Document:

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                                                                    EXHIBIT 10.4

                                                    PERFORMANCE PERIOD 2003-2005

[DIEBOLD LOGO]

                          PERFORMANCE SHARE AGREEMENT

            WHEREAS, _____________ (hereinafter called the "Grantee") is a key
associate of Diebold, Incorporated (hereinafter called the "Corporation"); and

            WHEREAS, the Board of Directors (the "Board"), pursuant to the 1991
Amended and Restated Equity and Performance Incentive Plan of the Corporation
(the "1991 Plan"), which is attached as Exhibit A to this Agreement encourages
executives of the Corporation to achieve the Management Objectives established
by the Compensation and Organization Committee of the Board of Directors (the
"Committee").

            WHEREAS, the Committee adopted the Management Objectives for the
Performance Period (as defined below) on February 5, 2003.

            NOW, THEREFORE, subject to the terms and conditions of the 1991 Plan
and the terms and conditions described below, the Corporation hereby grants to
the Grantee as of February 5, 2003, ___________ Performance Shares, together
with the opportunity to earn up to an additional 70% of such number of
Performance Shares for superior performance as described herein.

      1.    Definitions.

            As used in this Agreement:

            (a) A "Change in Control" shall be deemed to have occurred if any of
the following events shall occur:

                  (i) The acquisition by any individual, entity or group (within
      the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act
      of 1934, as amended (the "Exchange Act")) (a "Person") of beneficial
      ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
      Act) of 15% of more of either: (A) the then-outstanding shares of common
      stock of the Corporation (the "Corporation Common Stock") or (B) the
      combined voting power of the then-outstanding voting securities of the
      Corporation entitled to vote generally in the election of directors
      ("Voting Stock"); provided, however, that for purposes of this subsection
      (i), the following acquisition shall

<PAGE>

      not constitute a Change in Control (1) any acquisition directly from the
      Corporation, (2) any acquisition by the Corporation, (3) any acquisition
      by any employee benefit plan (or related trust) sponsored or maintained by
      the Corporation or any Subsidiary of the Corporation, or (4) any
      acquisition by any Person pursuant to a transaction which complies with
      clauses (A), (B) and (C) of subsection (iii) of this Section 1(b); or

                  (ii) Individuals who, as to the date hereof, constitute the
      Board cease for any reason (other than death or disability) to constitute
      at least a majority of the Board; provided, however, that any individual
      becoming a director subsequent to the date hereof whose election, or
      nomination for election by the Corporation's shareholders, was approved by
      a vote of at least a majority of the directors then comprising the
      Incumbent Board (either by a specific vote or by approval of the proxy
      statement of the Corporation in which such person is named as a nominee
      for director, without objection to such nomination) shall be considered as
      though such individual were a member of the Incumbent Board, but excluding
      for this purpose, any such individual whose initial assumption of office
      occurs as a result of an actual or threatened election contest (within the
      meaning of Rule 14a-11 of the Exchange Act) with respect to the election
      or removal of directors or other actual or threatened solicitation of
      proxies or consents by or on behalf of a Person other than the Board; or

                  (iii) Consummation of a reorganization, merger or
      consolidation or sale or other disposition of all or substantially all of
      the assets of the Corporation (a "Business Combination"), in each case,
      unless, following such Business Combination, (A) all or substantially all
      of the individuals and entities who were the beneficial owners,
      respectively, of the Corporation Common Stock and Voting Stock immediately
      prior to such Business Combination beneficially own, directly or
      indirectly, more than 50% of, respectively, the then-outstanding shares of
      common stock and the combined voting power of the then-outstanding voting
      securities entitled to vote generally in the election of directors, as the
      case may be, of the entity resulting from such Business Combination
      (including, without limitation, an entity which as a result of such
      transaction owns the Corporation or all or substantially all of the
      Corporation's assets either directly or through one or more subsidiaries)
      in substantially the same proportions relative to each other as their
      ownership, immediately prior to such Business Combination, of the
      Corporation Common Stock and Voting Stock of the Corporation , as the case
      may be, (B) no Person (excluding any entity resulting from such Business
      Combination or any

                                       2
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      employee benefit plan (or related trust) sponsored or maintained by the
      Corporation or such entity resulting from such Business Combination)
      beneficially owns, directly or indirectly, 15% or more of, respectively,
      the then-outstanding shares of common stock of the entity resulting from
      such Business Combination, or the combined voting power of the
      then-outstanding voting securities of such corporation except to the
      extent that such ownership existed prior to the Business Combination and
      (C) at least a majority of the members of the board of directors of the
      corporation resulting from such Business Combination were members of the
      Incumbent Board at the time of the execution of the initial agreement, or
      of the action of the Board providing for such Business Combination; or

                  (iv) Approval by the shareholders of the Corporation of a
      complete liquidation or dissolution of the Corporation.

            (b) "Growth in Earnings Per Share" or "EPS" means the compound
annual growth rate (CAGR) in reported earnings per share, excluding
extraordinary items.

            (c) "Management Objectives" means the Return on Total Capital,
Growth in Earning Per Share and Relative Total Shareholder Return goals
established by the Board for the Corporation for the Performance Period covered
by this Agreement as described in Section 2 of this Agreement.

            (d) "Performance Period" means the period commencing January 1, 2003
and ending on December 31, 2005, except that solely with respect to the Relative
Total Shareholder Return goal, the term Performance Period shall mean February
1, 2003 through January 31, 2006.

            (e) "Relative Total Shareholder Return" or "Relative TSR" means the
return, including reinvested dividends, shareholders earn from investing in
Company shares, relative to the return earned from an investment in a benchmark
peer group index comprised of the 13 companies (including the Corporation) set
forth on Exhibit B.

            (f) "Return on Total Capital" or "ROTC" means the 3-year average of
net income before extraordinary items and special charges divided by the average
total capital employed. Any debt incurred in connection with an acquisition
consummated within the last 6 months of the Performance Period shall be excluded
from the calculation. Calculations shall be based on quarterly results, using
thirteen data points.

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            (g) Capitalized terms used herein without definition shall have the
meanings assigned to them in the 1991 Plan.

      2.    Management Objectives.

            The Management Objectives for the Performance Period covered by this
Agreement are set forth on Exhibit C. The following applies with respect to the
Management Objectives.

            (a) Each Management Objective shall be evaluated separately with the
total award determined as the sum of the amounts determined under each of the
three separate Management Objectives.

            (b) Each Management Objective shall have an equal weighting.

            (c) Notwithstanding that the number of Performance Shares earned for
achievement of the maximum level of performance of any individual Management
Objective can amount to 200% of the number of Performance Shares earned for
achievement of the target level of performance, in no event shall the Grantee be
entitled to receive more than 170% of the Performance Shares granted hereunder.

      3.    Grant of Performance Shares.

            The Corporation hereby grants to the Grantee the number of
Performance Shares specified above, which may be earned by the Grantee during
the Performance Period as set forth in Section 4 of this Agreement.

      4.    Earned Shares.

            The Performance Shares granted hereby shall be earned based on the
level of the Corporation's results with respect to each of the Management
Objectives established for the Performance Period covered by this Agreement. The
number of Performance Shares earned shall be determined based on the level of
results of the Management Objectives as shown in Exhibit C.

            In no event shall any Performance Shares be earned if results fall
below the threshold level of results for each Management Objective. In addition,
no additional Performance Shares shall be earned for results in excess of the
maximum level of results for any Management Objective. If results for a
Management Objective shall have been attained over the threshold level, but
under the target level, or over the threshold level and under the

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<PAGE>

maximum level, a proportionate number of Performance Shares shall be earned, as
determined by mathematical interpolation and rounded up to the nearest whole
percent.

            Once determined, the percentage of Performance Shares earned for
each Management Objective shall be used to determine the aggregate percentage
earned. The percentages earned for all of the Management Objectives so
calculated shall be added together and multiplied by the number of Performance
Shares granted hereby to determine the number of Performance Shares to be paid
out to the Grantee for the Performance Period covered by this Agreement, subject
to the limit set forth in Section 2(c) of this Agreement. For example, results
at the target level of Return on Total Capital would result in an earned
percentage of 25%. Results at the target level of Growth in Earning Per Share
would result in an earned percentage of 50%. With respect to Relative TSR, if
the Company ranks 1st out of 13 peer companies, the percentage earned would be
50%. The total percentages added together would be 125%. Since this percentage
is less than the 170% limit, the number of Performance Shares granted hereby
would then be multiplied by 125%. Any fractional share resulting from the
application of the total percentage would be rounded up to the nearest whole
share.

      5.    Payment of Awards.

            Payment shall be made in the form of the Corporation's Common
Shares, cash or a combination of Common Shares and cash, as recommended by the
Committee in its sole discretion with approval by the Board. Final awards shall
be paid, less applicable taxes, as soon as practicable after the receipt of
audited financial statements relating to the last fiscal year of the Performance
Period covered by this Agreement and the determination by the Committee of the
level of attainment of each Management Objective, except as otherwise agreed to
by the Corporation and the Grantee.

            Any payment of awards due pursuant to this Agreement to a deceased
Grantee shall be paid to the beneficiary designated by the Grantee by the latest
Designation of Death Beneficiary in the form attached as Exhibit D hereto filed
by the Grantee with the Corporation. If no such beneficiary has been designated
or survives the Grantee, payment shall be made to the Grantee's legal
representative. A beneficiary designation may be changed or revoked by a Grantee
at any time, provided the change or revocation is filed with the Corporation.

            Prior to payment, the Corporation shall only have an unfunded and
unsecured obligation to make payment of earned awards to the Grantee.

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      6.    Effect of Death, Disability or Retirement.

            If the Grantee's employment with the Corporation or one of its
Subsidiaries should terminate because of death, permanent total disability or
retirement under a retirement plan (including, without limitation, any
supplemental retirement plan) of the Corporation or a Subsidiary at or after the
earliest voluntary retirement age provided for in any such retirement plan or
should retire at an earlier age with the consent of the Board, prior to the
payment of an award, the extent to which the Performance Shares granted hereby
shall be deemed to have been earned shall be determined as if the Grantee's
employment had not terminated and the result shall be multiplied by a fraction,
the numerator of which is the number of full months the Grantee was employed
during the Performance Period and the denominator of which is the total number
of months in the Performance Period; provided, however, the Board, upon the
recommendation of the Committee may, in its discretion, increase payments made
under the foregoing circumstances up to the full amount payable for service
throughout the Performance Period.

      7.    Effect of Other Terminations of Employment; Detrimental Activity.

            In the event that the Grantee's employment shall terminate prior to
the payment of an award in a manner other than any specified in Section 6 hereof
or if the Grantee shall at any time engage in any Detrimental Activity (as
defined below), the Grantee shall forfeit any rights he or she may have in any
Performance Shares that have not been paid out to the Grantee prior to the time
of such termination; provided, however, that the Board, upon recommendation of
the Committee, may order payment of an award in an amount determined as in
Section 6 hereof for termination owing to death, disability or retirement, under
circumstances which warrant such exceptional treatment in the judgment of the
Committee and the Board.

      8.    Detrimental Activity.

            If the Grantee, either during employment by the Corporation or a
Subsidiary or within one year after termination of such employment, shall engage
in any Detrimental Activity, and the Board shall so find, and (except for any
Detrimental Activity described in Section 8(d)(v)(B)) if the Grantee shall not
have ceased all Detrimental Activity within 30 days after notice of such finding
given within one year after commencement of such Detrimental Activity, the
Grantee shall:

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            (a) Return to the Corporation all Performance Shares that the
Grantee has not disposed of and an amount equal to all cash paid out pursuant to
this Agreement within a period of one year prior to the date of the commencement
of such Detrimental Activity, and

            (b) With respect to any Performance Shares that the Grantee has
disposed of that were paid out pursuant to this Agreement within a period of one
year prior to the date of the commencement of such Detrimental Activity, pay to
the Corporation in cash the value of such Performance Shares on the date such
Performance Shares were paid out.

            (c) To the extent that the amounts referred to in Section 8(a) and
(b) above are not paid to the Corporation, the Corporation may set off the
amounts so payable to it against any amounts that may be owing from time to time
by the Corporation or a Subsidiary to the Grantee, whether as wages, deferred
compensation or vacation pay or in the form of any other benefit or for any
other reason.

            (d) For purposes of this Agreement, the term "Detrimental Activity"
shall include:

                  (i) Engaging in any activity, as an employee, principal,
      agent, or consultant for another entity, and in a capacity, that directly
      competes with the Corporation or any Subsidiary in any actual product,
      service or business activity (or in any product, service or business
      activity which was under active development while the Grantee was employed
      by the Corporation if such development is being actively pursued by the
      Corporation during the one-year period first referred to in this Section
      8) for which the Grantee has had any direct responsibility and direct
      involvement during the last two years of his or her employment with the
      Corporation or a Subsidiary, in any territory in which the Corporation or
      a Subsidiary manufactures, sells, markets, services, or installs such
      product or service, or engages in such business activity.

                  (ii) Soliciting any employee of the Corporation or a
      Subsidiary to terminate his or her employment with the Corporation or a
      Subsidiary.

                  (iii) The disclosure to anyone outside the Corporation or a
      Subsidiary, or the use in other than the Corporation or a Subsidiary's
      business, without prior written authorization from the Corporation, of any
      confidential, proprietary or trade secret information or material relating
      to the business of the Corporation and its Subsidiaries, acquired by the
      Grantee during his or her employment with the Corporation or its
      Subsidiaries or while acting as a consultant for the Corporation or its
      Subsidiaries thereafter.

                                       7
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                  (iv) The failure or refusal to disclose promptly and to assign
      to the Corporation upon request all right, title and interest in any
      invention or idea, patentable or not, made or conceived by the Grantee
      during employment by the Corporation and any Subsidiary, relating in any
      manner to the actual or anticipated business, research or development work
      of the Corporation or any Subsidiary or the failure or refusal to do
      anything reasonably necessary to enable the Corporation or any Subsidiary
      to secure a patent where appropriate in the United States and in other
      countries.

                  (v) Activity that results in Termination for Cause. For the
      purposes of this Section, "Termination for Cause" shall mean a
      termination:

                  (A) due to the Grantee's willful and continuous gross neglect
            of his or her duties for which he or she is employed, or

                  (B) due to an act of dishonesty on the part of the Grantee
            constituting a felony resulting or intended to result, directly or
            indirectly, in his or her gain for personal enrichment at the
            expense of the Corporation or a Subsidiary.

                  (vi) Any other conduct or act determined to be injurious,
      detrimental or prejudicial to any significant interest of the Corporation
      or any Subsidiary unless the Grantee acted in good faith and in a manner
      he or she reasonably believed to be in or not opposed to the best
      interests of the Corporation.

      9.    Shares Non-Transferable.

            The Performance Shares granted hereby that have not yet
been paid out are not transferable other than by will or the laws of
descent and distribution.

      10.   Dilution and Other Adjustments.

            In the event of any change in the aggregate number of outstanding
Common Shares by reason of any stock dividend or stock split, recapitalization,
reclassification, merger, consolidation, combination or exchange of shares or
other similar corporate change, then the Board, upon the recommendation of the
Committee, shall adjust the Management Objectives and/or the number of
Performance Shares then held by the Grantee. Such adjustments made by the Board
shall be conclusive and binding for all purposes of this Agreement.

      11.   Withholding Taxes.

            To the extent that the Corporation is required to withhold federal,
state, local or foreign taxes in connection with the delivery of Common Shares
to the Grantee or other person

                                       8
<PAGE>

under this Agreement, and the amounts available to the Corporation for such
withholding are insufficient, it shall be a condition to the receipt of such
delivery that the Grantee or such other person will make arrangements
satisfactory to the Corporation for payment of the balance of such taxes
required to be withheld, which arrangements (in the discretion of the Board) may
include relinquishment of a portion of such benefit. In no event, however, shall
the Corporation accept Common Shares for payment of taxes in excess of required
tax withholding rates, except that, in the discretion of the Board, the Grantee
or such other person may surrender Common Shares owned for more than 6 months to
satisfy any tax obligations resulting from any such transaction.

      12.   Employment Rights.

            Neither this Agreement nor any action taken hereunder shall be
construed as giving the Grantee any right to be retained in the employ of the
Corporation, nor shall any action taken hereunder be construed as entitling the
Corporation to the services of the Grantee for any period of time. For purposes
of this Agreement, the continuous employ of the Grantee with the Corporation or
a Subsidiary shall not be deemed interrupted, and the Grantee shall not be
deemed to have ceased to be an associate of the Corporation or any Subsidiary,
by reason of the transfer of his or her employment among the Corporation and its
Subsidiaries.

      13.   Amendments.

            Any amendment to the 1991 Plan shall be deemed to be an amendment to
this agreement to the extent that the amendment is applicable hereto; provided,
however, that no amendment shall adversely affect the rights of the Grantee with
respect to the Performance Shares without the Grantee's consent.

      14.   Validity.

            If any provision of this Agreement or the application of any
provision hereof to any person or circumstances is held invalid, unenforceable
or otherwise illegal, the remainder of this Agreement and the application of
such provision in any other person or circumstances shall not be affected, and
the provisions so held to be invalid, unenforceable or otherwise illegal shall
be reformed to the extent (and only to the extent) necessary to make it
enforceable, valid and legal.

      15.   Governing Law.

            This Agreement is made under, and shall be construed in accordance
with the internal substantive laws of the State of Ohio.

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<PAGE>

                  Executed as of the 5th day of February, 2003.

                                            DIEBOLD, INCORPORATED

                                            ____________________________________
                                            Walden W. O'Dell
                                            Chairman of the Board, President and
                                            Chief Executive Officer

      The undersigned hereby acknowledges receipt of an executed original of
this Performance Share Agreement and accepts the Performance Shares granted
thereunder on the terms and conditions set forth therein and in the 1991 Plan.

Date:___________________                     __________________________________

                                       10
<PAGE>

                                    EXHIBIT B

                              DIEBOLD, INCORPORATED

                  - RELATIVE TSR - PEER GROUP LIST (13 PEERS) -

                       FEBRUARY 1, 2003 - JANUARY 31, 2006

<TABLE>
<CAPTION>
           NAME                        TICKER
           ----                        ------
<S>                                    <C>
AFFILIATED COMPUTER SVCS-A              ACS

AMERICAN MANAGEMENT SYSTEMS             AMSY

BELL & HOWELL COMPANY (PROQUEST)        PQE

CHECK POINT SYSTEMS                     CHKP

DELUXE CORP                             DLX

DIEBOLD, INCORPORATED                   DBD

FISERV INC                              FISV

HARRIS CORP                             HRS

NATIONAL DATA CORP (NDC HEATH)          NDC

NCR CORPORATION                         NCR

SUNGARD DATA SYSTEMS                    SDS

SYMBOL TECHNOLOGIES INC                 SBL

THOMAS & BETTS CORP                     TNB

VARIAN INC                              VARI
</TABLE>

<PAGE>

                                   EXHIBIT B-1

                   RELATIVE TOTAL SHAREHOLDER RETURN POTENTIAL
             (FEBRUARY 1, 2003-JANUARY 31, 2006 PERFORMANCE PERIOD)

<TABLE>
<CAPTION>
   13 PEERS               12 PEERS           11 PEERS OR FEWER
   --------               --------           -----------------
<S>  <C>                  <C>                <C>
1.    50.00%               50.00%                  50.00%
2.    46.00                45.00                   43.75
3.    41.25                40.00                   39.00
4.    37.50                35.00                  125.00
5.    33.25                30.00                   25.00
6.    29.25                25.00                   21.00
7.    25.00                21.00                   16.75
8.    21.00                16.75                   12.50
9.    16.75                12.50                    0
10.   12.50                  0                      0
11.     0                    0                      0
12.     0                    0
13.     0
</TABLE>

<PAGE>

                                    EXHIBIT C

                              MANAGEMENT OBJECTIVES

                       JANUARY 1, 2003 - DECEMBER 31, 2005
          (FOR RELATIVE TSR, FEBRUARY 1, 2003 THROUGH JANUARY 31, 2006)

      1.    One-quarter of the Performance Shares (plus up to an additional 25%)
            will be earned based upon the Corporation's Return on Total Capital
            (ROTC), according to the following schedule:

<TABLE>
<CAPTION>
Level of Achievement     ROTC         % Performance Shares Earned (1)
--------------------     ----         ---------------------------
<S>                      <C>          <C>
     Threshold           13.0%                 12.5%

     Target              13.4%                 25.0%

     Maximum             14.2%                 50.0%
</TABLE>

      2.    One-half of the Performance Shares (plus up to an additional 25%)
            will be earned based upon the Corporation's Growth in Earnings Per
            Share (EPS - CAGR), according to the following schedule:

<TABLE>
<CAPTION>
Level of Achievement       EPS - CAGR          % Performance Shares Earned (1)
--------------------       ----------          ---------------------------
<S>                        <C>                 <C>
      Threshold                7.5%                      25%

      Target                  12.0%                      50%

      Maximum                 15.0%                     100%
</TABLE>

      3.    One-quarter of the Performance Shares (plus up to an additional 25%)
            will be earned based upon the Corporation's Relative Total
            Shareholder Return (Relative TSR), according to the following
            schedule:

<TABLE>
<CAPTION>
                   TSR RANK (13 Peers)             % Performance Shares Earned
                   -------------------             ---------------------------
<S>                <C>                             <C>
Threshold                 10th(2)                            12.5%
Target                    7th(3)                             25.0%
Maximum                   1st                                50.0%
</TABLE>

(1)   The percentage of Performance Shares earned for interim levels of
      performance shall be calculated by mathematical interpolation.

(2)   If the number of companies in the peer group drops to 12, as a result of
      merger, consolidation or other cause acknowledged by the Committee*, the
      threshold TSR Rank shall change to 9th. If it drops to 11 or fewer, the
      threshold TSR Rank shall change to 8th.

(3)   If the number of companies in the peer group drops to 12 or fewer as a
      result of merger, consolidation or other cause acknowledged by the
      Committee*, the target TSR Rank shall change to 6th. If it drops to 11 or
      fewer, the target TSR Rank shall change to 5th.

<PAGE>

(4)   The following table illustrates the changes described in notes (2) and (3)
      above.

<TABLE>
<CAPTION>
Rank         13 Peers        12 Peers        11 Peers or fewer
----         --------        --------        -----------------
<S>          <C>             <C>             <C>
1              50%             50%                   50%
2
3
4
5                                                    25%
6                              25%
7              25%
8                                                    12.5%
9                              12.5%
10             12.5%
11
12
13
</TABLE>

----------
*   (In the event of bankruptcy or liquidation, the company remains in the peer
group and is counted)

<PAGE>

                                                                       EXHIBIT D

[DIEBOLD LOGO]

                        DESIGNATION OF DEATH BENEFICIARY

            I, the undersigned Grantee, do hereby designate the following person
or persons as my Death Beneficiary for the Performance Share Grant under the
Diebold, Incorporated, 1991 Amended and Restated Equity and Performance
Incentive Plan (the "Plan") and elect that any awards that may, after my death,
be payable under said awards be paid to my Death Beneficiary in accordance with
this designation.

<TABLE>
<CAPTION>
                NAME AND PRESENT ADDRESS         RELATIONSHIP TO ME
<S>             <C>                              <C>
 ____% to        ______________________           ________________
                 ______________________
                 ______________________
                 ______________________

 ____% to        ______________________           ________________
                 ______________________
                 ______________________
                 ______________________

 ____% to        ______________________           _________________
                 ______________________
                 ______________________
                 ______________________
</TABLE>

            If more than one person is designated above and not all of them are
in existence at the time of such payment, then such payment shall be made
prorata to the survivor or survivors of them at the time of such payment.

            If none of the persons designated above is in existence at the time
of such payment, then such payment shall be made in accordance with the terms of
the Plan.

            Subject to the terms of the Plan, I reserve the right to change or
revoke this designation by written instrument signed by me and filed in
accordance with the terms of such Plan.

Date: _________________                             ____________________________
                                                    Grantee<PAGE>

                                                   EXHIBIT 10.5

                                                    PERFORMANCE PERIOD 2004-2006

[DIEBOLD LOGO]

                          PERFORMANCE SHARE AGREEMENT

                  WHEREAS, ___________ (hereinafter called the "Grantee") is a
      key associate of Diebold, Incorporated (hereinafter called the
      "Corporation") or a Subsidiary; and

                  WHEREAS, the execution of a Performance Share Agreement
      substantially in the form hereof has been authorized by a resolution of
      the Compensation Committee (the "Committee") of the Board of Directors of
      the Corporation (the "Board") duly adopted on February 11, 2004.

                  NOW, THEREFORE, subject to the terms and conditions of the
      1991 Equity and Performance Incentive Plan (As Amended and Restated as of
      February 7, 2001), and as further amended by Amendment No. 1 and Amendment
      No. 2 (the "Plan"), and the terms and conditions described below, the
      Corporation hereby grants to the Grantee as of February 11, 2004,
      ____________ Performance Shares, together with the opportunity to earn up
      to an additional 100% of such number of Performance Shares for superior
      performance as described herein.

            1. Definitions.

                  As used in this Agreement:

                  (a) A "Change in Control" shall be deemed to have occurred if
      any of the following events shall occur:

                        (i) The acquisition by any individual, entity or group
            (within the meaning of Section 13(d)(3) or 14(d)(2) of the
            Securities Exchange Act of 1934, as amended (the "Exchange Act")) (a
            "Person") of beneficial ownership (within the meaning of Rule 13d-3
            promulgated under the Exchange Act) of 15% of more of either: (A)
            the then-outstanding shares of common stock of the Corporation (the
            "Corporation Common Stock") or (B) the combined voting power of the
            then-outstanding voting securities of the Corporation entitled to
            vote generally in the election of directors ("Voting Stock");
            provided, however, that for purposes of this subsection (i), the
            following acquisition shall not constitute a Change in Control (1)
            any acquisition directly from the Corporation, (2) any acquisition
            by the Corporation, (3) any acquisition by any employee benefit plan
            (or related trust) sponsored or maintained by the Corporation or any
            Subsidiary of the Corporation, or (4) any acquisition by any Person
            pursuant to a transaction which complies with clauses (A), (B) and
            (C) of subsection (iii) of this Section 1(b); or

                        (ii) Individuals who, as to the date hereof, constitute
            the Board cease for any reason (other than death or disability) to
            constitute at least a majority of the Board; provided, however, that
            any individual becoming a director subsequent to the date hereof
            whose election, or nomination for election by the Corporation's
            shareholders, was approved by a vote of at least a majority of the
            directors then comprising the Incumbent Board (either by a specific
            vote or by approval of the proxy statement of the Corporation in
            which such person is named as a nominee for director, without
            objection to such nomination) shall be considered as though such
            individual were a member of the Incumbent Board, but excluding for
            this purpose, any such individual whose initial

<PAGE>

            assumption of office occurs as a result of an actual or threatened
            election contest (within the meaning of Rule 14a-11 of the Exchange
            Act) with respect to the election or removal of directors or other
            actual or threatened solicitation of proxies or consents by or on
            behalf of a Person other than the Board; or

                        (iii) Consummation of a reorganization, merger or
            consolidation or sale or other disposition of all or substantially
            all of the assets of the Corporation (a "Business Combination"), in
            each case, unless, following such Business Combination, (A) all or
            substantially all of the individuals and entities who were the
            beneficial owners, respectively, of the Corporation Common Stock and
            Voting Stock immediately prior to such Business Combination
            beneficially own, directly or indirectly, more than 50% of,
            respectively, the then-outstanding shares of common stock and the
            combined voting power of the then-outstanding voting securities
            entitled to vote generally in the election of directors, as the case
            may be, of the entity resulting from such Business Combination
            (including, without limitation, an entity which as a result of such
            transaction owns the Corporation or all or substantially all of the
            Corporation's assets either directly or through one or more
            subsidiaries) in substantially the same proportions relative to each
            other as their ownership, immediately prior to such Business
            Combination, of the Corporation Common Stock and Voting Stock of the
            Corporation, as the case may be, (B) no Person (excluding any entity
            resulting from such Business Combination or any employee benefit
            plan (or related trust) sponsored or maintained by the Corporation
            or such entity resulting from such Business Combination)
            beneficially owns, directly or indirectly, 15% or more of,
            respectively, the then-outstanding shares of common stock of the
            entity resulting from such Business Combination, or the combined
            voting power of the then-outstanding voting securities of such
            corporation except to the extent that such ownership existed prior
            to the Business Combination and (C) at least a majority of the
            members of the board of directors of the corporation resulting from
            such Business Combination were members of the Incumbent Board at the
            time of the execution of the initial agreement, or of the action of
            the Board providing for such Business Combination; or

                        (iv) Approval by the shareholders of the Corporation of
            a complete liquidation or dissolution of the Corporation.

                  (b) "Management Objectives" means Relative Total Shareholder
      Return goals established by the Board for the Corporation for the
      Performance Period covered by this Agreement as described in Section 2 of
      this Agreement.

                  (c) "Performance Period" means the period commencing with the
      closing price of the Common Shares of the Corporation on January 28, 2004
      through the time of the determination of the closing price on the New York
      Stock Exchange on the day of the Corporation's annual earnings release in
      January 2007.

                  (d) "Relative Total Shareholder Return" or "Relative TSR"
      means the return, including reinvested dividends (or as determined at the
      beginning of the Performance Period in such manner as is consistent with
      the index), shareholders earn from investing in Common Shares, relative to
      the return earned from an investment in each of the following: (i) a
      benchmark peer group index comprised of the 14 companies set forth on
      Exhibit A and (ii) all the companies comprising the Standard & Poors 400
      Midcap Index at the closing prices of January 28, 2004.

                  (e) Capitalized terms used herein without definition shall
      have the meanings assigned to them in the Plan.

                                       2
<PAGE>

            2. Management Objectives.

                  The Management Objectives for the Performance Period covered
      by this Agreement are set forth on Exhibit B. The following applies with
      respect to the Management Objectives.

                  (a) Each Management Objective shall be evaluated separately
      with the total award determined through the matrix set forth on Exhibit B,
      which correlates the Corporation's performance against each Management
      Objective.

                  (b) In no event shall the Grantee be entitled to receive more
      than 200% of the Performance Shares granted hereunder.

            3. Grant of Performance Shares.

                  The Corporation hereby grants to the Grantee the number of
      Performance Shares specified above, which may be earned by the Grantee
      during the Performance Period as set forth in Section 4 of this Agreement.

            4. Earned Shares.

                  The Performance Shares granted hereby shall be earned based on
      the level of the Corporation's results with respect to each of the
      Management Objectives established for the Performance Period covered by
      this Agreement. The number of Performance Shares earned shall be
      determined based on the level of results of the Management Objectives in
      accordance with the matrix, which correlates performance against both
      measures, as set forth on Exhibit B. No additional Performance Shares
      shall be earned for results in excess of the maximum level of results for
      the Management Objectives. If results for a Management Objective are
      attained at interim levels of performance on the matrix, a proportionate
      number of Performance Shares shall be earned, as determined by
      mathematical interpolation, as described by example in Exhibit B. If the
      Corporation's performance with respect to both Management Objectives is
      determined to be below the 10th percentile, the number of Performance
      Shares earned, if any, shall be at the discretion of the Committee, except
      in the case of Covered Employees.

            5. Payment of Awards.

                  Payment shall be made in the form of the Corporation's Common
      Shares, cash or a combination of Common Shares and cash, as determined by
      the Committee in its sole discretion. Final awards shall be paid, less
      applicable taxes, as soon as practicable after the receipt of audited
      financial statements relating to the last fiscal year of the Performance
      Period covered by this Agreement and the determination by the Committee of
      the level of attainment of each Management Objective, except as otherwise
      agreed to by the Corporation and the Grantee.

                  Any payment of awards due pursuant to this Agreement to a
      deceased Grantee shall be paid to the beneficiary designated by the
      Grantee by the latest Designation of Death Beneficiary in the form
      attached as Exhibit C hereto filed by the Grantee with the Corporation. If
      no such beneficiary has been designated or survives the Grantee, payment
      shall be made to the Grantee's legal representative. A beneficiary
      designation may be changed or revoked by a Grantee at any time, provided
      the change or revocation is filed with the Corporation.

                  Prior to payment, the Corporation shall only have an unfunded
      and unsecured obligation to make payment of earned awards to the Grantee.

            6. Effect of Change in Control.

                  In the event of a Change in Control prior to the end of the
      Performance Period, the Performance Shares granted hereby (and under any
      prior Performance Share Agreements

                                       3
<PAGE>

      between the Corporation and the Grantee) shall be deemed to have been
      earned in full and shall be immediately due and payable in the form of
      Common Shares as soon as practicable following such Change in Control.

            7. Effect of Death, Disability or Retirement.

                  If the Grantee's employment with the Corporation or one of its
      Subsidiaries should terminate because of death, permanent total disability
      or retirement under a retirement plan (including, without limitation, any
      supplemental retirement plan) of the Corporation or a Subsidiary at or
      after the earliest voluntary retirement age provided for in any such
      retirement plan or should retire at an earlier age with the consent of the
      Committee, prior to the payment of an award, the extent to which the
      Performance Shares granted hereby shall be deemed to have been earned
      shall be determined as if the Grantee's employment had not terminated and
      the result shall be multiplied by a fraction, the numerator of which is
      the number of full months the Grantee was employed during the Performance
      Period and the denominator of which is the total number of months in the
      Performance Period; provided, however, the Board, upon the recommendation
      of the Committee may, in its discretion, increase payments made under the
      foregoing circumstances up to the full amount payable for service
      throughout the Performance Period.

            8. Effect of Other Terminations of Employment; Detrimental Activity.

                  In the event that the Grantee's employment shall terminate
      prior to the payment of an award in a manner other than any specified in
      Section 7 hereof or if the Grantee shall at any time engage in any
      Detrimental Activity (as defined below), the Grantee shall forfeit any
      rights he or she may have in any Performance Shares that have not been
      paid out to the Grantee prior to the time of such termination; provided,
      however, that the Board, upon recommendation of the Committee, may order
      payment of an award in an amount determined as in Section 7 hereof for
      termination owing to death, disability or retirement, under circumstances
      which warrant such exceptional treatment in the judgment of the Committee
      and the Board.

            9. Detrimental Activity.

                  If the Grantee, either during employment by the Corporation or
      a Subsidiary or within one year after termination of such employment,
      shall engage in any Detrimental Activity, and the Board shall so find, and
      (except for any Detrimental Activity described in Section 9(d)(v)(B)) if
      the Grantee shall not have ceased all Detrimental Activity within 30 days
      after notice of such finding given within one year after commencement of
      such Detrimental Activity, the Grantee shall:

                  (a) Return to the Corporation all Performance Shares that the
      Grantee has not disposed of and an amount equal to all cash paid out
      pursuant to this Agreement within a period of one year prior to the date
      of the commencement of such Detrimental Activity, and

                  (b) With respect to any Performance Shares that the Grantee
      has disposed of that were paid out pursuant to this Agreement within a
      period of one year prior to the date of the commencement of such
      Detrimental Activity, pay to the Corporation in cash the value of such
      Performance Shares on the date such Performance Shares were paid out.

                  (c) To the extent that the amounts referred to in Section 9(a)
      and (b) above are not paid to the Corporation, the Corporation may set off
      the amounts so payable to it against any amounts that may be owing from
      time to time by the Corporation or a Subsidiary to the Grantee, whether as
      wages, deferred compensation or vacation pay or in the form of any other
      benefit or for any other reason.

                                       4
<PAGE>

                  (d) For purposes of this Agreement, the term "Detrimental
      Activity" shall include:

                        (i) Engaging in any activity, as an employee, principal,
            agent, or consultant for another entity, and in a capacity, that
            directly competes with the Corporation or any Subsidiary in any
            actual product, service or business activity (or in any product,
            service or business activity which was under active development
            while the Grantee was employed by the Corporation if such
            development is being actively pursued by the Corporation during the
            one-year period first referred to in this Section 9) for which the
            Grantee has had any direct responsibility and direct involvement
            during the last two years of his or her employment with the
            Corporation or a Subsidiary, in any territory in which the
            Corporation or a Subsidiary manufactures, sells, markets, services,
            or installs such product or service, or engages in such business
            activity.

                        (ii) Soliciting any employee of the Corporation or a
            Subsidiary to terminate his or her employment with the Corporation
            or a Subsidiary.

                        (iii) The disclosure to anyone outside the Corporation
            or a Subsidiary, or the use in other than the Corporation or a
            Subsidiary's business, without prior written authorization from the
            Corporation, of any confidential, proprietary or trade secret
            information or material relating to the business of the Corporation
            and its Subsidiaries, acquired by the Grantee during his or her
            employment with the Corporation or its Subsidiaries or while acting
            as a consultant for the Corporation or its Subsidiaries thereafter.

                        (iv) The failure or refusal to disclose promptly and to
            assign to the Corporation upon request all right, title and interest
            in any invention or idea, patentable or not, made or conceived by
            the Grantee during employment by the Corporation and any Subsidiary,
            relating in any manner to the actual or anticipated business,
            research or development work of the Corporation or any Subsidiary or
            the failure or refusal to do anything reasonably necessary to enable
            the Corporation or any Subsidiary to secure a patent where
            appropriate in the United States and in other countries.

                        (v) Activity that results in Termination for Cause. For
            the purposes of this Section, "Termination for Cause" shall mean a
            termination:

                        (A) due to the Grantee's willful and continuous gross
                  neglect of his or her duties for which he or she is employed,
                  or

                        (B) due to an act of dishonesty on the part of the
                  Grantee constituting a felony resulting or intended to result,
                  directly or indirectly, in his or her gain for personal
                  enrichment at the expense of the Corporation or a Subsidiary.

            10. Shares Non-Transferable.

                  The Performance Shares granted hereby that have not yet been
      paid out are not transferable other than by will or the laws of descent
      and distribution.

            11. Dilution and Other Adjustments.

                  In the event of any change in the aggregate number of
      outstanding Common Shares by reason of any stock dividend or stock split,
      recapitalization, reclassification, merger, consolidation, combination or
      exchange of shares or other similar corporate change, then the Committee,
      shall adjust the Management Objectives and/or the number of Performance
      Shares then held by the Grantee. Such adjustments made by the Committee
      shall be conclusive and binding for all purposes of this Agreement.

                                       5
<PAGE>

            12. Withholding Taxes.

                  To the extent that the Corporation is required to withhold
      federal, state, local or foreign taxes in connection with the delivery of
      Common Shares to the Grantee or other person under this Agreement, and the
      amounts available to the Corporation for such withholding are
      insufficient, it shall be a condition to the receipt of such delivery that
      the Grantee or such other person will make arrangements satisfactory to
      the Corporation for payment of the balance of such taxes required to be
      withheld, which arrangements (in the discretion of the Committee) may
      include relinquishment of a portion of such benefit. In no event, however,
      shall the Corporation accept Common Shares for payment of taxes in excess
      of required tax withholding rates, except that, in the discretion of the
      Committee, the Grantee or such other person may surrender Common Shares
      owned for more than 6 months to satisfy any tax obligations resulting from
      any such transaction.

            13. Employment Rights.

                  For purposes of this Agreement, the continuous employ of the
      Grantee with the Corporation or a Subsidiary shall not be deemed
      interrupted, and the Grantee shall not be deemed to have ceased to be an
      associate of the Corporation or any Subsidiary, by reason of the transfer
      of his or her employment among the Corporation and its Subsidiaries. This
      award is a voluntary, discretionary bonus being made on a one-time basis
      and it does not constitute a commitment to make any future awards. This
      award and any payments made hereunder will not be considered salary or
      other compensation for purposes of any severance pay or similar allowance,
      except as otherwise required by law. Nothing in this Agreement will give
      the Grantee any right to continue employment with the Corporation or any
      Subsidiary, as the case may be, or interfere in any way with the right of
      the Corporation or a Subsidiary to terminate the employment of the
      Grantee.

            14. Data Protection.

                  Information about the Grantee and the Grantee's participation
      in the Plan may be collected, recorded and held, used and disclosed for
      any purpose related to the administration of the Plan. The Grantee
      understands that such processing of this information may need to be
      carried out by the Corporation and its Subsidiaries and by third party
      administrators whether such persons are located within the Grantee's
      country or elsewhere, including the United States of America. The Grantee
      consents to the processing of information relating to the Grantee and the
      Grantee's participation in the Plan in any one or more of the ways
      referred to above.

            15. Amendments.

                  Any amendment to the Plan shall be deemed to be an amendment
      to this agreement to the extent that the amendment is applicable hereto;
      provided, however, that no amendment shall adversely affect the rights of
      the Grantee with respect to the Performance Shares without the Grantee's
      consent.

            16. Validity.

                  If any provision of this Agreement or the application of any
      provision hereof to any person or circumstances is held invalid,
      unenforceable or otherwise illegal, the remainder of this Agreement and
      the application of such provision in any other person or circumstances
      shall not be affected, and the provisions so held to be invalid,
      unenforceable or otherwise illegal shall be reformed to the extent (and
      only to the extent) necessary to make it enforceable, valid and legal.

            17. Governing Law.

                  This Agreement is made under, and shall be construed in
      accordance with the internal substantive laws of the State of Ohio.

                                       6
<PAGE>

                  Executed as of the 11th day of February, 2004.

                                                DIEBOLD, INCORPORATED

                                                Walden W. O'Dell
                                                Chairman of the Board and
                                                Chief Executive Officer

            The undersigned hereby acknowledges receipt of an executed original
      of this Performance Share Agreement and accepts the Performance Shares
      granted thereunder on the terms and conditions set forth therein and in
      the Plan.

      Date:___________________                  ________________________________
                                                [Signature]

                                       7
<PAGE>

                                   EXHIBIT A

                             DIEBOLD, INCORPORATED

                 - RELATIVE TSR - PEER GROUP INDEX (14 PEERS) -
   CLOSING PRICE ON JANUARY 28, 2004 - TIME OF DETERMINATION THROUGH CLOSING
 PRICE ON NEW YORK STOCK EXCHANGE ON DATE OF THE CORPORATION'S ANNUAL EARNINGS
                            RELEASE IN JANUARY 2007

<TABLE>
<CAPTION>
               NAME                       TICKER
               ----                       ------
<S>                                       <C>
Affiliated Computer Services, Inc.         ACS

The Bisys Group, Inc.                      BSG

Certegy Inc.                               CEY

Convergys Corporation                      CVG

Deluxe Corporation                         DLX

Dover Corporation                          DOV

Fiserv Inc.                                FISV

Harris Corporation                         HRS

NCR Corporation                            NCR

Pitney Bowes Inc.                          PBI

Sungard Data Systems Inc.                  SDS

Symbol Technologies, Inc.                  SBL

Thomas & Betts Corporation                 TNB

Varian Inc.                                VARI
</TABLE>

<PAGE>

                                   EXHIBIT B

                             MANAGEMENT OBJECTIVES

   (FOR RELATIVE TSR, CLOSING PRICE ON JANUARY 28, 2004 TIME OF DETERMINATION
 THROUGH CLOSING PRICE ON NEW YORK STOCK EXCHANGE ON DATE OF THE CORPORATION'S
                    ANNUAL EARNINGS RELEASE IN JANUARY 2007)

      Performance Shares will be earned based upon the Corporation's Relative
Total Shareholder Return (Relative TSR), ranking against each of the 14 Company
Peer Group and all Companies comprising the Standard & Poor's 400 Midcap Index
as of January 28, 2004, as set forth in the matrix below.

<TABLE>
<S>         <C>           <C>          <C>     <C>    <C>     <C>     <C>    <C>
            > or = 80TH      1.0        1.2     1.3    1.5     1.7     1.8       2.0

              70TH           0.8        1.0     1.2    1.3     1.5     1.7       1.8

              60TH           0.7        0.8     1.0    1.2     1.3     1.5       1.7

              50TH           0.6        0.7     0.8    1.0     1.2     1.3       1.5

S&P 400       40TH           0.5        0.6     0.7    0.8     1.0     1.2       1.3

              30TH           0.4        0.5     0.6    0.7     0.8     1.0       1.2

            < or = 20TH      0.3        0.4     0.5    0.6     0.7     0.8       1.0

                          < or = 20TH  30TH     40TH   50TH    60TH    70TH   > or = 80TH

                                           PEERS
</TABLE>

(1)   The percentage of Performance Shares earned for interim levels of
      performance shall be calculated by mathematical interpolation.

(2)   If Diebold performance is below the 10th percentile in both measures,
      payout, if any is at the discretion of the Compensation Committee of the
      Board of Directors.

Examples:

         Hypothetical Results
      1. Target Shares                     10,000
         Performance                       70th percentile of S&P 400; 80th
                                           percentile of Peers
         Payout                            1.8 X 10,000 = 18,000 shares

      2. Hypothetical Results
         Target Shares                     10,000
         Performance                       53rd percentile of S&P 400; 67th
                                           percentile of peers
         Payout                            1.32 X 10,000 = 13,200 shares

         DETAILS FOR EXAMPLE #2

         - Peers Interpolation = ((1.3 - 1.2) X (3/10)) + 1.2 = 1.23

         - Peers Interpolation = ((1.5 - 1.3) X (3/10)) + 1.3 = 1.36

         - Peers & S&P 400 Interpolation = ((1.36-1.23) X (7/10)) + 1.23 = 1.32

<PAGE>

                                                                       EXHIBIT C

[DIEBOLD LOGO]

                        DESIGNATION OF DEATH BENEFICIARY

            I, the undersigned Grantee, do hereby designate the following person
or persons as my Death Beneficiary for the Performance Share Grant under the
Diebold, Incorporated, 1991 Amended and Restated Equity and Performance
Incentive Plan (the "Plan") and elect that any awards that may, after my death,
be payable under said awards be paid to my Death Beneficiary in accordance with
this designation.

                       NAME AND PRESENT ADDRESS               RELATIONSHIP TO ME

      ____% to          ______________________                ________________
                        ______________________
                        ______________________
                        ______________________

      ____% to          ______________________                ________________
                        ______________________
                        ______________________
                        ______________________

      ____% to          ______________________                ________________
                        ______________________
                        ______________________
                        ______________________

            If more than one person is designated above and not all of them are
in existence at the time of such payment, then such payment shall be made
prorata to the survivor or survivors of them at the time of such payment.

            If none of the persons designated above is in existence at the time
of such payment, then such payment shall be made in accordance with the terms of
the Plan.

            Subject to the terms of the Plan, I reserve the right to change or
revoke this designation by written instrument signed by me and filed in
accordance with the terms of such Plan.

Date: _________________                     ____________________________________
                                            Grantee

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