoffersen

	 	Title:	Chief Executive Officer

 

	 	AMERICAN STOCK TRANSFER & TRUST COMPANY

 

	 	By:	/s/ Barbara J. Robbins

	 	Name:	Barbara J. Robbins

	 	Title:	Sr. Vice President

 

	 	WESTERN ACQUISITION VENTURES SPONSOR LLC

 

	 	By:	/s/ William Lischak

	 	Name:	William Lischak

	 	Title:	Managing Member

 

	 	A.G.P./ALLIANCE GLOBAL PARTNERS CORP

 

	 	By:	/s/ Thomas J. Higgins

	 	Name:	Thomas J. Higgins

	 	Title:	Managing Director

 

[Signature Page to
Stock Escrow Agreement]

 

    

     

    

 

EXHIBIT A

 

	 	 	Number	 
	Name and Address of Sponsor	 	of Shares	 
	Western
    Acquisition Ventures Sponsor LLC 42 Broadway, 12th Floor New York, New York
    10004	 	 	2,125,000	 
	A.G.P./Alliance Global Partners Corp	 	 	750,000	 
	TOTAL	 	 	2,875,000	 

 

    A-1

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