{"url_path":"/sec/mspr/8-k/2026-07-13/item-1-01","section_key":"item-1-01","section_title":"Item 1.01 Entry into a Material Definitive Agreement**","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-07-13","source_url":"https://www.sec.gov/Archives/edgar/data/1802450/0001213900-26-077545-index.html","accession_number":"0001213900-26-077545","cik":"0001802450","ticker":"MSPR","issuer_name":"MSP Recovery, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1802450/0001213900-26-077545-index.html","primary_entity_key":"0001802450","primary_entity_name":"MSP Recovery, Inc."},"word_count":577,"has_tables":true,"body_markdown":"**Item 1.01. Entry into a Material Definitive Agreement**\n\n \n\nOn July 8, 2026, MSP Recovery,\nInc. (the “Company”) entered into a letter agreement (the “July 2026 VRM Letter Agreement”) with VRM MSP Recovery\nPartners, LLC (“VRM”), pursuant to which VRM agreed to provide a one-time advance of $0.3 million (the “Additional Advance”)\nto support certain operating expenses of the Company, in accordance with an operating budget previously approved by VRM.\n\n \n\nThe July 2026 VRM Letter\nAgreement provides that the Additional Advance is a one-time accommodation and does not obligate VRM or its affiliates to provide any\nfuture funding. VRM expressly reserved all rights under the existing transaction documents governing the parties’ relationship.\n\n \n\nIn connection with the Additional\nAdvance, the Company and VRM also agreed to certain amendments and supplements to the parties’ existing contractual arrangements,\nincluding the Master Transaction Agreement, dated March 9, 2022 (as amended, the “MTA”), and the Amended and Restated Security\nAgreement, dated September 11, 2023 (as amended, the “Security Agreement”).\n\n \n\nAmong other things, pursuant\nto the July 2026 VRM Letter Agreement:\n\n \n\n●the Company agreed to irrevocably direct payors of claims\nrecovery proceeds, other than Excluded Proceeds, to remit such proceeds to designated collection accounts subject to VRM’s control\nor otherwise maintained pursuant to arrangements acceptable to VRM, where such proceeds will be administered in accordance with the July\n2026 VRM Letter Agreement;\n\n \n\n●the parties amended procedures governing the receipt, allocation,\nand distribution of claims recovery proceeds through such collection accounts, including procedures intended to recognize amounts payable\nto third-party owners, lienholders, and legal counsel prior to application of remaining proceeds in accordance with the parties’\ncontractual arrangements;\n\n \n\n●the Company agreed that, until otherwise directed by VRM,\nclaims recovery proceeds otherwise payable to the Company (other than excluded proceeds and amounts payable to third parties) will be\nremitted to a VRM and/or the applicable joint venture entity bank account or the Company’s bank account which VRM holds a control\nagreement, with amounts received first being applied to reimburse prior advances and the Additional Advance before being applied toward\nthe VRM Full Return (as defined in the MTA);\n\n \n\n●the Company agreed to provide VRM with additional claims\ndata relating to claims subject to VRM’s security interests in order to facilitate the determination of ownership interests, lien\npriorities, and distributions of claims recovery proceeds; and\n\n \n\n●the parties amended the MTA and the Security Agreement to\nremove the “Operating Reserve” and the “Reserve Account” from the definition of excluded collateral (or Excluded\nProperty), with the result that such amounts are subject to VRM’s security interests under the Security Agreement. As a result\nof this amendment, amounts previously constituting the Operating Reserve and Reserve Account are no longer excluded from the collateral\nsecuring the Company’s obligations under the Security Agreement.\n\n \n\nThe July 2026 VRM Letter\nAgreement further provides that it is not intended to constitute a novation of any obligations under the existing transaction documents\nor otherwise affect the priority of VRM’s existing liens, except as expressly provided therein.\n\n \n\nThe foregoing description\nof the July 2026 VRM Letter Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of\nthe July 2026 VRM Letter Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.\nUnless otherwise indicated, capitalized terms used but not defined in this Item 1.01 have the meanings assigned to them in the July 2026\nVRM Letter Agreement."}