Document:

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                                                                   Exhibit 10.48

                             EMPLOYMENT AGREEMENT
                             --------------------

     THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into
effective as of June 4, 2001 by and between Charles & Colvard, Ltd., a North
Carolina company with its principal office at 3800 Gateway Boulevard, Suite 310,
Morrisville, North Carolina, 27560 (the "Company), and James R. Braun, an
individual currently residing at 2243 Ayreshire Drive, Lansdale, PA 19446
("Employee").

                             Statement of Purpose
                             --------------------

     The Company wishes to obtain the services of Employee on the terms and
conditions and with the benefits set forth in this Agreement. Employee desires
to be employed by the Company on such terms and conditions and to receive such
additional consideration as set out herein.

     Therefore, in consideration of the mutual covenants contained in this
Agreement, the grant of certain options to purchase common stock of the Company
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and Employee agree as follows:

     1.  Employment. The Company hereby agrees to employ Employee, and Employee
         ----------
hereby accepts such employment, on the terms and conditions set forth in this
Agreement.

     2.  Term of Employment. The term of Employee's employment under this
         ------------------
Agreement shall commence as of the date of this Agreement and shall continue for
one year. Termination of employment shall be governed by Paragraph 7 of this
Agreement, and unless terminated by either party as provided in Paragraph 7,
this Agreement shall automatically, at the expiration of each then existing
term, renew for successive additional one year terms (such annual period being
hereinafter referred to as the "Term").

     3.  Position and Duties. The Employee shall serve as Chief Financial
         -------------------
Officer of the Company. Employee will, under the direction of the President and
CEO of the Company, faithfully and to the best of his ability perform the duties
as set out on Exhibit A hereto and such additional duties as may be reasonably
assigned by the President and Board of Directors. Employee agrees to devote his
entire working time, energy and skills to the Company while so employed.

     4.  Compensation and Benefits. Employee shall receive compensation and
         -------------------------
benefits for the services performed for the Company under this Agreement as
follows:

         (a)  Base Salary. Employee shall receive a base salary of $150,000.00,
              -----------
     payable in regular and equal semi-monthly installments ("Base Salary").

         (b)  Employee Benefits. Employee shall receive such benefits as are
              -----------------
     made available to the other employees of the Company, including, but not
     limited to, life,

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     medical and disability insurance, retirement benefits and such vacation as
     is provided to the other employees of the Company (the "Employee
     Benefits"). Employer reserves the right to reduce, eliminate or change such
     Employee Benefits, in its sole discretion, subject to any applicable legal
     and regulatory requirements.

          (c)  Incentive Compensation. Employee may participate in such
               ----------------------
     incentive plans as may be approved by the Board of Directors from time-to-
     time. The specific incentive compensation plans for 2001 are as set out on
     Exhibit B hereto.

          (d)  Initial Option Grant. Employee shall be granted 30,000 incentive
               --------------------
     stock options (the "ISO's)" exercisable for shares of Charles & Colvard's
     common stock . Such ISO's shall vest over a three year period in accordance
     with the 1997 Omnibus Stock Plan of Charles & Colvard (the "Plan") and the
     Stock Option Agreement set out as Exhibit C hereto (the "Option
     Agreement"). All terms pertaining in the ISO's, their execution and
     termination, shall be governed by the Plan and the Option Agreement.

          (e)  Moving Expenses. The Company will reimburse the Employee's actual
               ---------------
     moving related expenses, include but not limited to the cost of house
     hunting visits to North Carolina, temporary living expenses, costs of
     moving personal property and real estate commissions on the sale of your
     current house, up to a maximum reimbursement of $30,000. Any savings
     effectuated by Employee resulting in the aggregate of moving related
     expenses not reaching $30,000 will be shared with Employee with one half of
     the difference between actual moving related expenses and $30,000 being
     paid as a one time bonus to Employee. Such bonus will be payroll earnings,
     subject to all applicable taxes and withholding requirements and will be
     paid within 30 days of the completion of the move and submission of a final
     reimbursement request.

     5.   Reimbursement of Expenses. The Company shall reimburse Employee for
          -------------------------
all reasonable out-of-pocket expenses incurred by Employee specifically and
directly related to the performance by Employee of the services under this
Agreement

     6.   Withholding. The Company may withhold from any payments or benefits
          -----------
under this Agreement all federal, state or local taxes or other amounts as may
be required pursuant to applicable law, government regulation or ruling.

     7.   Termination of Employment.
          -------------------------

          (a)  Death of Employee. If the Employee shall die during the Term,
               -----------------
     this Agreement and the employment relationship hereunder will automatically
     terminate on the date of death.

          (b)  Termination for Just Cause. The Company shall have the right to
               --------------------------
     terminate the Employee's employment under this Agreement at any time for
     Just Cause, which termination shall be effective immediately. Termination
     for "Just Cause" shall include termination for the Employee's personal
     dishonesty, gross incompetence, willful

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     misconduct, breach of a fiduciary duty involving personal profit,
     intentional failure to perform stated duties, willful violation of any law,
     rule, regulation (other than traffic violations or similar offenses),
     written Company policy or final cease-and-desist order, conviction of a
     felony or of a misdemeanor involving moral turpitude, unethical business
     practices in connection with the Company's business, misappropriation of
     the Company's assets (determined on a reasonable basis), disability or
     material breach of any other provision of this Agreement. The determination
     of whether "Just Cause" exists for termination shall be made by the Board
     of Directors of the Company in its sole discretion. For purposes of this
     subsection, the term "disability" means the inability of Employee, due to
     the condition of his physical, mental or emotional health, to
     satisfactorily perform the duties of his employment hereunder for a
     continuous three month period; provided further that if the Company
     furnishes long term disability insurance for the Employee, the term
     "disability" shall mean that continuous period sufficient to allow for the
     long term disability payments to commence pursuant to the Company's long
     term disability insurance policy. In the event the Employee's employment
     under this Agreement is terminated for Just Cause, the Employee shall have
     no right to receive compensation or other benefits under this Agreement for
     any period after such termination.

          (c)  Termination Without Cause. The Company may terminate the
               -------------------------
     Employee's employment other than for "Just Cause," as described in
     Subsection (b) above, at any time upon written notice to the Employee,
     which termination shall be effective immediately. In the event the Company
     terminates Employee pursuant to this Subsection (c), the Employee will
     continue to receive the compensation due him hereunder ("Termination
     Compensation") until the end of the Term, so long as the Employee complies
     with Sections 8, 9 and 10 of the Agreement. Such amounts shall be payable
     at the times such amounts would have been paid in accordance with Section
     4. In addition, Employee shall continue to participate in the same group
     hospitalization plan, health care plan, dental care plan, life or other
     insurance or death benefit plan, and any other present or future similar
     group employee benefit plan or program for which officers of the Company
     generally are eligible, on the same terms as were in effect prior to
     Employee's termination, either under the Company's plans or comparable
     coverage, for all periods Employee receives Termination Compensation.
     Notwithstanding anything in this Agreement to the contrary, if Employee
     breaches Sections 8, 9 or 10 of this Agreement, the Employee will not be
     entitled to receive any further compensation or benefits pursuant to this
     Section 7(c).

          (d)  Change of Control Situations. In the event of a Change of Control
               ----------------------------
     of the Company at any time after the date hereof, Employee may voluntarily
     terminate employment with Company up until six (6) weeks after the Change
     of Control for "Good Reason" and, subject to Section 7(f), (y) be entitled
     to receive in a lump sum (i) any compensation due but not yet paid through
     the date of termination and (ii) in lieu of any further salary payments
     from the date of termination to the end of the then existing term, an
     amount equal to the Termination Compensation times 2.99, and (z) shall
     continue to participate in the same group hospitalization plan, health care
     plan, dental care plan, life

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     or other insurance or death benefit plan, and any other present or future
     similar group employee benefit plan or program for which officers of the
     Company generally are eligible, or comparable plans or coverage, for a
     period of two years following termination of employment by the Employee, on
     the same terms as were in effect either (A) at the date of such
     termination, or (B) if such plans and programs in effect prior to the
     Change of Control of Company are, considered together as a whole,
     materially more generous to the officers of Company, then at the date of
     the Change of Control. Any equity based incentive compensation (including
     but not limited to stock options, SARs, etc.) shall fully vest and be
     immediately exercisable in full upon a Change in Control, not withstanding
     any provision in any applicable plan. Any such benefits shall be paid by
     the Company to the same extent as they were so paid prior to the
     termination or the Change of Control of Company.

          "Good Reason" shall mean the occurrence of any of the following events
     without the Employee's express written consent:

               (i)   the assignment to the Employee of duties inconsistent with
          the position and status of the Employee with the Company immediately
          prior to the Change of Control;

               (ii)  a reduction by the Company in the Employee's pay grade or
          base salary as then in effect, or the exclusion of Employee from
          participation in Company's benefit plans in which he previously
          participated as in effect at the date hereof or as the same may be
          increased from time to time during the Term;

               (iii) an involuntary relocation of the Employee more than 50
          miles from the location where the Employee worked immediately prior to
          the Change in Control or the breach by the Company of any material
          provision of this Agreement; or

               (iv)  any purported termination of the employment of Employee by
          Company which is not effected in accordance with this Agreement.

          A "Change of Control" shall be deemed to have occurred if (i) any
     person or group of persons (as defined in Section 13(d) and 14(d) of the
     Securities Exchange Act of 1934) together with its affiliates, excluding
     employee benefit plans of Company, becomes, directly or indirectly, the
     "beneficial owner" (as defined in Rule 13d-3 promulgated under the
     Securities Exchange Act of 1934) of securities of Company representing 20%
     or more of the combined voting power of Company's then outstanding
     securities; or (ii) during the then existing term of the Agreement, as a
     result of a tender offer or exchange offer for the purchase of securities
     of Company (other than such an offer by the Company for its own
     securities), or as a result of a proxy contest, merger, consolidation or
     sale of assets, or as a result of any combination of the foregoing,
     individuals who at the beginning of any year period during such term
     constitute the Company's Board of Directors, plus new directors whose
     election by Company's

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     shareholders is approved by a vote of at least two-thirds of the
     outstanding voting shares of the Company, cease for any reason during such
     year period to constitute at least two-thirds of the members of such Board
     of Directors; or (iii) the shareholders of the Company approve a merger or
     consolidation of the Company with any other corporation or entity
     regardless of which entity is the survivor, other than a merger or
     consolidation which would result in the voting securities of the Company
     outstanding immediately prior thereto continuing to represent (either by
     remaining outstanding or being converted into voting securities of the
     surviving entity) at least 60% of the combined voting power of the voting
     securities of the Company or such surviving entity outstanding immediately
     after such merger or consolidation; or (iv) the shareholders of the Company
     approve a plan of complete liquidation or winding-up of the Company or an
     agreement for the sale or disposition by the Company of all or
     substantially all of the Company's assets; or (v) any event which the
     Company's Board of Directors determines should constitute a Change of
     Control.

          (e)  Employee's Right to Payments. In receiving any payments pursuant
               ----------------------------
     to this Section 7, Employee shall not be obligated to seek other employment
     or take any other action by way of mitigation of the amounts payable to the
     Employee hereunder, and such amounts shall not be reduced or terminated
     whether or not the Employee obtains other employment.

          (f)  Reduction in Agreement Payments. Notwithstanding anything in this
               -------------------------------
     Agreement to the contrary, if any of the payments provided for under this
     Agreement (the "Agreement Payments"), together with any other payments that
     the Employee has the right to receive (such other payments together with
     the Agreement Payments are referred to as the "Total Payments"), would
     constitute a "parachute payment" as defined in Section 280G(b)(2) of the
     Internal Revenue Code of 1986, as amended (the "Code") (a "Parachute
     Payment"), the Agreement Payments shall be reduced by the smallest amount
     necessary so that no portion of such Total Payments would be Parachute
     Payments. In the event the Company shall make an Agreement Payment to the
     Employee that would constitute a Parachute Payment, the Employee shall
     return such payment to the Company (together with interest at the rate set
     forth in Section 1274(b)(2)(B) of the Code). For purposes of determining
     whether and the extent to which the Total Payments constitute Parachute
     Payments, no portion of the Total Payments the receipt of which Employee
     has effectively waived in writing shall be taken into account.

     8.   Covenant Not to Compete. Employee agrees that during his employment
          -----------------------
with the Company and for a period of one (1) year following the termination of
his employment with the Company, for whatever reason:

          (a)  Employee shall not, directly or indirectly, own any interest in,
     manage, operate, control, be employed by, render advisory services to, or
     participate in the management or control of any business that operates in
     the same business as the Company, which Employee and the Company
     specifically agree as the business of fabricating (wafering, preforming and
     faceting), marketing and distributing moissanite

                                       5
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     gemstones or other diamond simulants to the gem and jewelry industry (the
     "Business"), unless Employee's duties, responsibilities and activities for
     and on behalf of such other business are not related in any way to such
     other business's products which are in competition with the Company's
     products. For purposes of this section, "competition with the Company"
     shall mean competition for customers in the United States and in any
     country in which the Company is selling the Company's products at the time
     of termination. Employee's ownership of less than one percent of the issued
     and outstanding stock of a corporation engaged in the Business shall not by
     itself be deemed to be a violation of this Agreement. Employee recognizes
                                                           -------------------
     that the possible restriction on his activities which may occur as a result
     ---------------------------------------------------------------------------
     of his performance of his obligations under Paragraph 8(a) are substantial,
     --------------------------------------------------------------------------
     but that such restriction is required for the reasonable protection of the
     --------------------------------------------------------------------------
     Company.
     -------

          (b)  Employee shall not, directly or indirectly, influence or attempt
     to influence any customer of the Company to discontinue its purchase of any
     product of the Company which is manufactured or sold by the Company at the
     time of termination of Employee's employment or to divert such purchases to
     any other person, firm or employer.

          (c)  Employee shall not, directly or indirectly, interfere with,
     disrupt or attempt to disrupt the relationship, contractual or otherwise,
     between the Company and any of its suppliers.

          (d)  Employee shall not, directly or indirectly, solicit any employee
     of the Company to work for any other person, firm or employer.

     9.   Confidentiality. In the course of his employment with the Company,
          ---------------
Employee will have access to confidential information, records, data, customer
lists, lists of product sources, specifications, trade secrets and other
information which is not generally available to the public and which the Company
and Employee hereby agree is proprietary information of the Company
("Confidential Information"). During and after his employment by the Company,
Employee shall not, directly or indirectly, disclose the Confidential
Information to any person or use any Confidential Information, except as is
required in the course of his employment under this Agreement. All Confidential
Information as well as records, files, memoranda, reports, plans, drawings,
documents, models, equipment and the like, including copies thereof, relating to
the Company's business, which Employee shall prepare or use or come into contact
with during the course of his employment, shall be and remain the Company's sole
property, and upon termination of Employee's employment with the Company,
Employee shall return all such materials to the Company.

     10.  Proprietary Information. Employee shall assign to the Company, its
          -----------------------
successors or assigns, all of Employee's rights to copyrightable works and
inventions which, during the period of Employee's employment by the Company or
its successors in business, Employee makes or conceives, either solely or
jointly with others, relating to any subject matter with which Employee's work
for the Company is or may be concerned ("Proprietary Information"). Employee
shall promptly disclose in writing to the Company such copyrightable works and

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inventions and, without charge to the Company, to execute, acknowledge and
deliver all such further papers, including applications for copyrights and
patents for such copyrightable works and inventions, if any, in all countries
and to vest title thereto in the Company, its successors, assigns or nominees.
Upon termination of Employee's employment hereunder, Employee shall return to
the Company or its successors or assigns, as the case may be, any Proprietary
Information. The obligation of Employee to assign the rights to such
copyrightable works and inventions shall survive the discontinuance or
termination of this Agreement for any reason.

     11.  Entire Agreement. This Agreement contains the entire agreement of the
          ----------------
parties with respect to Employee's employment by the Company and supersedes any
prior agreements between them, whether written or oral.

     12.  Waiver. The failure of either party to insist in any one or more
          ------
instance, upon performance of the terms and conditions of this Agreement, shall
not be construed as a waiver or a relinquishment of any right granted hereunder
or of the future performance of any such term or condition.

     13.  Notices. Any notice to be given under this Agreement shall be deemed
          -------
sufficient if addressed in writing and delivered personally, by telefax with
receipt acknowledged, or by registered or certified U.S. mail to the address
first above appearing, or to such other address as a party may designate by
notice from time to time.

     14.  Severability. In the event that any provision of any paragraph of
          ------------
this Agreement shall be deemed to be invalid or unenforceable for any reason
whatsoever, it is agreed such invalidity or unenforceability shall not affect
any other provision of such paragraph or of this Agreement, and the remaining
terms, covenants, restrictions or provisions in such paragraph and in this
Agreement shall remain in full force and effect and any court of competent
jurisdiction may so modify the objectionable provision as to make it valid,
reasonable and enforceable.

     15.  Amendment. This Agreement may be amended only by an agreement in
          ---------
writing signed by each of the parties hereto.

     16.  Arbitration. Any controversy or claim arising out of or relating to
          -----------
this Agreement, or breach thereof, shall be settled by arbitration in Raleigh,
North Carolina in accordance with the expedited procedures of the Rules of the
American Arbitration Association, and judgment upon the award may be rendered by
the arbitrator and may be entered in any court having jurisdiction thereof.

     17.  Governing Law. This Agreement shall be governed and construed in
          -------------
accordance with the laws of the State of North Carolina. Each of the parties
hereto irrevocably submits to the exclusive jurisdiction of the courts located
in North Carolina for the purposes of any suit, action or other proceeding
contemplated hereby or any transaction contemplated hereby.

     18.  Benefit. This Agreement shall be binding upon and inure to the
          -------
benefit of and shall be enforceable by and against the Company, its successors
and assigns, and Employee, his

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<PAGE>

heirs, beneficiaries and legal representatives. It is agreed that the rights and
obligations of Employee may not be delegated or assigned except as may be
specifically agreed to by the parties hereto.

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

                              Charles & Colvard, Ltd.

                              By:  /s/ Robert S. Thomas
                                   --------------------
                                   Robert S. Thomas, President

                              EMPLOYEE

                              /s/ James R. Braun
                              ------------------
                              James R. Braun

                                       8
<PAGE>

Position Description                                                  Exhibit A
Chief Financial Officer

Purpose
-------

The Chief Financial Officer is responsible for the management of all financial
and administrative operations of the company. This position will report to the
Chief Executive Officer.

Responsibilities:
----------------

Lead all aspects of business development and finance activities for the Company
including managing both financial reporting and investor relations.

Direct all aspects of the financial operations of the Company including
accounting, budgeting, investment management, cash management and presentations
of financial information at Board of Directors' meetings.

Manage the human resource activities and information systems for the Company.

Serve on company-wide project teams and perform such other responsibilities as
may be assigned by the Chief Executing Officer or Board of Directors from time
to time.

                                       9<PAGE>

                                                                 EXHIBIT 10.1(c)
                               SECOND AMENDMENT
                                      TO
                         AGREEMENT AND PLAN OF MERGER

               This SECOND AMENDMENT TO AGREEMENT AND PLAN OF MERGER (this
"Second Amendment"), dated as of May 1, 2001, is entered into by NCR
 ----------------
CORPORATION, a Maryland corporation ("NCR"), and NCR Merger Sub Parent, Inc., a
                                      ---
Delaware corporation ("NCR Merger Sub Parent").
                       ---------------------

                                    RECITALS
                                    --------

               WHEREAS, NCR, NCR Merger Sub Inc. ("NCR Merger Sub") and 4Front
                                                   --------------
Technologies, Inc. ("4Front") were parties to the Agreement and Plan of Merger,
                     ------
dated as of August 2, 2000, as amended pursuant to the Amendment to Agreement
and Plan of Merger, dated as of October 6, 2000, among NCR, 4Front, NCR Merger
Sub, and NCR Merger Sub Parent (the "Agreement"); and
                                     ---------

               WHEREAS, NCR Merger Sub and 4Front merged, effective as of
October 16, 2000, at which time NCR Merger Sub ceased to exist;

               WHEREAS, on December 21, 2000, in exchange for $47,700,000 of the
outstanding shares of NCR UK Holdings Limited ("NCR UK Holdings"), a
                                                ---------------
$100,000,000 promissory note of NCR, dated October 13, 2000, and a newly issued
$82,600,000 promissory note of NCR UK Holdings, 4Front transferred to NCR UK
Holdings: (a) shares and quotas of, and participation interests in, the
following companies, all wholly-owned, directly or indirectly, by 4Front (i)
4Front Group PLC, an English company, (ii) 4Front Technologies France S.A., a
French company, (iii) Labfire Limited, an Irish company, and (iv) SIL Service
Industries Europe, a Netherlands company, SIL Service Industries Europe
(Deutschland) GmbH, a German company, SIL Service Industries France SARL, a
French company, SIL Service Industries Spain SL, a Spanish company, and SIL
Service Industries spol. s.r.o., a Czech Republic company (together, the "SIL
Companies"); (b) accounts receivable; and (c) cash; and

               WHEREAS, in connection with the foregoing reorganization, on
December 21, 2000, 4Front distributed its NCR UK Holdings shares and the other
consideration described above to its sole shareholder, NCR Merger Sub Parent,
and the Board of Directors of 4Front approved its liquidation and dissolution on
December 22, 2000, and 4Front's Certificate of Dissolution was filed in the
Office of the Secretary of the State of Delaware and effective on January 8,
2001;

               WHEREAS, NCR indirectly through NCR UK Holdings currently owns
all of the interests of the Services Industries Limited group of companies,
including the SIL Companies (the "SIL Group") acquired in connection with the
                                  ---------
acquisition of 4Front;

               WHEREAS, the parties to the Agreement always intended to sell the
SIL Group to a third party as soon as practicable after the acquisition of
4Front by NCR;

               WHEREAS, NCR and NCR Merger Sub Parent wish to amend the
Agreement pursuant to Section 9.5 thereof to clearly reflect their intent
regarding certain matters reflected in Section 6.11 of the Agreement as such
intent existed on the original date of execution of the Agreement.

                                   AGREEMENT
                                   ---------

               NOW, THEREFORE, in consideration of the premises, and the mutual
agreements and covenants herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties hereto, intending to be legally bound, hereby agree as follows:

     1.   DEFINITIONS
          -----------

          1.1  Unless otherwise defined herein, all capitalized terms used
               herein and defined in the Agreement shall have the meaning
               ascribed to such terms in the Agreement.

                                      31
<PAGE>

     2.   AMENDMENT OF AGREEMENT
          ----------------------

          2.1. The Agreement shall be amended as follows:

               (a)  The following definition shall be added to Section 1.1 of
                    the Agreement:

                    "SIL Group" shall mean the Services Industries Limited group
                     ---------
                    of companies, as listed on Exhibit A of this Second
                    Amendment.

               (b)  The first sentence of Section 6.11(b) of the Agreement shall
                    be shall be deleted in its entirety and replaced with the
                    following text:
                         After a period of one year from the Closing, Parent
                         shall cause the Surviving Entity to provide pension,
                         health and welfare benefits to Employees (other than
                         the employees of the SIL Group) who continue their
                         employment after the Effective Time which are generally
                         comparable in the aggregate to such benefits provided
                         to other similarly situated employees of Parent and its
                         Subsidiaries.

          2.2. Except as amended hereby, the Parties ratify and confirm the
               terms of the Agreement.

     3.   COUNTERPARTS
          ------------

          3.1  This Second Amendment may be executed in multiple counterparts,
               each of which shall be deemed an original, but all of which
               together shall constitute one and the same instrument.

               IN WITNESS WHEREOF, the Parties hereto have executed this Second
     Amendment as of the date first above written.

                                        NCR CORPORATION

                                        By:  /s/ Paul H. Thurman
                                             --------------------------
                                             Name: Paul H. Thurman

                                        NCR MERGER SUB PARENT, INC.

                                        By:  /s/ Paul H. Thurman
                                             --------------------------
                                             Name:   Paul H. Thurman

                                   EXHIBIT A

1.   Service Industries Europe spol s.r.o.
2.   SIL Service Industries France SARL
3.   SIL Service Industries Europe (Duetschland) GmbH
4.   SIL Service Industries Europe B.V.
5.   SIL Service Industries Europe S.L.
6.   RTB Corporation SL (Spain)
7.   Service Industries Polska

                                      32

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