Document:

RESTRICTED
STOCK UNIT AGREEMENT

POLARITYTE,
INC.

 

This
RESTRICTED STOCK UNIT AGREEMENT (this “Agreement”) is made and entered into effective ____________________,
20____ (the “Grant Date”) by and between PolarityTE, Inc., a Delaware corporation (the “Company”)
and the person whose name is listed as the “Grantee” on the signature page of this Agreement.

 

Recitals

 

A.
This Agreement is made under the Company’s 2017 Equity Incentive Plan and as subsequently amended from time to time (the
“Plan”). Capitalized terms used herein and not otherwise defined shall have the meaning ascribed to such terms
in the Plan.

 

B.
Grantee is an employee or consultant who is to render valuable services to the Company or one or more Subsidiaries, and this Agreement
is executed pursuant to, and is intending to carry out the purposes of, the Plan in connection with the grant of a restricted
stock unit award pursuant to which shares of the Company’s common stock, par value $0.001 (“Common Stock”),
may be issued to Grantee under the Plan.

 

Agreement

 

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

 

1.
Grant of Restricted Stock Units.

 

1.1
The Company hereby issues to the Grantee on the Grant Date an award consisting of, in the aggregate, [Total Number of Shares]
Restricted Stock Units (the “Restricted Stock Units”). Each Restricted Stock Unit represents the right to receive
one share of Common Stock, subject to the terms and conditions set forth in this Agreement.

 

1.2
The Restricted Stock Units shall be credited to a separate account maintained for the Grantee on the books and records of the
Company, and all amounts credited to the said account shall continue for all purposes to be part of the general assets of the
Company.

 

2.
Consideration. The grant of the Restricted Stock Units is made in consideration of the services to be rendered by the Grantee
to the Company.

 

3.
Vesting.

 

3.1
Except as otherwise stated herein, provided that the Grantee remains as an employee of the Company through the applicable vesting
date, the right to receive Common Stock based on the Restricted Stock Units will vest in accordance with the schedule set forth
below. The period during which a Restricted Stock Unit is not vested is the “Restricted Period.”

 

    	 

     

    

 

	Number of Shares That Vest 	 	Vesting Date/ Conditions
	[No. of Shares per Period 1]	 	[Vesting Date Period 1 mm/dd/yyyy]
	[No. of Shares per Period 2]	 	[Vesting Date Period 2 mm/dd/yyyy]
	[No. of Shares per Period 3]	 	[Vesting Date Period 3 mm/dd/yyyy]
	[No. of Shares per Period 4]	 	[Vesting Date Period 4 mm/dd/yyyy]

 

3.2
The foregoing vesting schedule notwithstanding and subject to the provisions set forth below in this Section 3.2, if the Grantee’s
employment terminates for any reason at any time before all of Grantee’s Restricted Stock Units have vested, the Grantee’s
unvested Restricted Stock Units shall be automatically forfeited upon such termination of employment and neither the Company nor
any Affiliate shall have any further obligations to the Grantee under this Agreement.

 

(a)
During any authorized leave of absence, the running of Restricted Periods that have not lapsed within 90 days following the first
day of the leave of absence shall be suspended after the leave of absence exceeds a period of 90 days. Restricted Periods that
are suspended due to a leave of absence shall resume upon the Grantee’s termination of the leave of absence and return to
service, and the end date of the Restricted Periods shall be extended by the length of the suspension.

 

(b)
In the event the Grantee’s employment with the Company terminates due to death or disability, Restricted Periods that have
not previously lapsed will accelerate and lapse immediately prior to such termination of service. The term “disability”
shall mean Grantee’s inability to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or lasted, or can be expected to last, for a continuous period of
not less than 12 months.

 

(c)
In the event there is a Change in Control (as defined in Section 7.2 of the Plan), Restricted Periods that have not previously
lapsed will accelerate and lapse immediately prior to the Change in Control event.

 

4.
Restrictions. Subject to any exceptions set forth in this Agreement or the Plan, during the Restricted Period and until
the Restricted Stock Units are settled in accordance with Section 6, below, Restricted Stock Units or the rights relating thereto
may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee. Any attempt to
assign, alienate, pledge, attach, sell or otherwise transfer or encumber the Restricted Stock Units or the rights relating thereto
shall be wholly ineffective and, if any such attempt is made, the Restricted Stock Units will be forfeited by the Grantee and
all the Grantee’s rights to such units shall immediately terminate without any payment or consideration by the Company.

 

    	2

     

    

 

5.
Rights as Shareholder; Dividend Equivalents.

 

5.1
The Grantee shall not have any rights of a shareholder with respect to the shares of Common Stock underlying the Restricted Stock
Units unless and until the Restricted Stock Units vest and are settled by the issuance of such shares of Common Stock.

 

5.2
Upon and following the settlement of the Restricted Stock Units, the Grantee shall be the record owner of the shares of Common
Stock underlying the Restricted Stock Units unless and until such shares are sold or otherwise disposed of, and as record owner
shall be entitled to all rights of a shareholder of the Company (including voting rights).

 

5.3
Until the Restricted Stock Units vest, there shall be credited to an account for the Grantee an amount equal to all cash and stock
dividends (“Dividend Equivalents”) that would have been paid to the Grantee if one share of Common Stock had
been issued on the Grant Date for each Restricted Stock Unit granted to the Grantee as set forth in this Agreement. Dividend Equivalents
shall be subject to the same vesting restrictions as the Restricted Stock Units to which they are attributable and shall be paid
on the same date that the Restricted Stock Units to which they are attributable are settled in accordance with Section 6 hereof.
Dividend Equivalents credited to the Grantee shall be distributed in cash or, at the discretion of the Board, in shares of Common
Stock having a Fair Market Value on the vesting date equal to the amount of the Dividend Equivalents and interest, if any.

 

6.
Settlement of Restricted Stock Units. Subject to Section 9 hereof, promptly following the vesting date, and in any event
no later than March 15 of the calendar year following the calendar year in which such vesting occurs, the Company shall issue
and deliver to the Grantee the number of shares of Common Stock that have vested pursuant to the terms of this Agreement and cash
equal to any Dividend Equivalents credited with respect to such vested units and the interest thereon or, at the discretion of
the Board, shares of Common Stock having a Fair Market Value equal to such Dividend Equivalents and the interest thereon.

 

7.
No Right to Continued Service. This Agreement shall not be construed under any circumstance to confer upon the Grantee
any right to be retained in any position, as an employee or consultant of the Company. Further, nothing in the Plan or this Agreement
shall be construed to limit the discretion of the Company to terminate the Grantee’s employment at any time, with or without
cause.

 

8.
Adjustments. If any change is made to the outstanding Common Stock or the capital structure of the Company, if required,
the Restricted Stock Units shall be adjusted or terminated in the manner contemplated by the Plan.

 

9.
Tax Liability and Withholding.

 

9.1
The Grantee shall be required to pay to the Company, and the Company shall have the right to deduct from any compensation paid
to the Grantee pursuant to this Agreement or otherwise, the amount of any required withholding taxes in respect of the Restricted
Stock Units and to take all such other action as the Company deems necessary to satisfy all obligations for the payment of such
withholding taxes. The Company may, at its discretion, permit the Grantee to satisfy any federal, state or local tax withholding
obligation by any of the following means, or by a combination of such means:

 

    	3

     

    

 

(a)
tendering a cash payment;

 

(b)
authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable or deliverable to
the Grantee as a result of the vesting of the Restricted Stock Units; provided, however, that no shares of Common Stock
shall be withheld with a value exceeding the minimum amount of tax required to be withheld by law; or

 

(c)
delivering to the Company previously owned and unencumbered shares of Common Stock.

 

9.2
Notwithstanding any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related
withholding (“Tax-Related Items”), the ultimate liability for all Tax-Related Items is and remains the Grantee’s
responsibility and the Company (a) makes no representation or undertakings regarding the treatment of any Tax-Related Items in
connection with the grant, vesting or settlement of the Restricted Stock Units or the subsequent sale of any shares; and (b) does
not commit to structure the Restricted Stock Units to reduce or eliminate the Grantee’s liability for Tax-Related Items.

 

10.
Compliance with Law. The issuance and transfer of shares of Common Stock shall be subject to compliance by the Company
and the Grantee with all applicable requirements of federal and state securities laws and with all applicable requirements of
any stock exchange on which the Company’s shares of Common Stock may be listed. No shares of Common Stock shall be issued
or transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully
complied with to the satisfaction of the Company and its counsel.

 

11.
Notices. Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to the
Corporate Secretary of the Company at the Company’s principal corporate offices. Any notice required to be delivered to
the Grantee under this Agreement shall be in writing and addressed to the Grantee at the Grantee’s address as shown in the
records of the Company. Either party may designate another address in writing (or by such other method approved by the Company)
from time to time.

 

12.
Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of Delaware without
regard to conflict of law principles.

 

13.
Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement will be binding upon
and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein,
this Agreement will be binding upon the Grantee and the Grantee’s beneficiaries, executors, administrators and the person(s)
to whom the Restricted Stock Units may be transferred by will or the laws of descent or distribution.

 

    	4

     

    

 

14.
Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, and each provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

 

15.
Discretionary Nature of Award. The grant of the Restricted Stock Units in this Agreement does not create any contractual
right or other right to receive any Restricted Stock Units or other awards in the future. Future awards, if any, will be at the
sole discretion of the Company.

 

16.
Amendment. This Agreement may be amended only through a written instrument signed by the parties hereto.

 

17.
Section 409A. This Agreement is intended to comply with Section 409A of the Code or an exemption thereunder and shall be
construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under
Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided
under this Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of
any taxes, penalties, interest or other expenses that may be incurred by the Grantee because non-compliance with Section 409A
of the Code.

 

18.
No Impact on Other Benefits. The value of the Grantee’s Restricted Stock Units is not part of Grantee’s normal
or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit.

 

19.
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile transmission,
by electronic mail in “pdf” or “jpeg” format, or by any other electronic means intended to preserve the
original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document
bearing an original signature.

 

20.
Acceptance. The Grantee has read and understands the terms and provisions hereof, and accepts the Restricted Stock Units
subject to all the terms and conditions of this Agreement. The Grantee acknowledges that there may be adverse tax consequences
upon the vesting or settlement of the Restricted Stock Units or disposition of the underlying shares and that the Grantee has
been advised to consult a tax advisor prior to such vesting, settlement or disposition.

 

[Signatures
on following page.]

 

    	5

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

	PolarityTE,
    Inc. 1	 	 	 
	 	 	 	 	 
	By:
    	           	 	By:
    	         
	Title:
    	 	 	Title:
    	 

 

	Grantee	 
	 	 
	Print
    Grantee’s Name	 
	 	 
	 	 
	Signature	 

 

 

1 Pursuant
to the Company’s Signature Rights Policy this Notice requires two Company signatures: (a) any of the persons listed in
Column A to the Signature Rights Policy, and (b) a senior ranking member of the Human Resources Department.

 

    	6POLARITYTE,
INC.

NOTICE
OF GRANT OF STOCK OPTION

 

Notice
is hereby given of the following stock option grant (the “Option”) to purchase shares of the Common Stock of PolarityTE,
Inc. (the “Company”) under the Company’s 2017 Equity Incentive Plan adopted by the Board of Directors on December
1, 2016, and as subsequently amended from time to time (the “Plan”). Capitalized terms used herein and not otherwise
defined shall have the meaning ascribed to such terms in the Plan.

 

Optionee:

 

Grant
Date: 

 

Expiration
Date: 

 

Exercise
Price: $_________   per share

 

Number
of Option Shares: 

 

Type
of Option: ___________ Incentive
Stock Option _______ Non-Statutory Option

 

Vesting
Schedule: The Option shall vest in twenty-four (24) equal monthly installments commencing on the one (1) month anniversary
of the Grant Date.

 

Optionee
understands and agrees that the Option is granted subject to and in accordance with the express terms and conditions of the Plan.
Optionee further agrees to be bound by the terms and conditions of the Plan and the terms and conditions of the Option as set
forth in the Stock Option Agreement attached hereto as Exhibit A. The Company shall provide to Optionee a copy of the Plan upon
written request to the Company.

 

Dated:
_______________, 20____

 

	PolarityTE,
    Inc.1	 	 	 
	 	 	 	 	 
	By:
    	       	 	By:	 
	Title:
    	 	 	Title:
    	 
	 	 	 	 	 
	Optionee	 	 	 
	 	 	 	 	 
	 	 	 	 
	Signature	 	 	 

 

 

1
Pursuant to the Company’s Signature Rights Policy this Notice requires two Company signatures: (a) any of the persons
listed in Column A to the Signature Rights Policy, and (b) a senior ranking member of the Human Resources Department.

 

    	 

     

    

 

	2017
Equity Incentive Plan		Exhibit
                                         A to Notice of Grant of Stock Option

 

POLARITYTE,
INC.

STOCK
OPTION AGREEMENT

 

A.
The Board of Directors (the “Board”) and stockholders of PolarityTE, Inc. (“the Company”) adopted
the 2017 Equity Incentive Plan, as amended from time to time (the “Plan”), to attract and retain the services of employees
(including officers and directors), non-employee Board members and consultants and other independent advisors. Capitalized terms
used herein and not otherwise defined shall have the meaning ascribed to such terms in the Plan.

 

B.
Optionee is an individual who is to render valuable services to the Company or one or more Subsidiaries, and this Agreement
is executed pursuant to, and is intended to carry out the purposes of, the Plan in connection with the grant of a stock option
to purchase shares of the Company’s common stock (“Common Stock”) under the Plan.

 

NOW,
THEREFORE, it is hereby agreed as follows:

 

1.
Grant of Option. Subject to and upon the terms and conditions set forth in this Agreement, the Company hereby grants
to Optionee, as of the grant date (the “Grant Date”) specified in the accompanying Notice of Grant of Stock Option
(the “Grant Notice”), a stock option to purchase up to that number of shares of the Company’s Common Stock (the
“Option Shares”) as is specified in the Grant Notice. Such Option Shares shall be purchased from time to time during
the option term at the exercise price (the “Exercise Price”) specified in the Grant Notice.

 

2.
Option Term. This option shall expire at the close of business on the earlier of the expiration date specified in the
Grant Notice, the date certain events occur as specified in the Plan, or the date specified by modification or amendment of this
stock option under the terms of the Plan (any such date the “Expiration Date”).

 

3.
Limited Transferability. This option shall be exercisable only by Optionee during Optionee’s lifetime and shall
not be transferable or assigned by Optionee other than by will or by the laws of descent and distribution following Optionee’s
death.

 

4.
Exercisability. This option shall become exercisable for the Option Shares in accordance with the vesting schedule
specified in the Grant Notice. As the option vests and becomes exercisable for one or more installments of Option Shares, those
installments shall accumulate, and the option shall remain exercisable for the accumulated installments until the Expiration Date.
This option shall not vest and become exercisable for any additional Option Shares that are not vested under the vesting schedule
prior to the date of Optionee’s cessation of service to the Company or a Subsidiary.

 

5.
Privilege of Stock Ownership. The holder of this option shall not have any of the rights of a stockholder with respect
to the Option Shares until such individual shall have exercised the option and paid the Exercise Price for the purchased Option
Shares.

 

6.
Exercising Option. In order to exercise this option with respect to all or any part of the Option Shares for which this option
is at the time exercisable, Optionee (or in the case of exercise after Optionee’s death, Optionee’s executor, administrator,
heir or legatee, as the case may be) must take the following actions and otherwise comply with the requirements of the Plan:

 

(a)
Deliver to the Corporate Secretary of the Company an executed notice of exercise in substantially the form of Exhibit I to this
Agreement (the “Exercise Notice”) in which there is specified the number of Option Shares that are to be purchased
under the exercised option.

 

    	 

     

    

 

(b)
Pay the aggregate Exercise Price for the purchased shares through one or more of the following alternatives, subject to any limitations
or restrictions set forth in the Plan:

 

(1)
full payment in cash or by check made payable to the Company’s order;

 

(2)
full payment in shares of Common Stock held for the requisite period necessary to avoid a charge to the Company’s earnings
for financial reporting purposes and valued at Fair Market Value on the Exercise Date;

 

(3)
full payment through a combination of shares of Common Stock held for the requisite period necessary to avoid a charge to the
Company’s earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date and cash or check
payable to the Company’s order; or

 

(4)
full payment effected through a broker-dealer sale and remittance procedure pursuant to which Optionee shall provide concurrent
irrevocable written instructions (i) to a Company-designated brokerage firm to effect the immediate sale of the purchased shares
and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise
Price payable for the purchased shares plus all applicable Federal, state and local income and employment taxes required to be
withheld in connection with such purchase and (ii) to the Company to deliver the certificates for the purchased shares directly
to such brokerage firm in order to complete the sale transaction.

 

7.
Governing Law. The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the
state of Delaware without resort to that State’s conflict-of-laws provisions.

 

8.
No Employment/Service Contracts. Nothing in this Agreement or in the Plan shall confer upon Optionee any right to continue
in the service of the Company (or any Subsidiary employing or retaining Optionee) for any period of specific duration or interfere
with or otherwise restrict in any way the rights of the Company (or any such Subsidiary) or Optionee, which rights are hereby
expressly reserved by each party, to terminate Optionee’s service at any time for any reason whatsoever, with or without
cause.

 

9.
Notices. Any notice required to be given or delivered to the Company under the terms of this Agreement shall be in
writing and addressed to the Company in care of the Company Chief Financial Officer at the Company’s principal offices at
1960 S. 4250 West, Salt Lake City, UT 84104. Any notice required to be given or delivered to Optionee shall be in writing and
addressed to Optionee at the address indicated on the Grant Notice. All notices shall be deemed to have been given or delivered
upon personal delivery or upon deposit in the U. S. Mail, by registered or certified mail, postage prepaid and properly addressed
to the party to be notified.

 

10.
Construction. This Agreement and the option evidenced hereby are made and granted pursuant to the Plan and are in all
respects limited by and subject to the express terms and provisions of the Plan, unless, in the specific instance, a provision
in this Agreement states that it supersedes a provision in the Plan. All terms used herein that are defined in the Plan shall
have the same meaning ascribed to such terms in the Plan. All decisions of the Administrator with respect to any question or issue
arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option.

 

    	 	2	 

     

    

 

11.
Additional Terms Applicable to an Incentive Stock Option. In the event this option is designated an Incentive Stock
Option in the Grant Notice, the following terms and conditions shall also apply to the grant:

 

(a)
This option shall cease to qualify for favorable tax treatment as an Incentive Stock Option under the Federal tax laws if (and
to the extent) this option is exercised for one or more Option Shares: (i) more than three months after the date Optionee ceases
to be an Employee for any reason other than death or disability or (ii) more than one year after the date Optionee ceases to be
an Employee because of death or disability. The term “disability” shall mean Grantee’s inability to engage in
any substantial gainful activity because of any medically determinable physical or mental impairment that can be expected to result
in death or lasted, or can be expected to last, for a continuous period of not less than 12 months.

 

(b)
If this option is to become exercisable in a series of installments as indicated in the Grant Notice, no such installment shall
qualify for favorable tax treatment as an Incentive Stock Option under the Federal tax laws if (and to the extent) the aggregate
Fair Market Value (determined at the Grant Date) of the shares of the Company’s Common Stock for which such installment
first becomes exercisable hereunder will, when added to the aggregate value (determined as of the respective date or dates of
grant) of the Common Stock or other securities for which this option or one or more other Incentive Stock Options granted to Optionee
prior to the Grant Date (whether under the Plan or any other option plan of the Company or any Subsidiary) first become exercisable
during the same calendar year, exceed $100,000 in the aggregate. Should the number of shares of Common Stock for which this option
first becomes exercisable in any calendar year exceeds the applicable $100,000 limitation, the option may nevertheless be exercised
for those excess shares in such calendar year as a non-statutory option.

 

(c)
Should the exercisability of this option be accelerated upon a Change in Control, then this option shall qualify for favorable
tax treatment as an Incentive Stock Option under the Federal tax laws only to the extent the aggregate Fair Market Value (determined
at the Grant Date) of the number of shares of the Company’s Common Stock for which this option first becomes exercisable
in the calendar year in which the Change in Control occurs does not, when added to the aggregate value (determined as of the respective
date or dates of grant) of the shares of Common Stock or other securities for which this option or one or more other Incentive
Stock Options granted to Optionee prior to the Grant Date (whether under the Plan or any other option plan of the Company or any
Subsidiary) first become exercisable during the same calendar year, exceed $100,000 in the aggregate. Should the number of shares
of Common Stock for which this option first becomes exercisable in the calendar year of such Change in Control exceed the applicable
$100,000 limitation, the option may nevertheless be exercised for the excess shares in such calendar year as a non-statutory option.

 

(d)
Should Optionee hold, in addition to this option, one or more other options to purchase shares of the Company’s Common Stock
that become exercisable for the first time in the same calendar year as this option, then the foregoing limitations on the exercisability
of such options as Incentive Stock Options under the Federal tax laws shall be applied on the basis of the order in which such
options are granted.

 

(e)
To the extent this option should fail to qualify for Incentive Stock Option treatment under the Federal tax laws, Optionee shall
recognize compensation income at the time the option is exercised in an amount equal to the Fair Market Value of the purchased
Option Shares less the aggregate Exercise Price paid for those shares, and Optionee must make appropriate arrangements with the
Company or any Subsidiary employing Optionee for the satisfaction of all Federal, state or local income and employment tax withholding
requirements applicable to such compensation income.

 

12.
Additional Terms Applicable to a Non-Statutory Stock Option. In the event this option is designated a non-statutory
stock option in the Grant Notice, Optionee shall make appropriate arrangements with the Company or any Subsidiary employing Optionee
for the satisfaction of all Federal, state or local income and employment tax withholding requirements applicable to the exercise
of this option. Such arrangements will be made prior to or at the time of exercise.

 

    	 	3	 

     

    

 

Exhibit
I

 

FORM
OF PURCHASE

(to
be signed only upon exercise of Option)

 

TO:
PolarityTE, Inc.

 

The
Optionee, holder of the attached option, hereby irrevocable elects to exercise the purchase rights represented by the option for,
and to purchase thereunder, ____________ shares of Common Stock of PolarityTE, Inc., and herewith makes payment therefor, and
requests that the certificate(s) for such shares be delivered to the Optionee at:

 

_____________________________________________________________________________________________

 

_____________________________________________________________________________________________

 

_____________________________________________________________________________________________

 

The
Optionee agrees and acknowledges that this purported exercise of the option is conditioned on, and subject to, any compliance
with requirements of applicable federal and state securities laws deemed necessary by the Company, and to Optionee’s satisfaction
of all Federal, state or local income and employment tax withholding requirements applicable to this exercise on terms acceptable
to the Company.

 

DATED
this _________ day of _____________________________, ___________.

 

	 	 
	 	Signature

 

    	 	4

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