Document:

<PAGE>   1
                                                                   EXHIBIT 10(b)

                       SECOND AMENDMENT TO LOAN AGREEMENT

         THIS SECOND AMENDMENT TO LOAN AGREEMENT (this "Amendment"), dated as of
May 31, 2001, is between SOUTH HAMPTON REFINING CO., a Texas corporation
("Borrower"), and SOUTHWEST BANK OF TEXAS, N.A., a national banking association
("Lender").

                                    RECITALS:

         A. Borrower and Lender entered into that certain Loan Agreement dated
as of September 30, 1999, as amended by First Amendment to Loan Agreement dated
as of June 20, 2000 (the "Agreement").

         B. Pursuant to the Agreement, Texas Oil & Chemical Co. II, Inc., a
Texas corporation ("Guarantor") executed that certain Guaranty Agreement dated
as of June 20, 2000 (the "Guaranty") pursuant to which Guarantor guaranteed to
Lender the payment and performance of the Obligations (as defined in the
Agreement).

         C. Borrower and Lender now desire to amend the Agreement as herein set
forth.

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

                                   ARTICLE I.

                                   Definitions

         Section 1.1. Definitions. Capitalized terms used in this Amendment, to
the extent not otherwise defined herein, shall have the meanings given to such
terms in the Agreement, as amended hereby.

<PAGE>   2

                                   ARTICLE II.

                                   Amendments

         Section 2.1. Amendment to Certain Definitions. Effective as of date
hereof, the definition of each of the following terms contained in Section 1.1
of the Agreement is amended to read in its respective entirety as follows:

                  "Termination Date" means 11:00 a.m., Houston, Texas time on
         July 31, 2001, or such earlier date on which the Commitment terminates
         as provided in this Agreement.

         Section 2.2. Amendment to Exhibits. Effective as of the date hereof,
Exhibit "A" (Note) to the Agreement is amended to conform in its entirety to
Annex "A" to this Amendment.

                                  ARTICLE III.

                              Conditions Precedent

         Section 3.1. Conditions. The effectiveness of this Amendment is subject
to the receipt by Lender of the following in form and substance satisfactory to
Lender:

                  (a) Resolutions-Borrower. Resolutions of the Board of
         Directors of Borrower certified by its Secretary or an Assistant
         Secretary which authorize the execution, delivery and performance by
         Borrower of this Amendment and the other Loan Documents to which
         Borrower is or is to be a party hereunder.

                  (b) Incumbency Certificate-Borrower. A certificate of
         incumbency certified by the Secretary or an Assistant Secretary of
         Borrower certifying the names and signatures of the officers of
         Borrower authorized to sign this Amendment and each of the other Loan
         Documents to which Borrower is or is to be a party hereunder.

                  (c) Certificates of Existence and Good Standing. Certificates
         of the appropriate governmental officials regarding the existence and
         good standing of Borrower in the state of Texas.

                  (d) Note. The Note executed by Borrower.

                  (e) Additional Information. Such additional documents,
         instruments and information as Lender may request.

         Section 3.2. Additional Conditions. The effectiveness of this Amendment
is also subject to the satisfaction of the additional conditions precedent that
(a) the representations and warranties contained herein and in all other Loan
Documents, as amended hereby, shall be true and correct as of the date hereof as
if made on the date hereof, (b) all proceedings, corporate or otherwise, taken
in connection with the transactions contemplated by this Amendment and all
documents, instruments and other legal matters incident thereto shall be
satisfactory to Lender, and (c) no Event of Default shall have occurred and be
continuing and

                                       -2-

<PAGE>   3

no event or condition shall have occurred that with the giving of notice or
lapse of time or both would be an Event of Default.

                                   ARTICLE IV.

                 Ratifications, Representations, and Warranties

         Section 4.1. Ratifications. The terms and provisions set forth in this
Amendment shall modify and supersede all inconsistent terms and provisions set
forth in the Agreement and except as expressly modified and superseded by this
Amendment, the terms and provisions of the Agreement are ratified and confirmed
and shall continue in full force and effect. Borrower and Lender agree that the
Agreement as amended hereby shall continue to be the legal, valid and binding
obligation of such Persons enforceable against such Persons in accordance with
its terms.

         Section 4.2. Representations, Warranties and Agreements. Borrower
hereby represents and warrants to Lender that (a) the execution, delivery, and
performance of this Amendment and any and all other Loan Documents executed or
delivered in connection herewith have been authorized by all requisite action on
the part of Borrower and will not violate the articles of incorporation or
bylaws of Borrower, (b) the representations and warranties contained in the
Agreement as amended hereby, and all other Loan Documents are true and correct
on and as of the date hereof as though made on and as of the date hereof, (c) no
Event of Default has occurred and is continuing and no event or condition has
occurred that with the giving of notice or lapse of time or both would be an
Event of Default, (d) Borrower is in full compliance with all covenants and
agreements contained in the Agreement as amended hereby, (e) Borrower is
indebted to Lender pursuant to the terms of the Note, as the same may have been
renewed, modified, extended and rearranged, including, without limitation,
renewals, modifications and extensions made pursuant to this Amendment, (f) the
liens, security interests, encumbrances and assignments created and evidenced by
the Loan Documents are, respectively, valid and subsisting liens, security
interests, encumbrances and assignments and secure the Note as the same may have
been renewed, modified or rearranged, including, without limitation, renewals,
modifications and extensions made pursuant to this Amendment, and (g) Borrower
has no claims, credits, offsets, defenses or counterclaims arising from the Loan
Documents or Lender's performance under the Loan Documents.

                                       -3-

<PAGE>   4

                                   ARTICLE V.

                                  Miscellaneous

         Section 5.1. Survival of Representations and Warranties. All
representations and warranties made in this Amendment or any other Loan
Documents including any Loan Document furnished in connection with this
Amendment shall fully survive the execution and delivery of this Amendment and
the other Loan Documents, and no investigation by Lender or any closing shall
affect the representations and warranties or the right of Lender to rely on
them.

         Section 5.2. Reference to Agreement. Each of the Loan Documents,
including the Agreement and any and all other agreements, documents, or
instruments now or hereafter executed and delivered pursuant to the terms hereof
or pursuant to the terms of the Agreement, as amended hereby, are hereby amended
so that any reference in such Loan Documents to the Agreement shall mean a
reference to the Agreement, as amended hereby.

         Section 5.3. Expenses of Lender. As provided in the Agreement, Borrower
agrees to pay on demand all costs and expenses incurred by Lender in connection
with the preparation, negotiation and execution of this Amendment and the other
documents and instruments executed pursuant hereto and any and all amendments,
modifications and supplements thereto, including, without limitation, the costs
and fees of Lender's legal counsel, and all costs and expenses incurred by
Lender in connection with the enforcement or preservation of any rights under
the Agreement, as amended hereby, or any other Loan Document, including, without
limitation, the costs and fees of Lender's legal counsel.

         Section 5.4. 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 5.5. APPLICABLE LAW. THIS AMENDMENT AND ALL OTHER LOAN
DOCUMENTS EXECUTED PURSUANT HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE
PERFORMABLE IN HOUSTON, HARRIS COUNTY, TEXAS AND SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

         Section 5.6. Successors and Assigns. This Amendment is binding upon and
shall inure to the benefit of Lender and Borrower and their respective
successors and assigns, except Borrower may not assign or transfer any of its
rights or obligations hereunder without the prior written consent of Lender.

                                       -4-
<PAGE>   5

         Section 5.7. Counterparts. This Amendment may be executed in one or
more counterparts, each of which when so executed shall be deemed to be an
original, but all of which when taken together shall constitute one and the same
instrument.

         Section 5.8. Effect of Waiver. No consent or waiver, express or
implied, by Lender to or for any breach of or deviation from any covenant,
condition or duty by Borrower shall be deemed a consent or waiver to or of any
other breach of the same or any other covenant, condition or duty.

         Section 5.9. Headings. The headings, captions, and arrangements used in
this Amendment are for convenience only and shall not affect the interpretation
of this Amendment.

         Section 5.10. Document Imaging. Borrower and Guarantor, as applicable,
understands and agrees that (i) Lender's document retention policy involves the
imaging of executed loan documents and the destruction of the paper originals,
and (ii) Borrower or Guarantor, as applicable, waives any right that it may have
to claim that the imaged copies of the loan documents are not originals.

         Section 5.11. ENTIRE AGREEMENT. THIS AMENDMENT AND ALL OTHER
INSTRUMENTS, DOCUMENTS, AND AGREEMENTS EXECUTED AND DELIVERED IN CONNECTION WITH
THIS AMENDMENT EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO WITH
RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF AND SUPERSEDE ANY AND ALL PRIOR
COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR
ORAL, RELATING TO THIS AMENDMENT AND THE OTHER INSTRUMENTS, DOCUMENTS AND
AGREEMENTS EXECUTED AND DELIVERED IN CONNECTION WITH THIS AMENDMENT, AND MAY NOT
BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO ORAL
AGREEMENTS AMONG THE PARTIES HERETO.

                                       -5-

<PAGE>   6
         Executed as of the date first written above.

                                              BORROWER:

                                              SOUTH HAMPTON REFINING CO.

                                              By: /s/ NICK CARTER
                                                 -------------------------------
                                                      Nick Carter
                                                      President

                                             LENDER:

                                             SOUTHWEST BANK OF TEXAS, N.A.

                                             By: /s/ A. STEPHEN KENNEDY
                                                --------------------------------
                                                     A. Stephen Kennedy
                                                     Vice President

         The undersigned Guarantor hereby consents and agrees to this Amendment
and agrees that the Guaranty Agreement executed by such person shall remain in
full force and effect and shall continue to be the legal, valid and binding
obligations of such Guarantor, enforceable against such Guarantor in accordance
with its terms and shall evidence such Guarantor's guaranty of the Note as
renewed and extended from time to time, including, without limitation, the
renewal and extension evidenced by the Note in substantially the form of Annex
"A" attached hereto.

                                              TEXAS OIL & CHEMICAL CO. II, INC.

                                              By: /s/ NICK CARTER
                                                 -------------------------------
                                                      Nick Carter
                                                      President

                                      -6-
<PAGE>   7
                                LIST OF ANNEXES

<Table>
<Caption>
                      Annex                      Document
                      -----                      --------
                      <S>                        <C>
                        A                        Note
</Table>

                                      -7-
<PAGE>   8
                                   ANNEX "A"

                                      Note
<PAGE>   9
                                 PROMISSORY NOTE

$3,250,000.00                    Houston, Texas                     May 31, 2001

         FOR VALUE RECEIVED, the undersigned, SOUTH HAMPTON REFINING CO.,
a Texas corporation ("Maker"), hereby promises to pay to the order of SOUTHWEST
BANK OF TEXAS, N.A., a national banking association ("Payee"), at its offices at
Five Post Oak Park, 4400 Post Oak Parkway, Houston, Harris County, Texas, or
such other address as may be designated by Payee, in lawful money of the United
States of America, the principal sum of THREE MILLION TWO HUNDRED FIFTY THOUSAND
AND NO/100 DOLLARS ($3,250,000.00), or so much thereof as may be advanced and
outstanding hereunder, together with interest on the outstanding principal
balance from day to day remaining, at a varying rate per annum which shall from
day to day be equal to the lesser of (a) the Maximum Rate (hereinafter defined)
or (b) the Prime Rate (hereinafter defined) of Payee in effect from day to day
plus one-half of one percent (.50%), and each change in the rate of interest
charged hereunder shall become effective, without notice to Maker, on the
effective date of each change in the Prime Rate or the Maximum Rate, as the case
may be; provided, however, if at any time the rate of interest specified in
clause (b) preceding shall exceed the Maximum Rate, thereby causing the interest
rate hereon to be limited to the Maximum Rate, then any subsequent reduction in
the Prime Rate shall not reduce the rate of interest hereon below the Maximum
Rate until the total amount of interest accrued hereon equals the amount of
interest which would have accrued hereon if the rate specified in clause (b)
preceding had at all times been in effect.

         Principal of and interest on this Note shall be due and payable as
follows:

                  (a) Accrued and unpaid interest on this Note shall be payable
         monthly, on the first (1st) day of each month commencing on June 1,
         2001 and upon the maturity of this Note, however such maturity may be
         brought about; and

                  (b) All outstanding principal of this Note and all accrued
         interest thereon shall be due and payable on July 31, 2001.

         Principal of this Note shall be subject to mandatory prepayment at the
times described in the Agreement (hereinafter defined). If an Event of Default
(hereinafter defined) has occurred and is existing, the principal hereof and any
past due interest hereon shall bear interest at the Default Rate (hereinafter
defined).

         Interest on the indebtedness evidenced by this Note shall be computed
on the basis of a year of 360 days and the actual number of days elapsed
(including the first day but excluding the last day) unless such calculation
would result in a usurious rate in which case interest shall be calculated on
the basis of a year of 365 or 366 days, as the case may be.

<PAGE>   10

         As used in this Note, the following terms shall have the respective
meanings indicated below:

                  "Agreement" means that certain Loan Agreement dated as of
         September 30, 1999 between Maker and Payee, as amended by First
         Amendment to Loan Agreement dated as of June 20, 2000 and Second
         Amendment to Loan Agreement dated as of May 31, 2001, as amended and as
         the same may be further amended or modified from time to time.

                  "Default Rate" means the lesser of (a) the sum of the Prime
         Rate plus five percent (5.0%), or (b) the Maximum Rate.

                  "Event of Default" shall have the meaning given to such term
         in the Agreement.

                  "Maximum Rate" means the maximum rate of nonusurious interest
         permitted from day to day by applicable law, including Chapter 303 of
         the Texas Finance Code (the "Code") (and as the same may be
         incorporated by reference in other Texas statutes). To the extent that
         Chapter 303 of the Code is relevant to any holder of this Note for the
         purposes of determining the Maximum Rate, each such holder elects to
         determine such applicable legal rate pursuant to the "weekly ceiling,"
         from time to time in effect, as referred to and defined in Chapter 303
         of the Code; subject, however, to the limitations on such applicable
         ceiling referred to and defined in the Code, and further subject to any
         right such holder may have subsequently, under applicable law, to
         change the method of determining the Maximum Rate.

                  "Prime Rate" shall mean that variable rate of interest per
         annum established by Payee from time to time as its prime rate which
         shall vary from time to time. Such rate is set by Payee as a general
         reference rate of interest, taking into account such factors as Payee
         may deem appropriate, it being understood that many of Payee's
         commercial or other loans are priced in relation to such rate, that it
         is not necessarily the lowest or best rate charged to any customer and
         that Payee may make various commercial or other loans at rates of
         interest having no relationship to such rate.

         This Note (a) is the Note provided for in the Agreement and (b) is
secured as provided in the Agreement. Maker may prepay the principal of this
Note upon the terms and conditions specified in the Agreement. Maker may borrow,
repay, and reborrow hereunder upon the terms and conditions specified in the
Agreement.

         Notwithstanding anything to the contrary contained herein, no
provisions of this Note shall require the payment or permit the collection of
interest in excess of the Maximum Rate. If any excess of interest in such
respect is herein provided for, or shall be adjudicated to be so provided, in
this Note or otherwise in connection with this loan transaction, the provisions
of this paragraph shall govern and prevail, and neither Maker nor the sureties,
guarantors,

                                      -2-

<PAGE>   11

successors or assigns of Maker shall be obligated to pay the excess amount of
such interest, or any other excess sum paid for the use, forbearance or
detention of sums loaned pursuant hereto. If for any reason interest in excess
of the Maximum Rate shall be deemed charged, required or permitted by any court
of competent jurisdiction, any such excess shall be applied as a payment and
reduction of the principal of indebtedness evidenced by this Note; and, if the
principal amount hereof has been paid in full, any remaining excess shall
forthwith be paid to Maker. In determining whether or not the interest paid or
payable exceeds the Maximum Rate, Maker and Payee shall, to the extent permitted
by applicable law, (a) characterize any non-principal payment as an expense,
fee, or premium rather than as interest, (b) exclude voluntary prepayments and
the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or
unequal parts the total amount of interest throughout the entire contemplated
term of the indebtedness evidenced by this Note so that the interest for the
entire term does not exceed the Maximum Rate.

         If default occurs in the payment of principal or interest under this
Note, or upon the occurrence of any other Event of Default, as such term is
defined in the Agreement, the holder hereof may, at its option, (a) declare the
entire unpaid principal of and accrued interest on this Note immediately due and
payable without notice, demand or presentment, all of which are hereby waived,
and upon such declaration, the same shall become and shall be immediately due
and payable, (b) foreclose or otherwise enforce all liens or security interests
securing payment hereof, or any part hereof, (c) offset against this Note any
sum or sums owed by the holder hereof to Maker and (d) take any and all other
actions available to Payee under this Note, the Agreement, the Loan Documents
(as such term is defined in the Agreement) at law, in equity or otherwise.
Failure of the holder hereof to exercise any of the foregoing options shall not
constitute a waiver of the right to exercise the same upon the occurrence of a
subsequent Event of Default.

         If the holder hereof expends any effort in any attempt to enforce
payment of all or any part or installment of any sum due the holder hereunder,
or if this Note is placed in the hands of an attorney for collection, or if it
is collected through any legal proceedings, Maker agrees to pay all costs,
expenses, and fees incurred by the holder, including all reasonable attorneys'
fees.

         THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF TEXAS AND THE APPLICABLE LAWS OF THE UNITED STATES OF
AMERICA. THIS NOTE IS PERFORMABLE IN HARRIS COUNTY, TEXAS.

         Maker and each surety, guarantor, endorser, and other party ever liable
for payment of any sums of money payable on this Note jointly and severally
waive notice, presentment, demand for payment, protest, notice of protest and
non-payment or dishonor, notice of acceleration, notice of intent to accelerate,
notice of intent to demand, diligence in collecting, grace, and all other
formalities of any kind, and consent to all extensions without notice for any
period or periods of time and partial payments, before or after maturity, and
any impairment of any collateral securing this Note, all without prejudice to
the holder. The holder shall similarly have the right to deal in any way, at
any time, with one or more of the foregoing

                                      -3-
<PAGE>   12

parties without notice to any other party, and to grant any such party any
extensions of time for payment of any of said indebtedness, or to release or
substitute part or all of the collateral securing this Note, or to grant any
other indulgences or forbearances whatsoever, without notice to any other party
and without in any way affecting the personal liability of any party hereunder.

         This Note is in renewal and extension of, but not in discharge or
novation of, that certain promissory note in the original principal amount of
$3,250,000.00, dated June 20, 2000, executed by Maker and payable to the order
of Payee, which was executed in renewal and increase of, but not in discharge or
novation of, that certain promissory note in the original principal amount of
$2,250,000.00, dated September 30, 1999, executed by Maker and payable to the
order of Payee.

                                      SOUTH HAMPTON REFINING CO.

                                      By: /s/ NICK CARTER
                                         -----------------------------------
                                              Nick Carter
                                              President

                                      -4-<PAGE>   1
                                                                     EXHIBIT 4.1

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY
CANADIAN, STATE OR PROVINCIAL SECURITIES LAWS. THESE SECURITIES MAY NOT BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND ANY APPLICABLE
CANADIAN, STATE OR PROVINCIAL SECURITIES LAWS, PURSUANT TO REGISTRATION OR
EXEMPTION THEREFROM.

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

August 3, 2001

                        WARRANT TO PURCHASE COMMON SHARES

         This certifies that DIEBOLD, INCORPORATED, an Ohio corporation
(together with its successors, assigns and transferees, the "Investor"), is
entitled to subscribe for and purchase 250,000 fully paid and nonassessable
shares (the "Shares") of common stock, without par value (the "Common Stock"),
of GLOBAL ELECTION SYSTEMS INC., a company organized under the laws of the
Province of British Columbia, Canada (the "Company"), for an exercise price per
share equal to US$1.135 (the "Exercise Price"), subject to adjustment as
hereinafter set forth. This Warrant is issued pursuant to the Bridge Loan
Agreement, dated as of June 29, 2001, as amended by Amendment No. 1 to Bridge
Loan Agreement, dated as of August 3, 2001 (the "Effective Date"), between the
Investor and the Company (the "Loan Agreement").

         1. Term. The purchase right represented by this Warrant is exercisable,
in whole or in part, at any time from and after the Effective Date until the
earlier to occur of (i) the exercise of all of the rights represented by this
Warrant and (ii) the fifth anniversary of the Effective Date (such period, the
"Term").

         2. Method of Exercise; Payment; Issuance of New Warrant. (a) The
purchase right represented by this Warrant may be exercised by the Investor, in
whole or in part during the Term, at the election of the Investor, by the
surrender of this Warrant (with the notice of exercise substantially in the form
attached hereto as Exhibit A duly completed and executed) at the principal
office of the Company and by the payment to the Company, by certified or bank
check, of an amount equal to the Exercise Price multiplied by the number of
Shares then being purchased. The person or persons in whose name(s) any
certificate(s) representing Shares are issuable upon exercise of this Warrant
will be deemed to have become the holder(s) of record of, and will be treated
for all purposes as the record holder(s) of, the Shares represented thereby (and
such Shares will be deemed to have been issued) at the opening of business on
the date upon which this Warrant is exercised. In the event of any exercise of
the rights represented by this Warrant, certificates for the Shares so purchased
will be delivered to the Investor as soon as possible and in any event within
ten calendar days after such exercise and, unless this Warrant has been fully
exercised or has expired, a new Warrant representing the portion of the Shares,
if any, with respect to which this

<PAGE>   2

Warrant has not then been exercised will also be issued to the Investor as soon
as possible and in any event within such ten-day period.

         (b) If any of the following occurs during the Term:

         (i) a consolidation or merger of the Company with or into another
entity (other than any merger as to which the Company is the surviving
corporation and there is no change in the capital stock of the Company),

         (ii) a liquidating dividend of the Company, or

         (iii) a tender offer or exchange offer with respect to the Common Stock
(other than a tender offer opposed by the Company's board of directors) (each,
an "Event"),

then, in connection with any such Event, the Investor will have the right,
subject to paragraph (c) below, in lieu of exercising such Warrant in advance of
such Event and receiving the consideration that the Investor upon exercise of
such Warrant would receive in connection with such consolidation or merger,
liquidating dividend or tender offer (the "Event Consideration"), upon surrender
of the Warrant certificate evidencing such Warrant to the Company or its duly
authorized agent or to the depositary or exchange agent, as the case may be, to
receive the Event Consideration with respect to the Shares for which such
Warrant is exercisable reduced by the Exercise Price. Such reduction in the
Event Consideration will first be applied to any cash included in the Event
Consideration and, to the extent that such cash is less than the Exercise Price,
the amount of the securities or other property to be received by the Investor
will be reduced by an amount that, together with any such cash, is equal to the
Exercise Price as determined by mutual agreement of the Company and the
Investor. The provisions of this paragraph (b) will also apply to successive
Events.

         (c) The Company will furnish the Investor with prompt written notice of
an Event following its approval by the Company's Board of Directors. Thereafter,
the Investor will make an irrevocable election whether to exercise this Warrant
in accordance with paragraph (a) hereof or to not exercise this Warrant by
delivery of written notice to the Company to that effect. The Investor will make
such election at any time following the Investor's receipt of the Company's
notice until 10 days prior: (A) to the date of the meeting of the Company's
shareholders at which the Company's shareholders will be asked to approve an
Event of the type described in paragraph (b)(i) hereof, (B) to the date of
making the dividend in the case of an Event of the type described in paragraph
(b)(ii) hereof, or (C) to the expiration date (or its Canadian equivalent) in
the case of an Event of the type described in paragraph (b)(iii) hereof. In the
case of successive Events, the Investor may make its election at any time until
the latest of the foregoing dates.

         (d) The issuance of certificates upon exercise of this Warrant will be
made without charge to the holder for any issuance tax (excluding any income tax
liability imposed on the holder, or any predecessor or successor in interest to
the holder) in

                                       2
<PAGE>   3

respect thereof or any other cost incurred by the Company in connection with
such exercise and the related issuance of such certificates.

         (e) The Company will not close its books for the transfer of this
Warrant or of any of the securities issued or issuable upon the exercise of this
Warrant in any manner that interferes with the timely exercise of this Warrant.
The Company will from time to time take all such action as may be necessary to
assure that the par value per share of the unissued shares acquirable upon
exercise of this Warrant is at all times equal to or less than the amount
required by law for the valid issuance of the securities issuable upon the
exercise of this Warrant at the Exercise Price.

         3. Stock Fully Paid; Reservation of Shares. All Shares that may be
issued upon the exercise of the rights represented by this Warrant will, upon
issuance pursuant to the terms and conditions herein, be fully paid and
nonassessable, and free from all taxes, liens and charges with respect to the
issue thereof. During the period within which the rights represented by this
Warrant may be exercised, the Company will at all times have authorized, and
reserved for the purpose of the issue upon exercise of the purchase rights
evidenced by this Warrant, a sufficient number of Shares to provide for the
exercise of the rights represented by this Warrant.

         4. Adjustments. If the Company shall, during the Term, (i) pay a stock
dividend or make a distribution to holders of Common Stock in shares of its
Common Stock, (ii) subdivide its outstanding shares of Common Stock, (iii)
combine its outstanding shares of Common Stock into a smaller number of shares,
or (iv) issue by reclassification of its shares of Common Stock any shares of
capital stock of the Company, then thereafter the number of Shares shall be
automatically (and without notice or further action) increased or decreased, as
the case may be, in direct proportion to the increase or decrease in the number
of shares of Common Stock by reason of such change, and the per share Exercise
Price of this Warrant after such change shall in case of an increase in the
number of shares be proportionately decreased, and in case of a decrease in the
number of shares be proportionately increased, so that the aggregate Exercise
Price of this Warrant shall be unchanged by such change.

         5. Reorganization, Reclassification, Share Exchange or Merger. (a) If
at any time during the Term the Company is a party to any agreement providing
for (i) any capital reorganization or reclassification of the capital stock of
the Company or (ii) any share exchange or merger of the Company with another
corporation, in such a way that holders of Common Stock shall be entitled to
receive cash, shares of stock or securities or assets (collectively, and
regardless of whether received in connection with a merger or some other form of
corporate reorganization, the "Merger Consideration") with respect to or in
exchange for Common Stock, then, as a condition to such reorganization,
reclassification, share exchange or merger, the successor entity (if other than
the Company) resulting from such transaction shall assume by written instrument
the obligation to deliver to the Investor, upon exercise of this Warrant, such
cash, shares of stock or securities or assets as the Investor would have been
entitled to

                                       3
<PAGE>   4

receive had the Investor exercised the Warrant immediately prior to the closing
of such transaction.

         (b) In connection with any capital reorganization or reclassification
of the capital stock of the Company or any share exchange or merger of the
Company with another person, if the Company shall fix a record date for the
making of a distribution to holders of Common Stock of (i) assets (other than
cash dividends or cash distributions payable out of consolidated net income or
earned surplus or dividends payable in Common Stock), (ii) evidences of
indebtedness or other securities of the Company or of any person (except for
Common Stock), or (iii) subscription rights, options or warrants to purchase any
of the foregoing assets or securities, whether or not such rights, options or
warrants are immediately exercisable, to the extent such rights, options or
warrants have not expired, then the Company shall make provisions for the
Investor to receive, and the Investor shall be entitled upon exercise of this
Warrant, evidences of indebtedness, securities or such other rights, options or
warrants, as if the Investor had exercised this Warrant on or before such record
date.

         6. Notification to Investor. (a) Upon each adjustment pursuant to
Sections 4 or 5 hereof, the Company shall give written notice thereof to the
Investor within ten days after the date of such adjustment, which notice shall
set forth the calculation of the number of shares of Common Stock issuable upon
exercise of the rights represented by this Warrant before and after such
adjustment and the facts upon which such calculations are based.

         7. Certain Events. If any event occurs as to which the provisions of
this Warrant are not strictly applicable or, if strictly applicable would not
fairly protect the rights of the Investor in accordance with the essential
intent and principles of such provisions, then the Company and the Investor
shall make an adjustment in the application of such provisions, in accordance
with such essential intent and principles, so as to protect the Investor's
rights as aforesaid.

         8. Rights as Stockholder; Information. Except as set forth herein, no
holder of this Warrant, as such, will be entitled to vote or receive dividends
or be deemed the holder of Common Stock or any other securities of the Company
which may at any time be issuable on the exercise hereof for any purpose, nor
shall anything contained herein be construed to confer upon the holder of this
Warrant, as such, any of the rights of a stockholder of the Company or any right
to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to receive notice of meetings, or to
receive dividends or subscription rights or otherwise until this Warrant has
been exercised and the Shares purchasable upon the exercise hereof are
deliverable, as provided herein.

         9. Modification and Waiver. This Warrant and any provision hereof may
be changed, waived, discharged or terminated only by an instrument in writing
signed by the Company and the Investor. The Company will not, by amendment of
the

                                       4
<PAGE>   5

Company's Memorandum or Articles, bylaws or other constituent documents or
through reorganization, consolidation, merger, dissolution, sale of assets or
any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this Warrant, but will at all times in good faith assist
in the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the Investor
against impairment.

         10. Transfers. (a) This Warrant and all rights hereunder are
transferable, in whole or in part, upon (i) notice to the Company and (ii)
surrender of the Warrant with a properly executed assignment (in the form of
Exhibit B hereto) at the principal office of the Company, by which the
transferee of the Warrant agrees to be bound by all of the terms and conditions
of this Warrant. The Investor and any permitted transferee will be entitled to
all the benefits set forth in the Registration Rights Agreement, dated as of the
Effective Date (the "Registration Rights Agreement"), to which the Company is a
party with respect to the Shares and the Shares will be deemed "Registrable
Securities" for purposes of the Registration Rights Agreement.

         (b) The Company will maintain a register containing the names and
addresses of the registered holder of this Warrant. Any registered holder may
change such registered holder's address as shown on the warrant register by
written notice to the Company requesting such change.

         11. Representations and Warranties. The Company represents and warrants
that, as of the date hereof, the 250,000 Shares issued upon exercise of this
Warrant represent .01% of the Fully Diluted Common Stock. For purposes of this
Warrant, the term "Fully Diluted Common Stock" means the sum as of the date
hereof of all issued and outstanding Common Stock and any other equity
securities of the Company having rights to vote generally for the election of
directors of the Company and any securities convertible into or exercisable for
Common Stock or such other securities, in each case, on an as-converted or
as-exercised basis (including the Shares and shares of Common Stock issuable
pursuant to the exercise of options or other awards granted to employees,
officers and directors of the Company pursuant to the Company Stock Option
Plans, but excluding the shares of Common Stock issuable upon conversion of the
loan pursuant to the Loan Agreement).

         12. Notices. For all purposes of this Warrant, all communications,
including without limitation notices, consents, requests or approvals, required
or permitted to be given hereunder will be in writing and will be deemed to have
been duly given when hand delivered or dispatched by electronic facsimile
transmission (with receipt thereof confirmed), or five business days after
having been mailed by United States registered or certified mail, return receipt
requested, postage prepaid or one business day after having been sent for
next-day delivery by a nationally recognized overnight courier service,
addressed to the Company and to the Investor at the address shown on the
signature page hereto, or to such other address as any party may have furnished
to the other in writing and in accordance herewith, except that notices of
changes of address will be effective only upon receipt. The Investor and the
Company may change the

                                       5
<PAGE>   6

notice address at any time by delivering a written notice to the other, which
notice will be deemed effective in accordance with the immediately preceding
sentence.

         13. Binding Effect. The Company will, at the time of the exercise of
this Warrant, in whole or in part, upon request of the Investor but at the
Company's expense, acknowledge in writing its continuing obligation to the
Investor in respect of any rights (including, without limitation, any right to
registration of the Conversion Shares) to which the Investor shall continue to
be entitled after such exercise in accordance with this Warrant; provided, that
the failure of the Investor to make any such request shall not affect the
continuing obligation of the Company to the Investor in respect of such rights.

         14. Lost Warrants or Stock Certificates. The Company will, upon receipt
of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate and, in the
case of any such loss, theft or destruction, upon receipt of an indemnity
reasonably satisfactory to the Company, or in the case of any such mutilation
upon surrender and cancellation of such Warrant or stock certificate, make and
deliver a new Warrant or stock certificate, of like tenor, in lieu of the lost,
stolen, destroyed or mutilated Warrant or stock certificate.

         15. Descriptive Headings. The descriptive headings of the several
paragraphs of this Warrant are inserted for convenience only and do not
constitute a part of this Warrant.

         16. Governing Law. This Warrant will be construed and enforced in
accordance with, and the rights of the parties will be governed by, the laws of
the State of New York, without regard to the conflict of law rules of such
State.

         17. Remedies. In case any one or more of the covenants and agreements
contained in this Warrant shall have been breached, the holders hereof (in the
case of a breach by the Company), or the Company (in the case of a breach by a
holder), may proceed to protect and enforce their or its rights either by suit
in equity and/or by action at law, including, but not limited to, an action for
damages as a result of any such breach and/or an action for specific performance
of any such covenant or agreement contained in this Warrant.

         18. Recovery of Litigation Costs. If any legal action or other
proceeding is brought for the enforcement of this Warrant, or because of an
alleged dispute, breach, default or misrepresentation in connection with any of
the provisions of this Warrant, the successful or prevailing party or parties
shall be entitled to recover reasonable attorneys' fees and other costs incurred
in that action or proceeding, in addition to any other relief to which it or
they may be entitled.

         19. Counterparts. This Warrant may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed will be deemed to be an original and all of which taken
together will constitute one and the same instrument.

                                       6
<PAGE>   7

         20. Jurisdiction; Consent to Service of Process. (a) Each party hereby
irrevocably and unconditionally submits, for itself and its property, to the
exclusive jurisdiction of the New York state court located in the Borough of
Manhattan, City of New York or the United States District for the Southern
District of New York (as applicable, a "New York Court"), and any appellate
court from any such court, in any suit, action or proceeding arising out of or
relating to this Warrant, or for recognition or enforcement of any judgment
resulting from any such suit, action or proceeding, and each party hereby
irrevocably and unconditionally agrees that all claims in respect of any such
suit, action or proceeding may be heard and determined in the New York Court.

         (b) It will be a condition precedent to each party's right to bring any
such suit, action or proceeding that such suit, action or proceeding, in the
first instance, be brought in the New York Court (unless such suit, action or
proceeding is brought solely to obtain discovery or to enforce a judgment), and
if each such court refuses to accept jurisdiction with respect thereto, such
suit, action or proceeding may be brought in any other court with jurisdiction;
provided that the foregoing will not apply to any suit, action or proceeding by
a party seeking indemnification or contribution pursuant to this Warrant or
otherwise in respect of a suit, action or proceeding against such party by a
thirty party if such suit, action or proceeding by such party seeking
indemnification or contribution is brought in the same court as the suit, action
or proceeding against such party.

         (c) No party may move to (i) transfer any such suit, action or
proceeding from the New York Court to another jurisdiction, (ii) consolidate any
such suit, action or proceeding brought in the New York Court with a suit,
action or proceeding in another jurisdiction, or (iii) dismiss any such suit,
action or proceeding brought in the New York Court for the purpose of bringing
the same in another jurisdiction.

         (d) Each party hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, (i) any objection which it
may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Warrant in the New York Court,
(ii) the defense of an inconvenient forum to the maintenance of such suit,
action or proceeding in any such court, and (iii) the right to object, with
respect to such suit, action or proceeding, that such court does not have
jurisdiction over such party. Each party irrevocably consents to service of
process in any manner permitted by law.

         21. Severability. If any term, provision, covenant or restriction of
this Warrant is held by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein will remain in full force and effect and will in
no way be affected, impaired or invalidated, and the parties hereto will use
their best efforts to find and employ an alternative means to achieve the same
or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants

                                       7
<PAGE>   8

and restrictions without including any of such which may be hereafter declared
invalid, void or unenforceable.

         22. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR
COUNTERCLAIM, WHETHER IN CONTRACT OR TORT, AT LAW OR IN EQUITY, ARISING OUT OF
OR IN ANY WAY RELATED TO THIS WARRANT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

         23. No Strict Construction. The parties hereto have participated
jointly in the negotiation and drafting of this Warrant. In the event an
ambiguity or question of intent or interpretation arises, this Warrant shall be
construed as if drafted jointly by the parties hereto, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any of the provisions of this Warrant.

         24. Entire Agreement. This Warrant constitutes the entire agreement
between the parties pertaining to the subject matter contained in it and
supersedes all prior and contemporaneous agreements, representations and
undertakings of the parties, whether oral or written, with respect to such
subject matter.

         IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by one of its duly authorized officers and the undersigned has accepted this
Warrant and the terms and conditions hereof by its execution in the space
provided below as of the date first written above.

                                            GLOBAL ELECTION SYSTEMS INC.

                                            By: /s/ ROBERT J. UROSEVICH
                                               ---------------------------------
                                                 Name:  Robert J. Urosevich
                                                 Title: President and Chief
                                                          Operating Officer

                                            Notice Address:

                                            c/o Global Election Systems, Inc.
                                            1611 Wilmeth Road
                                            McKinney, TX 75069
                                            Facsimile:  (972) 542-6044
                                            Attention:  Michael Rasmussen
Accepted:

DIEBOLD, INCORPORATED

By: /s/ GREGORY T. GESWEIN
   ---------------------------------
     Name: Gregory T. Geswein
     Title: Senior Vice President and
            Chief Financial Officer

                                       8
<PAGE>   9

Notice Address:

5995 Mayfair Road
P.O. Box 3077
North Canton, OH 44720-8077
Facsimile:  (330) 490-4555
Attention:  Gregory T. Geswein

with a copy to:

Jones, Day, Reavis & Pogue
599 Lexington Avenue
New York, New York 10022
Facsimile No.:  (212) 755-7306
Attention:  Thomas W. Bark

                                       9
<PAGE>   10

                                                                       EXHIBIT A

                               NOTICE OF EXERCISE

To:  Global Election Systems Inc.

         1.       The undersigned hereby elects to purchase ________ shares of
                  Common Stock pursuant to Section 2(a) of the attached Warrant,
                  and tenders herewith payment of the purchase price of such
                  shares in full.

         2.       The undersigned hereby elects to purchase ________ shares of
                  Common Stock pursuant to the terms of Section 2(b) of the
                  attached Warrant.

         3.       Please issue a certificate or certificates representing said
                  shares in the name of the undersigned or in such other name or
                  names as are specified below:

                         -------------------------------
                                       Name

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

                         -------------------------------
                                   (Address)

                                               ---------------------------------
                                               (Signature)

                                               ---------------------------------
                                               (Date)

                                      A-1
<PAGE>   11

                                                                       EXHIBIT B

                                 ASSIGNMENT FORM

         FOR VALUE RECEIVED, (the "Transferor") hereby sells, assigns and
transfers to ___________ (the "Transferee") all of the rights of the undersigned
under the attached Warrant with respect to ______ shares of Common Stock covered
thereby (the "Warrant Shares"). The Transferee agrees to assume and be bound by
all of the terms and conditions of the Warrant that are applicable to the
Transferee with respect to the Warrant Shares. The notice address of the
Transferee for purposes of Section 12 of the Warrant is set forth below.

                                               [TRANSFEROR]

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

                                               [TRANSFEREE]

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

                                               Notice Address:
                                                              ------------------

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

                                               ---------------------------------
                                               Facsimile:
                                                         -----------------------
                                               Attention:
                                                         -----------------------

                                               Dated:
                                                     ---------------------------

                                      B-1

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