Document:

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                                                                EXHIBIT 10.18(b)

                           FIRST AMENDMENT TO AMENDED
                          AND RESTATED CREDIT AGREEMENT

                FIRST AMENDMENT (this "Amendment"), dated as of November 16,
1999, among FREMONT GENERAL CORPORATION, a Nevada corporation (the "Borrower"),
the financial institutions party to the Credit Agreement referred to below (the
"Banks"), and THE CHASE MANHATTAN BANK, as Administrative Agent (the "Agent").
All capitalized terms used herein and not otherwise defined shall have the
respective meanings provided for such terms in the Credit Agreement referred to
below.

                              W I T N E S S E T H :

        WHEREAS, the Borrower, the Banks and the Agent are parties to an Amended
and Restated Credit Agreement, dated as of August 1, 1997 and amended and
restated as of June 30, 1999 (as amended, restated and supplemented from time to
time, the "Credit Agreement"); and

        WHEREAS, the parties hereto wish to amend the Credit Agreement as herein
provided.

        NOW, THEREFORE, it is agreed:

A.      AMENDMENT TO CREDIT AGREEMENT

        1. Amendment to Section 9. Section 9 of the Credit Agreement is hereby
amended by (a) deleting the definition of "Consolidated EBIT" in its entirety
and (b) inserting the following definition in the appropriate alphabetical order
in lieu thereof:

        "Consolidated EBIT" shall mean, for any period, the sum of (i)
        Consolidated Net Income of the Borrower for such period, (ii) provisions
        for taxes based on income or profits to the extent such income or
        profits were included in computing Consolidated Net Income for such
        period and (iii) Consolidated Interest Expense (including amortization
        of original issue discount and the interest component of Capitalized
        Lease Obligations), net of interest income, theretofore deducted from
        earnings in computing Consolidated Net Income for such period, provided
        that in determining Consolidated EBIT (x) for any period, there shall be
        excluded any portion thereof otherwise included therein (whether
        positive or negative) attributable to FFC and its Subsidiaries and (y)
        for any period which includes the quarter ending on September 30, 1999,
        there shall be excluded the Borrower's $155,000,000 pre-tax reserve
        strengthening charge reflected in its financial statements for the
        fiscal quarter ending on September 30, 1999 (provided that (i) no more
        than $117,000,000 (in the aggregate) of such charge shall be applicable
        to the Borrower's workers' compensation line of business for the fiscal
        years 1998 and 1999 and (ii) no more than $38,000,000 of such charge
        shall be applicable to the Borrower's discontinued lines of insurance
        business).

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B.      MISCELLANEOUS PROVISIONS

        1. No Implied Modifications. This Amendment is limited as specified and
shall not constitute a modification, acceptance or waiver of any other provision
of the Credit Agreement or any other Credit Document.

        2. Counterparts. This Amendment may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each
of which counterparts when executed and delivered shall be original, but all of
which shall together constitute one and the same instrument. A complete set of
counterparts shall be lodged with the Borrower and the Agent.

        3. GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW
OF THE STATE OF NEW YORK.

        4. Effective Date. This Amendment shall become effective on the date
(the "First Amendment Effective Date") when each of the Borrower and the
Required Banks shall have signed a copy hereof (whether the same of different
copies) and shall have delivered (including by way of telecopier) the same to
the Agent at its Notice Office.

        5. Representations and Warranties Affirmed. In order to induce the Banks
to enter into this Amendment, the Borrower hereby makes each of the
representations, warranties and agreements contained in the Credit Agreement on
the First Amendment Effective Date both before and after giving effect to this
Amendment.

        6. No Default. In order to induce the Banks to enter into this
Amendment, the Borrower hereby represents and warrants that no Default or Event
of Default is in existence as of the First Amendment Effective Date after giving
effect to this Amendment.

        7. References. From and after the First Amendment Effective Date, all
references in the Credit Agreement and each of the Credit Documents to the
Credit Agreement shall be deemed to be referenced to the Credit Agreement as
amended hereby.

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                           SECOND AMENDMENT TO AMENDED
                          AND RESTATED CREDIT AGREEMENT

                SECOND AMENDMENT (this "Amendment"), dated as of December 23,
1999, among FREMONT GENERAL CORPORATION, a Nevada corporation (the "Borrower"),
the financial institutions party to the Credit Agreement referred to below (the
"Banks"), and THE CHASE MANHATTAN BANK, as Administrative Agent (the "Agent").
All capitalized terms used herein and not otherwise defined shall have the
respective meanings provided for such terms in the Credit Agreement referred to
below.

                              W I T N E S S E T H :

        WHEREAS, the Borrower, the Banks and the Agent are parties to an Amended
and Restated Credit Agreement, dated as of August 1, 1997 and amended and
restated as of June 30, 1999 (as amended, restated and supplemented from time to
time, the "Credit Agreement"); and

        WHEREAS, the parties hereto wish to amend the Credit Agreement as herein
provided.

        NOW, THEREFORE, it is agreed:

C.      AMENDMENTS TO CREDIT AGREEMENT

        1. Section 6 of the Credit Agreement is hereby amended by adding the
following new Section 6.12 at the end thereof:

        "6.12 Pledge of Certain Subsidiaries. If the following shall occur: (a)
        the S&P Credit Rating is BB+ or below or S&P ceases to rate the
        Borrower's senior unsecured long-term debt and (b) the Moody's Credit
        Rating is Ba1 or below or Moody's ceases to rate the Borrower's senior
        unsecured long-term debt; then, at the request of the Required Banks,
        the Borrower shall promptly (and, in any event, within 30 days) (i)
        grant to the Administrative Agent, for the benefit of the Banks, a first
        priority security interest in all of the capital stock of (x) FCIG and
        (y) Investors Bancor, in each case pursuant to documentation in form and
        substance satisfactory to the Administrative Agent and (ii) enter into
        such amendments to this Agreement and/or other documentation in
        connection with the creation of such security interests as the
        Administrative Agent shall reasonably request; provided, that (A) the
        Borrower shall not be required to comply with the first sentence of this
        Section 6.12 at any time unless any Loans or Competitive Bid Loans are
        outstanding at such time and (B) if and to the extent required pursuant
        to the indenture governing the Borrower's outstanding 7.70% Senior Notes
        due 2004 and 7.875% Senior Notes due 2009, such Senior Notes may share
        in the security interests created pursuant to this Section 6.12 on an
        equal and ratable basis. Notwithstanding anything to the contrary in
        this Agreement, (i) FCIG must continue to own all Material Insurance
        Subsidiaries

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        owned by it as of December 1, 1999, and Investors Bancor must continue
        to own all Subsidiaries owned by it as of December 1, 1999 that had a
        net worth of $10,000,000 or more on such date; provided, that any such
        Subsidiaries may merge into any other Subsidiary so long as the
        surviving corporation is a Wholly-Owned Subsidiary of FCIG or Investors
        Bancor, (ii) neither FCIG nor Investors Bancor shall be permitted to
        merge or consolidate with any Person, provided that Investors Bancor may
        merge with FGCC so long as 100% of the capital stock of the surviving
        corporation of such merger is pledged pursuant to the pledge
        documentation referred to in the preceding sentence and (iii) FCIG and
        Investors Bancor (or the surviving corporation of the merger referred to
        in clause (ii) above) shall not be permitted to contract, incur, assume
        or suffer to exist Indebtedness in excess (in the aggregate for all such
        Persons) of the amount of Indebtedness of such Persons as of December 1,
        1999 plus $10,000,000 (plus customary obligations that arise from any
        such Person's limited recourse securitization of loan receivables or
        other assets, to the extent that such obligations constitute
        Indebtedness)."

        2. Section 7.02 of the Credit Agreement is hereby amended by (a)
deleting the word "and" appearing at the end of clause (g) thereof, (b) deleting
the period at the end of the clause (h) thereof and inserting "; and" in lieu
thereof and (c) adding the following clause (i) at the end thereof:

                "(i) The Borrower may sell all of the capital stock of FFC,
        provided that such sale is for cash consideration of at least
        $125,000,000."

        3. Section 7.03 of the Credit Agreement is hereby amended by (a)
deleting the word "and" appearing at the end of clause (v) thereof, (b) deleting
the period at the end of clause (w) thereof and inserting "; and" in lieu
thereof and (c) adding the following clause (x) at the end thereof:

                "(x) Liens created pursuant to Section 6.12 of this Agreement."

        4. Effective on and after January 1, 2000, Section 7.12 of the Credit
Agreement is hereby amended by deleting the reference to "0.45 to 1.0" therein
and by inserting in lieu thereof a reference to "0.40 to 1.0".

        5. Effective on and after December 31, 2000, Section 7.15 of the Credit
Agreement is hereby amended by deleting the reference to "$450,000,000" therein
and by inserting in lieu thereof a reference to "$500,000,000".

        6. On the Second Amendment Effective Date, the Total Commitment shall be
permanently reduced to $225,000,000 (with such reduction to apply to
proportionately and permanently reduce the Commitment of each of the Banks).

D.      MISCELLANEOUS PROVISIONS

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        1. No Implied Modifications. This Amendment is limited as specified and
shall not constitute a modification, acceptance or waiver of any other provision
of the Credit Agreement or any other Credit Document.

        2. Counterparts. This Amendment may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each
of which counterparts when executed and delivered shall be original, but all of
which shall together constitute one and the same instrument. A complete set of
counterparts shall be lodged with the Borrower and the Agent.

        3. GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW
OF THE STATE OF NEW YORK.

        4. Effective Date. This Amendment shall become effective on the date
(the "Second Amendment Effective Date") when each of the Borrower and the
Required Banks shall have signed a copy hereof (whether the same of different
copies) and shall have delivered (including by way of telecopier) the same to
the Agent at its Notice Office.

        5. Amendment Fee. The Borrower hereby agrees to pay to each Bank an
amendment fee equal to 0.075% of such Bank's Commitment (after giving effect to
the reduction of such Commitment on the Second Amendment Effective Date pursuant
to this Amendment), such fee to be due and payable on the first Business Day
following the Second Amendment Effective Date.

        6. Representations and Warranties Affirmed. In order to induce the Banks
to enter into this Amendment, the Borrower hereby makes each of the
representations, warranties and agreements contained in the Credit Agreement on
the Second Amendment Effective Date both before and after giving effect to this
Amendment.

        7. No Default. In order to induce the Banks to enter into this
Amendment, the Borrower hereby represents and warrants that no Default or Event
of Default is in existence as of the Second Amendment Effective Date after
giving effect to this Amendment.

        8. References. From and after the Second Amendment Effective Date, all
references in the Credit Agreement and each of the Credit Documents to the
Credit Agreement shall be deemed to be referenced to the Credit Agreement as
amended hereby.

                                    *   *   *<PAGE>   1
                                                                   Exhibit 10.21

                                 ELITE.COM INC.

                             1999 STOCK OPTION PLAN

1.      PURPOSE

        The purpose of the Elite.com Inc. 1999 Stock Option Plan (the "Plan") is
to promote the growth and profitability of Elite.com Inc. (the "Company") and
its subsidiaries ("Subsidiaries") from time to time by increasing the personal
participation of officers and key employees in the financial performance of the
Company, by enabling the Company to attract and retain officers and key
employees of outstanding competence and by providing such officers and key
employees with an equity opportunity in the Company. This purpose will be
achieved through the grant of stock options ("Options") to purchase shares of
common stock of the Company, $.01 par value per share (the "Common Stock")
subject to such restrictions as the administrators of the Plan may determine.

2.      ADMINISTRATION

        The Plan will be administered by the Company's Board of Directors (the
"Board"); provided, however, that if the Board includes members who are not
"non-employee directors" (as defined in Rule 16b-3 promulgated under the
Securities Exchange Act of 1934, as amended, or any applicable successor rule or
regulation ("Rule 16b-3")) or "outside directors" (as defined in Section 162(m)
of the Internal Revenue Code of 1986, as amended, and the regulations thereunder
("Section 162(m)")), then all authority of the Board under the Plan shall be
exercised by a committee of the Board (the "Committee") composed solely of
members thereof who are both "non-employee directors" and "outside directors"
(as so defined).

        The Board or Committee shall have complete authority to: (i) interpret
all terms and provisions of the Plan consistent with law; (ii) select from the
group of officers and key employees eligible to participate in the Plan the
officers and key employees to whom Options shall be granted; (iii) within the
limits established herein, determine the number of shares to be subject to, the
exercise price of, and the term of each Option, granted to each of such officers
and key employees; (iv) prescribe the form of instrument(s) evidencing Options
granted under this Plan; (v) determine the time or times at which Options shall
be granted to officers or key employees; (vi) make special grants of Options to
officers or key employees when determined to be appropriate; (vii) provide, if
appropriate, for the exercisability of Options granted to officers or key
employees in installments or subject to specified conditions; (viii) determine
the method of exercise of Options granted to officers or key employees under the
Plan; (ix) adopt, amend and rescind general and special rules and regulations
for the Plan's administration; and (x) make all other determinations necessary
or advisable for the administration of this Plan.

        Any action which the Board or Committee is authorized to take may be
taken without a meeting if all the members of the Board or Committee sign a
written document authorizing such

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action to be taken, unless different provision is made by the By-Laws of the
Company or by resolution of the Board or Committee.

        The Board or Committee may designate selected Board or Committee members
or certain employees of the Company to assist the Board or Committee in the
administration of the Plan and may grant authority to such persons to execute
documents, including Options, on behalf of the Board or Committee, subject in
each such case to the requirements of Rule 16b-3.

        No member of the Board or Committee or employee of the Company assisting
the Board or Committee pursuant to the preceding paragraph shall be liable for
any action taken or determination made in good faith.

3.      STOCK SUBJECT TO PLAN

        The stock to be offered under this Plan shall be authorized but unissued
shares of Common Stock, shares of Common Stock previously issued and thereafter
acquired by the Company, or any combination thereof. An aggregate of 1,500,000
shares of Common Stock are reserved for Option grants under this Plan. Any or
all of the Options granted under this Plan may, at the Board's or Committee's
discretion, be intended to qualify as incentive stock options ("Incentive Stock
Options") under Section 422 of the Internal Revenue Code of 1986, as amended
(the "Code"). The number of shares reserved under this Plan may be adjusted to
reflect any change in the capitalization of the Company as contemplated by
Section 9 hereof and occurring after the adoption of this Plan. The Board or
Committee will maintain records showing the cumulative total of all shares
subject to Options outstanding under this Plan.

4.      OPTIONS FOR OFFICERS AND KEY EMPLOYEES

        a.     Eligibility and Factors to be Considered in Granting Options

        The grant of Options under this Plan shall be limited to those officers
and key employees of the Company or any of its Subsidiaries who have the
greatest impact on the Company's long-term performance and are selected by the
Board or Committee. Members of the Company's Board of Directors who are also
officers or employees of the Company are eligible to receive Options under this
Plan. In making any determination as to the officer(s) and key employee(s) to
whom Options shall be granted under this Plan and as to the number of shares to
be subject thereto, the Board or Committee shall take into account, in each
case, the level and responsibility of the person's position, the level of the
person's performance, the person's level of compensation, the assessed potential
of the person and such additional factors as the Board or Committee shall deem
relevant to the accomplishment of the purposes of the Plan.

        Options may be granted under this Plan only for a reason connected with
an officer's or key employee's employment by the Company or any Subsidiary.

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        b.     Allotment of Shares

        The Board or Committee may, in its sole discretion and subject to the
provisions of this Plan, grant to participants eligible under this Plan, on or
after the date hereof, Options to purchase shares of Common Stock. Options
granted under this Plan may, at the discretion of the Board or Committee, be:
(i) Options that are intended to qualify as Incentive Stock Options; or (ii)
Options that are not intended to be Incentive Stock Options or (iii) both of the
foregoing, if granted separately, and not in tandem. Each Option granted under
this Plan must be clearly identified as to its status as an Incentive Stock
Option or not.

Options granted under this Plan may be allotted to participants in such amounts,
subject to the limitations specified in this Plan, as the Board or Committee, in
its sole discretion, may from time to time determine, provided that in any
fiscal year no participant may be granted Options with respect to more than
800,000 shares of Common Stock.

        In the case of Options intended to be Incentive Stock Options, the
aggregate fair market value (determined at the time of such Incentive Stock
Options' respective grants) of the shares with respect to which Incentive Stock
Options are exercisable for the first time by a participant hereunder during any
calendar year (under all plans taken into account pursuant to Section 422(d) of
the Code) shall not exceed $100,000. Options under this Section 4 not intended
to qualify as Incentive Stock Options may be granted to any Plan participant
without regard to the Section 422(d) limitations.

        c.     Time of Granting Options

        The date of grant of an Option under this Plan shall, for all purposes,
be the date on which the Board or Committee makes the determination of granting
such Option (each such date, a "Grant Date"). Notice of the determination shall
be given to each officer or key employee to whom an Option is so granted under
this Plan within a reasonable time after the Grant Date for such Option.

        d.     Exercise Price for Options

        The price per share at which each Option granted under this Plan may be
exercised shall be such price as shall be determined by the Board or Committee
at the time of grant based on such criteria as may be adopted by the Board or
Committee at the time of grant in good faith, taking into account, in each case,
the market price of the Common Stock, the level and responsibility of the
person's position, the level of the person's performance, the person's level of
compensation, the assessed potential of the person, and such additional factors
as the Board or Committee shall deem relevant to the accomplishment of the
purposes of the Plan; provided, however, that in no event shall the exercise
price per share of an Option be less than 100% of the fair market value of the
Company's shares of Common Stock on the Grant Date for such Option. In the case
of an Option intended to qualify as an Incentive Stock Option, the price per
share shall not be less than 100% (or 110% for owners of more than 10% of the
total combined voting power of all classes of stock of the Company or any
Subsidiary) of the fair market value of the Common Stock on the Grant Date for
such Option.

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        If the Company's shares of Common Stock are:

        (1) actively traded on any national securities exchange or NASDAQ system
that reports their sales prices, fair market value shall be the average of the
high and low sales prices per share on any Grant Date;

        (2) otherwise traded over the counter, fair market value shall be the
average of the final bid and asked prices for the shares of Common Stock as
reported for any Grant Date;

        (3) not traded, the Board or Committee shall consider any factor or
factors that it believes affects fair market value, and shall determine fair
market value without regard to any restriction other than a restriction that by
its terms will never lapse.

        e.     Term of Options

        The term of each Option granted under this Plan shall be established by
the Board or Committee, but shall not exceed 10 years (or 5 years for owners of
more than 10% of the total combined voting power of all classes of stock of the
Company or of a Subsidiary) from the Grant Date for such Option.

5.      NON-TRANSFERABILITY

        An Option granted to a participant under this Plan shall not be
transferable by him or her except: (i) by will; (ii) by the laws of descent and
distribution; or (iii) pursuant to a qualified domestic relations order as
defined by the Code or in Title I of the Employee Retirement Income Security
Act, or the rules thereunder. In the case of an Option intended to be an
Incentive Stock Option, such Option shall not be transferable by a participant
other than by will or the laws of descent and distribution and during the
optionee's lifetime shall be exercisable only by him or her.

        Notwithstanding anything to the contrary contained herein, for a period
of six months commencing on the Grant Date for any Option granted hereunder to a
participant subject to reporting requirements under Section 16 of the Securities
Exchange Act of 1934, as amended (the "1934 Act"), such participant may not sell
any share(s) of Common Stock acquired upon exercise of such Option.

6.      EXERCISABILITY OF OPTIONS

        Subject to the provisions of this Plan, Options granted under this Plan
shall be exercisable at such time or times after the Grant Date for such Options
according to such schedule and upon such conditions as may be determined by the
Board or Committee at the time of grant.

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        Unless otherwise determined by the Board or the Committee at the time of
grant or thereafter, any Option granted under this Plan, shall terminate in full
(whether or not previously exercisable) prior to the expiration of its term on
the date the optionee ceases to be an employee of the Company or any Subsidiary
of the Company, unless the optionee shall (a) die while an employee of the
Company or such Subsidiary, in which case the participant's legatee(s) under his
or her last will or the participant's personal representative or representatives
may exercise all or part of the previously unexercised portion of such Option at
any time within one year, but not beyond the expiration of its term, after the
participant's death to the extent the optionee could have exercised the Option
immediately prior to his or her death or in the amount purchasable under the
Option immediately after the death of the optionee, whichever is greater, (b)
become permanently or totally disabled within the meaning of section 22(e)(3) of
the Code (or any successor provision) while an employee of the Company or such
Subsidiary, in which case the participant or his or her personal representative
may exercise the previously unexercised portion of such Option at any time
within one year, but not beyond the expiration of its term, after termination of
his or her employment to the extent the optionee could have exercised the Option
immediately prior to such termination, or (c) resign or retire with the consent
of the Company or have his or her employment with the Company or any Subsidiary
terminated by the Company or any Subsidiary other than for cause (as defined
below), in which case the participant may exercise the previously unexercised
portion of such Option at any time within six months, but not beyond the
expiration of its term, after the participant's resignation, retirement or
employment termination to the extent the optionee could have exercised the
Option immediately prior to such resignation, retirement or employment
termination.

        For purposes of this Section 6, employment termination for "cause" means
termination of employment by reason of gross misconduct as determined by the
Board or Committee, which will include but not be limited to the following: (i)
the commission of dishonest acts involving the Company, (ii) disclosure of
confidential information of the Company, (iii) obvious intoxication (whether due
to alcohol, drugs or other substance abuse) on the job or possession of any
alcoholic substance or illegal drugs on the premises of the Company or any
Subsidiary, (iv) misuse of Company or Subsidiary assets (which shall include but
be limited to cash, equipment, and/or other assets), (v) repeated disregard for
the lawful policies of the Company as may be established from time to time and
communicated to the employee, or (vi) any misconduct specified in any employment
agreement to which the participant is a party that would justify the termination
of such participant's employment with the Company or any Subsidiary "for cause."

        In no event may an Option be exercised after the expiration of its fixed
term.

7.      METHOD OF EXERCISE

        Each Option granted under the Plan shall be deemed exercised when the
holder (a) shall indicate the decision to do so in writing delivered to the
Company, (b) shall at the same time tender to the Company payment in full of the
exercise price for the shares for which the Option is exercised, which payment
may be made in (i) cash, (ii), shares of the Common Stock, the total market
value of which equals the total option price of the shares with respect to which
the option is being exercised, or (iii) any combination of cash and shares of
the Common Stock, the total

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<PAGE>   6

market value of which equals the total option price of the shares with respect
to which the option is being exercised, and (c) shall comply with such other
reasonable requirements as the Board or Committee may establish; provided that
in order to enable an optionee (including but not limited to officers) to
exercise options granted under this Plan, the Board or the Committee may
determine, in the exercise of its discretion, to (i) grant such optionee
permission to pay the exercise price in installments or (ii) grant such optionee
permission to pay the exercise price by delivering for cancellation Options
having an aggregate value (calculated by subtracting the exercise price per
share from the fair market value of a share of Common Stock) equal to the total
amount of the exercise price. The exercise of any option granted under this Plan
may be made subject to the condition that, if at any time the Board or the
Committee shall determine, in its discretion, that the satisfaction of
withholding tax or other withholding liabilities under any state or federal law
is necessary or desirable as a condition of, or in connection with, such
exercise or the delivery or purchase of shares pursuant thereto, then in such
event, the exercise of the option shall not be effective unless such withholding
tax or other withholding liabilities shall have been satisfied in a manner
acceptable to the Company, which may include the withholding by the Company of
shares of Common Stock to be issued upon exercise of an Option having a fair
market value equal to the required withholding amount. With respect to the
foregoing sentences, the value of the shares of Common Stock shall be the fair
market value determined in accordance with Section 4(d) of this Plan as of the
day of such payment or withholding.

        No person, estate or other entity shall have any of the rights of a
shareholder with reference to shares subject to an Option until a certificate
for the shares has been delivered.

        An Option granted under this Plan may be exercised for any lesser number
of shares than the full amount for which it could be exercised. Such a partial
exercise of an Option shall not affect the right to exercise the Option from
time to time in accordance with this Plan for the remaining shares subject to
the Option.

8.      TERMINATION OF OPTIONS

        An Option granted under this Plan shall be considered terminated in
whole or in part, to the extent that, in accordance with the provisions of this
Plan and such Option, it can no longer be exercised for any shares originally
subject to the Option. The shares subject to any terminated Option or portion
thereof shall no longer be charged against the applicable limitation or
limitations provided in Section 3 of this Plan and may again become shares
available for the purposes, and subject to the same applicable limitations, of
this Plan.

9.      ADJUSTMENTS UPON CHANGES IN CAPITALIZATION

        (a) In the event of any change in the outstanding Common Stock of the
Company by reason of a stock dividend, stock split, stock consolidation,
recapitalization, reorganization, merger, split up or the like, the shares
available for purposes of this Plan and the number and kind of shares under
option in outstanding option agreements pursuant to this Plan (and the option
price under such agreements) shall be appropriately adjusted so as to preserve,
but not increase, the benefits of this Plan to the Company and the benefits to
the holders of such Options;

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<PAGE>   7

provided, however, that for any Incentive Stock Options, in the case of a
corporate merger, consolidation, acquisition of property or stock, separation,
reorganization or liquidation, the excess of the aggregate fair market value of
the shares subject to any Options immediately after such event over the
aggregate option price of such shares is not more than the excess of the
aggregate fair market value of all shares subject to such Options immediately
before such event over the aggregate option price of such shares.

        Adjustments under this Section shall be made by the Board or Committee,
whose determination as to what adjustments shall be made and the extent thereof,
shall be final, binding and conclusive.

        (b) In the event of the issuance of any capital stock of the Company to
Elite Information Group, Inc. or any affiliate thereof ("New Elite Stock"), the
number of shares available for purposes of this Plan and the number of shares
under option in outstanding option agreements pursuant to this Plan (and the per
share option price under such agreements) shall be appropriately adjusted so
that such number of shares as adjusted bears the same proportionate relationship
to the aggregate number of shares of common stock outstanding (on an as
converted basis) following both the issuance of the New Elite Stock and such
adjustment as such number of shares prior to such adjustment bore to the
aggregate number of shares of common stock outstanding (on an as converted
basis) immediately prior to the issuance of the New Elite Stock.

10.     FUNDAMENTAL CORPORATE CHANGES

        Subject to SECTION 9 of this Plan, in the event of a consolidation or
merger of the Company with another entity, or the sale or exchange of all or
substantially all of the assets of the Company, or a reorganization of the
Company, a holder of an outstanding Option shall be entitled to receive, upon
the exercise of such Option and payment in accordance with the terms of this
Plan, the same consideration such holder would have been entitled to receive
upon the occurrence of such event if such holder had been, immediately prior to
such event, the holder of the number of shares purchasable under such Option;
provided, that if another entity shall be the surviving entity of such merger or
consolidation, any outstanding Option shall immediately terminate, unless
earlier exercised, upon the payment by such surviving entity to the holder of
such Option the cash or other consideration paid to the shareholders in the
merger or consolidation, in an amount equal to the difference between (a) the
total amount such holder would have been entitled to receive in such merger or
consolidation if such holder had acquired the shares purchasable under such
Option immediately prior to the effective time of such merger or consolidation,
and (b) the total exercise price of such Option.

11.     COMPLIANCE WITH SECURITIES LAWS AND OTHER REQUIREMENTS

        No certificate(s) for shares shall be executed and delivered upon
exercise of an Option until the Company shall have taken such action, if any, as
is then required to comply with the provisions of the Securities Act of 1933, as
amended, the 1934 Act, and any other applicable state securities law(s) and the
requirements of any exchange on which the Common Stock may, at the time, be
listed.

                                       7
<PAGE>   8

        In the case of the exercise of an Option by a person or estate acquiring
the right to exercise the Option by bequest or inheritance, the Board or
Committee may require reasonable evidence as to the ownership of the Option and
may require such consents and releases of taxing authorities as it may deem
advisable.

12.     NO RIGHT TO EMPLOYMENT

        Neither the adoption of the Plan nor its operation, nor any document
describing or referring to the Plan, or any part thereof, shall confer upon any
employee participant under the Plan any right to continue in the employ of the
Company, or upon any director participant under the Plan any right to continue
as a director of the Company, or shall in any way affect the right and power of
the Company to terminate the employment or position with the Company of any
participant under this Plan at any time with or without assigning a reason
therefor, to the same extent as the Company might have done if this Plan had not
been adopted.

13.     AMENDMENT AND TERMINATION

        The Board or Committee may at any time suspend, amend, or terminate this
Plan. Except as provided in Section 4(f) of this Plan, the Board or Committee
may make such modifications of the terms and conditions of a holder's Option as
it shall deem advisable. No Option may be granted during any suspension of the
Plan or after such termination. Notwithstanding the foregoing provisions of this
Section, no amendment, suspension or termination shall, without the consent of
the holder of an Option, alter or impair any rights or obligations under any
Option theretofore granted under the Plan.

        In addition to Board or Committee approval of an amendment, if the
amendment would: (i) materially increase the benefits accruing to participants;
(ii) increase the number of securities issuable under this Plan (other than an
increase pursuant to Section 9 hereof); (iii) change the class or classes of
individuals eligible to receive Options; or (iv) otherwise materially modify the
requirements for eligibility, then such amendment must be approved by the
holders of a majority of the Company's outstanding capital stock present or
represented by proxy and entitled to vote at a meeting duly held of the
shareholders of the Company.

14.     USE OF PROCEEDS

        The proceeds received by the Company from the sale of shares pursuant to
the exercise of Options granted under the Plan shall be used for general
corporate purposes as determined by the Board.

15.     INDEMNIFICATION OF BOARD OR COMMITTEE

        In addition to such other rights of indemnification as they may have as
members of the Board, the members of the Board or Committee shall to the fullest
extent permitted by law be indemnified by the Company against the reasonable
expenses, including attorney's fees, actually

                                       8
<PAGE>   9

and necessarily incurred in connection with the defense of any action, suit or
proceeding, or in connection with any appeal therein, to which they or any of
them may be a party by reason of any action taken or failure to act under or in
connection with the Plan or any Option granted thereunder, and against all
amounts paid by them in settlement thereof (provided the settlement is approved
by independent legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such action, suit or
proceeding that such Board member or Committee member is liable for gross
negligence or misconduct in the performance of his duties; provided, however,
that within 60 days after institution of any such action, suit or proceeding the
Board member or Committee member shall in writing offer the Company the
opportunity, at its own expense, to handle and defend the same.

16.     EFFECTIVE DATE OF THE PLAN

        This Plan was adopted by the Board and by the sole shareholder of the
Company on August 27, 1999, and shall be effective until August 27, 2009.

17.     DURATION OF THE PLAN

        Unless previously terminated by the Board or Committee, this Plan shall
terminate at the close of business on August 27, 2009, and no Option shall be
granted under it thereafter, but such termination shall not affect any Option
previously granted under this Plan.

18.     COMPLIANCE WITH RULE 16b-3

        With respect to any Plan participant who is subject to Section 16 of the
1934 Act, transactions under the Plan are intended to comply with all applicable
conditions of Rule 16b-3 or its successors under the 1934 Act. To the extent
that any provision of the Plan or action by the Board or Committee fails to so
comply, such provision or action shall be deemed null and void to the extent
permitted by law and deemed advisable by the Board or Committee.

19.     CHANGE OF CONTROL

        In the event of a change of control of the Company, all vesting
requirements in respect of Options granted under this Plan shall be terminated
and all outstanding Options shall become immediately exercisable at their stated
exercise prices. From and after the date of such change of control, all such
Options shall be deemed fully vested. For the purposes of this Plan, a change of
control shall include the following:

               a. Consummation by the Company of a firm commitment underwritten
        offering of equity securities of the Company which results in less than
        50% of the outstanding voting securities of the Company being owned in
        the aggregate by the former stockholders of the Company.

                                       9
<PAGE>   10

               b. The adoption by the Company's stockholders of a plan of merger
        or consolidation providing for the merger or consolidation of the
        Company with another corporation and, as a result of such merger or
        consolidation, less than 50% of the outstanding voting securities of the
        surviving or resulting corporation would then be owned in the aggregate
        by the former stockholders of the Company, other than affiliates within
        the meaning of the 1934 Act or any party to such merger or
        consolidation.

                c. The Company transfers substantially all of its assets to
        another corporation or entity that is not a wholly owned subsidiary of
        the Company.

20.     PURCHASE OPTION

        If an optionee's employment with the Company is terminated, voluntarily
or involuntarily, with or without cause, or in the event of such optionee's
death or Disability or in the event of a Change of Control:

        (a) any Options granted to such optionee that have not vested and have
not been exercised as of the date of termination, death, Disability or Change of
Control shall be canceled and such optionee (or such optionee's personal
representative or any other distributee in the case of such optionee's death or
Disability) shall have no right to purchase the shares represented thereby.

        (b) the Company shall have the right (but not the obligation) to
purchase any Options that have vested but have not been exercised by the
optionee prior to the date of termination, death, Disability or Change of
Control, from the optionee (or such optionee's personal representative or any
other distributee in the case of such optionee's death or Disability) at a price
equal to the fair market value of such Options minus the total exercise price of
such Options. The fair market value of such Options shall be determined by the
selling party and the Company, or if the parties cannot agree, as determined by
an appraiser jointly selected by such parties no later than ten (10) days after
the Company elects to purchase the Options, or if the parties cannot agree on
the selection of an appraiser, by three appraisers, the first of whom is
selected by the two appraisers so selected. If the three appraisers cannot agree
on the fair market value, such value shall equal the appraised value that is
neither the lowest not the highest of the three appraised values. If the Company
does not elect to purchase such optionee's vested but unexercised Options within
sixty (60) days of such termination, death, Disability or Change of Control,
such optionee (or such optionee's personal representative or other distributee
with respect to the optionee's death or Disability) shall have thirty (30) days
from the expiration of such 60-day period to exercise such Options in accordance
with this Plan; provided, that after such 30-day period, such Options shall be
canceled and then neither such optionee, the optionee's personal representative
or distributee, nor any other Person shall have the right to purchase the shares
represented thereby.

        The Company shall have sixty (60) days from the date of the optionee's
termination of employment, death, Disability or Change of Control to elect to
purchase such optionee's Options pursuant to this SECTION 20. The closing of the
purchase shall occur within one hundred twenty

                                       10
<PAGE>   11

(120) days of the termination, death, Disability or Change of Control. At such
closing, the optionee or other rightful holder of the Options being purchased
shall convey such Options free and clear of all liens, claims and encumbrances
and pursuant to such instruments of conveyance and warranties as the Company
shall reasonably request. Unless the parties agree otherwise, the Company may
elect to pay cash for such Options or issue a promissory note for the applicable
purchase price, such note not to exceed a term of five (5) years. The Company
shall pay all fees and expenses in connection with such transaction, except the
attorneys' fees of the selling party. The failure of any party to satisfy the
obligation to close the purchase and sale of any such Options in accordance with
this SECTION 20 shall entitle the other party to specific performance of such
obligation, in addition to all other equitable and legal remedies available.

        For purposes of this Plan, "Disability" means any impairment of mind or
body that renders an employee unable to pursue his duties as an employee, taking
into account the role and duties of such employee at such time as the
determination of disability is made, which persists for six (6) months and is
likely to continue thereafter for the rest of such employee's life. The
determination of whether an employee has a Disability shall be made by the Board
and such determination shall be final, binding and conclusive.

                                       11
<PAGE>   12

Dear

In accordance with the 1999 Stock Option Plan (the "Plan") of Elite.com Inc.
(the "Company"), you, as an officer or key employee of the Company or its
subsidiaries, and in order to give you an added proprietary interest in the
Company and an additional incentive to advance the interest of the Company, were
granted on _____________, ____, an option to purchase _____ shares of the common
stock of the Company upon the following terms and conditions:

        (1)     The exercise price shall be $___________ (____% of the fair
                market value of a share on the date of grant - ___________,
                ____);

        (2)     This Option will become exercisable according to the following
                schedule:

        (3)     Once exercisable, this Option may be exercised until
                ____________, ____, subject to the terms and conditions of the
                Plan, a copy of which is attached hereto and incorporated herein
                by reference. This Option is granted subject to the Plan and
                shall be construed in accordance with the Plan.

        (4)     This Option is (is not) intended to be treated as an "incentive
                stock option" for purposes of Section 422 of the Internal
                Revenue Code.

        (5)     To exercise this Option, the holder must deliver written notice
                of the decision to do so and at the same time tender to the
                Company payment in full of the exercise price for the shares for
                which the Option is exercised, which payment may be made in (i)
                cash, (ii) shares of the Common Stock, the total market value of
                which equals the total option price of the shares with respect
                to which the option is being exercised, or (iii) any combination
                of cash and shares of the Common Stock, the total market value
                of which equals the total option price of the shares with
                respect to which the option is being exercised. With respect to
                the foregoing sentence, the value of the shares of Common Stock
                shall be the fair market value determined in accordance with
                Section 4(d) of this Plan as of the day of such payment.

        (6)     The exercise of this Option shall be subject to the condition
                that, if at any time the Board or the Committee (as defined in
                the Plan) shall determine, in its discretion, that the
                satisfaction of withholding tax or other withholding liabilities
                under any state or federal law is necessary or desirable as a
                condition of, or in connection with, such exercise or the
                delivery or purchase of shares pursuant thereto, then in such
                event, the exercise of the option shall not be effective unless
                such withholding tax or other withholding liabilities shall have
                been satisfied in a manner acceptable to the Company, which may
                include the withholding by the Company of shares of Common Stock
                to be issued upon exercise of an Option having a fair market
                value equal to the required withholding amount.

                                       12
<PAGE>   13

This Option is not transferable except pursuant to the terms and conditions of
the Plan.

                                            Very truly yours,

                                            ELITE.COM INC.

                                            By:
                                               ---------------------------------

                                            Title:
                                                  ------------------------------

I hereby accept the within Option and
acknowledge receipt of a copy of the Plan.

------------------------------------------
Optionee

Date:
     -------------------------------------

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