Material Agreement Form 8 K

Item 1.01 Entry into a Material Definitive Agreement.

On July 2, 2024, KLDiscovery Inc. (the "Company") entered into the Third Amendment (the "Third Amendment") to the Securities Purchase Agreement, dated as of December 16, 2019 (as amended by that certain First Amendment to Securities Purchase Agreement, dated as of November 19, 2021, and that certain Second Amendment to Securities Purchase Agreement, dated as of June 14, 2024, the "Securities Purchase Agreement") with holders of all of the Company's outstanding convertible debentures due 2024 (the "Debentures"). The Third Amendment amends the Securities Purchase Agreement to provide that the Debentures will mature on January 10, 2025 (the "Maturity Date"), unless earlier converted, redeemed or repurchased, provided, however, that if the parties to the Third Amendment enter into an agreement to exchange the Debentures for newly issued common stock of the Company, as contemplated by a related transaction support agreement (the "TSA"), the Maturity Date shall automatically be extended to July 10, 2025; provided, further, that if the TSA is terminated in accordance with its terms, the Maturity Date shall automatically be changed to the date that is 195 calendar days after the day of such termination. The foregoing summary of the Third Amendment is not complete and is qualified in its entirety by reference to the full text of the Third Amendment, a copy of which is filed with this Form 8-K.

As previously reported in the Company's Current Report on Form 8-K filed on May 2, 2024, the Company and its principal convertible debenture holders and its principal term loan lender have reached an agreement in principle to significantly reduce the Company's long-term debt balance and strengthen the Company's financial position. Subject to execution of applicable definitive documents, this transaction will provide, inter alia, for a conversion of the Debentures into approximately 96% of KLDiscovery's pro forma outstanding common equity and an extension of the maturity of the Company's term loan to August 2027.