Document:

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                                                                    EXHIBIT 10.7

PROTARGA, INC.
--------------------------------------------------------------------------------
NIGEL L. WEBB, PH.D.                                              Protarga, Inc.
Chairman, President and Chief                  2200 Renaissance Blvd., Suite 450
Executive Officer                                      King of Prussia, PA 19406
                                                                  (610) 592-4000
                                                             Fax: (610) 592-4001

August 6, 2001

Robert Dickey, IV
---------------------
---------------------

PERSONAL AND CONFIDENTIAL

Dear Rob:

I am pleased to confirm the renewal of your employment agreement to continue to
serve as Senior Vice President of Finance and Chief Financial Officer of
Protarga, Inc. (the "Company"). This letter agreement (the "Agreement") which is
effective June 1, 2001, will serve to replace your employment agreement dated
July 16, 1996, except if you have compensation that is fully earned but not yet
paid or benefits under that agreement. In this capacity, you will continue to
report to the President/CEO, and you will be responsible for the financial,
accounting, and fund-raising operations of the Company, together with special
projects as requested by the President/CEO. I trust that you recognize the view
of the Company's Board of Directors and myself that you have played, and
continue to play, a critical role in the growth of the Company. The Board and I
look forward to continuing to work with you as the Company develops.

This position will be based at our new office. You are being employed as a
full-time employee with the Company and provided you do not resign, you are not
terminated For Cause, and you continue to abide by the terms and conditions of
the Employee Confidentiality Agreement (the "Employment Conditions"), you will
receive an initial salary of $20,000 per month (the "Base Salary") for the
initial year covered by this Agreement. This Base Salary will be increased upon
each anniversary of the Commencement Date (as defined below) during the Term of
Employment (as defined below). The amount of each increase shall be determined
by the Company's President/CEO but in any event shall be no less than the
increase in the Consumer Price Index for urban wage earners and clerical workers
reported by the Bureau of Labor Statistics of the U.S. Department of Labor at
such anniversary relative to the CPI one (1) year prior to such anniversary.
Your compensation and benefits will be reviewed for merit increase consideration
in June each year, at the same time as salaries for other officers are reviewed.
You will be reimbursed for business expenses consistent with Company policy, and
will be entitled to receive the benefits enjoyed by all officers of the Company,
including consideration for the award of additional stock and/or stock options.
Vacation will be accrued on a monthly basis at the rate of four (4) weeks per
year of completed employment, which shall be eligible to be carried forward
provided that such carried forward amount is not to exceed two (2) weeks.

You will also be eligible for a bonus opportunity for each year of the Term of
Employment. Your target bonus opportunity will equal 35% of your Base Salary as
of the year end of the relevant fiscal year of the Company (the "Target Bonus").
Prior to the beginning of each fiscal year, the Company will advise you of your
annual objectives, your accomplishment of which will be used by the Company to
assess the portion of the Target Bonus to be paid to you. Your objective for
2001 is achieving the Funding Target by December 31, 2001. The Funding Target is
defined as the Company's obtaining $20 million in funding of any type (equity,
debt or convertible securities) subsequent to January 1, 200 1, and will include
(A) amounts raised in 2001 through the series E preferred financing or
subsequent private placements; and (B) all cash flows generated from partnering,
joint venture or other revenue

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Robert Dickey, IV
Page 2
August 6, 2001

sharing, ventures, or Quintiles-type transactions, involving the Company and a
third party; provided, however, that (i) any such transaction shall be subject
to approval of the Board of Directors and the President/CEO, and shall contain
terms and conditions reasonably acceptable to the Company; and (ii) the amount
of such funding shall be determined in accordance with generally accepted
accounting principles, subject to audit by the firm's internal and external
accountants. The bonus is earned pro rata as to qualifying funding amounts
received by the Company, and will be paid in the ordinary course, but not later
than March 31 of the immediately subsequent fiscal year of the Company.

In addition, the Board's Compensation Committee has granted you options to
acquire shares of the Company's common stock under the Company's 2000 Stock
Option Plan, as follows:

o      An option to acquire 7,200 shares of the Company's common stock; these
       options have a 10-year term, an exercise price equal to the fair market
       value of those shares as of the date of grant (equal to $25.00 per share)
       and will vest on a pro rata monthly basis over the four (4) year period
       commencing July 1, 2001, contingent on your continued employment by the
       Company as of the relevant vesting date; and

o      An option to acquire 1,500 shares of the Company's common stock, on the
       same terms as above, except that these options will vest as of the
       earlier of: (a) July 1, 2005; or (b) attainment of the Funding Target at
       any time prior to July 1, 2005, contingent on your continued employment
       to the Company as of the relevant vesting date.

The above stock options will also be granted subject to the terms and conditions
set forth in the Company's standard stock option agreement, and will constitute
either incentive stock options, to the extent permitted under federal law, or
non-qualified options as you so choose.

This Agreement will be effective as of June 1, 2001 (the "Commencement Date")
and will have a three-year term, unless validly terminated earlier pursuant to
the terms and conditions of this Agreement (the "Term of Employment"). If you
are (a) terminated by the Company Without Cause; or (b) involuntarily terminated
for any reason other than for Cause or constructively terminated as a result of
material diminution, on a cumulative and aggregate basis (taking into account
any increases in such items), of your duties, authorities, position,
compensation or benefits within one year following a Change in Control (as
defined in the Company's 2000 Stock Option Plan), the Company will provide you
with twelve monthly separation payments equal in the aggregate to your Base
Salary at that time, as full satisfaction of all outstanding obligations to you
by the Company, provided (1) you have fulfilled and continue to fulfill the
Employment Conditions; and (2) you execute, and do not rescind, a release
satisfactory to the Company. Termination For Cause shall mean a termination at
the election of the Company, for Cause. For the purposes of this Agreement,
"Cause" for termination shall be deemed to exist upon (a) the occurrence of
dishonesty, gross negligence or misconduct of the Employee which is materially
injurious to the Company, (b) the conviction of the Employee of, or the entry of
a pleading of guilty or nolo-contendere by the Employee to, any crime involving
moral turpitude or any felony, or (c) the refusal by the Employee to implement
an instruction of the President or an approved resolution of the Board of
Directors, insofar as such instruction or resolution is reasonable and not
inconsistent with the terms of this Agreement. Termination Without Cause shall
mean any termination at the election of the Company, other than pursuant to a
Termination for Cause or pursuant to the death or disability of the Employee,
and shall take effect on the date of termination set forth in a notice to the
Employee. The term "disability" shall mean that the Employee shall have been
unable to perform the services contemplated under this Agreement for a
continuous period of not less than six months, due to a physical or mental
disability. A determination of disability shall be made by a physician
satisfactory to both the Employee and the Company, provided that if the Employee
and the Company do not agree on a physician, the Employee and the Company shall
each select a physician and these two together shall select a third physician,
whose determination as to disability shall be binding on all parties.

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Robert Dickey, IV
Page 3
August 6, 2001

This Agreement is contingent upon your continued adherence to the terms of the
enclosed Employee and Consultant Confidentiality Agreement (Exhibit A), the
terms of which shall survive the termination of this agreement. You will also
continue to be covered by the indemnification agreement that has been provided
to you.

The Company has no outstanding or future commitments to you other than those
contained in this Agreement. This letter is a contract made under, construed in
accordance with, and governed by Pennsylvania law without regard to conflict of
laws principles. The federal and state courts situated in Montgomery County,
Pennsylvania shall have jurisdiction to hear any dispute related in any way to
this letter or your employment by the company, and you hereby consent to such
jurisdiction and to personal service by mail delivery to the Secretary of State
of Pennsylvania with a copy to your last address of record with the Company. You
represent that you are a citizen of the United States of America or a legal
resident alien entitled to accept employment, that your resume as submitted to
the Company is true in all respects, that you have not omitted to tell the
Company any facts which may negatively impact your ability to perform your
duties, and that your social security number is correctly identified below.

If you agree to and accept the terms and conditions of this Agreement, please so
indicate by signing and returning the enclosed copy of this letter to me,
whereupon I will distribute copies to our board of directors for their review
and approval. If you have any questions concerning the terms of this offer,
please contact me. We look forward to your continued leadership here at
Protarga. I personally believe the position will continue to be a challenging,
exciting and rewarding one for you. I look forward to working with you and to
attaining the Company's goals.

Sincerely yours,

PROTARGA, INC.

/s/ N. L. Webb
---------------------------
Nigel L. Webb, Ph.D.
Chairman, President and Chief Executive Officer

I have read and understood this letter, and accept the terms and conditions
described therein, subject to the approval of the Board of Directors of
Protarga, Inc. I acknowledge receipt of a copy of this letter.

/s/ Robert Dickey IV               ___________                      8/6/01
----------------------------       ------------------------         ------------
Robert Dickey, IV                  Social Security Number           Date

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Robert Dickey, IV
Page 4
July 16, 1996

                                                                      Exhibit A

                       EMPLOYEE CONFIDENTIALITY AGREEMENT

In consideration of my consulting or employment engagement by Neuromedica, Inc.
or one of its affiliates (hereinafter collectively referred to as the
"Company"), I hereby agree as follows:

(a)    I will not disclose or use at any time without prior written consent of
the Company, either during or subsequent to any such term of engagement, any
secret, proprietary or confidential information of the Company, which I develop
or obtain during any such term of engagement, or any secret, proprietary or
confidential information of any other person that I may receive in connection
with my duties to the Company, except as may be required in my duties to the
Company, provided, however, that upon the termination of such engagement,
secret, proprietary or confidential information shall not include (i) any
information which is commonly known or enters into the public domain through no
fault of mine or (ii) any information received from a third party without an
obligation of confidentiality. I understand that the foregoing limitations will
apply to publication of the results of my work, and that no such publication
shall be made without prior written authorization from the Company.

(b)    Any and all inventions, discoveries and improvements conceived or made by
me, alone or with others, during the term of engagement that (i) relate to the
business or activities of the Company or (ii) are conceived or developed as a
result of my work for the Company, whether as an employee or a consultant, shall
belong to the Company, whether or not reduced to writing or practice during the
period of engagement. I will keep notes of and promptly disclose to the Company
in writing all such inventions, discoveries and improvements, but my failure to
keep such notes or to make such disclosure to the Company shall not adversely
affect the Company's rights to such inventions, discoveries and improvements.
Without further consideration, I will assign to the Company or its nominee all
of my rights and interest in any such inventions, discoveries and improvements,
and will, upon request by the Company or its nominee, and at its expense, assist
the Company or its nominee in any proper way to apply for and obtain for the
Company or its nominee patents of the United States or any foreign country or to
protect otherwise and keep protected the interest of the Company or its nominee
in any inventions, discoveries and improvements, conceived or made by me during
the period of engagement. My obligations under this paragraph shall be binding
on my assigns, executors, administrators or other legal representatives to the
extent that any of them can fulfill those left unfulfilled by me.

(c)    All copyrightable work by me, in connection with my engagement, is
intended to be "work made for hire" as that term is defined in Section 101 of
the Copyright Act of 1976, and shall be the property of the Company. If the
copyright to such copyrightable work shall not be the property of the Company by
operation of law, I will, without further consideration, assign to the Company
all right, title and interest in such copyrightable work and will assist the
Company and its nominees in every proper way, entirely at the Company's expense,
to secure, maintain and defend for the Company's own benefit copyrights and any
extensions and renewals thereof in any and all countries, such work to be and to
remain the property of the Company whether copyrighted or not. Notwithstanding
the other provisions of this paragraph, any work of fiction written by me,

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Robert Dickey, IV
Page 5
July 16, 1996

that does not contain information from or about the Company, shall not become
the property of the Company.

(d)    I will not remove any Company property from the Company's premises
without written authorization from the Company, except as may be required in my
duties to the Company. I will deliver to the Company upon request, and in any
event upon termination of engagement, all notes, notebooks, reports, charts,
letters, records, plans, lists, tapes, films, computer programs, data, graphics
and all other material of a secret, proprietary or confidential nature,
including copies, that relate to the Company's business and are in my possession
or control.

(e)    I will not during my engagement with the Company, and for a period of one
year after the termination of such engagement, directly or indirectly engage or
assist any other person to engage in any activity competitive with any business
or research or development activity conducted by the Company, other than as the
holder of not more than one percent (I %) of the total outstanding capital stock
of a publicly held company and other than as an employee of an investment
banking firm.

(f)    I will not during my engagement with the Company and for a period of one
year after the termination of such engagement, cause or attempt to cause any
employee or consultant of the Company to cease to be employed by or to cease to
make his services available to the Company.

(g)    I agree that a violation of this agreement by me would cause irreparable
damage to the Company and that in the event of a violation by me the Company
shall have, in addition to any and all claims for monetary damages, the right to
a temporary restraining order, preliminary injunction, permanent injunction,
order of specific performance and other equitable relief to prevent the
violation of my obligations under this agreement.

(h)    I represent that my performance as an employee of the Company will not
violate any agreement by which I am bound, including without limitation any
noncompetition agreement or agreement to keep in confidence proprietary
information of any other person, and I agree that I will continue to comply with
all such agreements.

(i)    This agreement shall inure to the benefit of the Company and any other
person or entity that acquires all or a substantial portion of the business and
assets of the Company.

(j)    If any provision of this agreement shall be found to be invalid or
unenforceable for any reason, such invalidity or unenforceability shall not
affect any other provision hereof.

(k)    This agreement is intended to supplement all present and future
confidentiality agreements relating to my present and future engagement by the
Company. This agreement shall not be deemed to be superseded by any such present
or future agreement unless a future agreement so states, with express reference
to this agreement; and in the case of any conflict between the provisions of
this agreement and the provisions of any future agreement, all provisions of
this agreement shall continue in effect except that those in direct conflict
shall be deemed superseded to the limited extent necessary to reconcile such
conflict.

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Robert Dickey, IV
Page 6
July 16, 1996

(l)    This agreement and any disputes related hereto shall be governed by
Pennsylvania law without regard to conflict of laws principles. The federal and
state courts situated in Montgomery County, Pennsylvania shall have jurisdiction
to hear any dispute hereunder, and I hereby consent to such jurisdiction and to
personal service by mail delivery to the Secretary of State of Pennsylvania with
a copy to my last address of record with the Company.

I have read, understand and accept the above terms and conditions. I acknowledge
receipt of a copy of this Employee Confidentiality Agreement.

/s/ Robert Dickey IV
----------------------------
Robert Dickey, IV

____________
----------------------------
Social Security Number

7/11/96
----------------------------
Date<Page>
                                                                    Exhibit 10.8
NEUROMEDICA(TM)
--------------------------------------------------------------------------------

                                                              Neuromedica, Inc.
                                                                 99 Erie Street
                                                            Cambridge, MA 02139
Nigel L. Webb, Ph.D.                                             (617) 492-9200
PRESIDENT AND CHIEF EXECUTIVE OFFICER                             FAX  492-9201

March 13, 1995

Dr. Matthews O. Bradley
---------------------------
---------------------------

Dear Matt:

I am pleased to confirm the terms of our offer to you as Vice President -
Development. In this capacity, you will report to the President and CEO, and you
will be responsible for clinical, toxicology, manufacturing, and regulatory
activities associated with the company's pharmaceutical compounds. It is
expected that you will work in close co-operation with the company's Chairman
and Chief Scientific Officer, Dr. Victor Shashoua. Both Victor and I believe
that you will play a valuable role in the development of our young company.

This new full-time position will be based in the
Philadelphia/Baltimore/Washington area, and you will initially work out of your
present home. The company is applying for funding of your salary at a rate of
$100,000 per annum. You will receive this salary if, when, and to the extent,
that the company receives a written commitment for such funding. Prior to such
funding approval, you will act as a consultant to the company, you will have the
status of an independent contractor to the company, you will not receive cash
compensation or employee benefits, and the company will not accrue any such
obligations on your behalf. Your salary rate as an employee will be increased to
$120,000 per annum, when the company has received, subsequent to the date of
your signing this agreement, cumulative funding commitments exceeding one
million dollars. Independently, your salary will be reviewed for merit increase
consideration upon each anniversary of your joining the company as an employee.

Following each fiscal year of completed service as an employee of the company,
you will be eligible to receive a cash bonus of up to thirty (30) per cent of
the salary paid to you during such fiscal year, depending upon the achievement
by you and/or the company of objectives to be set by the President of
Neuromedica prior to the beginning of such fiscal year. For the fiscal year
1996, you will have two bonus objectives: (1) the approval by the FDA of an IND
for the company's first product, Doprexin(TM), and (2) the reduction to practice
in animals of aN oral delivery system for Doprexin(TM). Successful completion of
each objective by 12.31.96 will attract 50% of thE potential bonus (i.e. 15% of
salary per objective fulfilled).

You will be allowed, within a 30 day period following your signature of this
letter and subject to the approval of the Board of Directors of Neuromedica
Inc., to purchase 13,000 (thirteen thousand) shares of the Common Stock of
Neuromedica at a price of $0.01 per share, subject to a

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                                                                          PAGE 1
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company repurchase option (that permits vesting) and other provisions. Prior to
the time that you receive any salary from Neuromedica, you will act as a
full-time consultant to the company and will vest in this stock at a rate of 750
shares per completed month. Once you become an employee of the company and
receive salary, your vesting schedule will change and you will vest at the rate
of 200 shares per month during your employment period, until you are fully
vested or you leave the company, whichever occurs first.

If, at any time that you are a consultant to, or an employee of the company, the
company receives its first approval from the FDA for an IND, you will
immediately vest in 3,000 (three thousand) shares, or the balance of your
unvested shares, whichever is less. Upon your no longer acting as a consultant
to, or an employee of, the company, the company will be entitled to repurchase
any unvested shares from you at a price of $0.01 per share.

You will be reimbursed for business expenses consistent with company policy, and
will be entitled to receive employee benefits enjoyed by all officers of the
company.

This agreement is terminable upon 90 days prior written notice by yourself or
the company, and is contingent upon your signing and observing the terms of the
enclosed Employee and Consultant Confidentiality Agreement, the terms of which
shall survive the termination of this agreement.

This offer will expire on March 17, 1995. If you agree to and accept the terms
and conditions of this agreement, please so indicate by signing and returning
one copy of this letter to me by that time.

Sincerely yours,

/s/ Nigel L. Webb

Nigel L. Webb

cc:      Dr. Victor E. Shashoua

enc:

AGREED AND ACCEPTED:

/s/ Matthews O. Bradley                              3/14/95
----------------------------                         ------------------
Matthews O. Bradley                                  Date

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                                                                          PAGE 2

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NEUROMEDICA(TM)                                    EMPLOYEE/CONSULTANT AGREEMENT
--------------------------------------------------------------------------------

                EMPLOYEE AND CONSULTANT CONFIDENTIALITY AGREEMENT

         In consideration of my engagement, continued engagement and any future
engagement as an employee of or a consultant to Neuromedica, Inc. or one of its
affiliates (hereinafter collectively referred to as the "Company"), I hereby
agree as follows:

         (a) I will not disclose or use at any time without prior written
consent of the Company, either during or subsequent to any such term of
employment or consulting engagement, any secret, proprietary or confidential
information of the Company, which I develop or obtain during any such term of
employment or consulting engagement, or any secret, proprietary or confidential
information of any other person that I may receive in connection with my duties
to the Company, except as may be required in my duties to the Company, provided,
however, that upon the termination of any such term of employment or consulting
engagement, secret, proprietary or confidential information shall not include
(i) any information which is commonly known or enters into the public domain
through no fault of mine or (ii) any information received from a third party
without an obligation of confidentiality. I understand that the foregoing
limitations will apply to publication of the results of my work, and that no
such publication shall be made without prior written authorization from the
Company.

         (b) Any and all inventions, discoveries and improvements conceived or
made by me, alone or with others, during the period of any such term of
employment or consulting engagement that (i) relate to the business or
activities of the Company or (ii) are conceived or developed as a result of my
work for the Company, whether as an employee or a consultant, shall belong to
the Company, whether or not reduced to writing or practice during the period of
any such term of employment or consulting engagement. I will keep notes of and
promptly disclose to the Company in writing all such inventions, discoveries and
improvements, but my failure to keep such notes or to make such disclosure to
the Company shall not adversely affect the Company's rights to such inventions,
discoveries and improvements. Without further consideration, I will assign to
the Company or its nominee all of my rights and interest in any such inventions,
discoveries and improvements, and will, upon request by the Company or its
nominee, and at its expense, assist the Company or its nominee in any proper way
to apply for and obtain for the Company or its nominee patents of the United
States or any foreign country or to protect otherwise and keep protected the
interest of the Company or its nominee in any inventions, discoveries and
improvements, conceived or made by me during the period of any such term of
employment or consulting engagement. My obligations under this paragraph shall
be binding on my assigns, executors, administrators or other legal
representatives to the extent that any of them can fulfill those left
unfulfilled by me.

         (c) All copyrightable work by me, in connection with my engagement as a
consultant or employee, is intended to be "work made for hire" as that term is
defined in Section 101 of the Copyright Act of 1976, and shall be the property
of the Company. If the copyright to such copyrightable work shall not be the
property of the Company by operation of law, I will, without further
consideration, assign to the Company all right, title and interest in such
copyrightable

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                                                                          PAGE 1

<Page>

work and will assist the Company and its nominees in every proper way, entirely
at the Company's expense, to secure, maintain and defend for the Company's own
benefit copyrights and any extensions and renewals thereof in any and all
countries, such work to be and to remain the property of the Company whether
copyrighted or not. Notwithstanding the other provisions of this paragraph, any
work of fiction written by me, that does not contain information from or about
the Company, shall not become the property of the Company.

         (d) I will not remove any Company property from the Company's premises
without written authorization from the Company, except as may be required in my
duties to the Company. I will deliver to the Company upon request, and in any
event upon termination of any such term of employment or consulting engagement,
all notes, notebooks, reports, charts, letters, records, plans, lists, tapes,
films, computer programs, data, graphics and all other material of a secret,
proprietary or confidential nature, including copies, that relate to the
Company's business and are in my possession or control.

         (e) I will not during any such consulting engagement or term of
employment with the Company, and for a period of one year after the termination
of such employment or consulting arrangement, directly or indirectly engage or
assist any other person to engage in any activity competitive with any business
or research or development activity conducted by the Company, other than as the
holder of not more than one percent (1%) of the total outstanding capital stock
of a publicly held company.

         (f) I will not during any such term of employment or consulting
engagement with the Company and for a period of one year after the termination
of such term, cause or attempt to cause any employee or consultant of the
Company to cease to be employed by or to cease to make his services available to
the Company.

         (g) I agree that a violation of this agreement by me would cause
irreparable damage to the Company and that in the event of a violation by me the
Company shall have, in addition to any and all claims for monetary damages, the
right to a temporary restraining order, preliminary injunction, permanent
injunction, order of specific performance and other equitable relief to prevent
the violation of my obligations under this agreement.

         (h) I represent that my performance as an employee of or a consultant
to the Company will not violate any agreement by which I am bound, including
without limitation any noncompetition agreement or agreement to keep in
confidence proprietary information of any other person, and I agree that I will
continue to comply with all such agreements.

         (i) This agreement shall inure to the benefit of the Company and any
other person or entity that acquires all or a substantial portion of the
business and assets of the Company.

         (j) If any provision of this agreement shall be found to be invalid or
unenforceable for any reason, such invalidity or unenforceability shall not
affect any other provision hereof.

         (k) This agreement is intended to supplement all present and future
agreements relating to my present and future employment by or consulting
agreements with the Company.

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                                                                          PAGE 2

<Page>

This agreement shall not be deemed to be superseded by any such present or
future agreement unless a future agreement so states, with express reference to
this agreement; and in the case of any conflict between the provisions of this
agreement and the provisions of any future agreement, all provisions of this
agreement shall continue in effect except that those in direct conflict shall be
deemed superseded to the limited extent necessary to reconcile such conflict.

Dated as of:                                    3/14/95
                                                --------------------------------

Employee/consultant signature:                  /s/ Matthews O. Bradley
                                                --------------------------------

Employee/consultant name (block letters):       /s/ MATTHEWS O. BRADLEY
                                                --------------------------------

Social Security or Tax I.D. #:                  ___________
                                                --------------------------------

Witness signature:                              /s/ Jennifer Mitchell
                                                --------------------------------

Witness name (block letters):                   /s/ Jennifer Mitchell
                                                --------------------------------

Accepted by Neuromedica, Inc., for itself and on behalf of its affiliates:

Officer signature:                              /s/ N. L. Webb
                                                --------------------------------

Officer name (block letters):                   NIGEL L. WEBB
                                                --------------------------------

Title:                                          President and CEO
                                                --------------------------------

                                                                          031395

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                                                                          PAGE 3

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