Document:

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                                                                  Exhibit 10.29

                             PEREGRINE SYSTEMS, INC.

                       1999 NONSTATUTORY STOCK OPTION PLAN

     1.  PURPOSES OF THE PLAN. The purposes of this Nonstatutory Stock Option
Plan are:

         -        to attract and retain the best available personnel for
                  positions of substantial responsibility,

         -        to provide additional incentive to Employees, Directors and
                  Consultants, and

         -        to promote the success of the Company's business.

         Options granted under the Plan will be Nonstatutory Stock Options.

     2.  DEFINITIONS. As used herein, the following definitions shall apply:

         (a) "ADMINISTRATOR" means the Board or any of its Committees as shall
be administering the Plan, in accordance with Section 4 of the Plan.

         (b) "APPLICABLE LAWS" means the requirements relating to the
administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any foreign country or jurisdiction where Options are, or will be, granted under
the Plan.

         (c) "BOARD" means the Board of Directors of the Company.

         (d) "CODE" means the Internal Revenue Code of 1986, as amended.

         (e) "COMMITTEE" means a committee of Directors appointed by the Board
in accordance with Section 4 of the Plan.

         (f) "COMMON STOCK" means the Common Stock of the Company.

         (g) "COMPANY" means Peregrine Systems, Inc., a Delaware corporation.

         (h) "CONSULTANT" means any person, including an advisor, engaged by the
Company or a Parent or Subsidiary to render services to such entity.

         (i) "DIRECTOR" means a member of the Board.

         (j) "DISABILITY" means total and permanent disability as defined in
Section 22(e)(3) of the Code.

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         (k) "EMPLOYEE" means any person, including Officers, employed by the
Company or any Parent or Subsidiary of the Company. A Service Provider shall not
cease to be an Employee in the case of (i) any leave of absence approved by the
Company or (ii) transfers between locations of the Company or between the
Company, its Parent, any Subsidiary, or any successor. Neither service as a
Director nor payment of a director's fee by the Company shall be sufficient to
constitute "employment" by the Company.

         (l) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

         (m) "FAIR MARKET VALUE" means, as of any date, the value of Common
Stock determined as follows:

                  (i) If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system for
the last market trading day prior to the time of determination, as reported in
THE WALL STREET JOURNAL or such other source as the Administrator deems
reliable;

                  (ii) If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of
a Share of Common Stock shall be the mean between the high bid and low asked
prices for the Common Stock on the last market trading day prior to the day of
determination, as reported in THE WALL STREET JOURNAL or such other source as
the Administrator deems reliable;

                  (iii) In the absence of an established market for the Common
Stock, the Fair Market Value shall be determined in good faith by the
Administrator.

         (n) "NOTICE OF GRANT" means a written or electronic notice evidencing
certain terms and conditions of an individual Option grant. The Notice of Grant
is part of the Option Agreement.

         (o) "OFFICER" means a person who is an officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

         (p) "OPTION" means a nonstatutory stock option granted pursuant to the
Plan, that is not intended to qualify as an incentive stock option within the
meaning of Section 422 of the Code and the regulations promulgated thereunder.

         (q) "OPTION AGREEMENT" means an agreement between the Company and an
Optionee evidencing the terms and conditions of an individual Option grant. The
Option Agreement is subject to the terms and conditions of the Plan.

         (r) "OPTION EXCHANGE PROGRAM" means a program whereby outstanding
options are surrendered in exchange for options with a lower exercise price.

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         (s) "OPTIONED STOCK" means the Common Stock subject to an Option.

         (t) "OPTIONEE" means the holder of an outstanding Option granted under
the Plan.

         (u) "PARENT" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

         (v) "PLAN" means this 1999 Nonstatutory Stock Option Plan.

         (w) "SERVICE PROVIDER" means an Employee including an Officer,
Consultant or Director.

         (x) "SHARE" means a share of the Common Stock, as adjusted in
accordance with Section 12 of the Plan.

         (y) "SUBSIDIARY" means a "subsidiary corporation," whether now or
hereafter existing, as defined in Section 424(f) of the Code.

     3.  STOCK SUBJECT TO THE PLAN. Subject to the provisions of Section 12 of
the Plan, the maximum aggregate number of Shares, which may be optioned and sold
under the Plan, is 2,000,000 Shares. The Shares may be authorized, but unissued,
or reacquired Common Stock.

         If an Option expires or becomes unexercisable without having been
exercised in full, or is surrendered pursuant to an Option Exchange Program, the
unpurchased Shares which were subject thereto shall become available for future
grant or sale under the Plan (unless the Plan has terminated).

     4.  ADMINISTRATION OF THE PLAN.

         (a) ADMINISTRATION. The Plan shall be administered by (i) the Board or
(ii) a Committee, which committee shall be constituted to satisfy Applicable
Laws.

         (b) POWERS OF THE ADMINISTRATOR. Subject to the provisions of the Plan,
and in the case of a Committee, subject to the specific duties delegated by the
Board to such Committee, the Administrator shall have the authority, in its
discretion:

                  (i) to determine the Fair Market Value of the Common Stock;

                  (ii) to select the Service Providers to whom Options may be
granted hereunder;

                  (iii) to determine whether and to what extent Options are
granted hereunder;

                  (iv) to determine the number of shares of Common Stock to be
covered by each Option granted hereunder;

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                  (v) to approve forms of agreement for use under the Plan;

                  (vi) to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any award granted hereunder. Such terms and
conditions include, but are not limited to, the exercise price, the time or
times when Options may be exercised (which may be based on performance
criteria), any vesting acceleration or waiver of forfeiture restrictions, and
any restriction or limitation regarding any Option or the shares of Common Stock
relating thereto, based in each case on such factors as the Administrator, in
its sole discretion, shall determine;

                  (vii) to reduce the exercise price of any Option to the then
current Fair Market Value if the Fair Market Value of the Common Stock covered
by such Option shall have declined since the date the Option was granted;

                  (viii) to institute an Option Exchange Program;

                  (ix) to construe and interpret the terms of the Plan and
awards granted pursuant to the Plan;

                  (x) to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws;

                  (xi) to modify or amend each Option (subject to Section 14(b)
of the Plan), including the discretionary authority to extend the
post-termination exercisability period of Options longer than is otherwise
provided for in the Plan;

                  (xii) to authorize any person to execute on behalf of the
Company any instrument required to effect the grant of an Option previously
granted by the Administrator;

                  (xiii) to determine the terms and restrictions applicable to
Options;

                  (xiv) to allow Optionees to satisfy withholding tax
obligations by electing to have the Company withhold from the Shares to be
issued upon exercise of an Option that number of Shares having a Fair Market
Value equal to the amount required to be withheld. The Fair Market Value of the
Shares to be withheld shall be determined on the date that the amount of tax to
be withheld is to be determined. All elections by an Optionee to have Shares
withheld for this purpose shall be made in such form and under such conditions
as the Administrator may deem necessary or advisable; and

                  (xv) to make all other determinations deemed necessary or
advisable for administering the Plan.

         (c) EFFECT OF ADMINISTRATOR'S DECISION. The Administrator's decisions,
determinations and interpretations shall be final and binding on all Optionees
and any other holders of Options.

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     5.  ELIGIBILITY. Options may be granted to Service Providers; provided,
however, that notwithstanding anything to the contrary contained in the Plan,
Options may not be granted to Officers and Directors, except in connection with
an Officer's initial service to the Company.

     6.  LIMITATION. Neither the Plan nor any Option shall confer upon an
Optionee any right with respect to continuing the Optionee's relationship as a
Service Provider with the Company, nor shall they interfere in any way with the
Optionee's right or the Company's right to terminate such relationship at any
time, with or without cause.

     7.  TERM OF PLAN. The Plan shall become effective upon its adoption by the
Board. It shall continue in effect for ten (10) years, unless sooner terminated
under Section 14 of the Plan.

     8.  TERM OF OPTION. The term of each Option shall be stated in the Option
Agreement.

     9.  OPTION EXERCISE PRICE AND CONSIDERATION.

         (a) EXERCISE PRICE. The per share exercise price for the Shares to be
issued pursuant to exercise of an Option shall be determined by the
Administrator.

         (b) WAITING PERIOD AND EXERCISE DATES. At the time an Option is
granted, the Administrator shall fix the period within which the Option may be
exercised and shall determine any conditions which must be satisfied before the
Option may be exercised.

         (c) FORM OF CONSIDERATION. The Administrator shall determine the
acceptable form of consideration for exercising an Option, including the method
of payment. Such consideration may consist entirely of:

                  (i) cash;

                  (ii) check;

                  (iii) promissory note;

                  (iv) other Shares which (A) in the case of Shares acquired
upon exercise of an option, have been owned by the Optionee for more than six
months on the date of surrender, and (B) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised;

                  (v) consideration received by the Company under a cashless
exercise program implemented by the Company in connection with the Plan;

                  (vi) a reduction in the amount of any Company liability to the
Optionee, including any liability attributable to the Optionee's participation
in any Company-sponsored deferred compensation program or arrangement;

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                  (vii) such other consideration and method of payment for the
issuance of Shares to the extent permitted by Applicable Laws; or

                  (viii) any combination of the foregoing methods of payment.

     10. EXERCISE OF OPTION.

         (a) PROCEDURE FOR EXERCISE; RIGHTS AS A SHAREHOLDER. Any Option granted
hereunder shall be exercisable according to the terms of the Plan and at such
times and under such conditions as determined by the Administrator and set forth
in the Option Agreement. An Option may not be exercised for a fraction of a
Share.

                  An Option shall be deemed exercised when the Company receives:
(i) written or electronic notice of exercise (in accordance with the Option
Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive dividends or any other rights as a shareholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option.
The Company shall issue (or cause to be issued) such Shares promptly after the
Option is exercised. No adjustment will be made for a dividend or other right
for which the record date is prior to the date the Shares are issued, except as
provided in Section 12 of the Plan.

                  Exercising an Option in any manner shall decrease the number
of Shares thereafter available, both for purposes of the Plan and for sale under
the Option, by the number of Shares as to which the Option is exercised.

         (b) TERMINATION OF RELATIONSHIP AS A SERVICE PROVIDER. If an Optionee
ceases to be a Service Provider, other than upon the Optionee's death or
Disability, the Optionee may exercise his or her Option, but only within such
period of time as is specified in the Option Agreement, and only to the extent
that the Option is vested on the date of termination (but in no event later than
the expiration of the term of such Option as set forth in the Option Agreement).
In the absence of a specified time in the Option Agreement, the Option shall
remain exercisable for ninety (90) days following the Optionee's termination.
If, on the date of termination, the Optionee is not vested as to his or her
entire Option, the Shares covered by the unvested portion of the Option shall
revert to the Plan. If, after termination, the Optionee does not exercise his or
her Option within the time specified by the Administrator, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

         (c) DISABILITY OF OPTIONEE. If an Optionee ceases to be a Service
Provider as a result of the Optionee's Disability, the Optionee may exercise his
or her Option within such period of time as is specified in the Option
Agreement, to the extent the Option is vested on the date of

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termination (but in no event later than the expiration of the term of such
Option as set forth in the Option Agreement). In the absence of a specified time
in the Option Agreement, the Option shall remain exercisable for six (6) months
following the Optionee's termination. If, on the date of termination, the
Optionee is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan. If, after termination,
the Optionee does not exercise his or her Option within the time specified
herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan.

         (d) DEATH OF OPTIONEE. In the event of the death of an Optionee, the
Option shall vest and become exercisable as to all of the Shares subject thereto
and may be exercised within such period of time as is specified in the Option
Agreement (but in no event later than the expiration of the term of such Option
as set forth in the Notice of Grant), by the Optionee's estate or by a person
who acquires the right to exercise the Option by bequest or inheritance. In the
absence of a specified time in the Option Agreement, the Option shall remain
exercisable for twelve (12) months following the Optionee's termination. The
Option may be exercised by the executor or administrator of the Optionee's
estate or, if none, by the person(s) entitled to exercise the Option under the
Optionnee's will or the laws of descent or distribution. If the Option is not so
exercised with the specified time, the Option shall terminate, and the Shares
covered by such Option shall revert to the Plan.

         (e) BUYOUT PROVISIONS. The Administrator may at any time offer to buy
out for a payment in cash or Shares, an Option previously granted based on such
terms and conditions as the Administrator shall establish and communicate to the
Optionee at the time that such offer is made.

     11.  NON-TRANSFERABILITY OF OPTIONS. Unless determined otherwise by the
Administrator, an Option may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and may be exercised, during the lifetime of the
Optionee, only by the Optionee. If the Administrator makes an Option
transferable, such Option shall contain such additional terms and conditions as
the Administrator deems appropriate.

     12. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, DISSOLUTION, MERGER OR
ASSET SALE.

         (a) CHANGES IN CAPITALIZATION. Subject to any required action by the
shareholders of the Company, the number of shares of Common Stock covered by
each outstanding Option, and the number of shares of Common Stock which have
been authorized for issuance under the Plan but as to which no Options have yet
been granted or which have been returned to the Plan upon cancellation or
expiration of an Option, as well as the price per share of Common Stock covered
by each such outstanding Option, shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the
number of issued shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities

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convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of shares
of Common Stock subject to an Option.

         (b) DISSOLUTION OR LIQUIDATION. In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed
transaction. The Administrator in its discretion may provide for an Optionee to
have the right to exercise his or her Option until ten (15) days prior to such
transaction as to all of the Optioned Stock covered thereby, including Shares as
to which the Option would not otherwise be exercisable. In addition, the
Administrator may provide that any Company repurchase option applicable to any
Shares purchased upon exercise of an Option shall lapse as to all such Shares,
provided the proposed dissolution or liquidation takes place at the time and in
the manner contemplated. To the extent it has not been previously exercised, an
Option will terminate immediately prior to the consummation of such proposed
action.

         (c) MERGER, SALE OF ASSETS, OR STOCK TRANSFER. In the event of (i) a
merger or consolidation of the Company with or into another corporation
resulting in the outstanding voting securities of the Company immediately prior
thereto representing (either by remaining or by being converted into voting
securities of the surviving entity) less than fifty percent (50%) of the total
voting power represented by the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation; or
(ii) the sale of all or substantially all of the assets of the Company; the
Optionee shall fully vest in and have the right to exercise the Option as to all
of the Optioned Stock, including Shares as to which it would not otherwise be
vested or exercisable. If an Option becomes fully vested and exercisable in the
event of a merger or consolidation or sale of assets, as provided above, the
Administrator shall notify the Optionee in writing or electronically that the
Option shall be fully vested and exercisable.

     13. DATE OF GRANT. The date of grant of an Option shall be, for all
purposes, the date on which the Administrator makes the determination granting
such Option, or such other later date as is determined by the Administrator.
Notice of the determination shall be provided to each Optionee within a
reasonable time after the date of such grant.

     14. AMENDMENT AND TERMINATION OF THE PLAN.

         (a) AMENDMENT AND TERMINATION. The Board may at any time amend, alter,
suspend or terminate the Plan.

         (b) EFFECT OF AMENDMENT OR TERMINATION. No amendment, alteration,
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the Company.
Termination of the Plan shall not affect the Administrator's ability to exercise
the powers granted to it hereunder with respect to options granted under the
Plan prior to the date of such termination.

     15. CONDITIONS UPON ISSUANCE OF SHARES.

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         (a) LEGAL COMPLIANCE. Shares shall not be issued pursuant to the
exercise of an Option unless the exercise of such Option and the issuance and
delivery of such Shares shall comply with Applicable Laws and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

         (b) INVESTMENT REPRESENTATIONS. As a condition to the exercise of an
Option the Company may require the person exercising such Option to represent
and warrant at the time of any such exercise that the Shares are being purchased
only for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation is
required.

     16. INABILITY TO OBTAIN AUTHORITY. The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company's counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

     17. RESERVATION OF SHARES. The Company, during the term of this Plan, will
at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

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                             PEREGRINE SYSTEMS, INC.

                       1999 NONSTATUTORY STOCK OPTION PLAN

                             STOCK OPTION AGREEMENT

         Unless otherwise defined herein, the terms defined in the Plan shall
have the same defined meanings in this Option Agreement.

I.       NOTICE OF STOCK OPTION GRANT

         [OPTIONEE'S NAME AND ADDRESS]

         You have been granted an option to purchase Common Stock of the
Company, subject to the terms and conditions of the Plan and this Option
Agreement, as follows:

         Grant Number
                                          ----------------------------------
         Date of Grant
                                          ----------------------------------
         Vesting Commencement Date
                                          ----------------------------------
         Exercise Price per Share         $
                                          ----------------------------------
         Total Number of Shares Granted
                                          ----------------------------------
         Total Exercise Price             $
                                          ----------------------------------
         Type of Option:                  Nonstatutory Stock Option
                                          ----------------------------------
         Term/Expiration Date:
                                          ----------------------------------
         VESTING SCHEDULE:

         Subject to the Optionee continuing to be a Service Provider on such
dates, this Option shall vest and become exercisable in accordance with the
following schedule:

         25% of the total number of Shares subject to the Option shall vest
twelve months after the Vesting Commencement Date, and 6.25% of the total number
of Shares subject to the Option shall vest each quarter thereafter

         TERMINATION PERIOD:

<PAGE>

         This Option may be exercised for 90 days after termination of
Optionee's Continuous Status as an Employee or Consultant, or such longer period
as may be applicable upon death or disability of Optionee as provided in the
Plan, but in no event later than the Term/Expiration Date as provided above.

II.      AGREEMENT

         1. GRANT OF OPTION. The Plan Administrator of the Company hereby grants
to the Optionee named in the Notice of Grant attached as Part I of this
Agreement (the "Optionee") an option (the "Option") to purchase the number of
Shares, as set forth in the Notice of Grant, at the exercise price per share set
forth in the Notice of Grant (the "Exercise Price"), subject to the terms and
conditions of the Plan, which is incorporated herein by reference. Subject to
Section 14(b) of the Plan, in the event of a conflict between the terms and
conditions of the Plan and the terms and conditions of this Option Agreement,
the terms and conditions of the Plan shall prevail.

         2. EXERCISE OF OPTION.

            (a) RIGHT TO EXERCISE. This Option is exercisable during its term in
accordance with the Vesting Schedule set out in the Notice of Grant and the
applicable provisions of the Plan and this Option Agreement.

            (b) METHOD OF EXERCISE. This Option is exercisable by delivery of an
exercise notice, in the form attached as EXHIBIT A (the "Exercise Notice"),
which shall state the election to exercise the Option, the number of Shares in
respect of which the Option is being exercised (the "Exercised Shares"), and
such other representations and agreements as may be required by the Company
pursuant to the provisions of the Plan. The Exercise Notice shall be completed
by the Optionee and delivered to the Company. The Exercise Notice shall be
accompanied by payment of the aggregate Exercise Price as to all Exercised
Shares. This Option shall be deemed to be exercised upon receipt by the Company
of such fully executed Exercise Notice accompanied by such aggregate Exercise
Price.

            No Shares shall be issued pursuant to the exercise of this Option
unless such issuance and exercise complies with Applicable Laws. Assuming such
compliance, for income tax purposes the Exercised Shares shall be considered
transferred to the Optionee on the date the Option is exercised with respect to
such Exercised Shares.

         3. METHOD OF PAYMENT. Payment of the aggregate Exercise Price shall be
by any of the following, or a combination thereof, at the election of the
Optionee:

            (a) cash;

            (b) check;

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            (c) consideration received by the Company under a cashless exercise
program implemented by the Company in connection with the Plan; or

            (d) surrender of other Shares, which (i) in the case of Shares
acquired upon exercise of an option, have been owned by the Optionee for more
than six (6) months on the date of surrender, and (ii) have a Fair Market Value
on the date of surrender equal to the aggregate Exercise Price of the Exercised
Shares.

         4. NON-TRANSFERABILITY OF OPTION. This Option may not be transferred in
any manner otherwise than by will or by the laws of descent or distribution and
may be exercised during the lifetime of Optionee only by the Optionee. The terms
of the Plan and this Option Agreement shall be binding upon the executors,
administrators, heirs, successors and assigns of the Optionee.

         5. TERM OF OPTION. This Option may be exercised only within the term
set out in the Notice of Grant, and may be exercised during such term only in
accordance with the Plan and the terms of this Option Agreement.

         6. TAX CONSEQUENCES. Some of the federal tax consequences relating to
this Option, as of the date of this Option, are set forth below. THIS SUMMARY IS
NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.
THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR
DISPOSING OF THE SHARES.

            (a) EXERCISING THE OPTION. The Optionee may incur regular federal
income tax liability upon exercise of an NSO. The Optionee will be treated as
having received compensation income (taxable at ordinary income tax rates) equal
to the excess, if any, of the Fair Market Value of the Exercised Shares on the
date of exercise over their aggregate Exercise Price. If the Optionee is an
Employee or a former Employee, the Company will be required to withhold from his
or her compensation or collect from Optionee and pay to the applicable taxing
authorities an amount in cash equal to a percentage of this compensation income
at the time of exercise, and may refuse to honor the exercise and refuse to
deliver Shares if such withholding amounts are not delivered at the time of
exercise.

            (b) DISPOSITION OF SHARES. If the Optionee holds NSO Shares for at
least one year, any gain realized on disposition of the Shares will be treated
as long-term capital gain for federal income tax purposes.

         7. ENTIRE AGREEMENT; GOVERNING LAW. The Plan is incorporated herein by
reference. The Plan and this Option Agreement constitute the entire agreement of
the parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof, and may not be modified adversely to the
Optionee's interest except by means of a writing signed by the Company and
Optionee. The internal substantive laws, but not the choice of law rules, of
California govern this agreement.

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         8. NO GUARANTEE OF CONTINUED SERVICE. OPTIONEE ACKNOWLEDGES AND AGREES
THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED
ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (AND NOT
THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN OPTION OR PURCHASING SHARES
HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE
TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO
NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A
SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL
NOT INTERFERE WITH OPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO TERMINATE
OPTIONEE'S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT
CAUSE.

         By your signature and the signature of the Company's representative
below, you and the Company agree that this Option is granted under and governed
by the terms and conditions of the Plan and this Option Agreement. Optionee has
reviewed the Plan and this Option Agreement in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Option
Agreement and fully understands all provisions of the Plan and Option Agreement.
Optionee hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Administrator upon any questions relating to the Plan
and Option Agreement. Optionee further agrees to notify the Company upon any
change in the residence address indicated below.

OPTIONEE                                   PEREGRINE SYSTEMS, INC.

------------------------------------       -------------------------------------
Signature                                  By

------------------------------------       -------------------------------------
Print Name                                 Title

------------------------------------
Residence Address

------------------------------------

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                                    EXHIBIT A

                             PEREGRINE SYSTEMS, INC.

                       1999 NONSTATUTORY STOCK OPTION PLAN

                                 EXERCISE NOTICE

Peregrine Systems, Inc.
12670 High Bluff Drive
San Diego, CA 92130

Attention:  [TITLE]

         1. EXERCISE OF OPTION. Effective as of today, ________________, _____,
the undersigned ("Purchaser") hereby elects to purchase ______________ shares
(the "Shares") of the Common Stock of Peregrine Systems, Inc. (the "Company")
under and pursuant to the 1999 Nonstatutory Stock Option Plan (the "Plan") and
the Stock Option Agreement dated, _________, ___ (the "Option Agreement"). The
purchase price for the Shares shall be $______, as required by the Option
Agreement.

         2. DELIVERY OF PAYMENT. Purchaser herewith delivers to the Company the
full purchase price for the Shares.

         3. REPRESENTATIONS OF PURCHASER. Purchaser acknowledges that Purchaser
has received, read and understood the Plan and the Option Agreement and agrees
to abide by and be bound by their terms and conditions.

         4. RIGHTS AS SHAREHOLDER. Until the issuance (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the Shares, no right to vote or receive dividends or
any other rights as a shareholder shall exist with respect to the Optioned
Stock, notwithstanding the exercise of the Option. The Shares so acquired shall
be issued to the Optionee as soon as practicable after exercise of the Option.
No adjustment will be made for a dividend or other right for which the record
date is prior to the date of issuance, except as provided in Section 12 of the
Plan.

         5. TAX CONSULTATION. Purchaser understands that Purchaser may suffer
adverse tax consequences as a result of Purchaser's purchase or disposition of
the Shares. Purchaser represents that Purchaser has consulted with any tax
consultants Purchaser deems advisable in connection with the purchase or
disposition of the Shares and that Purchaser is not relying on the Company for
any tax advice.

<PAGE>

         6. ENTIRE AGREEMENT; GOVERNING LAW. The Plan and Option Agreement are
incorporated herein by reference. This Agreement, the Plan and the Option
Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and Purchaser with respect to the subject matter
hereof, and may not be modified adversely to the Purchaser's interest except by
means of a writing signed by the Company and Purchaser. The internal substantive
laws, but not the choice of law rules, of California govern this agreement.

Submitted by:                            Accepted by:

PURCHASER                                PEREGRINE SYSTEMS, INC.

------------------------------------     -------------------------------------
Signature                                By

------------------------------------     -------------------------------------
Print Name                               Title

                                         -------------------------------------
                                         Date Received

ADDRESS:                                 ADDRESS:      12670 High Bluff Drive
        ----------------------------                   San Diego, CA 92130

        ----------------------------

        ----------------------------

                                      -2-<PAGE>

                                                                   EXHIBIT 10.1

                                 LOAN AGREEMENT
                           (REVOLVING LINE OF CREDIT)

         THIS SECURED LOAN AGREEMENT ("Agreement") is entered into as of
December 27, 1999, by and between BIBP COMMODITIES, INC., a Delaware corporation
(the "Borrower"), and CAPITAL DELIVERY, LTD., a Kentucky corporation (the
"Lender").

                                    RECITAL:

         Borrower desires to establish a line of credit with Lender to finance
its working capital needs in operating its business of purchasing cheese in
accordance with product specifications for Papa John's Pizza restaurants and
selling cheese to PJ Food Service, Inc., the wholly owned distribution
subsidiary of Papa John's International, Inc. ("PJI"), and Lender is willing to
make such loan on the terms and conditions set forth herein.

                                   AGREEMENT:

         NOW, THEREFORE, Borrower and Lender have agreed as follows:

         1.       LOAN.

                  (a) LOAN; PROMISSORY NOTE. Lender agrees to make "Advances" to
Borrower from time to time during the period commencing on the date hereof and
ending on the day immediately prior to the Maturity Date, as defined below, in
an aggregate principal amount not to exceed the Maximum Amount, as defined below
(the "Loan"). The Loan shall be evidenced by a Promissory Note (the "Note") of
even date herewith.

                  (b) EXTENSION OF TERM. Effective December 31, 2000, and
continuing effective each December 31 thereafter, the Maturity Date shall be
extended for a period of one (1) year, provided that on the effective of each
such extension there exists then no Event of

<PAGE>

Default, as defined below, and provided further that Lender has not given
notice to Borrower of nonextension prior to such effective date.

                  (c) MAXIMUM PRINCIPAL BALANCE. The aggregate outstanding
principal balance of the Loan shall not exceed $17,600,000 ("Maximum Amount").

                  (d) LOAN ACCOUNT. Lender shall maintain a loan account on its
books in which shall be recorded all advances made by Lender to Borrower
pursuant to this Agreement, and all payments made by Borrower with respect to
the Loan; provided, however, that failure to maintain such account or record any
advances therein shall not relieve Borrower of its obligations to repay the
outstanding principal amount of the Loan, all accrued interest thereon, and any
amounts payable with respect thereto in accordance with the terms of this
Agreement and the Note.

                  (e) INTEREST RATE AND PAYMENT.

                      (i) Interest shall accrue daily on the aggregate
outstanding principal balance of the Loan, for the period commencing on the
date an initial Advance under the Loan is made until the Loan is paid in
full, at a variable rate per annum equal to the "Prime Rate" less one (1)
percentage point, in respect of such principal amount until such unpaid
amount has been paid in full, adjusted monthly on the first day of each
calendar month. "Prime Rate," as used in this Note, shall mean the interest
rate published in THE WALL STREET JOURNAL in the "Money Rates" column as the
prevailing "Prime Rate," it being understood and agreed that the Prime Rate
is not necessarily the lowest or best rate of interest available on
commercial loans of the nature evidenced by this Note.

                      (ii) Interest on the outstanding principal balance of
the Loan shall be calculated daily for each day on which there is an
outstanding balance on the Loan. Interest shall be due and payable as
provided in the Note.

                                      -2-

<PAGE>

                      (iii) Interest shall be computed on the basis of a
360-day year and the actual number of days elapsed.

                      (iv) Any principal or interest payment due under the
Note not paid at stated maturity, by acceleration, conversion or otherwise,
shall, to the extent permitted by applicable law, thereafter bear interest
(compounded monthly and payable upon demand) at a rate which is 2% per annum
in excess of the rate of interest otherwise payable under this Agreement in
respect of such principal amount until such unpaid amount has been paid in
full (whether before or after judgment). The charging or collection of any
such additional interest shall not be deemed a waiver of any of the Lender's
rights arising thereby or hereunder, including the right to declare an "Event
of Default" hereunder.

                  (f) REPAYMENT OF THE LOAN. If not earlier paid, or if not
accelerated for payment, the outstanding principal amount of the Loan and all
accrued and unpaid interest shall, at the close of business on December 31, 2002
(the "Maturity Date"), be paid in full.

                  (g) ONE OBLIGATION. All Advances made hereunder, and all
interest accrued thereon, shall constitute one obligation of Borrower secured by
all security interests, liens, claims, and encumbrances from time to time
hereafter granted to Lender by Borrower.

                  (h) CREDIT RESOURCES. Borrower acknowledges that Lender has
informed it that Lender may not from time to time in the future have cash, cash
equivalents, and credit resources sufficient to permit Lender to make all
requested advances under this Agreement and other agreements with developers and
franchisees of PJI while maintaining sufficient working capital for Lender's
expansion and operating needs, and Borrower agrees that in the event Lender
shall fail to fund the Loan as and to the extent required hereby and such
failure shall constitute a breach of this Agreement (a "Funding Default"), such
Funding Default shall not (v) constitute fraud (by any person or entity,
including Lender and its Successors and Assignees) or (vi) give rise to any
liability of any person or entity, including Lender and its Successors and
Assignees, in

                                      -3-

<PAGE>

any other tort, and Borrower further agrees that it shall be limited to its
remedies in contract solely against Lender.

                  (i) PAYMENT METHOD. All payments to be made by Borrower
hereunder shall be made in lawful money of the United States (vii) by check
delivered to Lender, (viii) in immediately available funds, or (ix) via
electronic funds transfer, without set off, counterclaims, deduction or
withholding of any type.

         2. CONDITIONS ON ADVANCES. Advances under the Note shall be subject to
the following:

                  (a) Lender shall have received, at least five (5) business
days prior to the day an Advance is to be made hereunder, (i) a written request
from an authorized officer of Borrower for an Advance in a specific amount, (ii)
a Certificate of Borrower in the form attached hereto as Exhibit A, which shall
be signed by the president or chief financial officer of Borrower and which
shall certify that Borrower meets all conditions for receipt of the Advance and
is in compliance with this Agreement, and (iii) copies of all other documents
reasonably requested by Lender.

                  (b) No material adverse change, as determined by Lender in its
sole discretion, in the financial condition, results of operations, assets, or
business of Borrower, shall have occurred at any time or times subsequent to the
date hereof.

                  (c) No Event of Default or any event that, through the passage
of time or the service of notice or both, would mature into an Event of Default
shall have occurred and be continuing under this Agreement or the Note.

                  (d) The representations and warranties contained in Section 6
hereof shall be true and correct as of the date such Advance is made.

                                      -4-

<PAGE>

                  (e) Advances may be used solely to finance Borrower's working
capital needs in operating its business of purchasing cheese in accordance with
product specifications for Papa John's Pizza restaurants and selling cheese to
PJ Food Service, Inc. ("PJFS").

                  (f) Advances will be permitted only to the extent of
Borrower's deficit cash position, if any, resulting from its business and the
application of the Pricing Formula in effect as of the date of this Agreement,
or as amended from time to time with the consent of Lender, and employed to
establish the price of cheese under the Cheese Purchase Agreement between
Borrower and PJFS.

                  (g) No Advances will be made if any agreement between Lender
(or any affiliate of Lender) and Borrower (or any affiliate of Borrower) is in
default or has been terminated.

                  (h) Advances will be made in increments of $100,000.

                  (i) Advances shall be made by wire transfer from Lender to the
account of Borrower or by regular check of Lender payable to Borrower and
forwarded to Borrower by overnight courier to its address as set forth herein
for delivery on the next regular business day.

         3. REPRESENTATIONS, AGREEMENTS AND WARRANTIES. To induce the Lender to
enter into this Agreement, Borrower represents, warrants and agrees as follows:

                  (a) Borrower has full power and authority to enter into and
perform this Agreement; this Agreement has been duly entered into and delivered
and constitutes a legal, valid and binding obligation of the Borrower
enforceable in accordance with its terms.

                  (b) Borrower has no debt other than ordinary trade accounts
payable, except for the debt evidenced by the Note.

                                      -5-

<PAGE>

                  (c) Borrower is a corporation duly organized and validly
existing in good standing under the laws of the state of Delaware and is
qualified to do business and is in good standing in every jurisdiction where the
nature of its business and the ownership of its properties requires it to be so
qualified and where failure so to qualify might materially affect its business
or property, and has all requisite power and authority, corporate and otherwise,
to conduct its business, to own its property, and to execute, deliver and
perform all of its Obligations under this Agreement and the Note.

                  (d) Borrower's registered office, chief executive office and
principal place of business, are at the addresses set forth in Section 10.

                  (e) The execution, delivery and performance of this Agreement
and the Note are within Borrower's powers, have been duly authorized by all
necessary or proper action on the part of Borrower including the consent of its
members where required, are not in contravention of any provision of law or of
any agreement or indenture by which Borrower is bound or of the organizational
or charter documents of Borrower and do not require the consent or approval of
any governmental body, agency, authority or other person that has not been
obtained and a copy thereof furnished to Lender.

                  (f) Borrower is, and after giving effect to the transactions
contemplated hereby, will be solvent, and will remain solvent throughout the
Term.

                  (g) No action or proceeding is now pending or, threatened
against Borrower at law, in equity or otherwise before any court, board,
commission, agency or instrumentality of the federal or state government or of
any state or municipal government or any agency or subdivision thereof, or
before any arbitrator or panel of arbitrators.

                  (h) Borrower is not engaged in any joint venture or
partnership with any Person.

                                      -6-

<PAGE>

                  (i) Borrower has filed all United States tax returns and all
state, local and foreign tax returns that are required to be filed, and has
paid, or made provision for the payment of, all taxes that have become due
pursuant to said returns or pursuant to any statement received by Borrower,
except such taxes, if any, as are being contested in good faith and as to which
adequate reserves have been provided. Such tax returns properly reflect
Borrower's income and taxes for the periods covered thereby, subject only to
reasonable adjustments required by the Internal Revenue Service upon audit, and
having no material adverse affect on Borrower's financial condition, business or
results of operations.

                  (j) (i) The financial statements of Borrower, copies of which
have been delivered to Lender, are true, correct and accurate and contain no
material misstatements or omissions and fairly presents the financial position
of Borrower as of the date thereof.

                     (ii) Since the date of the financial statements referred
to in subsection (i) above, Borrower has not incurred any obligations or
guaranteed the obligations of any other person.

                  (k) Borrower is not in violation of any applicable statute,
regulation or ordinance of any governmental entity, or of any agency thereof, in
any respect materially and adversely affecting Borrower's business, property,
assets, operations or condition, financial or otherwise.

         4. AFFIRMATIVE COVENANTS. For so long as Borrower shall have any
Obligations to Lender under this Agreement, Borrower covenants as follows:

                  (a) Borrower shall preserve and maintain its separate
existence and all rights, privileges, and franchises in connection therewith,
and maintain its qualification and good standing in all states in which such
qualification is necessary in order for Borrower to conduct its business in such
states.

                                      -7-

<PAGE>

                  (b) Borrower shall file all federal, state and local tax
returns and other reports that it is required by law to file, maintain adequate
reserves for the payment of all taxes, assessments, governmental charges, and
levies imposed upon it, its income, or profits, or taxes, assessments,
governmental charges and levies prior to the date on which penalties attach
thereto, except where the same may be contested in good faith by appropriate
proceedings.

                  (c) Borrower shall comply with all laws, statutes, regulations
and ordinances of any governmental entity, or any agency thereof, applicable to
it, a violation of which, in any respect, may materially and adversely affect
Borrower's business, property, assets, operations or condition, financial or
otherwise, including, without limitation, any such laws, statutes, regulations
or ordinances regarding the collection, payment, and deposit of employees'
income, unemployment, and Social Security taxes and with respect to pension
liabilities.

                  (d) Borrower shall notify Lender in writing:

                      (i) promptly upon learning thereof, of any material
litigation affecting Borrower, whether or not the claim is considered to be
covered by insurance, and of the institution of any suit or administrative
proceeding which may materially and adversely affect a Borrower's operations,
financial condition or business;

                      (ii) at least thirty (30) days prior thereto, opening
of any new office or place of business by Borrower or the closing by Borrower
of any existing office or place of business; PROVIDED, HOWEVER, this
provision shall not be construed as a waiver or consent by Lender to allow
Borrower to open or close any new office or place of business; and

                      (iii) within three (3) calendar days after the
occurrence thereof, of Borrower's default under any lease, deed or other
similar agreement to which Borrower is a party or by which Borrower is bound.

                                      -8-

<PAGE>

                  (e) From time to time as requested by Lender, Borrower shall
submit a written plan setting forth its current and proposed: management, growth
plans, cash position and debt, and such other information as Lender may
reasonably request.

         5. NEGATIVE COVENANTS. For so long as Borrower shall have any
obligations to Lender under this Agreement, Borrower covenants that:

                  (a) Borrower shall not create, incur, assume, or suffer to
exist any indebtedness for borrowed money, except (i) obligations due to Lender
under this Agreement and the Note, and (ii) unsecured trade payables incurred in
the ordinary course of business.

                  (b) Borrower shall not assume, guarantee, endorse or otherwise
become directly or contingently liable in connection with any other liability of
any other person except by endorsement of negotiable instruments for deposit or
collection and similar transactions in the ordinary course of business.

                  (c) Borrower shall not, without the prior written consent of
Lender, merge into or consolidate with any other person or enter into any
agreement with a view to do same.

                  (d) Borrower shall not enter into any new business or make any
material change in its business objectives.

                  (e) Borrower shall not, without the prior written consent of
Lender, sell or dispose of any of its "assets" (as that term is defined in
accordance with generally accepted accounting principles) other than a sale in
the ordinary course of business.

                  (f) Borrower shall not make any loans, advances or extensions
of credit to, or investments in, any persons, including, without limitation, any
of Borrower's affiliates, partners, officers or employees other than expenses
advanced in the ordinary course of business.

                                      -9-

<PAGE>

                  (g) Borrower shall not acquire all or any material portion of
the stock, securities, or assets of any other person or entity.

                  (h) Borrower shall not cancel any claim or debt, except for
consideration and in the ordinary course of its business.

                  (i) Without the prior written consent of Lender, Borrower
shall not suffer to exist any lien, encumbrance, mortgage, or security interest
on any of its property, except: (i) those in favor of Lender, and (ii) liens for
(A) property taxes not delinquent, (B) taxes not yet subject to penalties, and
(C) pledges or deposits made under Workmen's Compensation, Unemployment
Insurance, Social Security and similar legislation, or to secure statutory
obligations.

                  (j) Borrower shall not use any fictitious name.

                  (k) Borrower shall not enter into or be a party to any
transaction with any of Borrower's affiliates.

                  (l) Borrower shall not make, or obligate itself to make, any
distribution to its shareholders, or redeem, retire, purchase or otherwise
acquire, directly or indirectly, any of its ownership interests now or hereafter
outstanding, or set aside any funds for any of the foregoing purposes.

                  (m) Borrower shall not liquidate, dissolve, discontinue
business or materially change its capital structure or its general business
purpose or take any action with a view towards the same.

                  (n) Borrower shall not, without the prior written consent of
Lender, effect any revisions to the Pricing Formula in effect on the date of
this Agreement and employed to establish cheese prices under the Cheese Purchase
Agreement between Borrower and PJFS.

                                      -10-

<PAGE>

                  (o) Borrower shall not, without the prior written consent of
Lender, increase the dividend paid to Borrower shareholders.

         6. DEFAULT. At the option of the Lender the happening of any of the
following events shall constitute a default under this Agreement (an "Event of
Default"):

                  (a) The occurrence of any "Event of Default" under the Note.

                  (b) Breach or non-compliance by Borrower of any covenant,
representation or warranty under this Agreement.

                  (c) Encumbrance of any of Borrower's assets, or the making of
a levy, seizure or attachment thereof or thereon.

         7. REMEDIES. Upon any Event of Default, the Lender may at its option
declare any and all of the Obligations to be immediately due and payable, in
addition to exercising all other rights or remedies available to the Lender at
law or in equity.

         8. MANDATORY LAWS GOVERNING EXERCISE OF REMEDIES. All of the remedies
under this Agreement are subject to the mandatory, non-waivable provisions of
the laws of the jurisdiction in which Collateral is located or which governs the
exercise of the remedies.

         9. CUMULATIVE REMEDIES. The rights and remedies of the Lender shall be
deemed to be cumulative, and any exercise of any right or remedy shall not be
deemed to be an election of that right or remedy to the exclusion of any other
right or remedy.

         10. NOTICE. All notices or communications under this Agreement shall be
in writing and shall be given (i) via hand delivery, (ii) by certified mail,
return receipt requested, or (iii) by

                                      -11-

<PAGE>

a nationally recognized overnight carrier, to the party at the address listed
below, or at such other address as a party may designate as provided herein.

         Lender (if by mail):               P.O. Box 99900
                                            Louisville, Kentucky 40269

         (if by hand delivery
                  or overnight):            2002 Papa John's Boulevard
                                            Louisville, Kentucky 40299

         Borrower:                          2002 Papa John's Boulevard
                                            Louisville, Kentucky 40299

         11. MISCELLANEOUS.

                  (a) Failure by the Lender to exercise any right under this
Agreement or the Note shall not be deemed a waiver of that right, and any
single or partial exercise of any right shall not preclude the further
exercise of that right. Every right of the Lender shall continue in full
force and effect until such right is specifically waived in a writing signed
by the Lender.

                  (b) If any part, term or provision of this Agreement is
held by any court to be prohibited by any law applicable to this Agreement,
the rights and obligations of the parties shall be construed and enforced
with that part, term or provision enforced to the greatest extent allow by
law, or if it is totally unenforceable, as if this Agreement did not contain
that particular part, term or provision.

                  (c) The headings in this Agreement have been included for
ease of reference only, and shall not be considered in the construction or
interpretation of this Agreement.

                  (d) Lender shall have the right to assign this Agreement
and/or the Note to a third party, including any affiliate of Lender. This
Agreement shall inure to the benefit of the Lender, its successors and
assigns. Borrower shall not make any transfer or assignment of any of its
rights or obligations under this Agreement or the Note without Lender's prior
written consent.

                                      -12-

<PAGE>

                  (e) To the extent allowed under the Uniform Commercial Code,
this Agreement shall in all respects be governed by and construed in accordance
with the laws of the Commonwealth of Kentucky.

                  (f) Borrower hereby irrevocably agrees that any legal action,
suit or proceeding against it with respect to its obligations and liabilities
hereunder or any other matter under or arising out of or in connection with this
Agreement, the Note or the Ownership Pledge Agreement or for recognition or for
enforcement of any judgment rendered in any such action, suit or proceeding may
be brought in the United States District Court for the Western District of
Kentucky or in the Courts of the Commonwealth of Kentucky, as the Lender may
elect, and, by execution and delivery of this Agreement, Borrower hereby
irrevocably accepts and submits to the non-exclusive jurisdiction of each of the
aforesaid courts IN PERSONAM generally and unconditionally with respect to any
such action, suit or proceeding for it and/or in respect of its property.
Borrower further agrees that final judgment against it in any action, suit or
proceeding referred to herein shall be conclusive and may be enforced in any
other jurisdiction within the United States of America by suit on the judgment,
a certified or exemplified copy of which shall be conclusive evidence of the
fact and of the amount of the obligations and liabilities. Borrower hereby
irrevocably consents and agrees to the service of any and all legal process,
summons, notices and documents out of any of the aforesaid courts in any such
action, suit or proceeding by mailing copies thereof via registered or certified
mail, postage prepaid to the Borrower at the address set forth herein. Nothing
herein shall in any way be deemed to limit the ability of the Lender to serve
any writs, processes or summons, in any other manner permitted by applicable law
or to obtain jurisdiction over the Borrower in any such other jurisdictions, and
in such manner, as may be permitted by applicable law. In addition, Borrower
hereby irrevocably and unconditionally waives any objection which it may now or
hereafter have to the laying of venue of any of the aforesaid actions, suits or
proceedings arising out of or in connection with this Agreement or the Note
brought in any of the aforesaid courts, and hereby further irrevocably and
unconditionally waives and agrees not to plead or claim that any such action,
suit or proceeding brought in any such court has been brought in an inconvenient
forum.

                                      -13-

<PAGE>

                  (g) The parties waive to the fullest extent permitted by law
any right to or claim for any punitive or exemplary damages against the other
and agree that, in the event of a dispute, the party making the claim will be
limited to equitable relief and to recovery of any actual damages it sustains.

                  (h) Lender and Borrower irrevocably waive trial by jury in any
action, proceeding or counterclaim, whether at law or in equity, brought by
either of them.

                  (i) "Affiliate" shall mean any person or entity that directly,
or through one or more intermediaries, controls or is controlled by, or is under
common control with, a specified person or entity.

                  (j) This Agreement, together with the Exhibits hereto,
constitute the entire agreement of the parties with respect to the Loan, and
supersede all prior understandings and agreements concerning the Loan. No
change, modification, addition or termination of this Agreement or the Note
shall be enforceable unless in writing and signed by the party against whom
enforcement is sought.

         IN WITNESS WHEREOF, Borrower and the Lender have executed and delivered
this Secured Loan Agreement as of the date first set forth above, but actually
on the dates set forth below their respective names.

                    BORROWER:                 BIBP COMMODITIES, INC.

                                              By:      /s/ Patrick W. Gaunce
                                                       ----------------------
                                                       Patrick W. Gaunce
                                                       President and Director

                                                     Date:    MAY 3, 2000

                                      -14-

<PAGE>

                      LENDER:                 CAPITAL DELIVERY, LTD.

                                               By:  /s/ Charles W. Schnatter
                                                   ---------------------------
                                                   Charles W. Schnatter
                                                   President

                                               Date:    MAY 9, 2000

                                      -15-

<PAGE>

                        CERTIFICATE OF BORROWER                       EXHIBIT A

         BIBP COMMODITIES, INC., the "Borrower" under a Loan Agreement and
Promissory Note dated December 27, 1999 (the "Loan Agreement" and the "Note,"
respectively), evidencing a loan to Borrower from CAPITAL DELIVERY, LTD.
("Lender"), hereby (a) certifies, represents and warrants to Lender that
Borrower meets all the terms and conditions for the receipt of an Advance (as
defined in the Loan Agreement) under the terms of the Loan Agreement, and (b)
makes a request for an Advance of $__________ under the Loan Agreement and the
Note.

         Borrower requests that the proceeds of the Advance be delivered to the
account or address below via (check one):

         / /   wire transfer                      / /   check

         Pay to:                    ______________________________

                                    ______________________________

                                     _____________________________

         IN WITNESS WHEREOF, the undersigned, being the duly authorized
representative of Borrower, has executed this Certificate on the date set forth
below.

                                  BIBP COMMODITIES, INC.

                                  By:      ___________________________________

                                  Title:   ___________________________________

                                  Date:    ___________________________________

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