Document:

Exhibit 10.6 

Ministry of Economic
Development 

“The Business
Centre”, Upton, St. Michael, BarbadosTel.: 
(246) 430-2200 Fax: (246) 228-6157 

Email:
info@barbadosbusiness.gov.bb
Website: www.barbadosbusiness.gov.bb 

     Ref.    
          No.: 5166/4/3422 

October 31, 2001 

Clarke & Co.
Attorney-at-Law
Parker
House 
 Wildey Business Park
Wildy Road

 

ST. MICHAEL 

Dear Sirs, 

INTERNATIONAL BUSINESS
COMPANY LICENCE 

        In
respect of your application on behalf of   EVEREST RE GROUP,
LTD.    I wish to inform you that the Minister has also
approved the grant of a 15 year guarantee in accordance with Section 27 of the Act. 

	 	 	Yours faithfully,
	 	 	 
	 	 	/s/K.J.M. Venner
	 	 	
			       K.J.M. Venner
 For Permanent Secrectary
(International Business)Exhibit 10.1

AGREEMENT TO EXTEND TERM OF PROMISSORY NOTE 

THIS AGREEMENT dated for reference 19 May 2003 is between Communicate.com Inc ., a Nevada corporation with a business office at Suite 600, 1100 Melville Street, Vancouver, BC, V6E 4A6 ("Communicate"); and Pacific Capital Markets Inc. , a British Columbia company with a business office at Suite 600, 1100 Melville Street, Vancouver, BC V6E 4A6 ("PCMI"). 

BACKGROUND: 

 

A.      PCMI agreed to lend Communicate up to $1.5 million in November 2000. Communicate signed a demand promissory note in favour of PCMI to secure the entire amount of the loan. PCMI advanced a total of $400,000 under the loan agreement, all of it on 8 November 2000.

B.      In May 2002, Communicate asked PCMI to change the note from a demand note to a term note. PCMI agreed to a one-year term ending 28 June 2003. as consideration for PCMI’s agreeing to the term and consenting to the transfer to Communicate of a finders’ fee that Domain Holdings Inc. owed to PCMI in connection with an unrelated transaction, Communicate issued to PCMI two-year warrants exercisable for 2 million shares of Communicate’s common stock at $0.05 per share expiring 28 June 2004. 

C.     Communicate wants to extend the term of the promissory note by two years. 

D.      Communicate is up to date in its interest payments due under the note and has paid $25,000 on account of principal, leaving a principal balance owing to PCMI of $375,000. 

IN CONSIERATION of $1 and the following mutual promises, the parties agree that: 

	
PCMI will extend the term of the promissory note for two years ending at 5:00 pm in Vancouver, British Columbia, on 28 June 2005. 

	
Communciate will extend the exercise period of the warrants for one year ending 5:00 pm in Vancouver, British Columbia, on 28 June 2005. 

	
All other terms and conditions of the note and the warrants remain effective. 

THE PARTIES’ SIGNATURES below are evidence of their agreement. 

Communicate.com Inc.                Pacific Capital Markets Inc. 

	
/s/    David M. Jeffs 
	
/s/    Rick JeffsExhibit 10.1

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (the “Agreement”) is entered
into as of this 10th day of June, 2003 by and between Penn National Gaming,
Inc., a Pennsylvania corporation (the “Company”), and Leonard DeAngelo, an
individual residing in New Jersey (“Executive”).

WHEREAS, Executive desires to become employed by the
Company, and the Company desires to employ Executive upon the terms and
conditions hereinafter set forth.

NOW, THEREFORE, the parties hereto, intending to be
legally bound, hereby agree as follows:

1.     Employment.  The
Company hereby agrees to employ Executive and Executive hereby accepts such
employment, in accordance with the terms, conditions and provisions hereinafter
set forth.

1.1.          Duties and Responsibilities.  Executive shall serve as Executive Vice
President, Operations of the Company. 
Executive shall perform all duties and accept all responsibilities
incident to such position as may be reasonably assigned to him by the President
and Chief Operating Officer or by the Board of Directors of the Company (the
“Board”).  Executive’s principal place
of employment shall be in Wyomissing, Pennsylvania.

1.2.          Term.

(a)           Initial Term.  The term of this Agreement shall begin on a
date to be agreed upon in writing between Executive and the Company, but in no
event later than February 1, 2004 (the “Commencement Date”), and shall
terminate at the close of business on the third anniversary of the Commencement
Date (the “Initial Term”), unless earlier terminated in accordance with Section
3 hereof.

(b)           Renewal Terms.  This Agreement may be renewed for such
additional periods as the parties may agree (each, a “Renewal Term” and,
together with the Initial Term, the “Employment Term”) only upon execution of a
written renewal agreement signed by each party.  In the event the parties have not executed a renewal agreement
prior to the expiration of the Employment Term but Executive continues to be
employed by the Company after such time, Executive shall be deemed to be
employed “at will” and the parties will have no further obligations to each
other under this Agreement other than under Sections 3.4(b), 5, 7 and 9 through
19.

1.3.          Extent of Service.  Executive agrees to use Executive’s best
efforts to carry out Executive’s duties and responsibilities and, consistent
with the other provisions of this Agreement, to devote substantially all of
Executive’s business time, attention and energy thereto.  The foregoing shall not be construed as
preventing Executive from serving on the board of philanthropic organizations
(so long as such service does not materially interfere with Executive’s duties
hereunder) or investing assets in such form or manner as will not require
services on the part of Executive.

CONFIDENTIAL

 

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2.     Compensation.  For
all services rendered by Executive to the Company, the Company shall compensate
Executive as set forth below.

2.1.          Base Salary.  The Company shall pay Executive a base
salary (“Base Salary”), commencing on the Commencement Date, at the annual rate
of $450,000, payable in installments at such times as the Company customarily
pays its other senior executives (“Peer Executives”).  Executive’s performance and Base Salary shall be reviewed
annually.  Any changes in Base Salary or
other compensation shall be made at the discretion of the President and Chief
Operating Officer, subject to the review of the compensation committee of the
Board (the “Compensation Committee”).

2.2.          Cash Bonuses.

(a)           Annual Bonus.  Executive shall participate in the Company’s
Senior Management Incentive Compensation Plan as such may be adopted, amended
and approved, from time to time, by the Compensation Committee.  Executive’s participation in such plan shall
be pro rated during Executive’s first year of employment based on the number of
days of actual employment.

(b)           Start Bonus.  Executive shall receive a cash bonus of
$150,000 on the Commencement Date.  Such
bonus shall be paid together with the first payment of Base Salary in
accordance with the Company’s standard payroll practices.

(c)           Transition Bonus.  In the event that Executive is unable to
commence employment with the Company prior to December 31, 2003 due to
contractual obligations to Executive’s prior employer and such prior employer
fails to pay Executive the full amount of Executive’s 2003 bonus as required by
the terms of Executive’s employment agreement with such prior employer, then
the Company will pay to Executive an amount equal to such shortfall up to a
maximum of $100,000 (the “Transition Bonus”). 
Such payment shall be conditioned upon Executive providing a written
statement to the Company setting forth the amount of such shortfall, the
formula Executive believes should have been used to calculate such bonus and
such other detail or documents as may be reasonably necessary for the Company
to verify the basis of such claim.  Such
payment shall be made as soon as possible following the Company’s review and
verification of such claim.

2.3.          Equity Compensation.  The Company shall grant to Executive options
pursuant to, and subject to the terms and conditions of, the then current
equity compensation plan of Penn National Gaming, Inc. for 150,000 shares of
Penn National Gaming, Inc. common stock at an exercise price based on the
closing market price of the stock on the Commencement Date.  Such options will vest as follows:

i.              25% on the first anniversary of the Commencement Date;

ii.             25% on the second anniversary of
the Commencement Date;

iii.            25% on the third anniversary of the
Commencement Date; and

iv.                                   25% on the fourth anniversary of the
Commencement Date.

 

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2.4.          Other Benefits.  Executive shall be entitled to participate
in all other employee benefit plans and programs, including, without
limitation, health, vacation, retirement, deferred compensation or SERP, made
available to other Peer Executives, as such plans and programs may be in effect
from time to time and subject to the eligibility requirements of the each
plan.  Nothing in this Agreement shall
prevent the Company from amending or terminating any retirement, welfare or
other employee benefit plans or programs from time to time, as the Company
deems appropriate.  In the event that
Executive is not immediately eligible for medical coverage on Commencement
Date, the Company shall reimburse Executive for any COBRA payments from the
Commencement Date until such time as the Company’s medical coverage commences.

2.5.          Insurance.  The Company shall maintain life insurance on
the life of Executive in the amount of $1,000,000, to the extent it can be
issued at standard rates, and Executive may name the beneficiary of such
policy.

2.6.          Vacation, Sick Leave and Holidays.  Executive shall be entitled in each calendar
year to four (4) weeks of paid vacation time, prorated for the current
year.  Each vacation shall be taken by
Executive at such time or times as agreed upon by the Company and Executive,
and any portion of Executive’s allowable vacation time not used during the
calendar year shall be subject to the Company’s payroll policies regarding
carryover vacation.  Executive shall be
entitled to holiday and sick leave in accordance with the Company’s holiday and
other pay for time not worked policies.

2.7.          Reimbursement of Expenses.  Executive shall be provided with
reimbursement of reasonable expenses related to Executive’s employment by the
Company on a basis no less favorable than that authorized from time to time for
Peer Executives.

3.     Termination. 
Executive’s employment may be terminated prior to the end of the
Employment Term in accordance with, and subject to the terms and conditions,
set forth below.

3.1.          Termination
by the Company.

(a)           Without
Cause.  The Company may terminate
Executive at any time without Cause (as defined in subsection (b) below) upon
the delivery of written notice to Executive, which notice shall set forth the
effective date of such termination.

(b)           With Cause.  The Company may terminate Executive at any
time for Cause effective immediately upon delivery of written notice to
Executive.  As used herein, the term
“Cause” shall mean:

(i)            Executive shall have been convicted
of a felony or any misdemeanor involving allegations of fraud, theft, perjury
or conspiracy;

(ii)           Executive is found disqualified or
not suitable to hold a casino or other gaming license by a governmental gaming
authority in any jurisdiction where Executive is required to be found
qualified, suitable or licensed;

 

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(iii)          Executive materially breaches any
Company policy and fails to cure such breach within 15 days after receipt of
written notice thereof or Executive materially breaches the terms of Sections
4, 5 or 6 this Agreement; or

(iv)          Executive misappropriates corporate
funds or commits other acts of dishonesty as determined in good faith by the
Board.

3.2.          Termination
by the Executive.  Executive may
voluntarily terminate employment for any reason effective upon 60 days’ prior
written notice to the Company, unless the Company waives such notice
requirement (in which case the Company shall notify Executive in writing as to
the effective date of termination).  The
Company and Executive, however, recognize and agree that they mutually agreed
upon term of this Agreement and that Executive is expected to complete fully
the Employment Term.  In the event
Executive terminates employment under this Section 3.2 prior to the completion
of the Initial Term, the Company may, without limiting any other rights or
remedies available to it, request that Executive repay any bonuses paid under
Sections 2.2(b) or 2.2(c) pro rata to the number of days remaining in the
Initial Term following the effective date of termination.  Such payment shall be made in cash within 10
days of delivery of written notice from the Company to Executive.

3.3.          Termination for Death or Disability.  In the event of the death or total
disability of Executive, this Agreement shall terminate effective as of the
date of Executive’s death or total disability. 
The term “total disability” shall have the definition set forth in the
Company’s Long Term Disability Insurance Policy in effect at the time of such
determination.

3.4.          Payments Due Upon Termination.

(a)           Generally.  Upon any termination described in Sections
3.1, 3.2 or 3.3 above, Executive shall be entitled to receive any amounts due
for Base Salary earned or expenses incurred through the effective date of
termination and any benefits accrued or earned on or prior to such date in
accordance with the terms of any applicable benefit plans and programs.

(b)           Without Cause.  In the event the Company terminates
Executive’s employment without Cause (either before or after expiration of the
Employment Term), and subject to Executive executing a mutual release in a form
reasonably acceptable to the Company and Executive, Executive shall be entitled
to receive the following in lieu of any other severance:

(i)            Executive shall receive a cash
payment equal to Executive’s monthly Base Salary at the rate in effect on the
effective date of termination multiplied by the greater of (i) the number of
months remaining in the Initial Term or (ii) twelve months (the “Severance
Period”).

(ii)           Executive shall continue to receive
the health benefits coverage in effect on the effective date of termination (or
as the same may be changed from time to time for Peer Executives) for Executive
and, if any, Executive’s spouse and dependents for the Severance Period.  At the option of the Company, the Company
may elect to pay Executive cash in lieu of such coverage in an amount equal to
Executive’s after-tax cost of obtaining generally comparable coverage for such
period.

4

 

(c)           Death or Disability.  In the event the Company terminates
Executive’s employment due to the death or total disability of Executive,
Executive shall be entitled to receive the following in lieu of any other
severance:

(i)            Executive shall receive a cash
payment equal to 175% of Executive’s monthly Base Salary at the rate in effect
on the effective date of termination multiplied by the number of months
remaining in the Severance Period.

(ii)           Executive shall continue to receive
the health benefits coverage in effect on the effective date of termination (or
as the same may be changed from time to time for Peer Executives) for Executive
and, if any, Executive’s spouse and dependents for the Severance Period.  At the option of the Company, the Company
may elect to pay Executive cash in lieu of such coverage in an amount equal to
Executive’s after-tax cost of obtaining generally comparable coverage for such
period.

(d)           Payments.   All payments due under this Section 3.4
shall be made within 15 days of the effective date of termination provided the
release, if applicable, has been executed by Executive.  Except as otherwise provided in this Section
3.4 or Section 8 below, no other payments or benefits shall be due under this
Agreement to Executive.

3.5.          Options.  Except as otherwise provided in the relevant
option plan or option agreement or as otherwise approved by the Compensation
Committee, all options granted to Executive shall cease vesting on the
effective date of termination, regardless of the reason therefore.

3.6.          Notice of Termination.  Any termination of Executive’s employment
shall be communicated by a written notice of termination delivered within the
time period specified in this Section 3. 
The notice of termination shall (i) indicate the specific termination
provision in this Agreement relied upon, (ii) briefly summarize the facts and
circumstances deemed to provide a basis for a termination of employment and the
applicable provision hereof, and (iii) specify the termination date in
accordance with the requirements of this Agreement.

4.     No Conflicts of Interest.  Executive agrees that throughout the period of Executive’s
employment hereunder or otherwise, Executive will not perform any activities or
services, or accept other employment relationship that would interfere with or
present a conflict of interest concerning Executive’s employment with the
Company.  Executive agrees and
acknowledges that Executive’s employment by the Company is conditioned upon
Executive adhering to and complying with the business practices and
requirements of ethical conduct set forth in writing from time to time by the
Company in its employee manual or similar publication.  Executive represents and warrants that no
other contract, agreement or understanding to which Executive is a party or may
be subject will be violated by the execution of this Agreement by Executive.

5.     Confidentiality. 
Executive recognizes and acknowledges that Executive will have access to
certain confidential information of the Company and that such information
constitutes valuable, special and unique property of the Company (including,
but not limited to, information such as business strategies, identity of
acquisition or growth targets, marketing plans, customer lists, and other
business related information for the Compan’s customers).  Executive agrees

 

5

 

that Executive will not,
for any reason or purpose whatsoever, during or after the term of employment,
disclose any of such confidential information to any party, and that Executive
will keep inviolate and secret all confidential information or knowledge which
Executive has access to by virtue of Executive’s employment with the Company,
except as otherwise may be necessary in the ordinary course of performing
Executive’s duties with the Company.

6.     Non-Competition.

(a)           As used herein, the term “Restriction
Period” shall mean a period equal to the remainder of the Employment Term in
effect on the effective date of termination.

(b)           During Executive’s employment by the
Company and for the duration of the Restriction Period thereafter, Executive
shall not, except with the prior written consent of the Company, directly or
indirectly, own, manage, operate, join, control, finance or participate in the
ownership, management, operation, control or financing of, or be connected as
an officer, director, employee, partner, principal, agent, representative,
consultant or otherwise with, or use or permit Executive’s name to be used in
connection with, any business or enterprise which owns or operates a gaming or
pari-mutuel facility located within 150 miles of any gaming or pari-mutuel
facility owned or operated by the Company or any of its affiliates; provided,
however, that this Section 6(b) shall not apply in the event the Company
terminates Executive without cause under Section 3.1(a).

(c)           The foregoing restrictions shall not
be construed to prohibit Executive’s ownership of less than 5% of any class of
securities of any corporation which is engaged in any of the foregoing
businesses and has a class of securities registered pursuant to the Securities
Exchange Act of 1934, provided that such ownership represents a passive
investment and that neither Executive nor any group of persons including
Executive in any way, either directly or indirectly, manages or exercises
control of any such corporation, guarantees any of its financial obligations,
otherwise takes any part in its business, other than exercising Executive’s
rights as a shareholder, or seeks to do any of the foregoing.

7.     Non-Solicitation.  During Executive’s employment by the Company and for a period
equal to the greater of the Restriction Period or one year after the effective
date of termination, Executive will not, except with the prior written consent
of the Company, (i) directly or indirectly, solicit or hire, or encourage the
solicitation or hiring of, any person who is, or was within a six month period
prior to such solicitation or hiring, an employee of the Company or any of its
affiliates for any position as an employee, independent contractor, consultant
or otherwise or (ii) divert or attempt to divert any existing business of the
Company or any of its affiliates.

8.     Change of Control. 
In the event that a change in control of the Company occurs (as such may
be defined by the Company’s current equity compensation plan, a “Change of
Control”), Executive shall be entitled to any payments and/or benefits that may
become payable as a result of such event on substantially the same terms and
conditions as any payments and/or benefits provided to Peer Executives taking
into account Executive’s position as the Executive Vice President, Operations.

 

6

 

9.     Document Surrender.  Upon the termination of Executive’s employment for any reason,
Executive shall immediately surrender and deliver to the Company all documents,
correspondence and any other information, of any type whatsoever, from the
Company or any of its agents, servants, employees, suppliers, and existing or
potential customers, that came into Executive’s possession by any means
whatsoever, during the course of employment.

10.   Governing
Law.  This Agreement shall be governed by and construed in accordance
with the internal laws (and not the law of conflicts) of the Commonwealth of
Pennsylvania.

11.   Jurisdiction.  The
parties hereby irrevocably consent to the jurisdiction of the courts of
the Commonwealth of Pennsylvania for all purposes in connection with any action
or proceeding which arises out of or relates to this Agreement and agree that
any action instituted under this Agreement shall be commenced, prosecuted and
continued only in the state or federal courts having jurisdiction for matters
arising in Wyomissing, Pennsylvania, which shall be the exclusive and only
proper forum for adjudicating such a claim.

12.   Notices.  All notices and other communications required or permitted under
this Agreement or necessary or convenient in connection herewith shall be in
writing and shall be deemed to have been given when hand delivered, delivered
by guaranteed next-day delivery or sent by facsimile (with confirmation of
transmission) or shall be deemed given on the third business day when mailed by
registered or certified mail, as follows (provided that notice of change of
address shall be deemed given only when received):

                If
to the Company, to:

Penn National Gaming, Inc.

825 Berkshire Boulevard, Suite 200

Wyomissing, PA 19610

Fax: (610) 376-2842

 

Attention: President

 

                If
to Executive, to:

Leonard DeAngelo

c/o Penn National Gaming, Inc.

825 Berkshire Boulevard, Suite 200

Wyomissing, PA 19610

Fax: (610) 373-4966

 

 

or to such other names or addresses as the Company or
Executive, as the case may be, shall designate by notice to each other person
entitled to receive notices in the manner specified in this Section.

13.           Contents of Agreement; Amendment
and Assignment.

 

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13.1.        This Agreement sets forth the entire
understanding between the parties hereto with respect to the subject matter
hereof and supersedes all prior or contemporaneous agreements or understandings
with respect to thereto and cannot be changed, modified, extended, waived or
terminated except upon a written instrument signed by the party against which
it is to be enforced.

13.2.        All of the terms and provisions of this
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the respective heirs, executors, administrators, legal representatives,
successors and assigns of the parties hereto, except that the duties and
responsibilities of Executive under this Agreement are of a personal nature and
shall not be assignable or delegatable in whole or in part by Executive.

14.           Severability.  If any provision of this Agreement or
application thereof to anyone or under any circumstances is adjudicated to be
invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect any other provision or application of this
Agreement which can be given effect without the invalid or unenforceable
provision or application and shall not invalidate or render unenforceable such
provision or application in any other jurisdiction.  If any provision is held void, invalid or unenforceable with
respect to particular circumstances, it shall nevertheless remain in full force
and effect in all other circumstances.

15.   Remedies.

15.1.        No remedy conferred upon a party by this
Agreement is intended to be exclusive of any other remedy, and each and every
such remedy shall be cumulative and shall be in addition to any other remedy
given under this Agreement or now or hereafter existing at law or in equity.

15.2.        No delay or omission by a party in
exercising any right, remedy or power under this Agreement or existing at law
or in equity shall be construed as a waiver thereof, and any such right, remedy
or power may be exercised by such party from time to time and as often as may
be deemed expedient or necessary by such party in its sole discretion.

15.3.        In the event the Company, in the
exercise of its sole reasonable judgment, determines that Executive has
breached any term or condition of Sections 5, 6 or 7 of this Agreement, the
Company may, by delivering written notice to Executive, (i) terminate and
declare null and void any and all vested options, (ii) demand repayment of the
proceeds of all option shares sold by Executive during the preceding 12 month
period, and/or (iii) demand repayment of all amounts paid as severance
hereunder or otherwise.  Any repayments
to be made by Executive shall be made within five business days of the giving
of such notice.  This subsection (c)
shall terminate and be of no further force and effect immediately prior to a
Change of Control.

16.   Beneficiaries/References.  Executive shall be entitled, to the extent
permitted under any applicable law, to select and change a beneficiary or
beneficiaries to receive any compensation or benefit payable under this
Agreement following Executive’s death by giving the Company written notice
thereof.  In the event of Executive’s
death or a judicial determination of 

 

8

 

Executive’s incompetence,
reference in this Agreement to Executive shall be deemed, where appropriate, to
refer to Executive’s beneficiary, estate or other legal representative.

17.   Withholding.  All payments under this Agreement shall be made subject to
applicable tax withholding, and the Company shall withhold from any payments
under this Agreement all federal, state and local taxes, as the Company is
required to withhold pursuant to any law or governmental rule or
regulation.  Except as specifically
provided otherwise in this Agreement, Executive shall bear all expense of, and
be solely responsible for, all federal, state and local taxes due with respect
to any payment received under this Agreement.

18.   Regulatory Compliance.  The terms and provisions hereof shall be
conditioned on and subject to compliance with all laws, rules, and regulations
of all jurisdictions, or agencies, boards or commissions thereof, having
regulatory jurisdiction over the employment or activities of Executive
hereunder.

19.   Legal Fees.  Each party shall bear its own costs and expenses with respect
hereto except that the Company will defend, indemnify and hold harmless
Executive for any costs and expenses relating to claims made by any third party
with respect to Executive’s employment with the Company or this Agreement.

IN WITNESS WHEREOF, the undersigned, intending to be
legally bound, have executed this Agreement as of the date first above written.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  PENN NATIONAL GAMING, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Kevin G. DeSanctis

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:  Kevin G. DeSanctis

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:   President and Chief Operating

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  /s/ Leonard
  DeAngelo

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Leonard DeAngelo

  

 

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