Document:

Exhibit 10.5

 

_______ __, 2021

 

Accretion Acquisition Corp.

410 17th Street, #1110

Denver, Colorado 80202

 

Gentlemen:

 

Accretion Acquisition Corp.
(“Corporation”), a blank check company formed for the purpose of acquiring one or more businesses or entities (a “Business
Combination”), intends to register its securities under the Securities Act of 1933, as amended (“Securities Act”), in
connection with its initial public offering (“IPO”).

 

Accretion Acquisition
Sponsor, LLC (the “Sponsor”) hereby commits to purchase an aggregate of 6,400,000 warrants (the “Initial Placement
Warrants”), each entitling the holder to purchase one share of common stock, par value $0.001 per share, of the Corporation
(the “Warrants”) for a purchase price of $1.00 per Warrant and an aggregate purchase price of 6,400,000 (the
 “Initial Purchase Price”). Additionally, if the underwriters in the IPO exercise their over-allotment option in full or
in part, the Sponsor further commits to purchase up to an additional 675,000 Warrants (“Additional Placement Warrants”
and together with the Initial Placement Warrants, the “Placement Warrants”) at a purchase price of $1.00 per Additional
Placement Warrant, for an aggregate additional purchase price of up to 675,000 (the “Over-Allotment Purchase Price” and
together with the Initial Purchase Price, the “Purchase Price”). At least 24 hours prior to the effective date
(“Effective Date”) of the Corporation’s registration statement filed in connection with the IPO
(“Registration Statement”), the Sponsor will cause the full Purchase Price to be delivered to Graubard Miller, counsel
for the underwriters in the IPO (“Counsel”), by wire transfer as set forth in the instructions attached as
Exhibit A to hold in a non-interest bearing account until the Corporation consummates the IPO.

 

The consummation of the purchase
and issuance of the Initial Placement Warrants and Additional Placement Warrants (if any) shall occur simultaneously with the consummation
of the IPO and over-allotment option, respectively. Simultaneously with the consummation of the IPO, Counsel shall deposit the Initial
Purchase Price, without interest or deduction, into the trust account (“Trust Account”) established by the Corporation for
the benefit of the Corporation’s public stockholders as described in the Registration Statement. Simultaneously with the consummation
of all or any part of the over-allotment option, Counsel shall deposit the pro-rata portion of the Over-Allotment Purchase Price, based
upon the amount of the over-allotment option that has been exercised, without interest or deduction, into the Trust Account. Upon expiration
of the over-allotment option, Counsel shall return any unused portion of the Over-Allotment Purchase Price to the Sponsor. If the Corporation
does not complete the IPO within fourteen (14) days from the Effective Date, the Purchase Price (without interest or deduction) will be
returned to the Sponsor.

 

Each of the Corporation and
the Sponsor acknowledges and agrees that Counsel is serving hereunder solely as a convenience to the parties to facilitate the purchase
of the Placement Warrants and Counsel’s sole obligation under this letter agreement is to act with respect to holding and disbursing
the Purchase Price for the Placement Warrants as described above. Counsel shall not be liable to the Corporation or the Sponsor or any
other person or entity in respect of any act or failure to act hereunder or otherwise in connection with performing its services hereunder
unless Counsel has acted in a manner constituting gross negligence or willful misconduct. The Corporation and the Sponsor, jointly and
severally, shall indemnify Counsel against any claim made against it (including reasonable attorney’s fees) by reason of it acting
or failing to act in connection with this letter agreement except as a result of its gross negligence or willful misconduct. Counsel may
rely and shall be protected in acting or refraining from acting upon any written notice, instruction or request furnished to it hereunder
and believed by it to be genuine and to have been signed or presented by the proper party or parties.

 

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The Placement Warrants will
be identical to the Warrants included in the units sold by the Corporation in the IPO, except that:

 

		o	the Placement Warrants and underlying securities will not be transferable until after the completion of
a Business Combination, except (i) to officers, directors, consultants or affiliates of the Sponsor or the Corporation, (ii) to
the Sponsor’s stockholders, partners or members upon the Sponsor’s liquidation (such persons, together with the persons referred
to in clause (i), being referred to as “Permitted Transferees”), (iii) by bona fide gift to a member of a Permitted Transferee’s
immediate family or to a trust, the beneficiary of which is a Permitted Transferee or a member of a Permitted Transferee’s immediate
family for estate planning purposes, (iv) by virtue of the laws of descent and distribution upon death of a Permitted Transferee,
(v) pursuant to a qualified domestic relations order binding on a Permitted Transferee, (vi) to the Corporation for no value
for cancellation in connection with the consummation of a Business Combination or (vii) by private sales made at or prior to the
consummation of a Business Combination at prices no greater than the price at which the Placement Warrants were originally purchased;
provided, however, that except for clause (vi) or with the Corporation’s prior written consent, such permitted transfers may
be implemented only upon the respective transferee’s written agreement to be bound by the terms of the transfer restrictions herein;
and

 

		o	the Placement Warrants (and underlying securities) will have customary registration rights, which shall
be described in the Registration Statement.

 

The Sponsor hereby represents and warrants that:

 

(a)        it
has been advised that the Placement Warrants have not been registered under the Securities Act;

 

(b)        it
is acquiring the Placement Warrants and underlying securities for its account for investment purposes only;

 

(c)        it
has no present intention of selling or otherwise disposing of the Placement Warrants (or underlying securities) in violation of the securities
laws of the United States;

 

(d)        it
is an “accredited investor” as defined by Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended;

 

(e)        it
has had both the opportunity to ask questions and receive answers from the officers and directors of the Corporation and all persons acting
on its behalf concerning the terms and conditions of the offer made hereunder;

 

(f)         it
is familiar with the proposed business, management, financial condition and affairs of the Corporation;

 

(g)        it
has full power, authority and legal capacity to execute and deliver this letter and any documents contemplated herein or needed to consummate
the transactions contemplated in this letter; and

 

(h)        this
letter constitutes the legal, valid and binding obligation of the Sponsor and is enforceable against it.

 

Remainder of this Page Intentionally Left
Blank

 

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	 	Very truly yours,
	 	 
	 	 
	 	ACCRETION ACQUISITION SPONSOR, LLC
	 	 	 	 
	 	By:	 
	 	 	Name:	Brad Morse  
	 	 	Title:	President

 

Accepted and Agreed:

 

ACCRETION ACQUISITION CORP.

 

	By:	 	 
	 	Name:	Brad Morse  	 
	 	Title:	Chief Executive Officer	 

 

GRAUBARD MILLER

(solely with respect to its obligations to hold

and disburse monies for the Placement Warrants)

 

	By:	 	 
	 	Name:	 
	 	Title:	 

 

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EXHIBIT A

 

WIRE TRANSFER INSTRUCTIONSExhibit 10.6

 

STOCK ESCROW AGREEMENT

 

STOCK ESCROW AGREEMENT, dated
as of [●], 2021 (“Agreement”), by and among Accretion Acquisition Corp., a Delaware corporation (“Company”),
the stockholder of the Company listed on Exhibit A hereto (the “Sponsor”) and Continental 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, the Sponsor purchased
an aggregate of 4,312,500 shares of the Company’s common stock, par value $0.001 per share (“Common Stock”) in a private
placement;

 

WHEREAS, the Company has
entered into an Underwriting Agreement, dated [●], 2021 (“Underwriting Agreement”), with EarlyBirdCapital, Inc.
and Stephens Inc. (the “Representatives”) acting as representative of the
several underwriters (collectively, the “Underwriters”), pursuant to which, among other matters, the Underwriters have
agreed to purchase 15,000,000 units (“Units”) of the Company, plus up to an additional 2,250,000 Units if the
Representatives exercise the over-allotment option in full. Each Unit consists of one share of Common Stock, one right to receive
one-tenth of one share of Common Stock, and one-half of one warrant (“Warrant”), each whole Warrant to purchase one
share of Common Stock, all as more fully described in the Company’s final Prospectus, dated [●], 2021
(“Prospectus”) comprising part of the Company’s Registration Statement on Form S-1 (File No. 333-[ ]) under the
Securities Act of 1933, as amended (“Registration Statement”), declared effective on [●], 2021 (“Effective
Date”).

 

WHEREAS, the Sponsor has agreed
as a condition of the sale of the Units to deposit its shares of Common Stock of the Company in escrow as hereinafter provided.

 

WHEREAS, the Company and the
Sponsor 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 Sponsor 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, the Sponsor’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. The Sponsor 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 2,250,000 Units of the Company is not exercised in
full within 45 days of the date of the Prospectus (as described in the Underwriting Agreement), the Sponsor 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 562,500 by a
fraction, (i) the numerator of which is 2,250,000 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 2,250,000. 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 six-month anniversary
of the date of the consummation of the Company’s 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 Sponsor’s Escrow Shares to the Sponsor. 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 to the Sponsor promptly after the public stockholders are paid the liquidating distributions and shall
have no further duties hereunder.

 

4.                 
Rights of Sponsor 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, the Sponsor 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 the Sponsor, 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.

 

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4.3             
Restrictions on Transfer. During the Escrow Period, the only permitted transfers of the Escrow Shares will be except (i)
to officers, directors, consultants or affiliates of the Sponsor or the Company, (ii) to the Sponsor’s stockholders, partners or
members upon the Sponsor’s liquidation (such persons, together with the persons referred to in clause (i), being referred to as
 “Permitted Transferees”), (iii) by bona fide gift to a member of a Permitted Transferee’s immediate family or to a trust,
the beneficiary of which is a Permitted Transferee or a member of a Permitted Transferee’s immediate family for estate planning
purposes, (iv) by virtue of the laws of descent and distribution upon death of a Permitted Transferee, (v) pursuant to a qualified domestic
relations order binding on a Permitted Transferee, (vi) to the Company for no value for cancellation in connection with the consummation
of a Business Combination or (vii) by private sales 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 (vi) 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 of this Agreement and the Insider Letter.

 

4.4             
Insider Letter. The Sponsor has executed a letter agreement with the Company and the Representatives, 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 the Sponsor 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.

 

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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 the Sponsor 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 Representatives, 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 Representatives, 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.

 

    -4- 

     

    

 

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 Representatives are third
party beneficiaries 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:

Accretion Acquisition Corp.

410 17th Street, #1110

Denver, CO 80202

Attn: Brad Morse

E-mail: Brad@fulcrumef.com

 

If to the Sponsor, to its address set
forth in Exhibit A.

 

and if to the Escrow Agent, to:

Continental Stock Transfer & Trust Company

1 State Street, 30th Floor

New York, New York 10004

Attn: Client Administration Dept.

Email: accountadmin@continentalstock.com

 

    -5- 

     

    

 

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

EarlyBirdCapital, Inc.

366 Madison Ave 8th Floor

New York, NY 10017

Attn: Steven Levine

Email: slevine@ebccap.com

 

Stephens Inc.

65 E 55th Street, 22nd
Floor

New York, NY 10022

Attn: Keith Behrens

Email: keith.behrens@stephens.com

 

with a copy to:

Graubard Miller

The Chrysler Building

405 Lexington Avenue

New York, New York 10174

Attn: David Alan Miller, Esq. / Jeffrey M. Gallant, Esq.

Email: dmiller@graubard.com / jgallant@graubard.com

 

and:

Davis Graham & Stubbs LLP

1550 17th Street, Suite 500

Denver, Colorado 80202

Attn: John Elofson

Sam Seiberling

Sam Niebrugge

E-mail: John.Elofson@dgslaw.com

Sam.Seiberling@dgslaw.com

Sam.Niebrugge@dgslaw.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]

 

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

 

 

		ACCRETION ACQUISITION CORP.
	 	 
	 	 
	 	By:	 
		Name: Brad Morse
		Title: Chief Executive Officer
	 	 
	 	 
		CONTINENTAL STOCK TRANSFER & TRUST COMPANY
	 	By:	 
		Name:
		Title:
	 	 
	 	 
		SPONSOR:
	 	 
		ACCRETION ACQUISITION SPONSOR LLC
	 	 
	 	 
	 	By:	 
		Name:
		Title:

 

[Signature Page to Stock Escrow Agreement]

 

     

     

    

 

EXHIBIT A

 

	Name and Address of Sponsor	 	Number of Shares	 
	Accretion Acquisition Sponsor LLC
 c/o Accretion Acquisition Corp.
 410 17th Street, #1110
 Denver, CO 80202
	 	 	4,312,500	 
	TOTAL	 	 	4,312,500	 

 

    A-1

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