Document:

<PAGE>   1
                                                            EXHIBIT 10.17 (iii)

                       SECOND AMENDMENT TO LOAN AGREEMENT

         THIS SECOND AMENDMENT TO LOAN AGREEMENT, dated as of February 14, 2001
(this "Amendment"), is among DIEBOLD, INCORPORATED, an Ohio corporation (the
"COMPANY"), the SUBSIDIARY BORROWERS (as defined in the Loan Agreement referred
to below) (together with the Company, the "BORROWERS"), the lenders set forth on
the signature pages hereof (the "LENDERS"), and BANK ONE, MICHIGAN, a Michigan
banking corporation, as agent for the Lenders (in such capacity, the "AGENT").

                                    RECITALS

         A. The Borrowers, the Lenders party thereto and the Agent are parties
to a Loan Agreement dated December 1, 1999, as amended (the "LOAN AGREEMENT").

         B. The Borrowers desire to amend the Loan Agreement as set forth
herein, and the Agent and the Lenders are willing to do so in accordance with
the terms hereof.

                                      TERMS

                  In consideration of the premises and of the mutual agreements
herein contained, the parties agree as follows:

         ARTICLE I. AMENDMENTS. Upon fulfillment of the conditions set forth in
Article III hereof, the Loan Agreement and the other Loan Documents shall be
amended as follows:

         1.1 Section 1.1 is amended as follows:

         (a) Each of the definitions of "AGGREGATE EURO REVOLVING CREDIT
OUTSTANDINGS", "AGGREGATE U.S. REVOLVING CREDIT OUTSTANDINGS", "MULTICURRENCY
LOANS", "PRO RATA SHARE" and "SWING LOANS" are restated as follows:

                  "AGGREGATE EURO REVOLVING CREDIT OUTSTANDINGS" means as at any
         date of determination with respect to any Euro Revolving Credit Lender,
         the sum of the aggregate unpaid principal amount of such Lender's Euro
         Revolving Credit Loans on such date and the amount of such Lender's Pro
         Rata Share of the Euro Facility Letter of Credit Obligations and Euro
         Swing Loans on such date, both stated in Euro based on the Euro
         Equivalent Amount.

                  "AGGREGATE U.S. REVOLVING CREDIT OUTSTANDINGS" means as at any
         date of determination with respect to any Revolving Credit Lender, the
         sum of the aggregate unpaid principal amount of such Lender's U.S.
         Revolving Credit Loans on such date and the amount of such Lender's Pro
         Rata Share of the U.S. Facility Letter of Credit Obligations and U.S.
         Swing Loans on such date, both stated in U.S. Dollars.

                  "MULTICURRENCY LOANS" means, Euro Loans and any Swing Loans
         denominated in currencies other than U.S. Dollars.

                                       54

<PAGE>   2

                  "PRO RATA SHARE" means, for each Lender, the ratio of such
         Lender's Commitment (calculated using the U.S. Dollar Equivalent
         thereof) to the Aggregate Commitment (calculated using the U.S. Dollar
         Equivalent thereof), PROVIDED that (a) with respect to U.S. Revolving
         Credit Loans, U.S. Facility Letters of Credit, U.S. Swing Loans and
         facility fees with respect to the U.S. Revolving Credit Commitment, Pro
         Rata Share means, for each Lender, the ratio such Lender's U.S.
         Revolving Credit Commitment bears to the Aggregate U.S. Revolving
         Credit Commitments, (b) with respect to Euro Revolving Credit Loans,
         Euro Facility Letters of Credit, Euro Swing Loans and facility fees
         with respect to the Euro Revolving Credit Commitment, Pro Rata Share
         means, for each Lender, the ratio such Lender's Euro Revolving Credit
         Commitment bears to the Aggregate Euro Revolving Credit Commitments,
         (c) with respect to the U.S. Term Loan, Pro Rata Share means, for each
         Lender, the ratio such Lender's U.S. Term Loan Commitment bears to the
         Aggregate U.S. Term Loan Commitment, and (d) with respect to the Euro
         Term Loan, Pro Rata Share means, for each Lender, the ratio such
         Lender's Euro Term Loan Commitment bears to the Aggregate Euro Term
         Loan Commitment. If at any time the Commitments have been terminated,
         the amount of any Commitment for the purposes of this definition of
         "Pro Rata Share" only shall be deemed equal to the amount of such
         Commitment immediately prior to its termination.

                  "Swing Loans" means U.S. Swing Loans and Euro Swing Loans.

         (b) The definitions of "FACILITY TERMINATION DATE" and "Maturity
Date" are restated as follows:

                  "FACILITY TERMINATION DATE" means the earlier to occur of (a)
         February 13, 2002 or (b) the date on which the Revolving Credit
         Commitments are terminated pursuant to Article VIII.

                  "MATURITY DATE" means the earlier to occur of (a) the date two
         years after the Facility Termination Date or (b) the date on which the
         maturity of the Term Loans is accelerated pursuant to Article VIII.

         (c) The definition of "Loan" is amended by deleting the reference
therein to "Agent" and inserting "Swing Lender" in place thereof.

         (d) The following definitions are added to Section 1.1 in appropriate
alphabetical order:

                  "EURO SWING LOAN" is defined in Section 2.16.

                  "SECOND AMENDMENT" shall mean the Second Amendment to this
         Agreement dated February 14, 2001 among the Borrowers, the Lenders and
         the Agent.

                  "SECOND AMENDMENT EFFECTIVE DATE" shall mean the date as of
which the Second Amendment is effective.

                  "SWING LENDER" means Bank One, together with its Lending
         Installations.

                  "U.S. SWING LOAN" is defined in Section 2.16.
<PAGE>   3

                  "TOTAL NET DEBT" means, at any time, Total Debt minus all cash
         and Cash Equivalents with maturities of less than one year of the
         Company and its Subsidiaries calculated on a consolidated basis, as
         calculated in accordance with Agreement Accounting Principles.

                  "TOTAL NET DEBT TO CAPITALIZATION RATIO" means the ratio of
         Total Net Debt to the sum of (a) Total Net Debt plus (b) Net Worth, as
         calculated in accordance with Agreement Accounting Principles.

         (e) The definition of "TOTAL DEBT" is amended by adding the following
to the end thereof: "and Indebtedness consisting of avals by any of the
Company's Brazilian Subsidiaries for the benefit of, and with respect to
obligations of, any of the Company's other Brazilian Subsidiaries and which are
entered into in the ordinary course of business and consistent with past
practices in Brazil shall not be considered part of Total Debt."

         (f) The definitions of "YEAR 2000 ISSUES", "YEAR 2000 PROGRAM" and
"TOTAL DEBT TO CAPITALIZATION RATIO" are deleted.

         1.2 Section 2.6.3 is deleted in its entirety and the following shall
be inserted in place thereof:

                  2.6.3 (i) If the Aggregate Euro Revolving Credit Outstandings
         exceed the Aggregate Euro Revolving Credit Commitments at any time the
         Foreign Subsidiary Borrowers shall promptly prepay the Aggregate Euro
         Revolving Credit Outstandings or cash collateralize Facility Letters of
         Credit in the amount of such excess and (ii) if the Aggregate U.S.
         Revolving Credit Outstandings exceed the Aggregate U.S. Revolving
         Credit Commitments at any time the Company shall promptly prepay the
         Aggregate U.S. Revolving Credit Outstandings or cash collateralize
         Facility Letters of Credit in the amount of such excess.

<PAGE>   4

         1.3 Section 2.16 is restated as follows:

         Section 2.16. SWING LOANS.

                  (a) MAKING OF SWING LOANS. The Swing Lender may elect in its
         sole discretion to make Swing Loans to any Borrower solely for the
         Swing Lender's own account, from time to time prior to the Facility
         Termination Date up to an aggregate principal amount at any one time
         outstanding not to exceed (i) in the case of Swing Loans to any
         Borrower under the U.S. Revolving Credit Commitment, the lesser of (A)
         $20,000,000 or the Dollar Equivalent Amount thereof and (B) the unused
         amount of the Aggregate U.S. Revolving Credit Commitments ("U.S. SWING
         LOANS"), and (ii) in the case of Swing Loans to any Borrower under the
         Euro Revolving Credit Commitment, the lesser of (A) EUR10,000,000 or
         the Equivalent Amount thereof and (B) the unused amount of the
         Aggregate Euro Revolving Credit Commitments ("EURO SWING LOANS"). The
         Swing Lender may make Swing Loans (subject to the conditions precedent
         set forth in Article IV), PROVIDED that the Swing Lender has received a
         request in writing or via telephone from an Authorized Officer of such
         Borrower for funding of a Swing Loan no later than such time required
         by the Swing Lender, on the Business Day on which such Swing Loan is
         requested to be made. The Swing Lender shall not make any Swing Loan in
         the period commencing one Business Day after the Swing Lender becomes
         aware that one or more of the conditions precedent contained in Section
         4.2 are not satisfied and ending upon the satisfaction or waiver of
         such condition(s). Swing Loans may be made by the Swing Lender in any
         freely traded currency requested by such Borrower and agreed to by the
         Swing Lender. The Swing Lender agrees with the Borrowers that all Swing
         Loans denominated in Australian Dollars will be funded out of the Swing
         Lender's Lending Installation in Australia unless the Swing Lender
         provides prior notice to the Borrowers, in which case the Borrower
         requesting such Loan may withdraw its request for such Swing Loan. Each
         outstanding Swing Loan shall be payable on the Business Day following
         demand therefor, with interest at such rate as the Swing Lender and
         such Borrower shall agree, and shall be subject to all the terms and
         conditions applicable to Loans, except that all interest thereon shall
         be payable to the Swing Lender solely for its own account.
         Notwithstanding provisions to the contrary in this Agreement, each U.S.
         Lender acknowledges and agrees that U.S. Swing Loans may be made under
         the U.S. Revolving Credit Commitment to Foreign Subsidiary Borrowers,
         each Euro Lender acknowledges and agrees that Euro Swing Loans may be
         made under the Euro Revolving Credit Commitment to the Company and
         Domestic Subsidiary Borrowers and each Borrower acknowledges and agrees
         that the availablity under Section 2.1.1 and 2.1.2 may also be blocked
         by the Agent in an amount equal to the approximate anticipated Swing
         Loan usage reasonably determined by the Agent with the consent of the
         Company.

                  (b) SWING LOAN BORROWING REQUESTS. Each Borrower agrees to
         deliver promptly to the Swing Lender a written confirmation of each
         telephonic notice for Swing Loans signed by an Authorized Officer. If
         the written confirmation differs in any material respect from the
         action taken by the Swing Lender, the records of the Swing Lender shall
         govern, absent manifest error.

                  (c) REPAYMENT OF SWING LOANS. At any time after making a Swing
         Loan, the Swing Lender may request the recipient Borrower to, and upon
         request by the Swing Lender the recipient Borrower shall, promptly
         request an Advance from all U.S. Revolving Credit Lenders, with respect
         to any U.S. Swing Loan, and all Euro Revolving Credit Lenders, with
         respect to any Euro Swing Loan, and apply the proceeds of such Advance
         to the repayment of such Swing Loan not later than the Business Day
         following the Swing

<PAGE>   5

         Lender's request. Notwithstanding the foregoing, upon the earlier to
         occur of (a) three Business Days after demand is made by the Swing
         Lender, and (b) the Facility Termination Date, the Borrower agrees that
         each U.S. Swing Loan outstanding in any currency other than Dollars
         shall be immediately and automatically converted to and redenominated
         in Dollars equal to the Dollar Equivalent Amount of each such U.S.
         Swing Loan determined as of the date of such conversion and each Euro
         Swing Loan outstanding in any currency other than Euros shall be
         immediately and automatically converted to and redenominated in Euros
         equal to the Euro Equivalent Amount of each such Euro Swing Loan
         determined as of the date of such conversion, and each U.S. Revolving
         Credit Lender, in the case of any U.S. Swing Loan, and each Euro
         Revolving Credit Lender, in the case of any Euro Swing Loan (other
         than, in each case, the Swing Lender), shall irrevocably and
         unconditionally purchase from the Swing Lender, without recourse or
         warranty, an undivided interest and participation in such Swing Loan in
         an amount equal to such Lender's Pro Rata Share of the Swing Loan and
         promptly pay such amount to such Swing Lender in immediately available
         funds (or, in the case of participations in Swing Loans denominated in
         an Available Foreign Currency, same day funds). Such payment shall be
         made by the other Lenders whether or not a Default is then continuing
         or any other condition precedent set forth in Section 4.2 is then met
         and whether or not such Borrower has then requested an Advance in such
         amount. If any Lender fails to make available to such requesting Swing
         Lender any amounts due to the Swing Lender from such Lender pursuant to
         this Section, the Swing Lender shall be entitled to recover such
         amount, together with interest thereon at the Federal Funds Effective
         Rate or such other local cost of funds rate determined by the Swing
         Lender with respect to any Swing Loan denominated in any Available
         Foreign Currency for the first three Business Days after such Lender
         receives notice of such required purchase and thereafter, at the rate
         applicable to such Loan, payable (i) on demand, (ii) by setoff against
         any payments made to the Swing Lender for the account of such Lender or
         (iii) by payment to the Swing Lender by the Agent of amounts otherwise
         payable to such Lender under this Agreement. The failure of any Lender
         to make available to such Swing Lender its Pro Rata Share of any unpaid
         Swing Loan shall not relieve any other Lender of its obligation
         hereunder to make available to the Swing Lender its Pro Rata Share of
         any unpaid Swing Loan on the date such payment is to be made, but no
         Lender shall be responsible for the failure of any other Lender to make
         available to the Swing Lender its Pro Rata Share of any unpaid Swing
         Loan.

         1.4 Section 5.23 is deleted.

         1.5 The parenthetical in Section 6.3 is deleted.

         1.6 Section 6.11(iii) is restated as follows: "(iii) Investments in
existence on December 31, 2000."

         1.7 Section 6.12(vii) is restated as follows: "(vii) Liens not
otherwise permitted by the foregoing provisions of this Section 6.12, provided
that the aggregate outstanding amount secured by all such Liens shall not at any
time exceed 10% of Tangible Net Worth."

         1.8 Section 6.13 is restated to read as follows: "[Intentionally
deleted]".

         1.9 Section 6.15 is amended by restating clause (ii) thereof as
follows: "(ii) Indebtedness outstanding on the date of this Agreement, but no
increase in the principal amount thereof, and Indebtedness consisting of avals
by any of the Company's Brazilian Subsidiaries for the benefit of, and with
respect to obligations of, any of the Company's other Brazilian

<PAGE>   6

Subsidiaries and which are entered into in the ordinary course of business and
consistent with past practices in Brazil."

         1.10 Section 6.18 is restated as follows:

                  6.18 TOTAL NET DEBT TO CAPITALIZATION RATIO. The Company shall
         not permit its Total Net Debt to Capitalization Ratio to exceed 50%.

         1.11 (a) The Pricing Schedule attached as Exhibit A to the Loan
Agreement is replaced with the Pricing Schedule attached as Exhibit A hereto,
and (b) Schedule 1.1(a) attached to the Loan Agreement is replaced with Schedule
1.1(a) attached hereto. All outstandings under the Loan Agreement shall be
re-allocated among Lenders on the Second Amendment Effective Date to give effect
to the new Commitment levels established hereunder, and the Agent and the
Lenders shall make all appropriate adjustments among themselves.

         1.12 Firstar Bank, HSBC Bank USA and Bank of Ireland (the "NEW
LENDERS") are each hereby added as a Lender to the Loan Agreement and each shall
for all purposes be a Lender party to the Loan Agreement and any other Loan
Document executed by the Lenders and shall have all the rights and obligations
of a Lender under the Loan Agreement and the other Loan Documents to the same
extent as if it were an original party hereto. Each New Lender hereby assumes an
interest in and to all of the rights and obligations of a Lender under the Loan
Agreement and the other Loan Documents as of the date hereof with Commitments
equal to the amount set forth on Schedule 1.1(a) hereto. Neither the Agent nor
any of the Lenders: (a) makes any representation or warranty to the New Lenders
and assumes no responsibility to the New Lenders with respect to any statements,
warranties or representations made in or in connection with the Loan Agreement
or the other Loan Documents or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Loan Agreement, any
other Loan Document or any other instrument or document furnished pursuant
thereto; or (b) makes any representation or warranty and assumes no
responsibility with respect to the financial condition of the Company or any of
its Subsidiaries or the performance or observance by any Borrower or Guarantor
of any of its obligations under the Loan Agreement, any other Loan Documents or
any other instrument or document furnished pursuant thereto. Each New Lender:
(i) confirms that it has received a copy of the Loan Agreement and the other
Loan Documents, together with copies of all financial statements and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Amendment; (ii) agrees that it will,
independently and without reliance upon the Agent or any other Lender and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
the Loan Agreement and the other Loan Documents; (iii) appoints and authorizes
the Agent to take such action as agent on its behalf and to exercise such powers
and discretion under the Loan Agreement and the other Loan Documents as are
delegated to the Agent by the terms thereof, together with such powers and
discretion as are reasonably incidental thereto; (iv) agrees that it will
perform in accordance with their terms all of the obligations that by the terms
of the Loan Agreement and the other Loan Documents are required to be performed
by it as a Lender and (v) makes all representations and warranties of an
assignee/purchaser under the Notice of Assignment and Assignment forms attached
to the Loan Agreement. Each New Lender's address for notices is as set forth
below its signature on this Amendment.

<PAGE>   7

         ARTICLE II. REPRESENTATIONS. Each of the Borrowers represents and
warrants to the Agent and the Lenders that:

         2.1 The execution, delivery and performance of this Amendment are
within its powers, have been duly authorized by existing board resolutions or
other necessary corporate action and are not in contravention of any statute,
law or regulation or of any terms of its Articles of Incorporation, Certificate
of Incorporation or By-laws, or of any material agreement or undertaking to
which it is a party or by which it is bound.

         2.2 This Amendment is the legal, valid and binding obligation of it,
enforceable against it in accordance with the terms hereof, except as
enforceability may be limited by bankruptcy, insolvency or similar laws
affecting the enforcement of creditors' rights generally and by general
principles of equity.

         2.3 After giving effect to the amendments contained herein, the
representations and warranties contained in Article V of the Loan Agreement are
true on and as of the date hereof with the same force and effect as if made on
and as of the date hereof, except to the extent any such representation or
warranty is stated to relate solely to an earlier date, in which case such
representation or warranty shall be true and correct on and as of such earlier
date.

         2.4 After giving effect to the amendments contained herein, no Default
or Unmatured Default exists or has occurred and is continuing on the date
hereof.

         ARTICLE III. CONDITIONS OF EFFECTIVENESS. This Amendment shall become
effective as of the date hereof when each of the following conditions is
satisfied:

         3.1 The Borrowers, the Lenders, the Swing Lender and the Agent shall
have signed this Amendment.

         3.2 The Guarantors shall have signed the consent and agreement to this
Amendment.

         3.3 The Borrowers shall have paid such amendment fees to the Agent for
the benefit of the Lenders in such amounts as separately agreed upon.

         ARTICLE IV. MISCELLANEOUS.

         4.1 References in the Loan Agreement or in any other Loan Document to
the Loan Agreement shall be deemed to be references to the Loan Agreement as
amended hereby and as further amended from time to time.

         4.2 Except as expressly amended hereby, each of the Borrowers agrees
that the Loan Agreement and the other Loan Documents are ratified and confirmed,
as amended hereby, and shall remain in full force and effect in accordance with
their terms and that they are not aware of any set off, counterclaim, defense or
other claim or dispute with respect to any of the foregoing. Terms used but not
defined herein shall have the respective meanings ascribed thereto in the Loan
Agreement. This Amendment may be signed upon any number of counterparts with the
same effect as if the signatures thereto and hereto were upon the same
instrument, and telecopied signatures shall be effective as originals.

<PAGE>   8

         IN WITNESS WHEREOF, the parties signing this Amendment have caused this
Amendment to be executed and delivered as of the day and year first above
written.

                                     DIEBOLD, INCORPORATED

                                     By: /s/ Gregory T. Geswein

                                     Title: Senior Vice President and CFO

                                     DIEBOLD INTERNATIONAL LIMITED

                                     By: /s/ Timothy J. McDannold

                                     Title: Designated Financial Officer

                                     DIEBOLD SELF-SERVICE SOLUTIONS S.a.r.l.,
                                     GRANGES-PACCOT

                                     By: /s/ Timothy J. McDannold

                                     Title: Designated Financial Officer

                                     DIEBOLD AUSTRALIA PTY LTD

                                     By: /s/ Timothy J. McDannold

                                     Title: Designated Financial Officer

<PAGE>   9

                                     BANK ONE, MICHIGAN, as Agent, Swing Lender,
                                     Issuer and  Lender

                                     By: /s/ Gary C. Wilson

                                     Title: Senior Vice President

                                     KEYBANK NATIONAL ASSOCIATION

                                     By: /s/ Marianne T. Meil

                                     Title: Vice President

                                     NATIONAL CITY BANK

                                     By: /s/ Terri L. Cable

                                     Title: Senior Vice President

                                     ABN AMRO BANK N.V.

                                     By: /s/ Mary L. Honda

                                     Title: Group Vice President

                                     By: /s/ John L. Church

                                     Title: Senior Vice President

                                     BANK OF AMERICA, N.A.

                                     By: /s/ Raju Patel

                                     Title: Principal

<PAGE>   10

                                     THE CHASE MANHATTAN BANK

                                     By: /s/ Henry W. Centa

                                     Title: Vice President

                                     THE BANK OF NEW YORK

                                     By: /s/ Kenneth R. McDonnell

                                     Title: Assistant Vice President

                                     FIRSTAR BANK

                                     By: /s/ David Dannemiller

                                     Title: Vice President

                                              1350 Euclid Avenue, Eighth Floor
                                              Cleveland, Ohio 44115

                                              Attention:  David Dannemiller
                                              Phone:  216-623-9233
                                              Fax:  216-623-9208

                                     HSBC BANK USA

                                     By: /s/ Christopher M. Samms

                                     Title: Vice President

                                              200 South Wacker Drive, Suite 770
                                              Chicago, Illinois 60606

                                              Attention:  Chris Samms
                                              Phone:  312-575-1314
                                              Fax:  312-575-1331

<PAGE>   11

                                     BANK OF IRELAND

                                     By: /s/ Louise Molloy    /s/ Padraig Rushe

                                     Title: Authorised Signatories

                                              LaTouche House, Int'l Financial
                                              Services
                                              Custom House Docks
                                              Dublin, Ireland 1

                                              Attention:  John Goggin
                                              Phone:  011-35-31-609-3482
                                              Fax:  011-35-31-670-1079

<PAGE>   12

                              CONSENT AND AGREEMENT

         As of the date and year first above written, each of the undersigned
hereby:

         (a) fully consents to the terms and provisions of the above Amendment
and the consummation of the transactions contemplated thereby;

         (b) agrees that the Guaranty to which it is a party and each other Loan
Document to which it is a party are hereby ratified and confirmed and shall
remain in full force and effect, acknowledges and agrees that it has no setoff,
counterclaim, defense or other claim or dispute with respect the Guaranty to
which it is a party and each other Loan Document to which it is a party; and

         (c) represents and warrants to the Agent and the Lenders that the
execution, delivery and performance of this Consent and Agreement are within its
powers, have been duly authorized and are not in contravention of any statute,
law or regulation or of any terms of its organizational documents or of any
material agreement or undertaking to which it is a party or by which it is
bound, and this Consent and Agreement is the legal, valid and binding
obligations of it, enforceable against it in accordance with the terms hereof
and thereof. Terms used but not defined herein shall have the respective
meanings ascribed thereto in the Loan Agreement.

                                         DIEBOLD INVESTMENT COMPANY

                                         By: /s/ Margaret Pulgini

                                             Title: Vice President/Treasurer

                                         DIEBOLD FINANCE COMPANY, INC.

                                         By: /s/ Margaret Pulgini

                                             Title: Vice President/Treasurer

                                         DIEBOLD CREDIT CORPORATION

                                         By: /s/ Charee Francis-Vogelsang

                                             Title: Vice President and Secretary

                                         DIEBOLD SST HOLDING COMPANY, INC.

                                         By: /s/ Charee Francis-Vogelsang

                                             Title: Vice President and Secretary

<PAGE>   13

                                         DIEBOLD SELF-SERVICE SYSTEMS

                                         By: /s/ Charee Francis-Vogelsang

                                                  Title: Secretary

                                         DIEBOLD HOLDING COMPANY, INC.

                                         By: /s/ Charee Francis-Vogelsang

                                                  Title:  Assistant Secretary

                                         DIEBOLD MEXICO HOLDING COMPANY, INC.

                                         By: /s/ Charee Francis-Vogelsang

                                                  Title:  Secretary

                                         DIEBOLD LATIN AMERICA HOLDING COMPANY,
                                         INC.

                                         By: /s/ Charee Francis-Vogelsang

                                                  Title:  Secretary

<PAGE>   14

                                    EXHIBIT A

                                PRICING SCHEDULE

         The Applicable Margin for Floating Rate Loans, Eurodollar Loans and
Multicurrency Loans, the Facility Fee payable pursuant to Section 2.5 and the
Letter of Credit Fee payable pursuant to Section 2.15.6 shall, subject to the
last sentence of this Exhibit A, be determined in accordance with the Pricing
Matrix set forth below based on the Company's Total Net Debt to Capitalization
Ratio in effect from time to time.

Pricing Matrix (in basis points)

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
Level       Total Net Debt to   Facility Fee     Floating Rate    Applicable Eurodollar/
             Capitalization                      Margin for       Eurocurrency Margin for
                  Ratio                          Revolving        Revolving Credit Loans,
                                                 Credit Loans     Multicurrency Loans and
                                                                  Letter of Credit Fees
-------------------------------------------------------------------------------------------
<S>        <C>                  <C>              <C>              <C>
I          Less than 25%        8.0 b.p.         0.0 b.p.         32.0 b.p.
-------------------------------------------------------------------------------------------
II         Greater than 25%     10.0 b.p.        0.0 b.p.         40.0 b.p
           but less than 35%
-------------------------------------------------------------------------------------------
III        Greater tahn 35%     15.0 b.p.        0.0 b.p.         50.0 b.p.
           but less than 45%
-------------------------------------------------------------------------------------------
IV         Greater than 45%     20.0 b.p.        0.0 b.p.         70.0 b.p.
-------------------------------------------------------------------------------------------
</TABLE>

         If the Aggregate Total Outstandings of all Lenders equals or exceeds
33% of the Aggregate Commitments of all Lenders, the Eurodollar, Eurocurrency
and Letter of Credit Fee Applicable Margin will increase by 10 basis points at
every level on the Pricing Matrix.

         Such Applicable Margin shall be determined in accordance with the
foregoing Pricing Matrix based on the Company's level as reflected in the most
recent financial statements of the Company delivered pursuant to Section 6.1(i)
and (ii) of the Loan Agreement. Adjustments, if any, to the Applicable Margin
shall be effective 50 days after the end of each of the first three fiscal
quarters of each fiscal year of he Company and 95 days after the end of each
fiscal year of the Company, commencing with the first such day after the
Effective Date. If the Borrower fails to deliver the financials statements
required pursuant to Section 6.1(i) or (ii) at the time required or any other
Default has occurred and is continuing, then the Applicable Margin shall be the
highest Applicable Margin set forth in the foregoing Pricing Matrix until such
Default is cured or waived under the Agreement. Notwithstanding the foregoing,
the Applicable Margin for the period from and including the Second Amendment
Effective Date until it shall be adjusted for the first time after the Second
Amendment Effective Date shall be the Level II Applicable Margin described
above.

<PAGE>   15

                                 SCHEDULE 1.1(a)

                                   COMMITMENTS

<TABLE>
<CAPTION>
                                        TITLE                  U.S. DOLLARS             EUROS
                                        -----                  ------------             -----
<S>                               <C>                         <C>                   <C>
Bank One, Michigan                Administrative Agent         38,333,335.00         24,350,875.00
                                                                   (17.04 %)              (19.48%)

Key Bank National Association     Syndication Agent            32,000,000.00         16,000,000.00
                                                                    (14.22%)              (12.80%)
National City Bank                Documentation Agent          29,333,333.00         15,666,667.00
                                                                    (13.04%)              (12.53%)

The Chase Manhattan Bank                                       21,333,333.00         10,666,667.00
                                                                     (9.48%)               (8.53%)

The Bank of New York                                           21,333,333.00         10,666,667.00
                                                                     (9.48%)               (8.53%)

ABN Amro Bank, N.V.                                            21,333,333.00         10,666,667.00
                                                                     (9.48%)               (8.53%)

Bank of America, N.A.                                          21,333,333.00         10,666,667.00
                                                                     (9.48%)               (8.53%)

Firstar Bank                                                   25,000,000.00
                                                                    (11.11%)                     -

HSBC Bank USA                                                  15,000,000.00         10,526,316.00
                                                                     (6.67%)               (8.42%)

Bank of Ireland                                                            -         15,789,474.00
                                                                                          (12.63%)

TOTAL                                                           $225,000,000           125,000,000
                                                                ============           ===========
</TABLE><PAGE>   1
                                                                  EXHIBIT 10.18

                       RETIREMENT AND CONSULTING AGREEMENT

                  THIS RETIREMENT AND CONSULTING AGREEMENT (this "Agreement"),
is made, entered into and effective as of April 19, 2000 (the "Transition
Date"), by and between DIEBOLD, INCORPORATED (the "Company"), located at 5995
Mayfair Road, North Canton, Ohio 44720 and ROBERT W. MAHONEY ("Mahoney"),
residing at 5291 St. Andrews Drive NW, Canton, Ohio 44708.

                                   WITNESSETH:

                  WHEREAS, Mahoney has given nearly twenty years of dedicated,
faithful and valued service to the Company, and has served the Company well and
dutifully in numerous capacities including Chief Executive Officer and, most
recently, as the Chairman of the Board of Directors of the Company; and

                  WHEREAS, Mahoney has determined that, effective July 1, 2000,
he wishes to retire from his employment with the Company to pursue various
charitable and other interests; and

                  WHEREAS, the Company desires to retain Mahoney, because of his
vast experience and knowledge of the Company's business, markets and products,
after his retirement to provide consulting services, and Mahoney agrees to
provide such consulting services as described more fully herein; and

                  WHEREAS, Mahoney has determined that, effective on the
Transition Date, he shall resign from any and all offices of the Company, and
any other position, office or directorship of any other entity for which he was
serving at the request of the Company, and, in addition, shall resign and retire
from his employment with the Company at the conclusion of a severance period;
and

                  WHEREAS, the Company and Mahoney desire to set forth the
payments and benefits that Mahoney will be entitled to receive from the Company
in connection with the cessation of his employment with the Company and for his
valuable services as a consultant;

                  NOW, THEREFORE, in consideration of the promises and
agreements contained herein and other good and valuable consideration, the
sufficiency and receipt of which are hereby acknowledged, and intending to be
legally bound, the Company and Mahoney hereby agree as follows:

1. RESIGNATION AND RETIREMENT. Mahoney hereby resigns, effective on the
Transition Date, his position as Chairman of the Board of the Company. Mahoney
further resigns, effective on the Transition Date: (a) from all other offices of
the Company to which he has been elected by the Board of Directors of the
Company (or to which he has otherwise been appointed), (b) from all offices of
any entity that is a subsidiary of, or is otherwise related to or affiliated
with, the Company, (c) from all administrative, fiduciary or other positions he
may hold with

                                       55

<PAGE>   2

respect to arrangements or plans for, of or relating to the Company, and (d)
from any other directorship, office, or position of any corporation,
partnership, joint venture, trust or other enterprise (each, an "Other Entity")
insofar as Mahoney is serving in the directorship, office, or position of the
Other Entity at the request of the Company. Mahoney further resigns and retires,
effective July 1, 2000 (the "Retirement Date"), from his employment with the
Company, and its subsidiaries and related or affiliated companies. The Company
hereby consents to and accepts said resignations.

2.       CONSULTING SERVICES.

                  A. CONSULTING OBLIGATIONS. From the Retirement Date through
June 30, 2002 (the "Consulting Period"), the Company agrees to retain Mahoney as
a consultant and Mahoney agrees to provide consulting services to the Company as
the Company shall reasonably request from time to time. The specific consulting
services that Mahoney will perform, including the time and duration thereof,
shall be as reasonably specified by the Company. In the event that (i) specific
consulting services are not requested by the Company, (ii) Mahoney is
occasionally unavailable to perform specific consulting services, or (iii)
Mahoney becomes disabled and is unable to perform any further consulting
services pursuant to this Paragraph 2, it is expressly acknowledged and agreed
that no portion of the compensation or benefits provided in Paragraphs 2 or 3
shall be refundable and that all other terms and conditions of this Agreement
shall remain in full force and effect.

                  B. COMPENSATION.

                           (I) As consideration for the consulting services
pursuant to this Paragraph 2, the Company agrees to pay Mahoney an annual
consulting fee of $200,000, payable in semi-monthly installments. Mahoney also
shall be reimbursed for all reasonable out-of-pocket costs, including costs for
travel, that he incurs in the course of performing the consulting services.

                           (II) In addition, as part of his compensation for the
consulting services pursuant to this Paragraph 2, Mahoney shall be eligible for
certain benefits and perquisites on the terms and conditions specified in
Paragraph 3 and to be compensated for the cost of such benefits to him.

                  C. FULL BENEFIT OF SERVICES. It is the intent of the Company
to obtain from Mahoney and the intent of Mahoney to deliver to the Company the
full and complete benefit of Mahoney's services under this Paragraph 2. In
furtherance thereof, and to protect and secure to the Company its proprietary
rights, Mahoney covenants and agrees as follows:

                           (I) Mahoney agrees to, and hereby does, assign to the
Company all copyrights, trade secrets and patents of all inventions,
improvements and other innovations of any kind (collectively, "Works") developed
by Mahoney in the course of performing the consulting services pursuant to this
Paragraph 2, whether or not such Works are eligible for patent, copyright,
trademark, trade secret or other legal protection. Mahoney agrees to reasonably
assist and cooperate with the Company in all respects in confirmation of the
assignment to the Company of all rights in and to the Works. Mahoney will,
during the Consulting Period and thereafter, execute such documents and
assignments as are necessary for this purpose.

<PAGE>   3

                           (II) The physical embodiment of Mahoney's services
pursuant to this Paragraph 2, including without limitation any writings and
reports produced while performing the consulting services, shall, at all times,
become the sole and exclusive property of the Company.

                  D. INDEPENDENT CONTRACTOR. In performing the consulting
services pursuant to this Paragraph 2, Mahoney shall be acting at all times as
an independent contractor, and nothing contained herein shall be deemed or
construed to create any employer/employee relationship or any partnership or
joint venture between Mahoney and the Company.

                  E. CONFIDENTIALITY. The provisions of Paragraph 7 shall apply
to Mahoney's performance of consulting services pursuant to this Paragraph 2.

         3. ADDITIONAL COMPENSATION AND BENEFITS. In consideration of the
promises made by Mahoney in this Agreement and subject to the conditions hereof,
the Company agrees to the following:

                  A. CONTINUED SALARY. For the time period (the "Severance
Period") beginning on the Transition Date and ending on the Retirement Date,
Mahoney shall be paid his regular monthly salary in semi-monthly payments, via
direct deposit account, subject to normal payroll deductions. The payment of
these amounts during the Severance Period shall be deemed to include any
vacation pay otherwise due Mahoney. During the Severance Period, Mahoney shall
perform such duties and provide such services as the Company shall reasonably
request.

                  B. DEFERRED COMPENSATION. Any amounts held for and on behalf
of Mahoney under the Amended and Restated 1992 Deferred Incentive Compensation
Plan for Diebold, Incorporated shall be distributed according to the terms and
conditions of said Plan and shall be based on the termination of his employment
as of the Retirement Date. Any amounts paid hereunder shall be subject to
applicable payroll tax deductions.

                  C. ANNUAL BONUS PLAN. Mahoney shall be eligible to receive an
amount equal to one-half of a full year's annual bonus for 2000 under the terms
and conditions of the Annual Incentive Plan applicable to him. The percentage to
be paid under such plan (threshold, target, plan or maximum) will be determined
by the Company's performance for fiscal year end 2000. Mahoney shall not be
eligible for annual bonus participation after the 2000 bonus period. Any amounts
paid hereunder shall be subject to applicable payroll tax deductions.

                  D. LONG TERM EXECUTIVE INCENTIVE PLAN. Mahoney shall be
eligible to receive additional compensation under the Company's Long Term
Executive Incentive Plan ("LTIP") as follows: (i) he shall be eligible for 83.3%
of that amount that would be payable to him for the Performance Period
1998-2000; and (ii) he shall be eligible for 50% of that amount that would be
payable to him for the Performance Period 1999-2001. Any amounts paid hereunder
shall be subject to applicable payroll tax deductions.

                  E. STOCK OPTIONS. Mahoney shall not be eligible for any
additional grants of stock options after the Retirement Date. Mahoney's rights
with respect to stock options granted to him prior to the Retirement Date under
certain nonqualified stock option plans of the Company shall be governed by the
terms and conditions of those stock option plans based on his retirement as of
the Retirement Date; provided, however, that with respect to that certain
Nonqualified Stock Option Agreement dated October 15, 1996 (the "1996
Agreement") pursuant to which Mahoney was granted an option to purchase 75,000
shares of the Company's stock

<PAGE>   4

(which number subsequently was adjusted due to a stock split to 112,500 shares),
Mahoney's rights under the 1996 Agreement shall be based on the terms and
conditions of the 1996 Agreement with the exception that the 1996 Agreement
shall be, and hereby is, modified to extend the term of such option until the
end of the Consulting Period by amending Paragraph 4(C) of the 1996 Agreement to
replace the words "Five (5) years from the Date of Grant" with the words "July
1, 2002." Any compensation paid to Mahoney with respect to stock options will be
subject to applicable payroll tax deductions.

                  F. MEDICAL COVERAGE.

                           (I) Mahoney shall be allowed to continue on an
individual basis as a plan participant in the Diebold, Incorporated Associate
Health Care Plan during the Severance Period.

                           (II) During the Consulting Period, Mahoney may
continue, at his cost, his participation in the Diebold, Incorporated Health
Care Plan, pursuant as applicable to the Consolidated Omnibus Budget
Reconciliation Act of 1986, as amended ("COBRA"). During the Consulting Period,
for administrative convenience, Mahoney hereby elects to pay the cost of such
medical coverage by hereby authorizing the Company to subtract the actual cost
of his individual medical coverage from the amounts otherwise payable to him
under Paragraph 2.b, and to remit on his behalf that subtracted amount to the
appropriate entity as a payment for the medical coverage.

                  G. SPLIT DOLLAR AGREEMENT. Mahoney's eligibility for the Split
Dollar Executive Benefit Plan shall continue after the Transition Date. The
Company, however, shall make no further premium payments for this benefit. In
the event that Mahoney cashes in the policy he has obtained under said Plan, he
shall repay to the Company the amount of the Company's premium contribution
toward said policy. Due to his continued receipt of coverage under the Split
Dollar Executive Benefit Plan after the Retirement Date, Mahoney shall from time
to time be deemed to have received income from the Company. Any such imputed
income shall be calculated and reported to Mahoney in accordance with the
Company's usual practices and policies for retired executives, and shall be
subject to applicable payroll tax deductions.

                  H. MOTOR VEHICLE PROGRAM. The Company shall continue to pay to
Mahoney his current monthly Motor Vehicle Allowance during the Severance Period,
less normal payroll deductions. During his Consulting Period Mahoney shall
participate in the Company's leased vehicle program at his own expense. During
the Consulting Period, for administrative convenience, Mahoney hereby elects to
pay the cost of any such leased vehicle by hereby authorizing the Company to
subtract the actual cost of the leased vehicle from the amounts otherwise
payable to him under Paragraph 2.b, and to remit on his behalf that subtracted
amount to the appropriate entity as a payment for the leased vehicle.

                  I. OFFICE SPACE/SECRETARIAL SUPPORT. During the Severance
Period and the Consulting Period, the Company shall provide Mahoney with
reasonable and appropriate office space, which may be off of the Company's
premises. In addition, during the Severance Period and the Consulting Period,
the Company shall provide Mahoney with reasonable and appropriate secretarial
support.

<PAGE>   5

                  J. COUNTRY CLUB MEMBERSHIP.

                           (I) BROOKSIDE COUNTRY CLUB. The Company's payment of
Mahoney's membership at Brookside Country Club shall be continued during the
Severance Period subject to normal payroll deductions. As of the Retirement
Date, Mahoney's membership at Brookside Country Club (i.e., the stock
certificate) shall revert to him, and the value of that membership shall
constitute taxable income to Mahoney at that time and shall be factored into the
amount of payroll taxes withheld from the Continued Salary payments made to
Mahoney pursuant to Paragraph 3.a. After the Retirement Date, Mahoney shall bear
the costs of membership at Brookside Country Club.

                           (II) GLENMOOR COUNTRY CLUB. Mahoney's
Company-sponsored membership at Glenmoor Country Club shall also continue
through the Severance Period subject to normal payroll deductions. During the
Consulting Period, Mahoney shall continue to be eligible to utilize the
Company-sponsored membership at Glenmoor at his own expense. At the conclusion
of the Consulting Period, Mahoney agrees to transfer his Company-sponsored
membership at Glenmoor to a designee named by the Company, and the Company
agrees to pay any costs related to such transfer.

                  K. PROFESSIONAL FEES. The Company and Mahoney acknowledge and
agree that each shall be responsible for the payment of their respective legal
fees and costs (and related disbursements) incurred in connection with Mahoney's
resignation and all matters relating to the negotiation and execution of the
releases, employment terms and all other matters covered by this Agreement.

                  L. FINANCIAL SERVICES. During the Severance Period, Mahoney
shall continue to receive those financial advisory and taxation services that,
prior to the Transition Date, were provided to him by IMG at the Company's
expense, subject to normal payroll deductions. Mahoney shall have access to
these same financial services during his Consulting Period at his own cost.
During the Consulting Period, for administrative convenience, Mahoney hereby
elects to pay the cost of such financial services by hereby authorizing the
Company to subtract his actual cost for such services from the amounts otherwise
payable to him under Paragraph 2.b, and to remit on his behalf that subtracted
amount to the appropriate entity as a payment for such services.

                  M. RETIREMENT AND 401(K) PLANS. During the Severance Period,
Mahoney shall continue to participate in the Company's Retirement Plan for
Salaried Employees, 401(k) Savings Plan, and Supplemental Employee Retirement
Plan (collectively, "Retirement Plans"). Mahoney's post-Retirement Date
eligibility for benefits, if any, as a past employee of the Company under the
Retirement Plans shall be as set forth in the respective Plan documents and
shall be based on the termination of his employment as of the Retirement Date.

                  N. BUSINESS EXPENSES. At the conclusion of the Severance
Period, Mahoney will promptly pay any balance due on any Company credit card or
other account used by him. The Company will either (i) reimburse Mahoney for any
pending, reasonable business-related credit card charge for which Mahoney has
not already been reimbursed provided Mahoney files a proper Travel and Expense
Report, or (ii) pay such charge directly to the card-issuing bank. Mahoney
hereby authorizes the Company to deduct from monies due Mahoney under this
Agreement any balance remaining on Mahoney's Company credit card account after
such (i) reimbursement or (ii) direct payment.

<PAGE>   6

                  O. OTHER COMPENSATION AND BENEFITS. Except as specifically set
forth herein, no other compensation or benefits are due Mahoney.

         4. NON-COMPETITION.

                  A. From the Transition Date and continuing until thirty-six
months after the end of the Consulting Period, Mahoney shall not, directly or
indirectly, do or suffer to be done any of the following (collectively, "Covered
Activities"): own, manage, control or participate in the ownership, management,
or control of, or be employed or engaged by or otherwise affiliated or
associated as a consultant, independent contractor or otherwise with any other
corporation, partnership, proprietorship, firm, association, or other business
entity, or otherwise engage in any business, which is in competition with the
Company's business; provided, however, that the ownership of not more than one
percent of any class of publicly-traded securities of any entity shall not be
deemed a violation of this Paragraph 4. For purposes of this Agreement, the
"Company's business" shall mean any business in which the Company actively
engages now or until the end of the Consulting Period, and any business in which
the Company has actively engaged in the two (2) year period prior to the date
hereof, including, without limitation, the design, manufacture, assembly,
distribution, sale, service or maintenance of those products listed in Exhibit
A.

                  B. In the event Mahoney shall violate any provision of this
Paragraph 4 as to which there is a specific time period during which he is
prohibited from taking certain actions or from engaging in certain activities as
set forth in such provision, then, in such event, such violation shall toll the
running of such time period from the date of such violation until such violation
shall cease. The foregoing shall in no way limit the Company's rights under
Paragraph 9 of this Agreement.

                  C. Mahoney has carefully considered the nature and extent of
the restrictions upon him and the rights and remedies conferred upon the Company
under this Paragraph 4 and this Agreement, and hereby acknowledges and agrees
that the same are reasonable in time and territory, are designed to eliminate
competition which otherwise would be unfair to the Company, do not stifle the
inherent skill and experience of Mahoney, would not operate as a bar to
Mahoney's sole means of support, are fully required to protect the legitimate
interests of the Company and do not confer a benefit upon the Company
disproportionate to the detriment to Mahoney. Mahoney further acknowledges that
his obligations in this Paragraph 4 are made in consideration of, and are
adequately supported by the payments by the Company to Mahoney described herein.

                  D. Notwithstanding the other provisions of this Paragraph 4,
Mahoney may undertake Covered Activities if he first obtains the written consent
of theCompany's Chief Executive Officer, which consent shall not be unreasonably
withheld.

         5. NO SOLICITATION OF EMPLOYEES. Mahoney agrees that he will not: (i)
employ, assist in employing, or otherwise associate in business with any person
who is, or has been in the 12 month period prior to such individual's
association with Mahoney an employee, officer or agent of the Company, or any of
its affiliated, related or subsidiary entities, unless such employee was
involuntarily terminated by the Company; or (ii) induce any person who is an
employee, officer or agent of the Company, or any of its affiliated, related, or
subsidiary entities to terminate such relationship.

<PAGE>   7

         6. RELEASE BY MAHONEY.

                  A. Mahoney for himself and his dependents, successors,
assigns, heirs, executors and administrators (and his and their legal
representatives of every kind), hereby releases, dismisses, and forever
discharges the Company from, and agrees to indemnify the Company against, any
and all arbitrations, claims (including claims for attorney's fees), demands,
damages, suits, proceedings, actions and/or causes of action of any kind and
every description, whether known or unknown, which Mahoney now has or may have
had for, upon, or by reason of any cause whatsoever (except that this release
shall not apply to the obligations of the Company arising under this Agreement),
against the Company ("Claims"), including but not limited to:

                           (I) any and all Claims, directly or indirectly,
arising out of or relating to: (A) Mahoney's employment with or consulting
services for the Company; and (B) Mahoney's resignation as Chairman of the Board
and any other position described in Paragraph 1 of this Agreement.

                           (II) any and all claims of discrimination, including
but not limited to claims of discrimination on the basis of sex, race, age,
national origin, marital status, religion or disability, including,
specifically, but without limiting the generality of the foregoing, any claims
under the Age Discrimination in Employment Act, as amended (the "ADEA"), Title
VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities
Act of 1990, the Family and Medical Leave Act of 1993 and Ohio Revised Code
Chapter 4112;

                           (III) any and all claims of wrongful or unjust
discharge or breach of any contract or promise, express or implied; and

                           (IV) any and all claims under or relating to any and
all employee compensation, employee benefit, employee severance or employee
incentive bonus plans and arrangements; provided that he shall remain entitled
to the amounts and benefits specified in Paragraph 3 above. Mahoney agrees that
he intends to release any and all worker compensation claims he may have against
the Company by this Agreement, and further agrees to execute any documentation
as may be reasonably required to perfect such release when presented to him by
the Company.

                  B. Mahoney understands and acknowledges that the Company does
not admit any violation of law, liability or invasion of any of his rights and
that any such violation, liability or invasion is expressly denied. The
consideration provided under this Agreement is made for the purpose of settling
and extinguishing all claims and rights (and every other similar or dissimilar
matter) that Mahoney ever had or now may have or ever will have against the
Company to the extent provided in this Paragraph 6. Mahoney further agrees and
acknowledges that no representations, promises or inducements have been made by
the Company other than as appear in this Agreement.

                  C. Mahoney further understands and acknowledges that:

                           (I) The release provided for in this Paragraph 6,
including claims under the ADEA to and including the date of this Agreement, is
in exchange for the additional consideration provided for in this Agreement, to
which consideration he was not heretofore entitled;

<PAGE>   8

                           (II) He has been advised by the Company to consult
with legal counsel prior to executing this Agreement and the release provided
for in this Paragraph 6, has had an opportunity to consult with and to be
advised by legal counsel of his choice, fully understands the terms of this
Agreement, and enters into this Agreement freely, voluntarily and intending to
be bound;

                           (III) He has been given a period of twenty-one days
to review and consider the terms of this Agreement, and the release contained
herein, prior to its execution and that he may use as much of the twenty-one day
period as he desires; and

                           (IV) He may, within seven days after execution,
revoke this Agreement. Revocation shall be made by delivering a written notice
of revocation to the Vice President, Human Resources at the Company. For such
revocation to be effective, written notice must be actually received by the Vice
President, Human Resources at the Company no later than the close of business on
the seventh day after Mahoney executes this Agreement. If Mahoney does exercise
his right to revoke this Agreement, all of the terms and conditions of the
Agreement shall be of no force and effect and the Company shall have no
obligation to satisfy the terms or make any payment to Mahoney as set forth in
Paragraphs 2 or 3 of this Agreement.

                  D. Mahoney will never file a lawsuit or other action asserting
any claim that is released in this Paragraph 6. In the event Mahoney breaches
this Paragraph 6.d, he agrees to indemnify the Company against any costs or
expenses, including attorney fees, that the Company may incur in connection with
such breach.

                  E. Mahoney and the Company acknowledge that his resignation is
by mutual agreement between the Company and Mahoney, and that Mahoney waives and
releases any claim that he has or may have to reemployment.

                  F. For purposes of the above provisions of this Paragraph 6,
the "Company" shall include its predecessors, subsidiaries, divisions, related
or affiliated companies, officers, directors, stockholders, members, employees,
heirs, successors, assigns, representatives, agents and counsel.

         7. CONFIDENTIAL INFORMATION.

                  A. Mahoney acknowledges and agrees that in the performance of
his duties as an officer and employee of the Company, as well as in the
performance of consulting services pursuant to Paragraph 2, he was or may be
brought into frequent contact with, had or may have access to, and/or became or
may become informed of confidential and proprietary information of the Company
and/or information that is a competitive asset of the Company (collectively,
"Confidential Information") and the disclosure of which would be harmful to the
interests of the Company or its subsidiaries. Confidential Information shall
include, without limitation: (i) customer and distributor information such as
names, addresses, sales histories, purchasing habits, credit status, pricing
levels, etc., (ii) certain prospective customer and distributor information
lists, etc., (iii) product and systems specifications, schematics, designs,
concepts for new or improved products and services and other products and
services data, (iv) product and material costs, (v) suppliers' and prospective
suppliers' names, addresses and contracts, (vi) future corporate planning data,
(vii) production methods and equipment, (viii) marketing strategies, (ix) the
Company's financial results and business condition, (x) any of the foregoing
which belong to

<PAGE>   9

any other person or company but to which Mahoney has had access by reason of his
employment with the Company, and (xi) any other information which constitutes a
"trade secret" under federal or state law. Such Confidential Information is more
fully described in Subparagraph 7.b. Mahoney acknowledges that the Confidential
Information of the Company gained by Mahoney during his association with the
Company was developed by and/or for the Company through substantial expenditure
of time, effort and money and constitutes valuable and unique property of the
Company.

                  B. Mahoney will keep in strict confidence, and will not,
directly or indirectly, at any time, disclose, furnish, disseminate, make
available, use or suffer to be used in any manner any Confidential Information
of the Company without limitation as to when or how Mahoney may have acquired
such Confidential Information. Mahoney specifically acknowledges that
Confidential Information includes any and all information, whether reduced to
writing (or in a form from which information can be obtained, translated, or
derived into reasonably usable form), or maintained in the mind or memory of
Mahoney and whether compiled or created by the Company, which derives
independent economic value from not being readily known to or ascertainable by
proper means by others who can obtain economic value from the disclosure or use
of such information, that reasonable efforts have been put forth by the Company
to maintain the secrecy of confidential or proprietary or trade secret
information, that such information is and will remain the sole property of the
Company, and that any retention or use by Mahoney of confidential or proprietary
or trade secret information after the termination of Mahoney's employment with,
and performance of services (including consulting services pursuant to Paragraph
2) for, the Company shall constitute a misappropriation of the Company's
Confidential Information.

                  C. At the conclusion of the Consulting Period, Mahoney will
immediately return to the Company (to the extent he has not already returned),
equipment, software, electronic files, computers, including any laptop, in good
condition, all property of the Company, including, without limitation, property,
documents and/or all other materials (including copies, reproductions, summaries
and/or analyses) which constitute, refer or relate to Confidential Information
of the Company.

                  D. Mahoney further acknowledges that his obligation of
confidentiality shall survive, regardless of any other breach of this Agreement
or any other agreement, by any party hereto, until and unless such Confidential
Information of the Company shall have become, through no fault of Mahoney
generally known to the public or Mahoney is required by law (after providing the
Company with notice and opportunity to contest such requirement) to make
disclosure. Mahoney's obligations under this Paragraph 7 are in addition to, and
not in limitation or preemption of, all other obligations of confidentiality
which Mahoney may have to the Company under general legal or equitable
principles or statutes.

         8. DISCLOSURE. From the date of this Agreement through the end of the
Consulting Period, Mahoney will communicate the contents of Paragraphs 4, 5, 7,
9.b, 10, and 12 of this Agreement to any person, firm, association, or
corporation other than Diebold which he intends to be employed by, associated in
business with, or represent.

         9. BREACH; ARBITRATION.

                  A. If Mahoney breaches any of the provisions of this
Agreement, then the Company may immediately terminate all remaining payments and
benefits described in this Agreement, and in addition, the Company shall be
entitled to obtain reimbursement from

<PAGE>   10

Mahoney of all payments and benefits already provided pursuant to Paragraphs 2
or 3 of this Agreement, plus any expenses and damages incurred as a result of
the breach (including, without limitation, reasonable attorneys' fees), with the
remainder of this Agreement, and all promises and covenants herein, remaining in
full force and effect.

                           (I) The Company will not terminate pursuant to
Paragraph 9.a any benefits in which Mahoney had vested as of the Transition Date
under the Retirement Plans. Mahoney's COBRA rights, if any, will not be reduced
by any action taken by the Company under Paragraph 9.a.

                           (II) Mahoney may challenge any Company action under
Paragraph 9.a.

                  B. The parties agree that any disputes, controversies, or
claims of whatever nature arising out of or relating to this Agreement or breach
thereof shall be resolved through binding arbitration before a mutually
agreeable arbitrator or arbitrators, in accordance with the applicable rules of
the American Arbitration Association; provided, however, that the parties agree
that in the event of any alleged breach by Mahoney of any of his obligations
under Paragraphs 4, 5 and 7 of the Agreement, the arbitration requirements of
this Paragraph 9.b shall not apply, and that instead, the Company may elect, in
its sole discretion, to seek relief in a court of general jurisdiction in the
State of Ohio, and the parties hereby consent to the exclusive jurisdiction of
such court. In addition, in connection with any such court action. Mahoney
acknowledges and agrees that the remedy at law available to the Company for
breach by Mahoney of any of his obligations under Paragraphs 4, 5, and 7 of this
Agreement would be inadequate and that damages flowing from such a breach would
not readily be susceptible to being measured in monetary terms. Accordingly,
Mahoney acknowledges, consents and agrees that, in addition to any other rights
or remedies which the Company may have at law, in equity or under this
Agreement, upon adequate proof of Mahoney's violation of any provision of
Paragraphs 4, 5 or 7 of this Agreement, the Company shall be entitled to
immediate injunctive relief and may obtain a temporary order restraining any
threatened or further breach, without the necessity of proof of actual damage.

         10. CONTINUED AVAILABILITY AND COOPERATION.

                  A. Mahoney shall cooperate fully with the Company and with the
Company's counsel in connection with any present and future actual or threatened
litigation or administrative proceeding involving the Company that relates to
events, occurrences or conduct occurring (or claimed to have occurred) during
the period of Mahoney's employment by the Company or during the Severance Period
or the Consulting Period. This cooperation by Mahoney shall include, but not be
limited to:

                           (I) making himself reasonably available for
interviews and discussions with the Company's counsel as well as for depositions
and trial testimony;

                           (II) if depositions or trial testimony are to occur,
making himself reasonably available and cooperating in the preparation therefor
as and to the extent that the Company or the Company's counsel reasonably
requests;

                           (III) refraining from impeding in any way the
Company's prosecution or defense of such litigation or administrative
proceeding; and

<PAGE>   11

                           (IV) cooperating fully in the development and
presentation of the Company's prosecution or defense of such litigation or
administrative proceeding.

                  B. Mahoney shall be reimbursed by the Company for reasonable
travel, lodging, telephone and similar expenses incurred in connection with such
cooperation, which the Company shall reasonably endeavor to schedule at times
not conflicting with the reasonable requirements of any employer of Mahoney, or
with the requirements of any third party with whom Mahoney has a business
relationship permitted hereunder that provides remuneration to Mahoney. Mahoney
shall not unreasonably withhold his availability for such cooperation.

                  C. Upon the Transition Date, Mahoney will update the Company
as to the status of all pending matters for which he was responsible or
otherwise involved. During the Severance Period, Mahoney will perform such
services and provide such consultations as the Company shall reasonably request.

                  D. The Company agrees to release Mahoney and indemnify and
hold him harmless against all liability or loss, and against all claims or
actions, arising from or connected with his past activities as an employee of
the Company or his activities in the performance of consulting services pursuant
to Paragraph 2, including but not limited to those claims or actions based upon
or arising out of negligent or wrongful acts to persons or property and the
defense of any such claims or actions. Notwithstanding the foregoing, the
Company will have no obligation to release, indemnify, hold harmless or defend
Mahoney for any conduct by Mahoney alleged to be intentional or willful or that
arises from a violation of any statutory prohibition unless such conduct was
specifically requested by the Company. Mahoney warrants that he has disclosed to
the Company all claims and circumstances and potential claims and circumstances
that may exist or could reasonably be brought against him concerning his past
activities as an employee.

         11. SUCCESSORS AND BINDING AGREEMENT.

                  A. This Agreement shall be binding upon and inure to the
benefit of the Company and any successor of or to the Company, including,
without limitation, any persons acquiring, directly or indirectly, all or
substantially all of the business and/or assets of the Company whether by
purchase, merger, consolidation, reorganization, or otherwise (and such
successor shall thereafter be deemed included in the definition of "the Company"
for purposes of this Agreement), but shall not otherwise be assignable or
delegable by the Company.

                  B. This Agreement shall inure to the benefit of and be
enforceable by Mahoney's personal or legal representatives, executors,
administrators, successors, heirs, distributees, and/or legatees.

                  C. This Agreement is personal in nature and none of the
parties hereto shall, without the consent of the other parties, assign, transfer
or delegate this Agreement or any rights or obligations hereunder except as
expressly provided in Subparagraphs (a) and (b) of this Paragraph 11.

                  D. This Agreement is intended to be for the exclusive benefit
of the parties hereto, and except as provided in Subparagraphs (a) and (b) of
this Paragraph 11, no third party shall have any rights hereunder.

<PAGE>   12

         12. NON-DISCLOSURE; STATEMENTS TO THIRD PARTIES.

                  A. All provisions of this Agreement and the circumstances
giving rise hereto are and shall remain confidential and shall not be disclosed
to any person not a party hereto (other than (i) Mahoney's spouse, if any, (ii)
each party's attorney, financial advisor and/or tax advisor to the extent
necessary for such advisor to render appropriate legal, financial and tax
advice, and (iii) persons or entities that fall within the scope of Paragraphs 4
and 5 of this Agreement, but only to the extent required thereby), except as
necessary to carry out the provisions of this Agreement, and except as may be
required by law. Notwithstanding the foregoing, this Agreement may be filed with
or provided to the Securities and Exchange Commission or any other governmental
instrumentality or agency, including the Internal Revenue Service, if the
Company deems such filing or provision to be necessary.

                  B. Because the purpose of this Agreement is to settle amicably
any and all potential disputes or claims among the parties, neither Mahoney nor
the Company shall, directly or indirectly, make or cause to be made any
statements to any third parties criticizing or disparaging the other or
commenting on the character or business reputation of the other. Mahoney further
hereby agrees not: (i) to comment to others concerning the status, plans or
prospects of the business of the Company, or (ii) to engage in any act or
omission that would be detrimental, financially or otherwise, to the Company, or
that would subject the Company to public disrespect, scandal, or ridicule. For
purposes of this Subparagraph 12.b, the "Company" shall mean Diebold,
Incorporated and its directors, officers, predecessors, parents, subsidiaries,
divisions, and related or affiliated companies.

         13. NOTICES. For all purposes of this Agreement, all communications
provided for herein shall be in writing and shall be deemed to have been duly
given when delivered, addressed to the Company (to the attention of the CEO) at
its principal executive offices and to Mahoney at his principal residence, 5291
St. Andrews Drive NW, Canton, Ohio 44708, or to such other address as any party
may have furnished to the other in writing and in accordance herewith. Notices
of change of address shall be effective only upon receipt.

         14. MISCELLANEOUS. No provision of this Agreement may be modified,
waived or discharged unless such modification, waiver or discharge is agreed to
in writing signed by Mahoney and the Company. No waiver by either party hereto
at any time of any breach by the other party hereto or compliance with any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. No agreements or representations,
oral or otherwise, expressed or implied with respect to the subject matter
hereof have been made by any of the parties that are not set forth expressly in
this Agreement and every one of them (if, in fact, there have been any) is
hereby terminated without liability or any other legal effect whatsoever.

         15. ENTIRE AGREEMENT. This Agreement shall constitute the entire
agreement among the parties hereto with respect to the subject matter hereof and
shall supersede all prior verbal or written agreements, covenants,
communications, understandings, commitments, representations or warranties,
whether oral or written, by any party hereto or any of its representatives
pertaining to such subject matter.

         16. GOVERNING LAW. Any dispute, controversy, or claim of whatever
nature arising out of or relating to this Agreement or breach thereof shall be
governed by and under the laws of the State of Ohio.

<PAGE>   13

         17. VALIDITY. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall nevertheless remain in full force and
effect.

         18. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same Agreement.

         19. CAPTIONS AND PARAGRAPH HEADINGS. Captions and paragraph headings
used herein are for convenience and are not part of this Agreement and shall not
be used in construing it.

         20. FURTHER ASSURANCES. Each party hereto shall execute such additional
documents, and do such additional things, as may reasonably be requested by the
other party to effectuate the purposes and provisions of this Agreement.

         IN WITNESS WHEREOF, the parties have executed and delivered this
Agreement as of the date first set forth above.

                                        DIEBOLD, INCORPORATED

                                        By:  /s/ Charles B. Scheurer

                                        Title:  Vice President, Human Resources

                                        Date: May 23, 2000

Witness:  /s/ Maryann Hoover            /s/ Robert W. Mahoney
         ----------------------         ---------------------------
                                        Robert W. Mahoney

                                        Date:  5/23/00

<PAGE>   14

                                    EXHIBIT A

Automated Teller Machines
Teller Assist Devices
Physical Security Devices
     (including, without limitation, Vault Doors and Chests)
Electronics Funds Transfer Equipment
Point of Sale Equipment and Systems
Safe Deposit Boxes
Access Control Devices and Systems
Integrated Campus Access Management Devices and Systems
Surveillance Equipment and Systems
     (including, without limitation, Surveillance Cameras)
Remote Monitoring Systems
     (including, without limitation, Burglary, Robbery and Fire)
Automated Monitoring, Dispensing and Reporting
     Devices and Systems for the Health Care Industry
Software Systems for the Above
Transaction Processing
Service and Maintenance of the Above
     (including, without limitation, First and Second Line Service)

The above list of products in this Exhibit A does not apply to general purpose
computer hardware or peripherals such as mainframe computers, personal
computers, printers, or application software such as spreadsheet, word
processing and data base programs for general business or office use.

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