Exhibit 4.1


 


RIGHTS AGREEMENT


 


This Rights Agreement (this
“Agreement”) is made as of June 30, 2021 between G3 VRM Acquisition Corp., a Delaware corporation (the “Company”),
and Continental Stock Transfer & Trust Company, a New York corporation, with offices at 1 State Street, 30th Floor, New York, New
York 10004 (the “Rights Agent”).


 


WHEREAS, the Company is engaged
in a public offering (“Public Offering”) of units, each unit (“Unit”) comprised of one share of Class A common
stock, par value $0.0001 per share, of the Company (“Common Stock”), and one right to receive one-tenth of one share of Common
Stock (each a “Right” and collectively, the “Rights”), subject to adjustment, upon the happening of the triggering
event described herein;


 


WHEREAS, in connection with
the Public Offering, the Company will issue and deliver up to 10,000,000 Rights (or up to 11,500,000 Rights if the underwriters’
over-allotment option is exercised in full) to the public investors;


 


WHEREAS, the Company’s
sponsor (as defined in the Registration Statement) has agreed to purchase up to 547,500 Units (or up to 600,000 Units if the underwriters’
over-allotment option is exercised in full), and in connection therewith, the Company will issue and deliver up to an aggregate of 547,500
Rights (or up to 600,000 Rights if the underwriters’ over-allotment option is exercised in full) as part of such Units upon consummation
of such private placement;


 


WHEREAS, the Company may issue
up to 150,000 Units upon conversion of certain working capital loans made by the Company to the sponsor (as defined in the Registration
Statement) or an affiliate of the sponsor or certain of the Company’s officers and directors, and in connection therewith, the Company
will issue and deliver up to an aggregate of 150,000 Rights as part of such Units upon consummation of such conversion;


 


WHEREAS, the Company has filed
with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-1, File No. 333-255226 (“Registration
Statement”), and related Prospectus (“Prospectus”) for the registration, under the Securities Act of 1933, as amended
(“Act”), of, among other securities, the Rights and the Common Stock issuable to the holders of the Rights underlying the
Units to be sold in the Public Offering;


 


WHEREAS, the Company desires
the Rights Agent to act on behalf of the Company, and the Rights Agent is willing to so act, in connection with the issuance, registration,
transfer and exchange of the Rights;


 


WHEREAS, the Company desires
to provide for the form and provisions of the Rights, the terms upon which they shall be issued, and the respective rights, limitation
of rights, and immunities of the Company, the Rights Agent, and the holders of the Rights; and


 


WHEREAS, all acts and things
have been done and performed which are necessary to make the Rights, when executed on behalf of the Company and countersigned by or on
behalf of the Rights Agent, as provided herein, the valid, binding and legal obligations of the Company, and to authorize the execution
and delivery of this Agreement.


 


NOW, THEREFORE, in consideration
of the mutual agreements herein contained, the parties hereto agree as follows:


 


1. Appointment of Rights Agent. The Company
hereby appoints the Rights Agent to act as agent for the Company for the Rights, and the Rights Agent hereby accepts such appointment
and agrees to perform the same in accordance with the terms and conditions set forth in this Agreement.


 


2. Rights.


 


2.1. Form of Right.
Each Right shall be issued in book-entry form, unless a holder requests that their Rights be issued in certificated form. Any Rights issued
in certificated form shall be in substantially the form of Exhibit A hereto, the provisions of which are incorporated herein and
shall be signed by, or bear the facsimile signature of, the Chairman of the Board, Chief Executive Officer, or Chief Financial Officer
of the Company. In the event the person whose facsimile signature has been placed upon any Right shall have ceased to serve in the capacity
in which such person signed the Right before such Right is issued, it may be issued with the same effect as if he or she had not ceased
to be such at the date of issuance.


 






    	 	 	 



    	 



    

 


2.2. Effect of Countersignature.
Unless and until countersigned by the Rights Agent pursuant to this Agreement, a certificated Right shall be invalid and of no effect
and may not be exchanged for Common Stock.


 


2.3. Registration.


 


2.3.1. Right Register.
The Rights Agent shall maintain books (“Right Register”) for the registration of original issuance and the registration of
transfer of the Rights. Upon the initial issuance of the Rights, the Rights Agent shall issue and register the Rights in the names of
the respective holders thereof in such denominations and otherwise in accordance with instructions delivered to the Rights Agent by the
Company.


 


2.3.2. Registered Holder.
Prior to due presentment for registration of transfer of any Right, the Company and the Rights Agent may deem and treat the person in
whose name such Right shall be registered upon the Right Register (“registered holder”) as the absolute owner of such Right
and of each Right represented thereby (notwithstanding any notation of ownership or other writing on a Right Certificate made by anyone
other than the Company or the Rights Agent), for the purpose of the exchange thereof, and for all other purposes, and neither the Company
nor the Rights Agent shall be affected by any notice to the contrary.


 


2.4. Detachability of Rights.
The securities comprising the Units, including the Rights, will not be separately transferable until the earlier to occur of: (i) the
52nd day following the date of the Prospectus or (ii) the announcement by Maxim Group, LLC (the “Representative”) of its intention
to allow separate earlier trading, except that in no event will the securities comprising the Units be separately tradeable until the
Company files a Current Report on Form 8-K with the SEC which includes an audited balance sheet reflecting the receipt by the Company
of the gross proceeds of the Public Offering including the proceeds received by the Company from the exercise of the over-allotment option,
if the over-allotment option is exercised by the date thereof and the Company issues a press release and files a Current Report on Form
8-K with the SEC announcing when such separate trading shall begin.


 


3. Terms and Exchange of Rights


 


3.1. Rights. Each Right
shall entitle the holder thereof to receive one-tenth of one share of Common Stock upon the happening of an Exchange Event (defined below).
No additional consideration shall be paid by a holder of Rights in order to receive his, her or its Common Stock upon an Exchange Event
as the purchase price for such Common Stock has been included in the purchase price for the Units. In no event will the Company be required
to net cash settle the Rights or issue fractional shares of Common Stock.


 


3.2. Exchange Event.
An “Exchange Event” shall occur upon the Company’s consummation of an initial Business Combination (as described in
the Company’s Amended and Restated Certificate of Incorporation).


 


3.3. Exchange of Rights.


 


3.3.1. Issuance of Shares.
As soon as practicable upon the occurrence of an Exchange Event, (i) the Rights Agent shall automatically exchange all Rights held in
book-entry form and issue to the registered holder of such Rights the number of whole shares of Common stock to which he, she or it is
entitled in such holder’s name in book-entry form, and (ii) the Company shall direct holders of Rights held in certificated form
to return their Rights Certificates to the Rights Agent. Upon receipt of a valid Rights Certificate, the Company shall issue to the registered
holder of such Right(s) the number of whole shares of Common Stock to which he, she or it is entitled, registered in such name or names
as may be directed by him, her or it and issue to such registered holder(s) a certificate or book-entry position for such shares. Notwithstanding
the foregoing, or any provision contained in this Agreement to the contrary, in no event will the Company be required to net cash settle
the Rights. The Company shall not issue fractional shares upon exchange of Rights. At the time of the Exchange Event, the Company will
instruct the Right Agent to round down to the nearest whole share of Common Stock or otherwise inform it how fractional shares will be
addressed in accordance with Delaware law, including the issuance of time-limited script for any such fractional shares in accordance
with Section 155 of the Delaware General Corporation Law; provided, however, that holders of Rights shall have not less than 1 year from
the date of the Exchange Event in order to exchange their Rights (or any script or warrant issued in lieu of fractional shares).


 


3.3.2. Valid Issuance.
All shares of Common Stock issued upon an Exchange Event in conformity with this Agreement shall be validly issued, fully paid and nonassessable.


 


3.3.3. Date of Issuance.
Each person in whose name any such certificate or book-entry position for shares of Common Stock is issued shall for all purposes be deemed
to have become the holder of record of such shares on the date of the Exchange Event, irrespective of the date of delivery of such certificate
or entry of position.


 






    	 	 	 



    	 



    

 


3.3.4 Company Not Surviving
Following Exchange Event. Upon an Exchange Event in which the Company does not continue as the publicly held reporting entity, the
definitive agreement will provide for the holders of Rights to receive the same per share consideration the holders of the Common Stock
will receive in such transaction, for the number of shares such holder is entitled to pursuant to Section 3.3.1 above. If the Company
does not continue as the publicly held reporting entity upon an Exchange Event, each holder of a Right will be required to affirmatively
convert his/her or its rights in order to receive the 1/10 share underlying each right (without paying any additional consideration) upon
consummation of the Exchange Event. In such a case, each holder of a Right will be required to indicate his, her or its election to convert
the Rights into underlying shares as well as to return the original certificates evidencing the Rights to the Company.


 


3.5 Duration of Rights.
The Rights shall expire and shall be worthless on the 1-year anniversary of the Exchange Event. If an Exchange Event does not occur within
the time period set forth in the Company’s Amended and Restated Certificate of Incorporation, as the same may be amended from time
to time, the Rights shall expire and shall be worthless.


 


4. Transfer and Exchange of Rights.


 


4.1. Registration of Transfer.
The Rights Agent shall register the transfer, from time to time, of any outstanding Right upon the Right Register, upon surrender of such
Right for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate instructions for transfer. Upon
any such transfer, a new Right representing an equal aggregate number of Rights shall be issued and the old Right shall be cancelled by
the Rights Agent. The Rights so cancelled shall be delivered by the Rights Agent to the Company from time to time upon request.


 


4.2. Procedure for Surrender
of Rights. Rights may be surrendered to the Rights Agent, together with a written request for exchange or transfer, and thereupon
the Rights Agent shall issue in exchange therefor one or more new Rights as requested by the registered holder of the Rights so surrendered,
representing an equal aggregate number of Rights; provided, however, that in the event that a Right surrendered for transfer bears a restrictive
legend and the new Rights to be issued will not bear a restrictive legend, the Rights Agent shall not cancel such Right and issue new
Rights in exchange therefor until the Rights Agent has received an opinion of counsel for the Company stating that such transfer may be
made and indicating no restrictive legend is required.


 


4.3. Fractional Rights.
The Rights Agent shall not be required to effect any registration of transfer or exchange which will result in the issuance of a Right
Certificate for a fraction of a Right.


 


4.4. Service Charges.
No service charge shall be made for any exchange or registration of transfer of Rights.


 


4.5. Right Execution and
Countersignature. The Rights Agent is hereby authorized to countersign and to deliver, in accordance with the terms of this Agreement,
the Rights to be issued in certificated form required to be issued pursuant to the provisions of this Section 4, and the Company, whenever
required by the Rights Agent, will supply the Rights Agent with Rights duly executed on behalf of the Company for such purpose.


 


4.6. Adjustments to Conversion
Ratios. The number of shares of common stock that the holders of Rights are entitled to receive as a result of the occurrence of the
Exchange Event shall be equitably adjusted to reflect appropriately the effect of any share split, reverse share split, share dividend,
reorganization, recapitalization, reclassification, combination, exchange of shares or other like change with respect to the shares of
Common Stock occurring on or after the date hereof and prior to the Exchange Event.


 


5. Other Provisions Relating to Rights of Holders
of Rights.


 


5.1. No Rights as Shareholder.
Until exchange of a Right as provided for herein, a Right does not entitle the registered holder thereof to any of the rights of a shareholder
of the Company, including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive rights
to vote or to consent or to receive notice as shareholders in respect of the meetings of shareholders or the election of directors of
the Company or any other matter.


 


5.2. Lost, Stolen, Mutilated,
or Destroyed Rights. If any Right certificate is lost, stolen, mutilated, or destroyed, the Company and the Rights Agent may on such
terms as to indemnity or otherwise as they may in their discretion impose (which shall, in the case of a mutilated Right certificate,
include the surrender thereof), issue a new Right certificate of like denomination, tenor, and date as the Right certificate so lost,
stolen, mutilated, or destroyed. Any such new Right certificate shall constitute a substitute contractual obligation of the Company, whether
or not the allegedly lost, stolen, mutilated, or destroyed Right certificate shall be at any time enforceable by anyone.


 






    	 	 	 



    	 



    

 


5.3. Reservation of Shares.
The Company shall at all times reserve and keep available a number of its authorized but unissued shares of Common Stock that will be
sufficient to permit the exchange of all outstanding Rights issued pursuant to this Agreement.


 


6. Concerning the Rights Agent and Other Matters.


 


6.1. Payment of Taxes.
The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company or the Rights Agent in respect
of the issuance or delivery of shares of Common Stock upon the exchange of Rights, but the Company shall not be obligated to pay any transfer
taxes in respect of the Rights or such shares of Common Stock.


 


6.2. Resignation, Consolidation,
or Merger of Rights Agent.


 


6.2.1. Appointment of Successor
Rights Agent. The Rights Agent, or any successor to it hereafter appointed, may resign its duties and be discharged from all further
duties and liabilities hereunder after giving thirty (30) days’ notice in writing to the Company. If the office of the Rights Agent
becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in writing a successor Rights Agent in place
of the Rights Agent. If the Company shall fail to make such appointment within a period of 30 days after it has been notified in writing
of such resignation or incapacity by the Rights Agent or by the holder of the Right (who shall, with such notice, submit his, her or its
Right for inspection by the Company), then the holder of any Right may apply to the Supreme Court of the State of New York for the County
of New York for the appointment of a successor Rights Agent at the Company’s cost. Any successor Rights Agent, whether appointed
by the Company or by such court, shall be a corporation organized and existing under the laws of the State of New York, in good standing
and having its principal office in the Borough of Manhattan, City and State of New York, and authorized under such laws to exercise corporate
trust powers and subject to supervision or examination by federal or state authority. After appointment, any successor Rights Agent shall
be vested with all the authority, powers, rights, immunities, duties, and obligations of its predecessor Rights Agent with like effect
as if originally named as Rights Agent hereunder, without any further act or deed; but if for any reason it becomes necessary or appropriate,
the predecessor Rights Agent shall execute and deliver, at the expense of the Company, an instrument transferring to such successor Rights
Agent all the authority, powers, and rights of such predecessor Rights Agent hereunder; and upon request of any successor Rights Agent
the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting in
and confirming to such successor Rights Agent all such authority, powers, rights, immunities, duties, and obligations.


 


6.2.2. Notice of Successor
Rights Agent. In the event a successor Rights Agent shall be appointed, the Company shall give notice thereof to the predecessor Rights
Agent and the transfer agent for the shares of Common Stock not later than the effective date of any such appointment.


 


6.2.3. Merger or Consolidation
of Rights Agent. Any corporation or other form of entity into which the Rights Agent may be merged or with which it may be consolidated
or any corporation resulting from any merger or consolidation to which the Rights Agent shall be a party shall be the successor Rights
Agent under this Agreement without any further act.


 


6.3. Fees and Expenses
of Rights Agent.


 


6.3.1. Remuneration.
The Company agrees to pay the Rights Agent reasonable remuneration for its services as such Rights Agent hereunder and will reimburse
the Rights Agent upon demand for all expenditures that the Rights Agent may reasonably incur in the execution of its duties hereunder.


 


6.3.2. Further Assurances.
The Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed, acknowledged, and delivered all such
further and other acts, instruments, and assurances as may reasonably be required by the Rights Agent for the carrying out or performing
of the provisions of this Agreement.


 


6.4. Liability of Rights
Agent.


 


6.4.1. Reliance on Company
Statement. Whenever in the performance of its duties under this Agreement, the Rights Agent shall deem it necessary or desirable that
any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless
other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a statement
signed by the Chief Executive Officer or Chief Financial Officer and delivered to the Rights Agent. The Rights Agent may rely upon such
statement for any action taken or suffered in good faith by it pursuant to the provisions of this Agreement.


 






    	 	 	 



    	 



    

 


6.4.2. Indemnity. The
Rights Agent shall be liable hereunder only for its own gross negligence, willful misconduct or bad faith. Subject to Section 6.6 below,
the Company agrees to indemnify the Rights Agent and save it harmless against any and all liabilities, including judgments, costs and
reasonable counsel fees, for anything done or omitted by the Rights Agent in the execution of this Agreement except as a result of the
Rights Agent’s gross negligence, willful misconduct, or bad faith.


 


6.4.3. Exclusions. The
Rights Agent shall have no responsibility with respect to the validity of this Agreement or with respect to the validity or execution
of any Right (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition
contained in this Agreement or in any Right; nor shall it by any act hereunder be deemed to make any representation or warranty as to
the authorization or reservation of any shares of Common Stock to be issued pursuant to this Agreement or any Right or as to whether any
shares of Common Stock will when issued be valid and fully paid and nonassessable.


 


6.5. Acceptance of Agency.
The Rights Agent hereby accepts the agency established by this Agreement and agrees to perform the same upon the terms and conditions
herein set forth.


 


6.6 Waiver. The Rights
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 (as defined in that certain Investment Management Trust Agreement, dated as of the date hereof, by
and between the Company and the Rights Agent as trustee thereunder) and hereby agrees not to seek recourse, reimbursement, payment or
satisfaction for any Claim against the Trust Account for any reason whatsoever.


 


7. Miscellaneous Provisions.


 


7.1. Successors. All
the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit
of their respective successors and assigns.


 


7.2. Notices. Any notice,
statement or demand authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Right to or on the Company
shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service
within five days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Company with
the Rights Agent), as follows:


 


G3 VRM Acquisition Corp.


420 Boylston Street, Suite 302


Boston, MA 02116


Attn: Matthew Konkle, Chief Executive
Officer


 


 


Any notice, statement or demand authorized by
this Agreement to be given or made by the holder of any Right or by the Company to or on the Rights Agent shall be sufficiently given
when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five days after deposit
of such notice, postage prepaid, addressed (until another address is filed in writing by the Rights Agent with the Company), as follows:


 


Continental Stock Transfer & Trust
Company


1 State Street, 30th Floor


New York, New York 10004


Attn: Compliance Department


 


with a copy to:


 


Loeb & Loeb LLP


345 Park Avenue


New York, NY 10154


Attn: Mitchell S. Nussbaum, Esq. and
David J. Levine, Esq.


 


and


 






    	 	 	 



    	 



    

 


Harter Secrest & Emery LLP


1600 Bausch & Lomb Place


Rochester, NY 14604


Attn: Alexander R. McClean, Esq. and
C. Christopher Murillo, Esq.


and


 


Maxim Group LLC


405 Lexington Avenue


New York, NY 10174


Attn.: Ritesh M. Veera


 


7.3. Applicable Law.
If any action, the subject matter of which is within the scope the forum provisions above, is filed in a court other than a court located
within the State of New York or the United States District Court for the Southern District of New York (a “foreign action”)
in the name of any right holder, such right holder shall be deemed to have consented to: (x) the personal jurisdiction of the state and
federal courts located within the State of New York or the United States District Court for the Southern District of New York in connection
with any action brought in any such court to enforce the forum provisions (an “enforcement action”), and (y) having service
of process made upon such right holder in any such enforcement action by service upon such right holder’s counsel in the foreign
action as agent for such right holder.


 


7.4. Persons Having Rights
under this Agreement. Nothing in this Agreement expressed and nothing that may be implied from any of the provisions hereof is intended,
or shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto and the registered holders
of the Rights and, for the purposes of Sections 7.4 and 7.8 hereof, the Representative, any right, remedy, or claim under or by reason
of this Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. The Representative shall be deemed to be a
third-party beneficiary of this Agreement with respect to Sections 7.4 and 7.8 hereof. All covenants, conditions, stipulations, promises,
and agreements contained in this Agreement shall be for the sole and exclusive benefit of the parties hereto (and the Representative with
respect to the Sections 7.4 and 7.8 hereof) and their successors and assigns and of the registered holders of the Rights. The provisions
of this Section 7.4 may not be modified, amended or deleted without the prior written consent of the Representative.


 


7.5. Examination of the
Right Agreement. A copy of this Agreement shall be available at all reasonable times at the office of the Rights Agent in the Borough
of Manhattan, City and State of New York, for inspection by the registered holder of any Right. The Rights Agent may require any such
holder to submit his, her or its Right for inspection by it.


 


7.6. Counterparts.
This Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.


 


7.7. Effect of Headings.
The Section headings herein are for convenience only and are not part of this Agreement and shall not affect the interpretation thereof.


 


7.8 Amendments. This
Agreement may be amended by the parties hereto without the consent of any registered holder for the purpose of curing any ambiguity, or
of curing, correcting or supplementing any defective provision contained herein or adding or changing any other provisions with respect
to matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties deem shall not
adversely affect the interest of the registered holders. All other modifications or amendments shall require the written consent or vote
of the registered holders of a majority of the then outstanding Rights. The provisions of this Section 7.8 may not be modified, amended
or deleted without the prior written consent of the Representative.


 


7.9 Severability. This
Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity
or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable
term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to
such invalid or unenforceable provision as may be possible and be valid and enforceable.


 


[Signature Page Follows]


 






    	 	 	 



    	 



    




 


IN WITNESS WHEREOF, this Agreement
has been duly executed by the parties hereto as of the day and year first above written.


 


	 	G3 VRM ACQUISITION CORP.
	 	 	 
	 	By:	/s/ Matthew Konkle
	 	 	Name: 	Matthew Konkle
	 	 	Title:	Chief Executive Officer


 





	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY
	 	 	 
	 	By:	/s/ Isaac J. Kagan
	 	 	Name:  Isaac J. Kagan
	 	 	Title: Vice President


 


 


[Signature Page to Right Agreement]