Document:

<PAGE>   1
                                                                    EXHIBIT 4.9

                       FIFTH AMENDMENT TO CREDIT AGREEMENT

         This FIFTH AMENDMENT TO CREDIT AGREEMENT ("Amendment") is entered into
effective as of December 31, 2000 (the "Amendment Date"), by and among TYLER
TECHNOLOGIES, INC. (the "Borrower"), each of the "Guarantors" under the Credit
Agreement described below, each of the banks or other lending institutions which
is a party to the Credit Agreement described below (individually a "Bank", and
collectively the "Banks"), and BANK OF AMERICA, NATIONAL ASSOCIATION, a national
banking association, as agent for the Banks (the "Agent").

                                    RECITALS:

         A. Pursuant to that certain Credit Agreement, dated as of October 1,
1999, by and among the Borrower, the Banks, and the Agent (as such agreement has
been and may be amended, restated, or otherwise modified from time to time, the
"Credit Agreement"), the Banks agreed to provide to the Borrower secured credit
facilities as set forth therein.

         B. The Borrower has requested that the Agent and the Banks amend
certain provisions of the Credit Agreement.

         C. Subject to satisfaction of the conditions set forth herein, the
Agent and the Banks are willing to amend the Credit Agreement as set forth
below.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

                                    ARTICLE 1

                                   Definitions

         Section 1.1 Definitions. Unless otherwise defined in this Amendment,
each capitalized term used in this Amendment has the meaning given to such term
in the Credit Agreement (as amended by this Amendment).

                                    ARTICLE 2

                         Amendments to Credit Agreement

         Section 2.1 Amendment to Section 1.1.

                  (a) Effective as of the Amendment Date, the following
         definitions in Section 1.1 of the Credit Agreement are hereby amended
         and restated in their entirety to read as follows:

FIFTH AMENDMENT TO CREDIT AGREEMENT - Page 1

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                  "Applicable Margin" means, as of any date of determination
         with respect to interest rates, unused commitment fees, and letter of
         credit fees, the percentage amount set forth in the table below
         opposite the then applicable time period:

<TABLE>
<CAPTION>
                                                               Applicable
                                        Applicable             Margin for             Applicable
                                        Margin for               Unused               Margin for
                                         Base Rate             Commitment             Letter of
           Time Period                   Tranches                 Fee                 Credit Fee
           -----------                  ----------             ----------             ----------
<S>                                     <C>                    <C>                    <C>
January 1, 2001 through                    2.00%                 0.50%                  2.00%
and including March 30,
2001
April 1, 2001 through                      2.50%                 0.50%                  2.50%
and including June 30,
2001
July 1, 2001 through and                   3.00%                 0.50%                  3.00%
including September 30,
2001
October 1, 2001 through                    3.50%                 0.50%                  3.50%
and including December
31, 2001
January 1, 2002 and                        4.00%                 0.50%                  4.00%
thereafter
</TABLE>

                  "Capital Expenditures" means, with respect to any Person and
         with respect to any period of determination, the consolidated
         expenditures of such Person during such period that are required to be
         included in or are reflected by the consolidated property, plant, or
         equipment accounts of such Person, or any similar fixed asset or long
         term capitalized asset accounts of such Person, on the consolidated
         balance sheet of such Person in conformity with generally accepted
         accounting principles. Notwithstanding the foregoing, Capital
         Expenditures shall exclude (a) all costs which are to be reimbursed to
         such Person by such Person's customers and (b) any such expenditures
         deemed to have occurred as a result of any Acquisition.

                  "Revolving Loan Commitment" means, for any Bank, the amount
         set forth next to such Bank's name on the following table as its
         Revolving Loan Commitment, or if such Bank has entered into any
         Assignment and Acceptance after January 2, 2001, as set forth for such
         Bank as its Revolving Loan Commitment in the Register maintained by the
         Agent pursuant to Section 8.5(c), in each case as such amount may be
         terminated pursuant to Section 6.2.

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<TABLE>
<CAPTION>
                         Bank                                       Commitment
                         ----                                       ----------
<S>                                                                 <C>
Bank of America, National Association                               $6,562,500
The Chase Manhattan Bank                                            $3,750,000
Bank One, Texas, N.A.                                               $3,750,000
Texas Capital Bank, National Association                            $  937,500
</TABLE>

                  "Revolving Loan Commitment Maximum Amount" means $15,000,000.

                  "Revolving Loan Maturity Date" means the earlier of July 1,
         2002 or any date this Agreement is terminated pursuant to the terms
         hereof.

                  (b) Effective as of the Amendment Date, the following
         definitions are added to Section 1.1 of the Credit Agreement in
         alphabetical order.

                  "Account" means, with respect to any Person, any of such
         Person's now owned or hereafter acquired or arising accounts, as
         defined in the UCC, including any rights to payment for the sale or
         lease of goods or the rendition of services, whether or not they have
         been earned by performance, and "Accounts" means, with respect to such
         Person, all of the foregoing.

                  "Borrowing Base" means, at any time, an amount determined by
         the Agent in its sole discretion equal to the lesser of (a) the
         Revolving Loan Commitment or (b) eighty percent (80.0%) of Eligible
         Accounts.

                  "Borrowing Base Certificate" means a certificate by a
         responsible officer of the Borrower, in substantially the form of
         Exhibit H or in such other form as may be acceptable to the Agent in
         its sole discretion, setting forth the calculation of the Borrowing
         Base, including a calculation of each component thereof, all in such
         detail as shall be satisfactory to the Agent. All calculations of the
         Borrowing Base in connection with the preparation of any Borrowing Base
         Certificate shall originally be made by the Borrower and certified to
         the Agent; provided that the Agent shall have the right to review and
         adjust any such calculation in its discretion.

                  "Eligible Accounts" means the sum of each Account of any
         Credit Party created in the ordinary course of business that is
         acceptable to the Agent in its sole discretion and satisfies each of
         the following conditions: (a) the Agent has a perfected, first priority
         security interest in such Account pursuant to the Security Agreement;
         (b) such Account complies with all applicable laws, rules, and
         regulations; (c) such Account is not more than ninety (90) days past
         due from its original due date; (d) such account is not more than one
         hundred twenty (120) days past its date of original invoice; (e) the
         invoice relating to such Account shall be issued concurrently with, or
         in a reasonably prompt fashion after, the date of

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         shipment of the goods or the date of performance of the services to
         which such Account relates, as applicable; (f) such Account was created
         in connection with (i) the sale of goods by such Credit Party in the
         ordinary course of business and such sale has been consummated and such
         goods have been shipped to the account debtor, or (ii) the performance
         of services by the Credit Party in the ordinary course of business and
         such services have been completed and accepted by the account debtor,
         or if such Account represents a progress billing under a written
         contract, the work performed and such progress billing are in
         accordance with the applicable contract; (g) such Account arises from
         an enforceable contract, the performance of which has been completed by
         the Credit Party, and, other than services provided by subcontractors
         pursuant to the contract between Cole Layer Trumble Company and Nassau
         County, New York, no portion of such performance has been subcontracted
         by the Credit Party to a third party; (h) such Account does not arise
         from the sale of any good that is on a bill-and-hold, guaranteed sale,
         sale-or-return, sale on approval, consignment, or any other repurchase
         or return basis; (i) such Credit Party has good and indefeasible title
         to such Account and such Account is not subject to any Lien except
         Liens in favor the Agent; (j) such Account is not subject to any set-
         off, counterclaim, defense, dispute, recoupment, or adjustment other
         than normal discounts for prompt payment; (k) the account debtor with
         respect to such Account is not insolvent or the subject of any
         bankruptcy or insolvency proceeding and has not made an assignment for
         the benefit of creditors, suspended normal business operations,
         dissolved, liquidated, terminated its existence, ceased to pay its
         debts as they become due, or suffered a receiver or trustee to be
         appointed for any of its property or affairs; (l) such Account is not
         evidenced by chattel paper or an instrument; (m) such Credit Party's
         performance of the contract to which such Account relates is not
         assured by a performance, completion, or other bond; (n) no default
         exists under such Account by any party thereto; (o) such Account is not
         owed by an Affiliate of such Credit Party; (p) such Account is payable
         in Dollars by the account debtor with respect to such Account; (q) the
         account debtor with respect to such Account is domiciled in the United
         States; (r) less than twenty percent (20.0%) of the aggregate balances
         then outstanding on other Accounts owed by the same account debtor and
         its Affiliates to such Credit Party fail to satisfy any of the
         requirements set forth in clause (c), clause (d), or clause (e)
         preceding; (s) the account debtor with respect to such Account is not
         the United States or any department, agency, or instrumentality
         thereof; (t) the account debtor with respect to such Account is not
         located in a jurisdiction denying creditors access to its courts in the
         absence of a notice of business activities report or other similar
         filing, unless such Credit Party has either qualified as a foreign
         corporation authorized to transact business in such state or has filed
         a notice of business activities report or similar filing with the
         applicable jurisdiction for the then current year; and (u) such
         Account, together with all other Accounts owed by the account debtor
         with respect to such Account, do not exceed in the aggregate an amount
         equal to twenty percent (20%) of the aggregate of all Accounts of the
         Credit Parties (provided that only the amount of the excess of such
         Accounts over such twenty percent (20%) shall be excluded as ineligible
         by virtue of this clause (u)). Notwithstanding anything to the contrary
         contained in this Agreement, Eligible Accounts shall not include any
         Accounts that

FIFTH AMENDMENT TO CREDIT AGREEMENT - Page 4

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         the Agent, in its sole discretion, determines to be ineligible. The
         amount of the Eligible Accounts owed by an account debtor to the Credit
         Parties shall be reduced by the amount of all "contra accounts" and
         other obligations owed by the Credit Parties to such account debtor.
         The portion of any Account constituting retainage that has been
         withheld by the account debtor shall not constitute an Eligible
         Account.

                  "Permitted Acquisition" means the purchase by the Borrower or
         a Subsidiary of the Borrower that is not an Excluded Subsidiary of all
         or substantially all of the outstanding capital stock or assets of a
         Person, provided that (a) the aggregate consideration paid by the
         Borrower or such Subsidiary does not exceed (i) $2,000,000 in
         connection with any such Acquisition and (ii) $4,000,000 in connection
         with all such Acquisitions during the term of this Agreement, and (b)
         no Default or Event of Default exists at the time of making such
         Acquisition and would not result therefrom.

                  "Swing Line Termination Date" means January 2, 2001.

         Section 2.2 Amendment to Section 2.1.

                  (a) Effective as of the Amendment Date, Section 2.1(a)(ii) is
         amended and restated in its entirety to read as follows:

                  (ii) [Deleted.]

                  (b) Effective as of the Amendment Date, Section 2.1(a)(iii)(C)
         of the Credit Agreement is amended and restated in its entirety to read
         as follows:

                  (C) [Deleted.]

                  (c) Effective as of the Amendment Date, Section 2.1(a)(iii)(D)
         of the Credit Agreement is amended and restated in its entirety to read
         as follows:

                  (D) [Deleted.]

                  (d) Effective as of the Amendment Date, the first sentence of
         Section 2.1(b)(i) of the Credit Agreement is amended and restated in
         its entirety to read as follows:

                           (i) Each Revolving Loan Borrowing shall be made
                  pursuant to a Revolving Loan Borrowing Request, together with
                  a Borrowing Base Certificate, given by the Borrower to the
                  Agent in writing or by telecopy at the time required pursuant
                  to Section 2.5.

                  (e) Effective as of the Amendment Date, Section 2.1(c)(i)(B)
         of the Credit Agreement is amended and restated in its entirety to read
         as follows:

FIFTH AMENDMENT TO CREDIT AGREEMENT - Page 5

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                  (B) when required and in the amount necessary to keep the
         amount of the Revolving Loan plus the Letter of Credit Exposure equal
         to or less than the Borrowing Base.

         Section 2.3 Amendment to Section 2.3. Effective as of the Amendment
Date, Section 2.3 of the Credit Agreement is amended by adding, immediately
following clause (b), a new clause (c) thereto which shall read in its entirety
as follows:

                  (c) Effective as of the Swing Line Termination Date, all Swing
         Line Loans shall be paid in full, and the Swing Line Lender's
         obligation to make advances to the Borrower under the Swing Line Note
         shall be terminated.

         Section 2.4 Amendment to Section 5.2(c). Effective as of the Amendment
Date, Section 5.2(c) of the Credit Agreement is amended and restated in its
entirety to read as follows:

                  (a) Monthly Reports. Beginning with September 2000, as soon as
         available and in any event not later than 45 days after the end of each
         month, (i) a copy of the internally prepared consolidated financial
         statements of the Borrower for such month and for the fiscal year to
         date period ending on the last day of such month, including therein the
         consolidated balance sheets of the Borrower as of the end of such month
         and the consolidated statement of income for such month and for such
         fiscal year to date period, setting forth the consolidated financial
         position and results of the Borrower for such month and fiscal year to
         date period, all in reasonable detail and duly certified by a
         Responsible Officer of the Borrower as having been prepared in
         accordance with generally accepted accounting principles (subject to
         normal year-end audit adjustments), and (ii) a copy of the internally
         prepared consolidating financial schedules of the Borrower from which
         the consolidated financial statements of Borrower provided to the Agent
         pursuant to clause (i) were prepared.

         Section 2.5 Amendment to Section 5.2(l). Effective as of the Amendment
Date, Section 5.2 of the Credit Agreement is amended by (a) deleting the word
"and" at the end of clause (j), (b) deleting the period at the end of clause
(k), and adding "; and" at the end thereof, and (c) adding a new clause (l)
which shall read in its entirety as follows:

                  (l) Borrowing Base Certificates and Accounts Receivable
         Agings. As soon as available and in any event not later than 30 days
         after the end of each calendar month, the Borrower will deliver to the
         Agent a duly completed Borrowing Base Certificate, together with an
         aged trial balance of all then-existing Accounts; provided, however,
         that such information shall be provided more frequently from time to
         time upon the Agent's request or as required pursuant to Section
         2.1(b)(i).

         Section 2.6 Amendment to Section 5.2(c). Effective as of the Amendment
Date, Section 5.2(c) of the Credit Agreement is amended and restated in its
entirety to read as follows:

FIFTH AMENDMENT TO CREDIT AGREEMENT - Page 6

<PAGE>   7

                  (a) Net Worth. The Borrower shall not permit the consolidated
         Net Worth of the Borrower at any time to be less than an amount equal
         to (a) ninety (90.0%) of the Borrower's consolidated Net Worth as of
         December 31, 2000, plus (b) the cumulative amount of (i) ninety percent
         (90.0%) of the positive consolidated net income of the Borrower and its
         Subsidiaries for each fiscal quarter ending after December 31, 2000,
         plus (ii) one hundred percent (100%) of any increase in consolidated
         Net Worth of the Borrower and its Subsidiaries attributable to issuance
         of capital stock after December 31, 2000.

         Section 2.7 Amendment to Section 5.5(b). Effective as of the Amendment
Date, Section 5.5(b) of the Credit Agreement is amended and restated in its
entirety to read as follows:

                  (b) Debt Ratio. As of March 31, 2001, and the last day of each
         fiscal quarter thereafter, the Borrower shall not permit the
         consolidated Debt Ratio (computed for purposes of this Section 5.5(b)
         by giving effect only to continuing operations of the Borrower and its
         Subsidiaries) to be greater than 2.25 to 1.00.

         Section 2.8 Amendment to Section 5.5(c). Effective as of the Amendment
Date, Section 5.5(c) of the Credit Agreement is amended and restated in its
entirety to read as follows:

                  (c) Fixed Charge Coverage Ratio. Beginning with the fiscal
         quarter ending June 30, 2001, and continuing on the last day of each
         fiscal quarter thereafter, the Borrower shall not permit the ratio of
         (i) the consolidated EBITDA of the Borrower for the four quarters then
         ended, less the consolidated cash taxes paid by the Borrower during
         such period and less the consolidated Capital Expenditures of the
         Borrowing during such period (exclusive of the Excluded Database
         Expenditures) to (ii) the consolidated interest expense of the Borrower
         for the preceding four fiscal quarters then ending (including the
         interest component of Capital Leases, but excluding any net effect of
         interest income), plus capitalized interest for the preceding four
         fiscal quarters then ending, plus the consolidated cash dividends paid
         by the Borrower for the preceding four fiscal quarters then ending
         (provided that for the fiscal quarters ending June 30, 2001 and
         September 30, 2001 such calculation shall be annualized for the three
         preceding months) to be less than the ratio specified in the table
         opposite the then applicable time period:

<TABLE>
<CAPTION>
                                                            Minimum Fixed Charge Coverage
                      Dates                                              Ratio
                      -----                                 -----------------------------
<S>                                                         <C>
June 30, 2001 and September 30,                                      1.25 to 1.00
2001
December 31, 2001 and thereafter                                     2.50 to 1.00
</TABLE>

         Section 2.9 Amendment to Section 5.5(d). Effective as of the Amendment
Date, Section 5.5(d) of the Credit Agreement is amended and restated in its
entirety to read as follows:

FIFTH AMENDMENT TO CREDIT AGREEMENT - Page 7

<PAGE>   8

                  (d) Capital Expenditures. Beginning with the fiscal quarter
         ending March 30, 2001, and continuing on the last day of each fiscal
         quarter thereafter, the Borrower shall not permit the consolidated
         Capital Expenditures of the Borrower, less the amount of such Capital
         Expenditures reimbursed by the customers of the Borrower, to exceed the
         maximum amount specified in the table opposite the then applicable time
         period:

<TABLE>
<CAPTION>
                      Dates                                   Maximum Cumulative Amount
                      -----                                   -------------------------
<S>                                                           <C>
January 1, 2001 through and including                                $ 3,500,000
March 30, 2001
January 1, 2001 through and including                                $ 6,000,000
June 30, 2001
January 1, 2001 through and including                                $10,000,000
September 30, 2001
January 1, 2001 through and including                                $12,000,000
December 31, 2001
January 1, 2002 through and including                                $ 3,000,000
March 30, 2002
January 1, 2002 through and including                                $ 6,000,000
June 30, 2002
</TABLE>

         Section 2.10 Amendment to Section 5.5. Effective as of the Amendment
Date, Section 5.5 of the Credit Agreement is amended by adding a new clause (e)
thereto which shall read in its entirety as follows:

                  (e) EBITDA. As of the fiscal quarter ending March 31, 2001,
         the consolidated EBITDA of the Borrower for the immediately preceding
         three months shall not be less than $1,800,000.

FIFTH AMENDMENT TO CREDIT AGREEMENT - Page 8

<PAGE>   9

         Section 2.11 Amendment to Section 5.9. Effective as of the Amendment
Date, Section 5.9 of the Credit Agreement is amended and restated in its
entirety to read as follows:

                  5.9 Corporate Transactions. The Borrower shall not, without
         the Agent's consent, permit any Restricted Entity to (a) merge,
         consolidate, or amalgamate with another Person, or liquidate, wind up,
         or dissolve itself (or take any action towards any of the foregoing),
         (b) convey, sell, lease, assign, transfer or otherwise dispose of any
         of its property, businesses, or other assets outside of the ordinary
         course of business (except for Permitted Minor Asset Sales and equity
         offerings of common stock in the Borrower), or (c) make any
         Acquisition, other than a Permitted Acquisition; provided that any
         Subsidiary of the Borrower that is not an Excluded Subsidiary may
         merge, consolidate, or amalgamate into any wholly owned Subsidiary of
         the Borrower that is also not an Excluded Subsidiary or convey sell,
         lease, assign, transfer, or otherwise dispose of any of its assets to
         any wholly owned Subsidiary of the Borrower that is not an Excluded
         Subsidiary (and if such disposition transfers all or substantially all
         of the assets of the transferring Subsidiary, such Subsidiary may then
         liquidate, wind up, or dissolve itself), provided that a wholly owned
         Subsidiary that is not an Excluded Subsidiary is the surviving or
         acquiring Subsidiary. In connection with any Permitted Minor Asset
         Sale, provided that no Default or Event of Default exists or would be
         caused thereby, upon reasonable advance written notice from the
         Borrower of the intent to so dispose of assets, the Agent at the
         Borrower's expense shall release the collateral to be sold from the
         liens and security interests created by the Credit Documents and shall
         execute and deliver in favor of such Subsidiary any releases reasonably
         requested by the Borrower to evidence such release.

         Section 2.12 Amendment to Section 8.3. Effective as of the Amendment
Date, Section 8.3 of the Credit Agreement is amended and restated in its
entirety to read as follows:

                  Section 8.3 Modifications, Waivers, and Consents. No
         modifications or waiver of any provision of this Agreement or the
         Revolving Loan Notes, nor any consent required under this Agreement or
         the Revolving Loan Notes, shall be effective unless the same shall be
         in writing and signed by the Agent, Majority Banks, and the Borrower,
         and then such modification, waiver, or consent shall be effective only
         in the specific instance and for the specific purpose for which given;
         provided, however, that no modification, waiver, or consent shall,
         unless in writing and signed by the Agent, all the Banks, and the
         Borrower do any of the following: (a) waive any of the conditions
         specified in Section 3.1 or Section 3.2; (b) increase the Revolving
         Loan Commitments of the Banks; (c) forgive or reduce the amount or rate
         of any principal, interest, or fees payable under the Credit Documents,
         or postpone or extend the time for payment thereof; (d) release any
         Guaranty or any material collateral securing the Credit Obligations
         (except as otherwise permitted or required herein); (e) modify the
         definition of "Borrowing Base" or "Eligible" Accounts"; or (f) change
         the percentage of Banks required to take any action under this
         Agreement, the Revolving Loan Notes, or the Security Documents,
         including

FIFTH AMENDMENT TO CREDIT AGREEMENT - Page 9

<PAGE>   10

         any amendment of the definition of "Majority Banks," or this Section
         8.3. No modification, waiver, or consent shall, unless in writing and
         signed by the Agent or the Issuing Bank, affect the rights or
         obligations of the Agent or the Issuing Bank, as the case may be, under
         the Credit Documents. The Agent shall not modify, waive, or grant any
         consent under any other Credit Document if such action would be
         prohibited under this Section 8.3 with respect to the Credit Agreement
         or the Revolving Loan Notes.

         Section 2.13 Amendment to Article 8. Effective as of the Amendment
Date, Article 8 of the Credit Agreement is amended by adding at the end thereof
a new Section 8.13 which shall read in its entirety as follows:

                  Section 8.13 Term and Termination. The term of this Agreement
         shall end on the Revolving Loan Maturity Date unless terminated as
         otherwise provided in the Agreement. The Borrower may terminate this
         Agreement at any time if it: (a) gives the Agent and the Lenders three
         (3) Business Days prior written notice of termination by registered or
         certified mail; and (b) pays and performs all Credit Obligations,
         including, without limitation, all fees payable under the Loan
         Documents on or prior to the effective date of termination; provided
         that upon any termination of this Agreement by the Borrower pursuant to
         the terms of this Section, with respect to any Letters of Credit, the
         Borrower may deposit with the Agent funds equal to the Letter of Credit
         Exposure in the Letter of Credit Collateral Account as provided by
         Section 2.2 in lieu of discharging the obligations under the Letters of
         Credit.

         Section 2.14 Addition of Exhibit H. Effective as of the Amendment Date,
Exhibit H is added to the Credit Agreement and shall read in its entirety as
Exhibit H attached hereto.

                                    ARTICLE 3

                                   Conditions

         Section 3.1 Items to be Delivered By the Borrower. The effectiveness of
this Amendment is subject to the Borrower's delivery to the Agent of each of the
following items prior to or simultaneously with execution and delivery of this
Amendment:

                  (a) Amendment Documents. Each other agreement, certificate,
         document, or instrument required by the Agent to be executed or
         delivered by the Borrower or any other party in connection with this
         Amendment (the "Amendment Documents"), duly executed or delivered by
         the parties thereto; and

                  (b) Facility Fee. On the Amendment Date and on the first day
         of each fiscal quarter thereafter until the Revolving Loan Maturity
         Date, payment to the Agent for the ratable benefit of the Banks a fee
         of $37,500 in respect of the amendment contained herein and the
         facility provided under the Credit Agreement. None of the fees payable
         pursuant to this Section 3.1(b) shall be refunded, reduced, or the date
         for payment thereof extended without the prior written consent of the
         Banks. All fees payable by the Borrower pursuant to

FIFTH AMENDMENT TO CREDIT AGREEMENT - Page 10

<PAGE>   11

         this Section 3.1(b) shall be fully earned when paid. This Section
         3.1(b) supersedes in its entirety the provisions of paragraph 2 of that
         certain Amendment No. 3, dated as of August 14, 2000, among the
         Borrower, the Agent, and the Lenders.

         Section 3.2 Other Conditions. This Amendment shall become effective
upon the following conditions precedent being performed to the Agent's
satisfaction, such satisfaction being evidenced by the Agent's execution and
delivery of this Amendment. The Borrower's failure to comply with the following
conditions shall be an Event of Default under the Credit Agreement:

                  (a) Continued Effect of Representations and Warranties. All
         representations and warranties contained in the Credit Documents (as
         amended hereby) shall be true, correct, and complete in all material
         respects except as disclosed otherwise to the Agent in writing and as
         acceptable to the Agent or representations specifically relating to a
         prior date or no longer relevant due to the occurrence of an event or
         circumstances specifically permitted hereunder or by any other Credit
         Document;

                  (b) Absence of Default. No Default or Event of Default shall
         have occurred and be continuing;

                  (c) Corporate Proceedings. All corporate proceedings taken in
         connection with the transactions contemplated by this Amendment and all
         other agreements, documents, and instruments executed and/or delivered
         pursuant hereto, and all legal matters incident thereto, shall be
         satisfactory to the Agent and its legal counsel;

                  (d) Fees and Expenses. Payment or reimbursement to the Agent
         for all expenses, costs, and fees, including, without limitation, fees
         and costs of the Agent's legal counsel, incurred by, or due to, the
         Agent in connection with negotiating and documenting this Amendment and
         the other Amendment Documents to the extent invoiced or otherwise
         billed by the Agent to the Borrower;

                  (e) Additional Information. The Agent shall have received such
         additional agreements, certificates, documents, instruments, and
         information as the Agent or its legal counsel may request to effect the
         transactions contemplated hereby.

                                    ARTICLE 4

                         Representations and Warranties

         Section 4.1 Representations and Warranties. The Borrower hereby
represents and warrants to the Agent and the Banks that, as of the date of and
after giving effect to this Amendment:

                  (a) the execution, delivery, and performance of this Amendment
         and any and all other Amendment Documents executed and/or delivered in
         connection herewith have been authorized by all requisite action on the
         part of the Borrower and each of the Guarantors and will not violate
         any such Person's articles of incorporation, bylaws, or other similar
         constituent documents;

FIFTH AMENDMENT TO CREDIT AGREEMENT - Page 11

<PAGE>   12

                  (b) all representations and warranties set forth in the Credit
         Agreement and in the other Credit Documents are true and correct in all
         material respects as if made again on and as of such date (except as
         disclosed otherwise to the Agent in writing and as acceptable to the
         Agent or representations specifically relating to a prior date or no
         longer relevant due to the occurrence of an event or circumstances
         specifically permitted hereunder or by any other Credit Document);

                  (c) no Default or Event of Default has occurred and is
         continuing; and

                  (d) the Credit Agreement and the other Credit Documents (as
         amended by this Amendment) are and remain legal, valid, binding, and
         enforceable obligations of each of the parties thereto.

                                    ARTICLE 5

                                  Miscellaneous

         Section 5.1 This Amendment shall not constitute and shall not be deemed
a waiver of any Default or Event of Default, whether arising as a result of the
violation of any covenant of the Credit Agreement or otherwise, or a waiver of
any rights or remedies arising as a result of any such Default or Event of
Default.

         Section 5.2 Governing Law. THIS AMENDMENT, AND ALL DOCUMENTS AND
INSTRUMENTS EXECUTED IN CONNECTION HEREWITH, SHALL BE GOVERNED BY AND CONSTRUED
ACCORDING TO THE LAWS OF THE STATE OF TEXAS; PROVIDED THAT TO THE EXTENT FEDERAL
LAW WOULD ALLOW A HIGHER RATE OF INTEREST THAN WOULD BE ALLOWED BY THE LAWS OF
THE STATE OF TEXAS, THEN WITH RESPECT TO THE PROVISIONS OF ANY LAW WHICH
PURPORTS TO LIMIT THE AMOUNT OF INTEREST THAT MAY BE CONTRACTED FOR, CHARGED OR
RECEIVED IN CONNECTION WITH ANY OF THE OBLIGATIONS, SUCH FEDERAL LAW SHALL
APPLY.

         Section 5.3 Agreement Remains in Effect; No Waiver. Except as expressly
provided herein, all terms and provisions of the Credit Agreement and the other
Credit Documents shall remain unchanged and in full force and effect and are
hereby ratified and confirmed. No delay or omission by the Agent or any Bank in
exercising any power, right, or remedy shall impair such power, right, or remedy
or be construed as a waiver thereof or an acquiescence therein, and no single or
partial exercise of any such power, right, or remedy shall preclude other or
further exercise thereof or the exercise of any other power, right, or remedy
under the Credit Agreement, the other Credit Documents, or otherwise.

         Section 5.4 Survival of Representations and Warranties. All
representations and warranties made in this Amendment or any other Credit
Document shall survive the execution and delivery of this Amendment and the
other Credit Documents, and no investigation by the Agent or

FIFTH AMENDMENT TO CREDIT AGREEMENT - Page 12

<PAGE>   13

any Bank or any closing shall affect the representations and warranties or the
right of the Agent and the Banks to rely upon them.

         Section 5.5 Reference to Credit Documents. Each of the Credit
Documents, including, without limitation, the Credit Agreement, the Amendment
Documents, and any and all other agreements, documents, or instruments now or
hereafter executed and/or delivered pursuant to the terms hereof or pursuant to
the terms of the Credit Agreement as amended hereby, are hereby amended so that
any reference in such Credit Documents to the Credit Agreement shall mean a
reference to the Credit Agreement as amended hereby, and the term Credit
Documents as defined in the Credit Agreement and as used in any of the "Credit
Documents" includes, without limitation, the Amendment Documents.

         Section 5.6 Severability. Any provision of this Amendment held by a
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.

         Section 5.7 Successors and Assigns. This Amendment is binding upon and
shall inure to the benefit of the Borrower, the Agent, the Banks, and their
respective successors in interest and assigns. The Borrower may not assign any
right, power, duty, or obligation hereunder without the prior written consent of
the Agent and the Banks, as applicable.

         Section 5.8 Headings. The headings, captions, and arrangements used in
this Amendment are for convenience only and shall not affect the interpretation
of this Amendment.

         Section 5.9 Expenses of the Agent. As provided in the Credit Agreement,
the Borrower agrees to pay on demand all, third party out-of-pocket costs and
expenses incurred by the Agent in connection with the preparation, negotiation,
and execution of this Amendment, the Amendment Documents, or any other Credit
Documents executed pursuant hereto and any and all amendments, modifications,
and supplements thereto, including, without limitation, the fees of the Agent's
legal counsel, and all costs and expenses incurred by the Agent in connection
with the enforcement or preservation of any rights under the Credit Agreement,
as amended hereby, or any other Credit Document, including, without limitation,
the costs and fees of the Agent's legal counsel.

         Section 5.10 Waiver of Trial By Jury. TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND EXPRESSLY
WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM
(WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO
THIS AMENDMENT OR ANY OF THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY OR THE ACTIONS OF THE AGENT OR ANY BANK IN THE
NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT THEREOF.

         Section 5.11 Counterparts. This Amendment may be executed
simultaneously in one or more multiple originals and on telecopy counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same agreement.

FIFTH AMENDMENT TO CREDIT AGREEMENT - Page 13

<PAGE>   14

         Section 5.12 Waiver of Claims and Defenses. To induce the Agent and the
Banks to enter into this Amendment, the Borrower and each Guarantor
(collectively, the "Obligated Parties" and individually, an "Obligated Party")
represents and warrants that as of the Amendment Date there are no claims or
offsets against or defenses or counterclaims to their respective obligations
under the Credit Documents, and each Obligated Party waives any and all such
claims, offsets, defenses, or counterclaims whether known or unknown, arising
prior to the Amendment Date. Additionally, each Obligated Party hereby releases
the Agent and the Banks, and each of their respective legal representatives,
successors, affiliates, parents, subsidiaries, predecessors, assigns,
shareholders, partners, trustees, beneficiaries, administrators, heirs, former
and current officers, directors, agents, attorneys, and employees, and their
respective successors, assigns, heirs, executors, and administrators
(collectively, the "Bank Parties") from any and all claims, actions, suits,
causes of action, accounts, judgments, agreements, promises, executions, debts,
damages, demands, rights, obligations, liabilities, and controversies now in
existence concerning or in connection with the Credit Agreement, this Amendment,
or any other Credit Document (collectively, the "Claims") of every nature and
description, in law or in equity, whether known or unknown, foreseen or
unforeseen, and regardless of whether any Obligated Party hereafter discovers
any facts which may give rise to any Claim.

         Section 5.13 Reaffirmation of Agreements. Each Obligated Party hereby
consents to the other Obligated Parties, the Agent, and the Banks entering into
this Amendment and agrees that (a) the Credit Documents to which each such
Obligated Party is a party shall remain in full force and effect and shall
continue to be the legal, valid, and binding obligation of such Obligated Party
enforceable against such Obligated Party in accordance with their respective
terms, (b) the obligations secured and/or evidenced by the Credit Documents to
which such Obligated Party is a party include, without limitation, the
"Obligations" as such term is defined in the Credit Agreement as amended by this
Amendment, and (c) this Amendment is effective with respect to such Obligated
Party and is binding in all respects.

         THIS AMENDMENT, TOGETHER WITH THE CREDIT AGREEMENT AND THE OTHER CREDIT
         DOCUMENTS AS WRITTEN, REPRESENTS THE FINAL AGREEMENT BETWEEN THE
         PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
         CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE
         ARE NO UNWRITTEN AGREEMENTS BETWEEN THE PARTIES.

                  [Remainder of page intentionally left blank]

FIFTH AMENDMENT TO CREDIT AGREEMENT - Page 14

<PAGE>   15

         IN WITNESS WHEREOF, the Borrower, the Guarantors, the Banks, and the
Agent have caused this Amendment to be executed and delivered by their duly
authorized officers effective as of the date first written above.

                                       BORROWER:

                                       TYLER TECHNOLOGIES, INC.

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       GUARANTORS:

                                       CMS HOLDINGS, INC.
                                       COMPACT DATA SOLUTIONS, INC.
                                       EAGLE COMPUTER SYSTEMS
                                       FUNDBALANCE, INC.
                                       GEMINI SOFTWARE SYSTEMS, INC.
                                       INTERACTIVE COMPUTER DESIGNS,
                                       INC.
                                       TYLER K, INC. (formerly known as Kofile
                                       Inc.)
                                       NATIONSDATA.COM, INC.
                                       PROCESS, INCORPORATED
                                       RAM QUEST SOFTWARE, INC
                                       TYLER SD, INC. (formerly known as
                                       Spectrum Data, Inc.)
                                       THE SOFTWARE GROUP, INC.
                                       CAPITAL COMMERCE REPORTER, INC.
                                       COLE LAYER TRUMBLE COMPANY

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

FIFTH AMENDMENT TO CREDIT AGREEMENT - Page 15

<PAGE>   16

                                       AGENT:

                                       BANK OF AMERICA, NATIONAL
                                       ASSOCIATION

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

FIFTH AMENDMENT TO CREDIT AGREEMENT - Page 16

<PAGE>   17

                                       BANKS:

                                       BANK OF AMERICA, NATIONAL
                                       ASSOCIATION

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       THE CHASE MANHATTAN BANK

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       BANK ONE, TEXAS, N.A.

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       TEXAS CAPITAL BANK, NATIONAL
                                       ASSOCIATION

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

FIFTH AMENDMENT TO CREDIT AGREEMENT - Page 17

<PAGE>   18

                                                                       EXHIBIT H

                       FORM OF BORROWING BASE CERTIFICATE

<PAGE>   19

                           BORROWING BASE CERTIFICATE

                              Date: _________, ____

To:      Bank of America, National Association
         901 Main Street, 11th Floor
         Dallas, Texas 75202
         Attention: Mr. Roger Chitwood

Gentlemen:

         This Borrowing Base Certificate ("Certificate"), [dated as of
__________ __, 2000,] [for the month ended ____________ __, 20__,](1) is
executed and delivered by Tyler Technologies, Inc. (the "Borrower") to Bank of
America, National Association (the "Agent"), pursuant to that certain Credit
Agreement, dated as of October 1, 1999 (as amended and as such agreement may be
further amended or otherwise modified from time to time, the "Credit
Agreement"), among the Borrower, the Agent, and the Banks named therein. All
terms used herein shall have the meanings assigned to them in the Credit
Agreement.

         The Borrower represents and warrants to the Agent and the Banks that
all information contained herein is true, correct, and complete in all material
respects, and that the total Eligible Accounts referred to below represent the
Eligible Accounts that qualify for purposes of determining the Borrowing Base
under the Credit Agreement. The Borrower also represents and warrants that all
figures listed below or attached hereto have been calculated based on the
provisions of the Credit Agreement. [The Borrower further represents and
warrants to the Agent and the Banks that attached hereto as Schedule 1 is a list
of all Accounts of the Borrower as of the last Business Day of the preceding
calendar month, showing all Accounts aged in 30, 60, 90, and 120 or greater day
intervals and specifying the balance due for each account debtor.](2)

         The Borrower represents and warrants to the Agent and the Banks that
the representations and warranties of the Borrowers contained in Article 4 of
the Credit Agreement are true and correct in all material respects on and as of
the date of this Certificate as if made on and as of the date hereof except to
the extent that such representations and warranties speak to a specific date,
and that no Default has occurred and is continuing.

----------

         (1) Use first alternative for Certificates delivered in connection with
borrowing requests and second alternative for required month end reporting.

         (2) To be included for Borrowing Base Certificates delivered with
respect to each calendar month end.

BORROWING BASE CERTIFICATE - Page 1

<PAGE>   20

         As of the date of this Certificate, the Borrowing Base is
$___________(3) (subject to the Agent's right to review and adjust the Borrowing
Base in accordance with the Credit Agreement). The following is a summary
calculation of the Borrowing Base.

<TABLE>
<S>      <C>                                                                                 <C>
1.       Gross Accounts as of ________ __, 20__                                              $
                                                                                              ---------

2.       Less: ineligible Accounts as detailed on Schedule 2                                 $
         attached hereto (determined pursuant to the definition of                            ---------
         Eligible Accounts in the Credit Agreement)

3.       Eligible Accounts                                                                   $
                                                                                              ---------

4.       Available revolving credit amount based on Eligible                                 $
         Accounts (80% of Line 3)                                                             ---------

5.       Borrowing Base (lesser of $15,000,000 or amount of                                  $
         Line 4)                                                                              ---------
</TABLE>

         Upon request of the Agent, additional information supporting the
foregoing calculations of the Borrowing Base will be made available to the Agent
and the Banks for review.

         IN WITNESS WHEREOF, the undersigned (in the capacity stated and not
individually) has duly executed this Certificate as of the date first above
written.

                                       TYLER TECHNOLOGIES, INC.

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

----------

         (3) Insert amount from Line 5 of the table below.

BORROWING BASE CERTIFICATE - Page 2

<PAGE>   21

                                   Schedule 1
                                       to
                           Borrowing Base Certificate

                            Accounts Receivable Aging

Schedule 1

<PAGE>   22

                                   Schedule 2
                                       to
                           Borrowing Base Certificate

                       Calculation of Ineligible Accounts

Schedule 2<PAGE>   1

                                                                   EXHIBIT 10(f)

                            EXECUTIVE INCENTIVE PLAN

                                       OF

                            UNION PACIFIC CORPORATION

                                AND SUBSIDIARIES

                                   ----------

                            EFFECTIVE JANUARY 1, 1971

                    AMENDED AND RESTATED AS OF APRIL 15, 1988
                            AMENDED OCTOBER 26, 1989
                           AMENDED SEPTEMBER 24, 1992
                           AMENDED SEPTEMBER 30, 1993
                             AMENDED APRIL 21, 1995
                             AMENDED APRIL 27, 1995
                            AMENDED NOVEMBER 16, 2000

<PAGE>   2

              EXECUTIVE INCENTIVE PLAN OF UNION PACIFIC CORPORATION
                                AND SUBSIDIARIES

                            EFFECTIVE JANUARY 1, 1971

                    AMENDED AND RESTATED AS OF APRIL 15, 1988
                            AMENDED OCTOBER 26, 1989
                           AMENDED SEPTEMBER 24, 1992
                           AMENDED SEPTEMBER 30, 1993
                             AMENDED APRIL 21, 1995
                             AMENDED APRIL 27, 1995
                            AMENDED NOVEMBER 16, 2000

                                 PURPOSE OF PLAN

The purpose of this Plan is to promote the success of Union Pacific Corporation
and Subsidiaries by providing additional compensation for services rendered
during any year by key executives who contribute in a significant manner to the
operations and business of the Company and such Subsidiaries.

                                 1. DEFINITIONS

Section 1.01 The following terms shall have the following meanings:

"ACCOUNTHOLDER" means any person who has received a Deferred Award.

"BENEFICIARY" means any person or persons designated in writing by an
Accountholder to the Committee on a form prescribed by it for that purpose,
which designation shall be revocable at any time by the Accountholder prior to
his death, provided that, in the absence of such a designation or the failure of
the person or persons so designated to survive the Accountholder, payments or
distributions shall be made to the Accountholder's estate and provided further
that no payment or distribution shall be made during the lifetime of the
Accountholder to his Beneficiary.

"BOARD" means the Board of Directors of the Company.

"CODE" means the Internal Revenue Code of 1986, as amended, or the corresponding
provisions of any successor statute.

"COMMITTEE" means the Committee provided for in Section 2.01.

"COMPANY" means Union Pacific Corporation, a Utah corporation, or any successor
corporation.

<PAGE>   3

"COMPANY STOCK" means Common Stock, $2.50 par value per share, of the Company.

"DEFERRED AWARD" means an award under the Plan which an Executive to whom the
award is made shall have elected to defer until after Termination or, for awards
made with respect to Years beginning with 1982, the earlier of either (i) a date
or dates certain in any year or years prior to Termination (but in no event more
often than once in each such year or years), or (ii) after Termination, all in
accordance with Section 4.01 and which until paid shall, subject to paragraph
(1) of Section 7.01, be represented by Investment Accounts maintained for such
Executive in accordance with Section 5.01.

"EXECUTIVE" means any person who was a regular employee of the Company or a
Subsidiary (including directors who are also such employees) for all or part of
the Year in respect of which awards are made under the Plan and who, in the
judgment of the Committee, contributed in a significant manner to the operations
and business of the Company or a Subsidiary for such Year.

"IMMEDIATE CASH AWARD" means an award under the Plan payable in cash pursuant to
Section 4.02 as promptly as practicable after the close of the Year for which
the award is made or, in the sole discretion of the Committee, in December of
the year for which the award is made.

"INCENTIVE RESERVE ACCOUNT" means the account established by the Company
pursuant to Section 3.01.

"INVESTMENT ACCOUNT" means one of the accounts established by the Company
pursuant to Section 5.01.

"PLAN" means this Executive Incentive Plan as amended from time to time.

"SUBSIDIARY" means any corporation of which the Company owns directly or
indirectly at least a majority of the outstanding shares of voting stock and
which by action of its board of directors has adopted the Plan.

"TERMINATION" means termination of employment with the Company and its
Subsidiaries, for any reason, including retirement and death.

"VALUATION DATE" means the last business day of each calendar quarter and each
other interim date on which the Committee determines that a valuation of
Investment Accounts shall be made.

"YEAR" means a calendar year.

                          2. ADMINISTRATION OF THE PLAN

Section 2.01. The Plan shall be administered by a Committee which shall consist
of at least three members designated by the Board to serve at its pleasure. Such
members shall be members of the Board and shall not be officers or employees of
the Company or any Subsidiary. The

                                       2
<PAGE>   4

Committee shall determine the Executives to whom awards are granted under the
Plan and the amounts of awards payable to such Executives out of the Incentive
Reserve Account, and shall otherwise be responsible for the administration and
interpretation of the Plan. The Committee shall supervise and be responsible for
the maintenance of the various accounts under the Plan and for determining the
amounts and, subject to Sections 4.02 and 6.01, the times of payments or
distributions of awards. The Committee may delegate its authority under the Plan
to one or more officers or employees of the Company or a Subsidiary. All
determinations of the Committee shall be by a majority of its members, and its
determinations shall be final. Each member of the Committee, while serving as
such, shall be considered to be acting in his capacity as a Director of the
Company.

                          3. INCENTIVE RESERVE ACCOUNT

Section 3.01. The Company shall establish an Incentive Reserve Account to which
amounts available for awards to Executives shall be credited and which shall be
debited as such awards are made by the Committee. The Board may cause to be
credited to such Incentive Reserve Account such amount for each Year, beginning
with 1983 during which the Plan remains in effect as it, in its discretion, may
determine provided that the amount so credited for any Year shall not exceed the
following limitation:

         The maximum amount that may be credited to the Incentive Reserve
         Account for any Year is 1.5% of Net Income for such Year when the
         Return on Average Annual Total Stockholders' Equity is 10.0% and is
         3.0% of Net Income for such Year when the Return on Average Annual
         Total Stockholders' Equity is 12.0% or more. At intermediate levels of
         Return on Average Annual Total Stockholders' Equity (between 10.0% and
         12.0%), the maximum percentage of Net Income that may be credited to
         the Incentive Reserve Account for such Year shall increase 0.075% for
         each incremental 0.1% increase in the Return on Average Annual Total
         Stockholders' Equity. Net Income is the consolidated net earnings from
         continuing operations of the Company (before extraordinary items)
         determined in conformity with generally accepted accounting principles
         before giving effect to provisions for amounts to be credited to the
         Incentive Reserve Account for such year. Average Annual Total
         Stockholders' Equity is calculated as the average of (i) total
         stockholders' equity, including preferred stock, as shown on the
         consolidated financial statements of the Company at the beginning of
         each year and (ii) total stockholders' equity, including preferred
         stock, as shown on the consolidated financial statements of the Company
         at the end of such year, adjusted in the case of clause (ii) to include
         income from continuing operations before extraordinary items
         (determined in conformity with generally accepted accounting
         principles) and amounts to be credited to the Incentive Reserve Account
         under the Plan for such year.

The amount of Net Income and the percentage Return on Average Annual Total
Stockholders Equity shall be computed and reported to the Board and the
Committee at the end of each Year by the Company. The Committee shall obtain a
report from the Company's independent certified

                                       3
<PAGE>   5

public accountants stating that the computation of the amount credited to the
Incentive Reserve Account at the end of the Plan Year was made in accordance
with the provisions of the Plan and their report shall be final and binding. Any
amounts credited to the Incentive Reserve Account which are not awarded with
respect to such Year may, on direction of the Committee, be awarded in future
Years during which the Plan remains in effect.

                            4. AWARDS UNDER THE PLAN

Section 4.01. Prior to September 30 of each Year, beginning with 1984, an
Executive who has been granted awards under the Plan with respect to prior Years
and who has not previously made an election under the Plan, shall file with the
Committee an initial election on a form prescribed by the Committee for such
purpose specifying the percent in multiples of 10% of any award which may be
granted to him with respect to such Year and later Years to be in the form of an
Immediate Cash Award or a Deferred Award in one or more Investment Accounts.
Deferral and investment elections shall be continuing elections for all awards
under the Plan except that:

         (i) Deferral elections shall be subject to change before September 30
         of any Year on a form prescribed by the Committee for such purpose with
         respect to any awards which may be granted to him for such Year and
         later Years; and

         (ii) an Accountholder, whether or not currently employed by the Company
         or a Subsidiary, may elect to convert the value of his account, if any,
         in any Investment Account to equivalent value accounts in any other
         Investment Accounts as of a Valuation Date, provided that the Committee
         has received such notice of the conversion as the Committee may
         require, and provided further that, unless the Committee shall in its
         sole discretion determine otherwise, an Accountholder may make
         conversions only in such amounts and at such times as are allowable for
         changes in investment elections under the terms of the Union Pacific
         Corporation Thrift Plan. The Committee shall cause such conversions to
         be effected by transferring equivalent amounts from the one such
         account to the other, all as of such Valuation Date; otherwise, such
         deferral and investment elections, and such changes therein, shall be
         irrevocable.

In addition, for awards made with respect to Years beginning with 1982, an
Executive may also specify on a form prescribed by the Committee for such
purpose whether he wishes payment of Deferred Awards to be made on the earlier
of either (i) date or dates certain in any year or years prior to Termination
(but in no event more often than once in each such year or years), such payment
to be in full in cash on such date or dates, or (ii) upon Termination in
accordance with the provisions of Sections 6.01 through 6.04. Elections made as
to dates for the payment of Deferred Awards shall be subject to change by such
Executive before September 30 of any Year on a form prescribed by the Committee
for such purpose with respect to any awards made for such Year and later Years;
otherwise such elections, and such changes therein, shall be irrevocable.

                                       4
<PAGE>   6

Designation, election or change in election shall not entitle an Executive to
any award for any Year but the form of award, if any, for any Year to such
Executive shall be in accordance with such election. If an Executive has not
been so designated as eligible for Deferred Awards, or an election for Deferred
Awards is not in effect for him, any award granted to him for any Year shall be
in the form of an Immediate Cash Award.

Section 4.02. As soon as practicable after the close of each Year, or in
December of any Year if so determined by the Committee, beginning with 1971, the
Committee may grant awards payable out of the Incentive Reserve Account to such
Executives in such dollar amounts as it in its sole discretion shall determine,
subject to Section 4.03, and the amount of each such award shall be debited to
the Incentive Reserve Account. Except to the extent that Deferred Awards are
elected pursuant to Section 4.01, any award under the Plan granted to an
Executive for any Year shall be paid to him or to his Beneficiary in a lump sum
in cash as promptly as practicable after such award is granted.

Section 4.03. No Covered Executive shall receive an award for any Year in excess
of (i) .25% of Covered Income for such Year, in the case of the Chief Executive
Officer of the Company, and (ii) .15% of Covered Income for such Year, in the
case of any other Covered Executive. Covered Executive means an Executive whose
compensation is subject to the limitations on deductibility set forth in Section
162(m) of the Code. Covered Income for a Year is the greater of (a) the
consolidated net earnings from continuing operations of the Company for such
Year, before extraordinary items, special charges and the cumulative effect of
accounting changes, determined in accordance with generally accepted accounting
principles, and (b) such net earnings for the first eleven months of such Year.

                               5. DEFERRED AWARDS

Section 5.01. The Company shall from time to time establish on its books one or
more Investment Accounts. In the case of each Executive, if and when a Deferred
Award is granted to him, the Committee shall credit to an account maintained for
him in one or more Investment Accounts the equivalent amount of such award in
accordance with his election. Each Investment Account shall have such name, and
be charged or credited pursuant to such method, as the Committee shall determine
upon establishment of such Investment Account, provided such method is
consistent with the requirements of Section 162(m) of the Code for
performance-based compensation. The Committee may change such names or methods
for any Investment Account, but no such change shall reduce any amount
previously accrued in an Accountholder's account. The Committee shall cause each
Investment Account to be valued as of each Valuation Date by such person or
persons as it in its sole discretion shall determine and such valuation shall be
conclusive for all purposes of the Plan. The value of any Investment Account for
the purpose of making payment of a Deferred Award shall be the value of such
Investment Account as of the Valuation Date last preceding such payment.
Compensation paid in respect of any Investment Account shall result in
corresponding reduction in the value of such accounts. The amounts credited in
Investment Accounts shall represent general liabilities of the Company and shall
not constitute a trust fund or otherwise create any property interest in any
Accountholder or his Beneficiary.

                                       5
<PAGE>   7

Section 5.02. The provisions of Section 5.01 shall be subject to the provisions
of paragraph (1) of Section 7.01.

                    6. PAYMENT OR DELIVERY OF DEFERRED AWARDS

Section 6.01. Upon termination of an Executive, the Committee shall cause cash
in respect of any balances in the accounts maintained for such Executive in any
Investment Account to be paid or delivered to him or his Beneficiary in the sole
discretion of the Committee as follows:

         (i) in a single distribution, an amount in cash equal to the value of
         the accounts maintained for him in all Investment Accounts, all such
         cash being paid in the Year of his Termination or in January of the
         following Year, as determined by the Committee; or,

         (ii) over such number of Years as are fixed by the Committee but not
         exceeding fifteen, in annual installments of an aggregate amount of
         cash equal in value at the time of each installment payment to the
         value of the accounts maintained for him in all Investment Accounts at
         the Valuation Date next preceding payment divided by the remaining
         number of such annual installments, the first of such installments to
         be paid or delivered in the month following the month of his
         Termination, or at the discretion of the Committee not later than 12
         months following the date of Termination and subsequent installments to
         be paid or delivered in January of each subsequent Year; or

         (iii) in the event of retirement or death of a currently employed
         Executive, at a specified future date not to exceed 15 years from the
         date of such retirement or death in a single distribution, an amount of
         cash equal to the value of the accounts maintained for him in all
         Investment Accounts. Income in respect of Investment Accounts would be
         paid in cash quarterly to such Executive or his Beneficiary commencing
         with the first day of the month subsequent to such Executive's
         retirement or death. In the case of retirement, the single distribution
         referred to above will be paid on the date specified or upon death,
         whichever occurs first.

All payments or distributions attributable to each Deferred Award of an
Executive after his Termination shall be made by the Company on its behalf or on
behalf of the Subsidiary or Subsidiaries by which he was employed during the
Year in which such Deferred Award was earned. The Subsidiary shall reimburse the
Company in the amount of such paid Deferred Awards.

Section 6.02. Deferred Awards elected to be paid on a date or dates certain in
any year or years prior to Termination shall be paid to the Executive in full in
cash on such date or dates.

Section 6.03. At any time before or after Termination of an Executive who shall
have elected to receive one or more Deferred Awards, the Committee, if it finds
in its sole discretion that

                                       6
<PAGE>   8

continued deferral of such Awards would result in undue hardship to such
Executive or his Beneficiary, may accelerate and pay in cash all or any part of
such Deferred Award or Deferred Awards by converting the value of the accounts
maintained for him in Investment Accounts into the cash equivalent thereof on
the same basis as if a payment in cash were being made as provided in Section
6.01. On the death of an Executive after his Termination, the Committee, in its
sole discretion, may accelerate one or more installments, and change the form of
payment or distribution in accordance with Section 6.01, of any balance of his
Deferred Awards and, in the event of relevant changes in the Federal income tax
laws, regulations and rulings or on termination of the Plan, the Committee may,
in its sole discretion, so accelerate or change the form of payment or
distribution of any or all Deferred Awards.

Section 6.04. If a Change in Control shall be deemed to have occurred under the
Union Pacific Key Employee Continuity Plan, then each Executive with an account
maintained for him in an Investment Account shall be entitled to receive, at his
option, in a single distribution on the Valuation Date next following such
Change in Control, an amount of cash equal to the value of the accounts
maintained for him in all Investment Accounts less 10%.

Section 6.05. The provisions of Sections 6.01, 6.02 and 6.03 shall be subject to
the provisions of paragraph (1) of Section 7.01.

                              7. GENERAL PROVISIONS

Section 7.01.

(1) Anything in the Plan otherwise to the contrary notwithstanding, the Board
may at any time under such circumstances as it in its sole discretion may
determine, convert all the accounts of Accountholders in the Investment Accounts
into cash credits, with future credits to the accounts of Accountholders being
made solely in cash. Accounts shall be so converted on the basis of the value
thereof as of the last preceding Valuation Date. Any such cash credits to the
accounts of Accountholders shall, after such conversion, solely bear interest
until paid to the Accountholder or his Beneficiary compounded annually at such
annual rate of interest as may be fixed by the Board. The granting and payment
of Deferred Awards in respect of such cash credits shall otherwise be in
accordance with the other provisions of the Plan with such adjustments therein
as the Committee may deem appropriate.

(2) Neither the Plan nor the payment of benefits hereunder nor any action by the
Company, any Subsidiary or the Committee shall be held or construed to confer
upon any person any right to be continued in the employ of the Company or of a
Subsidiary and the Company and each Subsidiary expressly reserves the right to
discharge, without liability, any Executive whenever in its sole discretion its
interest may so require.

(3) No member of the Board or the Board of Directors of any Subsidiary or of the
Committee or any person to whom the Committee has delegated its authority
hereunder shall be liable for any action, or action hereunder, whether of
commission or omission, except in circumstances involving his bad faith, for
anything done or omitted to be done by himself.

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<PAGE>   9

(4) The Company or any Subsidiary shall not be required to segregate cash for
any Investment Account.

(5) Notwithstanding the fact that an Investment Account may use Company Stock to
determine amounts credited or debited thereto, no Executive shall have voting or
other rights with respect to shares of such Company Stock.

(6) The Company or any Subsidiary shall not, by virtue of any provisions of this
Plan or by any action by any person hereunder, be deemed to be a trustee or
other fiduciary of any property for any Accountholder or any Beneficiary of an
Accountholder and the liabilities of the Company or of any Subsidiary to any
Accountholder or his Beneficiary pursuant to the Plan shall be those of a debtor
only pursuant to such contractual obligations as are created by the Plan, and no
such obligation of the Company or of any Subsidiary shall be deemed to be
secured by any pledge or other encumbrance on any property of the Company or of
any Subsidiary.

(7) Except to the extent of the rights of the Beneficiary of an Accountholder,
no benefit payable under, or interest in, the Plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or charge, and any such attempted action shall be void; and no such
benefit or interest shall be in any manner liable for or subject to the debts,
contracts, liabilities, engagements or torts of any Accountholder, former
Accountholder or his Beneficiary. If any Accountholder, former Accountholder or
Beneficiary shall become bankrupt or shall attempt to anticipate, alienate,
sell, transfer, assign, pledge, encumber or charge any benefit payable under, or
interest in, the Plan, then the Committee in its discretion may hold or apply
such benefit or interest or any part thereof to or for the benefit of such
Accountholder, former Accountholder, or his Beneficiary, his spouse, children,
blood relatives or other dependents, or any of them, in such manner and in such
proportions as the Committee may consider proper.

(8) The Company shall on its behalf and on behalf of its Subsidiaries withhold
from payment of distribution of the Awards the required amounts of income and
other taxes.

(9) No member of the Committee shall be eligible for an award under the Plan.

(10) All questions pertaining to the construction, regulation, validity and
effect of the Plan shall be determined in accordance with the laws of the State
of New York.

               8. AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN

Section 8.01. The Board may from time to time amend, suspend or terminate the
Plan in whole or in part, and, if suspended or terminated, may reinstate any of
or all of its provisions, except that without the consent of the Executive, or,
if he is not living, his Beneficiary, no amendment, suspension or termination of
the Plan shall be made which materially adversely affects his rights with
respect to awards previously made to him and except that the limitations set
forth in Section 3.01 with respect to the amount of awards which may be granted
under the Plan may be

                                       8
<PAGE>   10

increased only with the approval of a majority of the stockholders of the
Company present, in person or by proxy, at a meeting of such stockholders at
which a quorum is present. In the absence of action by the stockholders of the
Company, no awards shall be made under the Plan with respect to years after the
calendar year 2005 and the Plan shall automatically terminate after all Deferred
Awards made prior thereto shall have been paid or distributed. Notwithstanding
the foregoing, no amendment which is material for purposes of the shareholder
approval requirement of Section 162(m) of the Code shall be effective in the
absence of action by the stockholders of the Company.

                                       9

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