Document:

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EXHIBIT 10.2

         THIS OPTION AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF
         THE OPTION HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
         AS AMENDED, OR ANY STATE SECURITIES LAWS. THIS OPTION AND THE COMMON
         STOCK ISSUABLE UPON EXERCISE OF THIS OPTION MAY NOT BE SOLD, OFFERED
         FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
         REGISTRATION STATEMENT AS TO THIS OPTION UNDER SAID ACT AND ANY
         APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
         SATISFACTORY TO ISLAND PACIFIC, INC. THAT SUCH REGISTRATION IS NOT
         REQUIRED.

Right to Purchase up to 1,706,250 Shares of Common Stock of Island Pacific, Inc.
--------------------------------------------------------------------------------
                   (subject to adjustment as provided herein)

                                     OPTION

No. _________________                             Issue Date:  November 27, 2006

         Island Pacific, Inc., a corporation organized under the laws of the
State of Delaware ("Company"), hereby certifies that, for value received, LAURUS
MASTER FUND, LTD., or assigns (the "Holder"), is entitled, subject to the terms
set forth below, to purchase from the Company (as defined herein) from and after
the Issue Date of this Option and at any time or from time to time before 5:00
p.m. New York time, through the close of business March 21, 2016, up to
1,706,250 fully paid and nonassessable shares of Common Stock (as hereinafter
defined), $0.0001 par value per share, at the applicable Exercise Price per
share (as defined below). The number and character of such shares of Common
Stock and the applicable Exercise Price per share are subject to adjustment as
provided herein.

         As used herein the following terms, unless the context otherwise
requires, have the following respective meanings:

                  (a) The term "Company" shall include Island Pacific, Inc. and
         any corporation that shall succeed, or assume the obligations of,
         Island Pacific, Inc. hereunder.

                  (b) The term "Common Stock" includes (i) the Company's Common
         Stock, $0.0001 par value per share; and (ii) any other securities into
         which or for which any of the securities described in (a) may be
         converted or exchanged pursuant to a plan of recapitalization,
         reorganization, merger, sale of assets or otherwise.

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                  (c) The "Exercise Price" applicable under this Option shall be
         a price of $0.01 per share. (d) The term "Other Securities" refers to
         any stock (other than Common Stock) and other securities of the Company
         or any other person (corporate or otherwise) which the Holder at any
         time shall be entitled to receive, or shall have received, on the
         exercise of the Option, in lieu of or in addition to Common Stock, or
         which at any time shall be issuable or shall have been issued in
         exchange for or in replacement of Common Stock or Other Securities
         pursuant to Section 4 or otherwise.

         1. EXERCISE OF OPTION.

             1.1 NUMBER OF SHARES ISSUABLE UPON EXERCISE. From and after the
date hereof, the Holder shall be entitled to receive, upon exercise of this
Option in whole or in part, by delivery of an original or fax copy of an
exercise notice in the form attached hereto as Exhibit A (the "Exercise
Notice"), shares of Common Stock of the Company, subject to adjustment pursuant
to Section 4. Notwithstanding anything herein to the contrary, in no event shall
the Holder be entitled to exercise any portion of this Option in excess of that
portion of this Option upon exercise of which the sum of (1) the number of
shares of Common Stock beneficially owned by the Holder and its Affiliates
(other than shares of Common Stock which may be deemed beneficially owned
through the ownership of the unexercised portion of the Option or the
unexercised or unconverted portion of any other security of the Holder subject
to a limitation on conversion analogous to the limitations contained herein) and
(2) the number of shares of Common Stock issuable upon the exercise of the
portion of this Option with respect to which the determination is being made,
would result in beneficial ownership by the Holder and its Affiliates of any
amount greater than 4.99% of the then outstanding shares of Common Stock
(whether or not, at the time of such exercise, the Holder and its Affiliates
beneficially own more than 4.99% of the then outstanding shares of Common
Stock). As used herein, the term "Affiliate" means any person or entity that,
directly or indirectly through one or more intermediaries, controls or is
controlled by or is under common control with a person or entity, as such terms
are used in and construed under Rule 144 under the Securities Act. For purposes
of the second preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended, and Regulations 13D-G thereunder, except as otherwise provided in
clause (1) of such proviso. The limitations set forth herein (x) may be waived
by the Holder upon provision of no less than sixty-one (61) days prior notice to
the Company and (y) shall automatically become null and void following notice to
the Company upon the occurrence and during the continuance of an Event of
Default (as defined in the Amended and Restated Secured Term Note dated as of
November 17, 2005 and amended and restated as of the date hereof among the
Holder and the Company).

                  1.2 FAIR MARKET VALUE. For purposes hereof, the "Fair Market
Value" of a share of Common Stock as of a particular date (the "Determination
Date") shall mean:

                  (a) If the Company's Common Stock is traded on the American
         Stock Exchange or another national exchange or is quoted on the
         National or Capital Market of The Nasdaq Stock Market, Inc. ("Nasdaq"),
         then the closing or last sale price, respectively, reported for the
         last business day immediately preceding the Determination Date.

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                  (b) If the Company's Common Stock is not traded on the
         American Stock Exchange or another national exchange or on the Nasdaq
         but is quoted on the NASD Over The Counter Bulletin Board or the Pink
         Sheets, then the mean of the average of the closing bid and asked
         prices reported for the last ten (10) business days immediately
         preceding the Determination Date.

                  (c) Except as provided in clause (d) below, if the Company's
         Common Stock is not publicly traded, then as the Holder and the Company
         agree or in the absence of agreement by arbitration in accordance with
         the rules then in effect of the American Arbitration Association,
         before a single arbitrator to be chosen from a panel of persons
         qualified by education and training to pass on the matter to be
         decided.

                  (d) If the Determination Date is the date of a liquidation,
         dissolution or winding up, or any event deemed to be a liquidation,
         dissolution or winding up pursuant to the Company's charter, then all
         amounts to be payable per share to holders of the Common Stock pursuant
         to the charter in the event of such liquidation, dissolution or winding
         up, plus all other amounts to be payable per share in respect of the
         Common Stock in liquidation under the charter, assuming for the
         purposes of this clause (d) that all of the shares of Common Stock then
         issuable upon exercise of the Option are outstanding at the
         Determination Date.

                  1.3 COMPANY ACKNOWLEDGMENT. The Company will, at the time of
the exercise of the Option, upon the request of the Holder hereof acknowledge in
writing its continuing obligation to afford to such Holder any rights to which
such Holder shall continue to be entitled after such exercise in accordance with
the provisions of the Option. If the Holder shall fail to make any such request,
such failure shall not affect the continuing obligation of the Company to afford
to such Holder any such rights.

                  1.4 Trustee for Option Holders. In the event that a bank or
trust company shall have been appointed as trustee for the Holder of the Option
pursuant to Subsection 3.2, such bank or trust company shall have all the powers
and duties of an option agent (as hereinafter described) and shall accept, in
its own name for the account of the Company or such successor person as may be
entitled thereto, all amounts otherwise payable to the Company or such
successor, as the case may be, on exercise of this Option pursuant to this
Section 1.

         2. PROCEDURE FOR EXERCISE.

                  2.1 DELIVERY OF STOCK CERTIFICATES, ETC., ON EXERCISE. The
Company agrees that the shares of Common Stock purchased upon exercise of this
Option shall be deemed to be issued to the Holder as the record owner of such
shares as of the close of business on the date on which this Option shall have
been surrendered and payment made for such shares in accordance herewith. As
soon as practicable after the exercise of this Option in full or in part, and in
any event within three (3) business days thereafter, the Company at its expense
(including the payment by it of any applicable issue taxes) will cause to be
issued in the name of and delivered to the Holder, or as such Holder (upon
payment by such Holder of any applicable transfer taxes) may direct in

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compliance with applicable securities laws, a certificate or certificates for
the number of duly and validly issued, fully paid and nonassessable shares of
Common Stock (or Other Securities) to which such Holder shall be entitled on
such exercise, plus, in lieu of any fractional share to which such Holder would
otherwise be entitled, cash equal to such fraction multiplied by the then Fair
Market Value of one full share, together with any other stock or other
securities and property (including cash, where applicable) to which such Holder
is entitled upon such exercise pursuant to Section 1 or otherwise.

                  2.2 EXERCISE.

                  (a) Subject to subsection (b) below, payment shall be made in
         cash or by certified or official bank check payable to the order of the
         Company equal to the applicable aggregate Exercise Price for the number
         of Common Shares specified in such Exercise Notice (as such exercise
         number shall be adjusted to reflect any adjustment in the total number
         of shares of Common Stock issuable to the Holder per the terms of this
         Option) and the Holder shall thereupon be entitled to receive the
         number of duly authorized, validly issued, fully-paid and
         non-assessable shares of Common Stock (or Other Securities) determined
         as provided herein.

                  (b) Notwithstanding any provisions herein to the contrary, in
         the event there is no effective registration statement with respect to
         the shares issuable upon exercise of this Option or a Default or an
         Event of Default (as such terms are defined in the Security Agreement
         dated as of the date hereof among the Holder and the Company, as
         amended, modified, restated and/or supplemented from time to time), has
         occurred and is continuing, if the Fair Market Value of one share of
         Common Stock is greater than the Exercise Price (at the date of
         calculation as set forth below), in lieu of exercising this Option for
         cash, the Holder may elect to receive shares equal to the value (as
         determined below) of this Option (or the portion thereof being
         exercised) by surrender of this Option at the principal office of the
         Company together with the properly endorsed Exercise Notice in which
         event the Company shall issue to the Holder a number of shares of
         Common Stock computed using the following formula:

         X=Y  multiplied by  (A-B)
                            -------
                               A

         Where X =  the number of shares of Common Stock to be issued to the
                    Holder

         Y =        the number of shares of Common Stock purchasable under the
                    Option or, if only a portion of the Option is being
                    exercised, the portion of the Option being exercised (at the
                    date of such calculation)

<PAGE>

         A =        the Fair Market Value of one share of the Company's Common
                    Stock (at the date of such calculation)

         B =        Exercise Price (as adjusted to the date of such calculation)

         3. EFFECT OF REORGANIZATION, ETC.; ADJUSTMENT OF EXERCISE PRICE.

                  3.1 REORGANIZATION, CONSOLIDATION, MERGER, ETC. In case at any
time or from time to time, the Company shall (a) effect a reorganization, (b)
consolidate with or merge into any other person, or (c) transfer all or
substantially all of its properties or assets to any other person under any plan
or arrangement contemplating the dissolution of the Company, then, in each such
case, as a condition to the consummation of such a transaction, proper and
adequate provision shall be made by the Company whereby the Holder, on the
exercise hereof as provided in Section 1 at any time after the consummation of
such reorganization, consolidation or merger or the effective date of such
dissolution, as the case may be, shall receive, in lieu of the Common Stock (or
Other Securities) issuable on such exercise prior to such consummation or such
effective date, the stock and other securities and property (including cash) to
which such Holder would have been entitled upon such consummation or in
connection with such dissolution, as the case may be, if such Holder had so
exercised this Option, immediately prior thereto, all subject to further
adjustment thereafter as provided in Section 4.

                  3.2 DISSOLUTION. In the event of any dissolution of the
Company following the transfer of all or substantially all of its properties or
assets, the Company, concurrently with any distributions made to holders of its
Common Stock, shall at its expense deliver or cause to be delivered to the
Holder the stock and other securities and property (including cash, where
applicable) receivable by the Holder pursuant to Section 3.1, or, if the Holder
shall so instruct the Company, to a bank or trust company specified by the
Holder and having its principal office in New York, NY as trustee for the Holder
(the "Trustee").

                  3.3 CONTINUATION OF TERMS. Upon any reorganization,
consolidation, merger or transfer (and any dissolution following any transfer)
referred to in this Section 3, this Option shall continue in full force and
effect and the terms hereof shall be applicable to the shares of stock and other
securities and property receivable on the exercise of this Option after the
consummation of such reorganization, consolidation or merger or the effective
date of dissolution following any such transfer, as the case may be, and shall
be binding upon the issuer of any such stock or other securities, including, in
the case of any such transfer, the person acquiring all or substantially all of
the properties or assets of the Company, whether or not such person shall have
expressly assumed the terms of this Option as provided in Section 4. In the
event this Option does not continue in full force and effect after the
consummation of the transactions described in this Section 3, then the Company's
securities and property (including cash, where applicable) receivable by the
Holders will be delivered to Holder or the Trustee as contemplated by Section
3.2.

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         4. EXTRAORDINARY EVENTS REGARDING COMMON STOCK. In the event that the
Company shall (a) issue additional shares of the Common Stock as a dividend or
other distribution on outstanding Common Stock or any preferred stock issued by
the Company, (b) subdivide its outstanding shares of Common Stock, or (c)
combine its outstanding shares of the Common Stock into a smaller number of
shares of the Common Stock (each of the preceding clauses (a) through (c),
inclusive, an "Event"), then, in each such event, the number of shares of Common
Stock that the Holder shall thereafter, on the exercise hereof as provided in
Section 1, be entitled to receive shall be increased or decreased to a number
determined by multiplying the number of shares of Common Stock that would,
immediately prior to such Event, be issuable upon the exercise of this Option by
a fraction of which (a) the numerator is the number of issued and outstanding
shares of Common Stock immediately after such Event, and (b) the denominator is
the number of issued and outstanding shares of Common Stock immediately prior to
such Event.

         5. CERTIFICATE AS TO ADJUSTMENTS. In each case of any adjustment or
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise of the Option, the Company at its expense will promptly cause its Chief
Financial Officer or other appropriate designee to compute such adjustment or
readjustment in accordance with the terms of the Option and prepare a
certificate setting forth such adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment is based, including a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to have been issued or sold, (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding, and (c) the Exercise Price
and the number of shares of Common Stock to be received upon exercise of this
Option, in effect immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Option. The Company will forthwith
mail a copy of each such certificate to the Holder and any Option agent of the
Company (appointed pursuant to Section 10 hereof).

         6. RESERVATION OF STOCK, ETC., ISSUABLE ON EXERCISE OF OPTION. The
Company will at all times reserve and keep available, solely for issuance and
delivery on the exercise of the Option, shares of Common Stock (or Other
Securities) from time to time issuable on the exercise of the Option.

         7. ASSIGNMENT; EXCHANGE OF OPTION. Subject to compliance with
applicable securities laws, this Option, and the rights evidenced hereby, may be
transferred by any registered holder hereof (a "Transferor") in whole or in
part. On the surrender for exchange of this Option, with the Transferor's
endorsement in the form of Exhibit B attached hereto (the "Transferor
Endorsement Form") and together with evidence reasonably satisfactory to the
Company demonstrating compliance with applicable securities laws, which shall
include, without limitation, the provision of a legal opinion from the
Transferor's counsel (at the Company's expense) that such transfer is exempt
from the registration requirements of applicable securities laws, and with
payment by the Transferor of any applicable transfer taxes) will issue and
deliver to or on the order of the Transferor thereof a new Option of like tenor,
in the name of the Transferor and/or the transferee(s) specified in such
Transferor Endorsement Form (each a "Transferee"), calling in the aggregate on
the face or faces thereof for the number of shares of Common Stock called for on
the face or faces of the Option so surrendered by the Transferor.

<PAGE>

         8. REPLACEMENT OF OPTION. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Option and, in the case of any such loss, theft or destruction of this
Option, on delivery of an indemnity agreement or security reasonably
satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender and cancellation of this Option, the Company at its
expense will execute and deliver, in lieu thereof, a new Option of like tenor.

         9. REGISTRATION RIGHTS. The Holder has been granted certain
registration rights by the Company. These registration rights are set forth in a
Registration Rights Agreement entered into by the Company and Holder dated as of
November 17, 2005.

         10. OPTION AGENT. The Company may, by written notice to each Holder of
the Option, appoint an agent for the purpose of issuing Common Stock (or Other
Securities) on the exercise of this Option pursuant to Section 1, exchanging
this Option pursuant to Section 7, and replacing this Option pursuant to Section
8, or any of the foregoing, and thereafter any such issuance, exchange or
replacement, as the case may be, shall be made at such office by such agent.

         11. TRANSFER ON THE COMPANY'S BOOKS. Until this Option is transferred
on the books of the Company, the Company may treat the registered holder hereof
as the absolute owner hereof for all purposes, notwithstanding any notice to the
contrary.

         12. NOTICES, ETC. All notices and other communications from the Company
to the Holder shall be mailed by first class registered or certified mail,
postage prepaid, at such address as may have been furnished to the Company in
writing by such Holder or, until any such Holder furnishes to the Company an
address, then to, and at the address of, the last Holder who has so furnished an
address to the Company.

<PAGE>

         13. MISCELLANEOUS. THIS OPTION AND ANY TERM HEREOF MAY BE CHANGED,
WAIVED, DISCHARGED OR TERMINATED ONLY BY AN INSTRUMENT IN WRITING SIGNED BY THE
PARTY AGAINST WHICH ENFORCEMENT OF SUCH CHANGE, WAIVER, DISCHARGE OR TERMINATION
IS SOUGHT. THIS OPTION SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. Any
action brought concerning the transactions contemplated by this Option shall be
brought only in the state courts of New York or in the federal courts located in
the state of New York; provided, however, that the Holder may choose to waive
this provision and bring an action outside the state of New York. The
individuals executing this Option on behalf of the Company agree to submit to
the jurisdiction of such courts and waive trial by jury. The prevailing party
shall be entitled to recover from the other party its reasonable attorney's fees
and costs. In the event that any provision of this Option is invalid or
unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law. Any such
provision which may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision of this Option. The
headings in this Option are for purposes of reference only, and shall not limit
or otherwise affect any of the terms hereof. The invalidity or unenforceability
of any provision hereof shall in no way affect the validity or enforceability of
any other provision hereof. The Company acknowledges that legal counsel
participated in the preparation of this Option and, therefore, stipulates that
the rule of construction that ambiguities are to be resolved against the
drafting party shall not be applied in the interpretation of this Option to
favor any party against the other party.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                            SIGNATURE PAGE FOLLOWS.]

<PAGE>

         IN WITNESS WHEREOF, the Company has executed this Option as of the date
first written above.

                                              ISLAND PACIFIC, INC.

WITNESS:
                                              By: ______________________________
                                              Name: ____________________________
_______________________________               Title: ___________________________

<PAGE>

                                    EXHIBIT A

                              FORM OF SUBSCRIPTION
                   (To Be Signed Only On Exercise Of Options)

TO:      Island Pacific, Inc.

         Attention: Chief Financial Officer

         The undersigned, pursuant to the provisions set forth in the attached
Option (No. ____), hereby irrevocably elects to purchase (check applicable box):

________          ________ shares of the Common Stock covered by such Option; or

________          the maximum number of shares of Common Stock covered by such
                  Option pursuant to the cashless exercise procedure set forth
                  in Section 2.

         The undersigned herewith makes payment of the full Exercise Price for
such shares at the price per share provided for in such Option, which is
$___________. Such payment takes the form of (check applicable box or boxes):

________          $__________ in lawful money of the United States; and/or

________          the cancellation of such portion of the attached Option as is
                  exercisable for a total of _______ shares of Common Stock
                  (using a Fair Market Value of $_______ per share for purposes
                  of this calculation); and/or

________          the cancellation of such number of shares of Common Stock as
                  is necessary, in accordance with the formula set forth in
                  Section 2.2, to exercise this Option with respect to the
                  maximum number of shares of Common Stock purchasable pursuant
                  to the cashless exercise procedure set forth in Section 2.

         The undersigned requests that the certificates for such shares be
issued in the name of, and delivered to ________________________________________
whose address is __________________________________________.

<PAGE>

         The undersigned represents and warrants that all offers and sales by
the undersigned of the securities issuable upon exercise of the within Option
shall be made pursuant to registration of the Common Stock under the Securities
Act of 1933, as amended (the "Securities Act") or pursuant to an exemption from
registration under the Securities Act.

Dated: ____________________         ____________________________________________
                                    (Signature must conform to name of Holder as
                                    specified on the face of the Option)

                                    Address: ___________________________________

                                             ___________________________________

<PAGE>

                                    EXHIBIT B

                         FORM OF TRANSFEROR ENDORSEMENT
                    (To Be Signed Only On Transfer Of Option)

         For value received, the undersigned hereby sells, assigns, and
transfers unto the person(s) named below under the heading "Transferees" the
right represented by the within Option to purchase the percentage and number of
shares of Common Stock of Island Pacific, Inc. into which the within Option
relates specified under the headings "Percentage Transferred" and "Number
Transferred," respectively, opposite the name(s) of such person(s) and appoints
each such person Attorney to transfer its respective right on the books of
Island Pacific, Inc. with full power of substitution in the premises.

                                       Percentage             Number
Transferees           Address          Transferred           Transferred

_________________     ______________   ________________      ___________________

_________________     ______________   ________________      ___________________

_________________     ______________   ________________      ___________________

_________________     ______________   ________________      ___________________

Dated: ____________________         ____________________________________________
                                    (Signature must conform to name of Holder as
                                    specified on the face of the Option)

                                    Address: ___________________________________

                                             ___________________________________

                                    SIGNED IN THE PRESENCE OF:

                                    ____________________________________________
                                                           (Name)

ACCEPTED AND AGREED:
[TRANSFEREE]

___________________________
        (Name)

<PAGE>

                                IRREVOCABLE PROXY

         For good and valuable consideration, receipt of which is hereby
acknowledged, Laurus Master Fund, Ltd. ("Laurus"), hereby appoints
___________________ (the "Proxy Holder" or the "Company"), with a mailing
address at ___________________________, with full power of substitution, as
proxy, to vote all shares of Common Stock of the Company, now or in the future
owned by Laurus to the extent such shares are issued to Laurus upon its exercise
of the Common Stock Purchase Warrant (the "Warrant"), issued by the Company to
Laurus as of the date hereof (the "Shares").

         This proxy is irrevocable and coupled with an interest. Upon the sale
or other transfer of the Shares, in whole or in part, or the assignment of the
Warrant, this proxy shall automatically terminate (x) with respect to such sold
or transferred Shares at the time of such sale and/or transfer, or (y) with
respect to all Shares in the case of an assignment of the Warrant, at the time
of such assignment, in each case, without any further action required by any
person.

         Laurus shall use its best efforts to forward to Proxy Holder within two
(2) business days following Laurus' receipt thereof, at the address for Proxy
Holder set forth above, copies of all materials received by Laurus relating, in
each case, to the solicitation of the vote of shareholders of the Company.

         This proxy shall remain in effect with respect to the Shares of the
Company during the period commencing on the date hereof and continuing until the
payment in full of all obligations and liabilities owing by the Company to
Laurus (as the same may be amended, restated, extended or modified from time to
time).

         IN WITNESS WHEREOF, the undersigned has executed this irrevocable proxy
as of the __ day of _________ 200_.

                                        LAURUS MASTER FUND, LTD.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:<PAGE>

                                                                   Exhibit 10.22

                        SUMMARY OF DIRECTOR COMPENSATION

     Directors who are also employees of Overhill Farms receive no additional
compensation for services as directors. Non-employee directors are entitled to
$2,500 per month in consideration for their service on our board of directors.

     We may also periodically award options to our directors under our existing
stock option plan or otherwise.

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