Document:

EX-10.18.2

 

EXHIBIT 10.18.2

FIRST AMENDMENT TO SUBLEASE

     THIS FIRST AMENDMENT TO SUBLEASE (this “Amendment”) is made and entered into as of September
25, 2006, by and between LUDLOW TECHNICAL PRODUCTS CORPORATION, a New York corporation
(“Sublandlord”), with an address at c/o Tyco Healthcare Group LP, 15 Hampshire Street, Mansfield,
MA 02048, and SYNACOR, INC., a Delaware corporation (“Subtenant”), with an address at 40 La Riviere
Drive, Buffalo, New York 14202.

WITNESSETH:

     A. Sublandlord is the tenant under that certain Property Lease dated March 13, 1998,
with Waterfront Associates, LLC (“Landlord”), as landlord, covering Building No. 3,
Waterfront Village Center, 40 La Riviere Drive, Buffalo, New York 14202 (the “Building”), as
amended by that certain First Amendment to Lease dated April 29, 1998, that Second
Amendment to Lease dated April 21, 1999, and that Third Amendment to Lease dated July 30,
1999 (collectively, the Property Lease and amendments thereto are the “Lease”).

     B. Under the terms and conditions of that certain Sublease dated as of March 3,
2006, Subtenant subleased from Sublandlord approximately 20,027 rentable square feet of space
located on the third floor of the Building (the “Existing Premises”), which Existing Premises
is more particularly described in the Sublease.

     C. Under the terms and conditions of the Sublease, Subtenant desires to sublease
additional space on the third floor of the Building, which additional space contains
approximately 6,437 rentable square feet of space and is more particularly depicted on
Exhibit A, attached hereto and incorporated herein (the “Additional Premises”); and Sublandlord has
agreed to sublease such Additional Premises to Subtenant on the terms and conditions of the
Sublease, as modified herein.

     NOW THEREFORE, in consideration of the mutual covenants set forth herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
Sublandlord and Subtenant agree as follows:

     1. Additional Premises. Conditioned upon receipt by Sublandlord of Landlord’s
written consent executed in substantially the form attached hereto as Exhibit B,
Sublandlord hereby subleases to Subtenant, and Subtenant hereby subleases from Sublandlord, the
Additional Premises on the terms and conditions of the Sublease, as modified hereby; accordingly,
from and after the Effective Date (hereinafter defined), the term “Premises” shall refer
collectively to the Existing Premises and the Additional Premises; and, except as otherwise
provided herein, Subtenant’s Share shall be increased to 26%, which is the percentage obtained by
dividing the number of rentable square feet in the Premises (26,464) by the number of rentable
square feet in the Building (102,816). Subtenant accepts the Additional Premises in their “AS-IS”
condition, and Sublandlord shall not be required to perform any demolition work or tenant-finish
work therein or to provide any allowances therefor except as set forth in Section 6 of this
Amendment.

Page 1 of 8

 

Sublandlord and Subtenant stipulate that the number of rentable square feet in the Existing
Premises, the Additional Premises, and the Building is correct.

     2. Term for Additional Premises. The term for the Additional Premises shall
begin on the Effective Date and shall expire on the Expiration Date as set forth in Section
2.3 of the Sublease. As used herein, the “Effective Date” shall mean the earlier of (a) the date on
which Subtenant occupies any portion of the Additional Premises and begins conducting
business therein, or (b) December 1, 2006; provided, if Sublandlord is unable to deliver
possession of the Additional Premises to Subtenant by the date stated in the preceding clause
(b), then Sublandlord shall not be in default hereunder or be liable for damages therefor, and
Subtenant shall accept possession of the Additional Premises on the date when Sublandlord
tenders possession thereof to Subtenant (which date will then be defined as the Effective
Date).

     Subtenant shall execute and deliver to Sublandlord, within ten days after Sublandlord has
requested the same, a letter confirming (i) the Effective Date, (ii) that Subtenant has accepted
the Additional Premises, and (iii) that Sublandlord has performed all of its obligations with
respect to the Additional Premises.

     3. Rent for Additional Premises. The annual fixed rent due under the Sublease for the
Additional Premises shall be $90,118.00, payable in equal monthly installments of $7,509.83 per
month, beginning on the Effective Date. Thus, the total monthly fixed rent due under the Sublease
for the Premises shall be $30,874.67.

     4. Security Deposit. Contemporaneously with the execution hereof, and as a
condition to the effectiveness of this Amendment, Subtenant shall deliver to Sublandlord
$7,509.83 to be held as part of the Security Deposit under the Sublease.

     5. Right of First Offer. The reference to “Suite 350” is hereby deleted from
Exhibit D attached to the Sublease.

     Subject to then-existing renewal or expansion options of other subtenants, and provided no
default by Subtenant exists, Sublandlord shall, before offering the same to any party (other than
the then-current subtenant or occupant therein), first offer to lease to Subtenant the space shown
on Exhibit A, containing approximately 4,205 rentable square feet of space (the “Offer
Space”) in an “AS-IS” condition; such offer shall be in writing and specify the terms for
the Offer Space, including the rent to be paid for the Offer Space and the date on which the Offer
Space shall be included in the Premises (the “Offer Notice”). Sublandlord shall use good faith in
determining the rent amount for the Offer Space. The Offer Notice shall be substantially similar to
the Offer Notice attached to the Sublease as Exhibit E. Subtenant shall notify Sublandlord in
writing whether Subtenant elects to lease the entire Offer Space on the terms set forth in the
Offer Notice, within ten (10) days after Sublandlord delivers to Subtenant the Offer Notice. If
Subtenant timely elects to lease the Offer Space, then Sublandlord and Subtenant shall execute an
amendment to this Sublease, effective as of the date the Offer Space is to be included in the
Premises, on the terms set forth in the Offer Notice and, to the extent not inconsistent with the
Offer Notice terms, the terms of this Sublease; however, Subtenant shall accept the Offer Space in
an “AS-IS” condition. Notwithstanding the foregoing, if before Sublandlord’s delivery to
Subtenant of the Offer Notice, Sublandlord has received an offer to lease all or part of the

Page 2 of 8

 

Offer Space from a third party (a “Third Party Offer”) and such Third Party Offer includes space in
excess of the Offer Space, Subtenant must exercise its rights hereunder, if at all, as to all of
the space contained in the Third Party Offer.

     If Subtenant fails or is unable timely to exercise its right hereunder, then such right shall
lapse, time being of the essence with respect to the exercise thereof (it being understood that
each of Subtenant’s five rights of first offer hereunder is a one-time right only with respect to
each Offer Space), and Sublandlord may lease all or a portion of the Offer Space to third parties
on such terms as Sublandlord may elect. Subtenant may not exercise its rights under this Section 5
if a default exists or Subtenant is not then occupying the entire Premises. For purposes hereof, if
an Offer Notice is delivered for less than all of the Offer Space but such notice provides for an
expansion, right of first refusal, or other preferential right to lease some of the remaining
portion of the Offer Space, then such remaining portion of the Offer Space shall thereafter be
excluded from the provisions of this Sublease. In no event shall Sublandlord be obligated to pay a
commission with respect to any space leased by Subtenant under this Section 5, and Subtenant and
Sublandlord shall each indemnify the other against all costs, expenses, attorneys’ fees, and other
liability for commissions or other compensation claimed by any broker or agent claiming the same
by, through, or under the indemnifying party.

     Subtenant’s rights under this Section 5 shall terminate if (a) the Sublease or Subtenant’s
right to possession of the Premises (or any portion thereof) is terminated, (b) Subtenant assigns
any of its interest in this Sublease or sublets any portion of the Premises, or (c) less than two
full calendar years remain in the initial Term of the Sublease.

     6. Landlord Work. Subject to Landlord obtaining the necessary governmental approvals
and permits and subject to any structural issues that may be encountered or may affect the
Building, Landlord will create a doorway opening between the Existing Premises and the Additional
Premises.

     7. Termination by Subtenant. Section 2.4 of the Sublease is hereby deleted in its
entirety and shall have no further force or effect. The following provision is hereby inserted in
its place:

Provided that Subtenant is not in default when Subtenant delivers the early
termination notice or on the cancellation note, Subtenant may, at its sole option,
terminate this Sublease effective as of November 30, 2011 (the
“Cancellation Date”).
To exercise such termination right, Subtenant must, no later than February 28, 2011,
give notice thereof to Sublandlord together with Subtenant’s payment to Sublandlord
of One Hundred and Sixty Seven Thousand Dollars ($167,000.00) (the “Cancellation
Fee”) in lawful money of the United States of America. As a condition to the
effectiveness of Subtenant’s cancellation right, Subtenant shall pay to Sublandlord
prior to the Cancellation Date any past-due amounts then outstanding under the
Sublease. If Subtenant fails timely to deliver the Cancellation Fee or the
cancellation notice or is otherwise unable to comply with or exercise this
cancellation option, then Subtenant’s right to cancel this Lease under this section
shall expire; time is of the essence with respect thereto.

Page 3 of 8

 

     8. Brokerage. Sublandlord and Subtenant each warrant to the other that it has not
dealt with any broker or agent in connection with the negotiation or execution of this Amendment
other than Trammell Crow Services, Inc., and CB Richard Ellis, Inc., whose commission shall be paid
under a separate written agreement. Subtenant and Sublandlord shall each indemnify the other
against all costs, expenses, attorneys’ fees, and other liability for commissions or other
compensation claimed by any other broker or agent claiming the same by, through, or under the
indemnifying party.

     9. Ratification. Subtenant hereby ratifies and confirms its obligations under the
Sublease, and represents and warrants to Sublandlord that it has no defenses thereto. Additionally,
Subtenant further confirms and ratifies that, as of the date hereof, (a) the Sublease is and
remains in good standing and in full force and effect, and (b) Subtenant has no claims,
counterclaims, set-offs or defenses against Sublandlord arising out of the Sublease or in any way
relating thereto or arising out of any other transaction between Sublandlord and Subtenant.

     10. Binding Effect; Governing Law; Recitals. Except as modified hereby, the Sublease
shall remain in full effect and this Amendment shall be binding upon Sublandlord and Subtenant and
their respective successors and assigns. If any inconsistency exists or arises between the terms of
this Amendment and the terms of the Sublease, the terms of this Amendment shall prevail. This
Amendment shall be governed by the laws of the State of New York. The recitals at the beginning of
this Amendment are hereby incorporated as if fully set forth herein.

     11. Counterparts. This Amendment may be executed in multiple counterparts, each of
which shall constitute an original, but all of which shall constitute one document.

[The Remainder of this Page is Intentionally Left Blank;

Sublandlord and Subtenant’s Signature Pages Follow on the Next Two Pages]

Page 4 of  8

 

     IN WITNESS WHEREOF Sublandlord has duly executed this Amendment as of the day and year first
above written.

	 	 	 	 	 
	 	 	SUBLANDLORD:
	 
	 	 	 	 
	 	 	LUDLOW TECHNICAL PRODUCTS CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Charles J. Dockendorff
	 

	 	 	 	 
	 

	 	Name:
	 	Charles J. Dockendorff
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President
	 

	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Commonwealth OF Massachusetts
	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	ss.
	 	 
	COUNTY OF Bristol

	 	 	)	 	 	 	 	 

     On the 3rd day of October, 2006, before me, the undersigned, a Notary
Public in and for said Massachusetts, personally appeared, Charles J. Dockendorff,
personally known to me or proved to me on the basis of satisfactory evidence to be the
individual whose name is subscribed to the within instrument and acknowledged to me that he/she
executed the same in his/her capacity, and that by his/her signature on the instrument, the
individual, or the entity upon behalf of whom the individual acted, executed the instrument, and
that such individual made such appearance before the undersigned in Bristol County, MA.

	 	 	 
	 

	 	/s/ Suzanne E. Gaddy
	 

	 	 
	 

	 	Notary Public
	 

	 	My Commission Expires: 3-22-2007
	 
	 	 
	 

	 	

[SEAL]

Page 5 of 8

 

 

     IN WITNESS WHEREOF Sublandlord has duly executed this Amendment as of the day and year
first above written.

	 	 	 	 	 
	 	 	SUBTENANT:
	 
	 	 	 	 
	 	 	SYNACOR, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Robert S. Rusak
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Robert S. Rusak
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Chief Financial Officer
	 

	 	 	 	 

	 	 	 	 	 	 	 	 	 
	State OF New York

	 	 	)	 	 	 	 	 
	 

	 	 	)	 ss.	 	 
	 	 
	COUNTY OF  Erie

	 	 	)	 	 	 	 	 

     On
the
27th day of September, 2006, before me, the undersigned, a
Notary Public in and for the State of New York, personally appeared Robert S. Rusak, personally
known to me or proved to me on the basis of satisfactory evidence to be the individual whose
name is subscribed to the within instrument and acknowledged to me that he executed the same in
his capacity, and that by his signature on the instrument, the individual, or the entity upon
behalf of whom the individual acted, executed the instrument, and that such individual made such
appearance before the undersigned in Evie County, New York.

	 	 	 
	 

	 	/s/ Brain C Neeson
	 

	 	 
	 

	 	Notary Public
	     [SEAL]

	 	My Commission Expires: 6/15/2010
	 
	 	 
	 

	 	

Page 6 of 8EX-10.18.3

 

EXHIBIT 10.18.3

SECOND AMENDMENT TO SUBLEASE

     THIS SECOND AMENDMENT TO SUBLEASE (this “Amendment”) is made and entered into as of February 27, 2007, by and between LUDLOW TECHNICAL PRODUCTS CORPORATION, a New York corporation
(“Sublandlord”), with an address at c/o Tyco Healthcare Group LP, 15 Hampshire Street, Mansfield,
MA 02048, and SYNACOR, INC., a Delaware corporation (“Subtenant”), with an address at 40 La Riviere
Drive, Buffalo, New York 14202.

WITNESSETH:

     A. Sublandlord is the tenant under that certain Property Lease dated March 13, 1998, with
Waterfront Associates, LLC (“Landlord”), as landlord, covering Building No. 3, Waterfront Village
Center, 40 La Riviere Drive, Buffalo, New York 14202 (the “Building”), as amended by that certain
First Amendment to Lease dated April 29, 1998, that Second Amendment to Lease dated April 21,
1999, and that Third Amendment to Lease dated July 30, 1999 (collectively, the Property Lease and
amendments thereto are the “Lease”).

     B. Under the terms and conditions of that certain Sublease dated as of March 3, 2006 (the
“Original Sublease”), as amended by that certain First Amendment to Sublease dated September
25, 2006 (collectively, the “Sublease”), Subtenant subleased from Sublandlord approximately 26,464
rentable square feet of space located on the third floor of the Building (the “Existing
Premises”), which Existing Premises is more particularly described in the Sublease as the
Premises.

     C. Under the terms and conditions of the Sublease, Subtenant desires to sublease additional
space on the third floor of the Building, which additional space contains
approximately 4,344 rentable square feet of space and is more particularly depicted on Exhibit
A, attached hereto and incorporated herein (the “Additional Premises”); and Sublandlord has
agreed to sublease such Additional Premises to Subtenant on the terms and conditions of the
Sublease, as modified herein.

     NOW THEREFORE, in consideration of the mutual covenants set forth herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
Sublandlord and Subtenant agree as follows:

     1. Additional Premises. Conditioned upon receipt by Sublandlord of Landlord’s
written consent executed in substantially the form attached hereto as Exhibit B,
Sublandlord hereby subleases to Subtenant, and Subtenant hereby subleases from Sublandlord, the
Additional Premises on the terms and conditions of the Sublease, as modified hereby; accordingly,
from and after the Effective Date (hereinafter defined), the term “Premises” shall refer
collectively to the Existing Premises and the Additional Premises; and, except as otherwise
provided herein, Subtenant’s Share shall be increased to 30%, which is the percentage obtained by
dividing the number of rentable square feet in the Premises (30,808) by the number of rentable
square feet in the Building (102,816). Subtenant accepts the Additional Premises in their “AS-IS”
condition, and Sublandlord shall not be required to perform any demolition work or tenant-finish
work

Page 1 of 7

 

therein or to provide any allowances therefor. Sublandlord and Subtenant stipulate that the
number of rentable square feet in the Existing Premises, the Additional Premises, and the
Building is correct.

     2. Term for Additional Premises. The term for the Additional Premises shall begin on
the Effective Date and shall expire on the Expiration Date as set forth in Section 2,3 of the
Original Sublease. As used herein, the “Effective Date” shall mean the earlier of (a) the date on
which Subtenant occupies any portion of the Additional Premises and begins conducting business
therein, or (b) April 1, 2007; provided, if Sublandlord is unable to deliver possession of the
Additional Premises to Subtenant by the date stated in the preceding clause (b), then Sublandlord
shall not be in default hereunder or be liable for damages therefor, and Subtenant shall accept
possession of the Additional Premises on the date when Sublandlord tenders possession thereof to
Subtenant (which date will then be defined as the Effective Date).

     Subtenant shall execute and deliver to Sublandlord, within ten days after Sublandlord has
requested the same, a letter confirming (i) the Effective Date, and (ii) that Subtenant has
accepted the Additional Premises.

     3. Rent for Additional Premises. The annual fixed rent due under the Sublease for
the Additional Premises shall be $60,816.00, payable in equal monthly installments of $5,068.00 per
month, beginning on April 1, 2007. Thus, commencing on April 1, 2007, the total monthly fixed rent
due under the Sublease for the Premises shall be $35,942,67.

     4. Security Deposit. Contemporaneously with the execution hereof, and as a
condition to the effectiveness of this Amendment, Subtenant shall deliver to Sublandlord an
additional $5,068.00 to be held as part of the Security Deposit under the Sublease.

     5. Right of First Offer. The Right of First Offer set forth in Section 5 of the First
Amendment to Sublease dated September 25, 2006, is hereby deleted.

     6. Termination by Subtenant. Section 7 of the First Amendment to Sublease dated
September 25, 2006, is hereby deleted in its entirety and shall have no further force or effect.
The following provision is hereby inserted in its place:

Provided that Subtenant is not in default when Subtenant delivers the early
termination notice or on the Cancellation Date, Subtenant may, at its sole option,
terminate this Sublease effective as of November 30, 2011 (the “Cancellation Date”).
To exercise such termination right, Subtenant must, no later than February 28, 2011,
give notice thereof to Sublandlord together with Subtenant’s payment to Sublandlord
of One Hundred Ninety-Four Thousand Dollars ($194,000.00) (the “Cancellation Fee”)
in lawful money of the United States of America. As a condition to the effectiveness
of Subtenant’s cancellation right, Subtenant shall pay to Sublandlord prior to the
Cancellation Date any past-due amounts then outstanding under the Sublease. If
Subtenant fails timely to deliver the Cancellation Fee or the cancellation notice or
is otherwise unable to comply with or exercise this cancellation option, then
Subtenant’s right to cancel this

Page 2 of 7

 

Sublease under this section shall expire; time is of the essence with respect
thereto.

     7. Parking. Section 5.6 of the Original Sublease is hereby deleted and replaced
with the following:

Subtenant shall have the non-exclusive right, together with the other tenants and occupants
of the Building and other buildings comprising Waterfront Village Center and their
employees, agents, licensees, and invitees, to use the parking areas servicing the Building
(as reasonably designated by Landlord) for the purpose of vehicular parking for Subtenant’s
Representatives, all without additional charge; provided however that Subtenant’s
Representatives shall not occupy more than an aggregate of one hundred and thirty five
(135) parking spaces at any time. If, for any reason, Sublandlord is unable to provide all
or any portion of the parking spaces to which Subtenant is entitled hereunder, then
Subtenant shall have no claims against Sublandlord because of Sublandlord’s failure or
inability to provide Subtenant with such parking spaces. Sublandlord shall not be
responsible for enforcing Subtenant’s parking rights against any third parties. Subtenant
shall cause Subtenant’s Representatives to comply with all reasonable rules and regulations
that Sublandlord and/or Landlord may promulgate with respect to parking in the parking
areas, including without limitation, a system of stickers, access cards or other system
intended to regulate and control access to such parking areas.

     8. Brokerage. Sublandlord and Subtenant each warrant to the other that it has
not dealt with any broker or agent in connection with the negotiation or execution of this
Amendment other than Trammell Crow Services, Inc., and CB Richard Ellis, Inc., whose commission
Sublandlord shall pay under a separate written agreement. Subtenant and Sublandlord shall each
indemnify the other against all costs, expenses, attorneys’ fees, and other liability for
commissions or other compensation claimed by any other broker or agent claiming the same by,
through, or under the indemnifying party.

     9. Ratification. Subtenant hereby ratifies and confirms its obligations under
the Sublease, and represents and warrants to Sublandlord that it has no defenses thereto.
Additionally, Subtenant further confirms and ratifies that, as of the date hereof, (a) the Sublease
is and remains in good standing and in full force and effect, and (b) Subtenant has no claims,
counterclaims, set-offs or defenses against Sublandlord arising out of the Sublease or in any way
relating thereto or arising out of any other transaction between Sublandlord and Subtenant.

     10. Binding Effect; Governing Law; Recitals. Except as modified hereby, the Sublease
shall remain in full effect and this Amendment shall be binding upon Sublandlord and Subtenant and
their respective successors and assigns. If any inconsistency exists or arises between the terms of
this Amendment and the terms of the Sublease, the terms of this Amendment shall prevail. This
Amendment shall be governed by the laws of the State of New York. The recitals at the beginning of
this Amendment are hereby incorporated as if fully set forth herein.

     11. Counterparts. This Amendment may be executed in multiple counterparts, each of
which shall constitute an original, but all of which shall constitute one document.

Page 3 of 7

 

     IN WITNESS WHEREOF Sublandlord has duly executed this Amendment as of the day and year first
above written.

	 	 	 	 	 
	 	SUBLANDLORD:

LUDLOW TECHNICAL PRODUCTS 

CORPORATION

 	 
	 	By:  	/s/ Charles J. Dockendorff
 	 
	 	 	Charles J. Dockendorff 	 
	 	 	Vice President 	 
	 

	 	 	 	 	 
	COMMONWEALTH OF MASSACHUSETTS

	 	 	)	 
	 

	 	 	)	ss.

	COUNTY OF BRISTOL

	 	 	)	 

On the 9th  day of March, 2007, before me, the undersigned, a Notary
Public in and for said Commonwealth of Massachusetts, personally appeared Charles J. Dockendorff,
personally known to me or proved to me on the basis of satisfactory evidence to be the individual
whose name is subscribed to the within instrument and acknowledged to me that he/she executed the
same in his/her capacity, and that by his/her signature on the instrument, the individual, or the
entity upon behalf of whom the individual acted, executed the instrument, and that such individual
made such appearance before the undersigned in Bristol County, Massachusetts.

	 	 	 	 	 
	 	 	 
	 	/s/ Suzanne E. Gaddy
 	 
	 	Notary Public  	 
	 	My Commission Expires: 3-22-2007	 
	 

     [SEAL]

     

Page 4 of 7

 

     IN WITNESS WHEREOF Sublandlord has duly executed this Amendment as of the day and year first
above written.

	 	 	 	 	 	 	 
	 	 	SUBTENANT:

SYNACOR,INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Ron Frankel
	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Ron Frankel	 	 
	 	 	Chief Executive Officer	 	 

	 	 	 	 	 
	State OF New York

	 	 	)	 
	 

	 	 	)	ss.

	COUNTY OF Erie

	 	 	)	 

     On the 27th  day of February, 2007, before me, the undersigned, a Notary Public in
and for the State of New York, personally appeared Robert S. Rusak, personally known to me or
proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his capacity, and that by
his signature on the instrument, the individual, or the entity upon behalf of whom the individual
acted, executed the instrument, and that such individual made such appearance before the
undersigned in Erie County, New York.

	 	 	 	 	 
	 	 	 
	 	
/s/ Brian C Neeson
 	 
	 	Notary Public 	 
	 	My Commission Expires: 6/15/2010 	 
	 

[SEAL]

Page 5 of 7

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