Document:

REGISTRATION RIGHTS AGREEMENT

                  This Registration  Rights Agreement (this "Agreement") is made
and entered  into as of  September 8, 2000,  among Tidel  Technologies,  Inc., a
Delaware  corporation (the "Company"),  and the investors signatory hereto (each
such investor is a "Purchaser"  and all such  investors are,  collectively,  the
"Purchasers").

                  This Agreement is made pursuant to the  Convertible  Debenture
Purchase  Agreement,  dated as of the date  hereof  among  the  Company  and the
Purchasers (the "Purchase Agreement").

                  The Company and the Purchasers hereby agree as follows:

         1.       Definitions

                  Capitalized  terms used and not otherwise  defined herein that
are defined in the Purchase  Agreement  shall have the meanings given such terms
in the Purchase Agreement. As used in this Agreement,  the following terms shall
have the following meanings:

                  "Affiliate"  means,  with  respect  to any  Person,  any other
Person that directly or indirectly  controls or is controlled by or under common
control with such Person.  For the purposes of this definition,  "control," when
used with respect to any Person,  means the possession,  direct or indirect,  of
the power to direct or cause the  direction  of the  management  and policies of
such Person, whether through the ownership of voting securities,  by contract or
otherwise;  and the terms of "affiliated,"  "controlling"  and "controlled" have
meanings correlative to the foregoing.

                  "Business Day" means any day except  Saturday,  Sunday and any
day which shall be a legal holiday or a day on which banking institutions in the
State  of New  York  generally  are  authorized  or  required  by  law or  other
government actions to close.

                  "Closing  Date"  shall  have  the  meaning  set  forth  in the
Purchase Agreement.

                  "Commission" means the Securities and Exchange Commission.

                  "Common  Stock" means the Company's  common  stock,  $0.01 par
value,  or such  securities  in to which  that such  stock  shall  hereafter  be
reclassified.

                  "Debentures"  means the Convertible  Debentures  issued to the
Purchasers in accordance with the Purchase Agreement.

                  "Effectiveness   Date"  means  with  respect  to  the  initial
Registration  Statement  required to be filed hereunder,  the 90th day following
the Closing Date and,  with respect to any  additional  Registration  Statements
which may be required  pursuant to Section 3(c), the 90th day following the date
that notice of the requirement to file such additional Registration Statement is
provided. If,

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however,  the  Commission  fails to provide  comments  to or gives a notice that
there will be no review of the  initially  filed  Registration  Statement or any
additional  Registration  Statements within 30 days of the date of filing of the
initial Registration Statement or any additional  Registration  Statements,  the
Effectiveness  Date shall be extended by the number of days beyond 30 days until
such response is received from the Commission.

                  "Effectiveness  Period"  shall have the  meaning  set forth in
Section 2(a).

                  "Exchange Act" means the  Securities  Exchange Act of 1934, as
amended.

                  "Filing  Date" means the 30th day  following  the Closing Date
and,  with  respect  to any  additional  Registration  Statements  which  may be
required  pursuant to Section 3(c),  the 30th day following the date that notice
of the requirement to file such additional Registration Statement is provided.

                  "Holder" or "Holders" means the holder or holders, as the case
may be, from time to time of Registrable Securities.

                  "Indemnified  Party"  shall  have  the  meaning  set  forth in
Section 5(c).

                  "Indemnifying  Party"  shall  have the  meaning  set  forth in
Section 5(c).

                  "Losses" shall have the meaning set forth in Section 5(a).

                  "Person"  means an individual or a  corporation,  partnership,
trust,  incorporated  or  unincorporated  association,  joint  venture,  limited
liability  company,  joint stock company,  government (or an agency or political
subdivision thereof) or other entity of any kind.

                  "Proceeding" means an action,  claim,  suit,  investigation or
proceeding   (including,   without  limitation,   an  investigation  or  partial
proceeding, such as a deposition), whether commenced or threatened.

                  "Prospectus" means the prospectus included in the Registration
Statement  (including,  without  limitation,  a  prospectus  that  includes  any
information  previously  omitted from a prospectus filed as part of an effective
registration  statement  in  reliance  upon  Rule  430A  promulgated  under  the
Securities Act), as amended or supplemented by any prospectus  supplement,  with
respect  to  the  terms  of  the  offering  of any  portion  of the  Registrable
Securities covered by the Registration  Statement,  and all other amendments and
supplements to the  Prospectus,  including  post-effective  amendments,  and all
material  incorporated by reference or deemed to be incorporated by reference in
such Prospectus.

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                  "Registrable  Securities" means (i) the shares of Common Stock
issuable  upon  conversion  in full of the  Debentures,  and (ii) the  shares of
Common Stock issuable upon exercise in full of the Warrants.

                  "Registration   Statement"  means  the  initial   registration
statement  to be filed  hereunder  and any  additional  registration  statements
contemplated  by  Section  3(c),   including  (in  each  case)  the  Prospectus,
amendments  and  supplements  to  such  registration  statement  or  Prospectus,
including pre- and  post-effective  amendments,  all exhibits  thereto,  and all
material  incorporated by reference or deemed to be incorporated by reference in
such registration statement.

                  "Rule  144"  means  Rule  144  promulgated  by the  Commission
pursuant to the  Securities  Act, as such Rule may be amended from time to time,
or any similar rule or regulation  hereafter  adopted by the  Commission  having
substantially the same effect as such Rule.

                  "Rule  415"  means  Rule  415  promulgated  by the  Commission
pursuant to the  Securities  Act, as such Rule may be amended from time to time,
or any similar rule or regulation  hereafter  adopted by the  Commission  having
substantially the same effect as such Rule.

                  "Rule  424"  means  Rule  424  promulgated  by the  Commission
pursuant to the  Securities  Act, as such Rule may be amended from time to time,
or any similar rule or regulation  hereafter  adopted by the  Commission  having
substantially the same effect as such Rule.

                  "Securities Act" means the Securities Act of 1933, as amended,
and the rules and regulations promulgated thereunder.

                  "Special  Counsel"  means one special  counsel to the Holders,
for which the Holders will be reimbursed by the Company pursuant to Section 4.

                  "Warrants"  shall have the meaning  set forth in the  Purchase
Agreement.

         2.       Shelf Registration

                  (a) On or prior to each Filing Date, the Company shall prepare
and file with the  Commission  a "Shelf"  Registration  Statement  covering  the
resale of all Registrable  Securities for an offering to be made on a continuous
basis  pursuant to Rule 415.  The  Registration  Statement  shall be on Form S-3
(except  if the  Company  is not  then  eligible  to  register  for  resale  the
Registrable  Securities on Form S-3, in which case such registration shall be on
another  appropriate form and shall contain (except if otherwise directed by the
Holders)  the "Plan of  Distribution"  attached  hereto as Annex A. The  Company
shall use its best  efforts to cause the  Registration  Statement to be declared
effective  under the  Securities  Act as promptly  as possible  after the filing
thereof,  but in any event prior to the  Effectiveness  Date,  and shall use its
best efforts to keep such Registration  Statement  continuously  effective under
the Securities Act until the date which is two years after the

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date that such Registration Statement is declared effective by the Commission or
such earlier date when all Registrable  Securities  covered by such Registration
Statement have been sold or may be sold without volume restrictions  pursuant to
Rule 144(k) (the "Effectiveness Period").

                  (b) The initial  Registration  Statement to be filed hereunder
shall  include  (but not be limited to) a number of shares of Common Stock equal
to no less than the sum of (i) 200% of the  number  of  shares  of Common  Stock
issuable upon conversion in full of the principal amount of Debentures issued on
such  Closing  Date,  assuming no interest is paid thereon in cash and that such
Debentures remain  outstanding for four years and that such conversion  occurred
at a price equal to the Conversion Price (as defined in the Debentures) and (ii)
the  number of shares of Common  Stock  issuable  upon  exercise  in full of the
Warrants issued as of the Closing Date.

                  (c) If (a) a  Registration  Statement is not filed on or prior
to its Filing Date (if the Company  files such  Registration  Statement  without
affording  the  Holder  the  opportunity  to review  and  comment on the same as
required  by  Section  3(a)  hereof,  the  Company  shall  not be deemed to have
satisfied this clause (a)), or (b) the Company fails to file with the Commission
a request for  acceleration in accordance  with Rule 461  promulgated  under the
Securities  Act,  within  five days of the date  that the  Company  is  notified
(orally  or  in  writing,  whichever  is  earlier)  by  the  Commission  that  a
Registration Statement will not be "reviewed," or not subject to further review,
or (c) a Registration Statement filed hereunder is not declared effective by the
Commission on or prior to its  Effectiveness  Date, or (d) after a  Registration
Statement  is  filed  with  and  declared  effective  by  the  Commission,  such
Registration  Statement ceases to be effective as to all Registrable  Securities
to which it is  required  to relate at any time prior to the  expiration  of the
Effectiveness  Period  without  being  succeeded  within ten Business Days by an
amendment  to  such  Registration  Statement  or  by a  subsequent  Registration
Statement filed with and declared effective by the Commission, or (e) the Common
Stock shall be delisted or suspended from trading on the Nasdaq  National Market
("NASDAQ")  or the New York Stock  Exchange,  American  Stock  Exchange,  or the
Nasdaq SmallCap Market (each, a "Subsequent Market") for more than three Trading
Days (which need not be  consecutive  Trading  Days),  or (f) the  conversion or
exercise  rights of the Holders  pursuant to the  Debentures  and  Warrants  are
suspended for any reason, or (g) an amendment to a Registration Statement is not
filed by the  Company  with  the  Commission  within  ten  Business  Days of the
Commission's  notifying the Company that such amendment is required in order for
such Registration  Statement to be declared effective,  or (h) the Company fails
to respond as  promptly  as  reasonably  possible,  and in any event  within ten
Business Days, to any comments  received from the Commission with respect to the
Registration  Statement  or any  amendment  thereto  (any such failure or breach
being  referred to as an "Event," and for purposes of clauses (a),  (c), (f) the
date on which such Event occurs, or for purposes of clause (b) the date on which
such five day period is  exceeded,  or for  purposes of clauses (d), (g) and (h)
the date which such ten  Business  Day-period  is  exceeded,  or for purposes of
clause (e) the date on which such three Trading  Day-period  is exceeded,  being
referred to as "Event  Date"),  then,  on each such Event Date and every monthly
anniversary  thereof  until the  applicable  Event is cured  (each such date,  a
"Liquidated  Damages  Date"),  the Company shall pay to each Holder an amount in
cash, as liquidated damages and not as a penalty,  equal to 2.0% of the purchase
price paid by such Holder pursuant to the Purchase Agreement. If the

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Company  fails to pay any  liquidated  damages  pursuant to this Section in full
within seven days after the date payable,  the Company will pay interest thereon
at a rate of 15% per annum (or such lesser  maximum  amount that is permitted to
be paid by  applicable  law) to the  Holder,  accruing  daily from the date such
liquidated  damages are due until such amounts,  plus all such interest thereon,
are paid in full.  The  liquidated  damages  pursuant to the terms  hereof shall
apply on a pro rata  basis for any  portion  of a month  prior to the cure of an
Event.  Notwithstanding  anything herein to the contrary, upon the occurrence of
an Event of Default under the loan  documents  with The Chase  Manhattan Bank or
any other holder of a majority of the principal  amount of  indebtedness  of the
Company or if the Company  shall not be permitted to pay  liquidated  damages or
other  payments  hereunder  in cash due to a  written  notice  delivered  to the
Company by The Chase  Manhattan  Bank  precluding the Company from making a cash
payment  then,  at the option of each Holder,  with  respect to each  Liquidated
Damages Date:  (i) such  liquidated  damages or other payments shall be added to
the principal  amount  outstanding  under the Debentures  held by it or (ii) the
Company  shall,  no later than the third day  following the  Liquidated  Damages
Date,  deliver to such  Holder a number of shares of Common  Stock  equal to the
quotient obtained by dividing (A) the amount of such liquidated damages or other
payments  by (B) the average of the Per Share  Market  Values (as defined in the
Debentures) for the five Trading Days preceding the Liquidated Damages Date. The
Company's  obligations  to deliver shares of Common Stock pursuant to subsection
(ii) of the immediately preceding sentence shall be subject to the provisions of
Section 4(b)(ii) and (iii) of the Debentures.

         3.       Registration Procedures

                  In  connection  with the  Company's  registration  obligations
hereunder, the Company shall:

                  (a) Not less than five  Business  Days  prior to the filing of
each  Registration  Statement  or any related  Prospectus  or any  amendment  or
supplement  thereto (including any document that would be incorporated or deemed
to be incorporated therein by reference),  the Company shall, (i) furnish to the
Holders and their Special  Counsel copies of all such  documents  proposed to be
filed,   which  documents  (other  than  those  incorporated  or  deemed  to  be
incorporated  by  reference)  will be subject to the review of such  Holders and
their Special  Counsel,  and (ii) cause its officers and directors,  counsel and
independent  certified public  accountants to respond to such inquiries as shall
be  necessary,  in the  reasonable  opinion of  respective  counsel to conduct a
reasonable  investigation  within the meaning of the Securities Act. The Company
shall  not  file  the  Registration  Statement  or any  such  Prospectus  or any
amendments  or  supplements  thereto to which the  Holders of a majority  of the
Registrable  Securities  and their  Special  Counsel  shall  reasonably  object,
provided,  the Company is notified  of such  objection  no later than 3 Business
Days after the Holders have been so furnished copies of such documents.

                  (b) 1. Prepare and file with the Commission  such  amendments,
including  post-effective  amendments,  to the  Registration  Statement  and the
Prospectus  used  in  connection  therewith  as may be  necessary  to  keep  the
Registration  Statement  continuously effective as to the applicable Registrable
Securities for the Effectiveness Period and prepare and file with the

                                                        -5-

<PAGE>

Commission  such  additional  Registration  Statements  in order to register for
resale under the Securities Act all of the  Registrable  Securities;  (ii) cause
the related Prospectus to be amended or supplemented by any required  Prospectus
supplement,  and as so supplemented or amended to be filed pursuant to Rule 424;
(iii)  respond as promptly as reasonably  possible,  and in any event within ten
Business Days, to any comments  received from the Commission with respect to the
Registration  Statement or any  amendment  thereto and as promptly as reasonably
possible provide the Holders true and complete copies of all correspondence from
and to the Commission relating to the Registration Statement; and (iv) comply in
all material respects with the provisions of the Securities Act and the Exchange
Act with respect to the disposition of all Registrable Securities covered by the
Registration  Statement  during the  applicable  period in  accordance  with the
intended  methods  of  disposition  by the  Holders  thereof  set  forth  in the
Registration Statement as so amended or in such Prospectus as so supplemented.

                  (c) File additional  Registration  Statements if the number of
Registrable Securities at any time exceeds 85% of the number of shares of Common
Stock then registered in all their existing Registration Statements hereunder.

                  (d) Notify the Holders of  Registrable  Securities  to be sold
and their Special  Counsel as promptly as reasonably  possible (and, in the case
of (i)(A) below,  not less than five Business Days prior to such filing) and (if
requested by any such  Person)  confirm such notice in writing no later than one
Business  Day  following  the day (i)(A)  when a  Prospectus  or any  Prospectus
supplement or post-effective amendment to the Registration Statement is proposed
to be filed; (B) when the Commission  notifies the Company whether there will be
a "review" of such Registration  Statement and whenever the Commission  comments
in writing on such  Registration  Statement  (the Company shall provide true and
complete  copies  thereof  and  all  written  responses  thereto  to each of the
Holders);   and  (C)  with  respect  to  the   Registration   Statement  or  any
post-effective  amendment,  when  the  same has  become  effective;  (ii) of any
request by the Commission or any other Federal or state  governmental  authority
for amendments or supplements to the Registration Statement or Prospectus or for
additional  information;  (iii) of the  issuance by the  Commission  of any stop
order suspending the effectiveness of the Registration Statement covering any or
all of the Registrable  Securities or the initiation of any Proceedings for that
purpose;  (iv) if at any time any of the  representations  and warranties of the
Company  contained in any  agreement  contemplated  hereby ceases to be true and
correct in all  material  respects;  (v) of the  receipt  by the  Company of any
notification  with respect to the suspension of the  qualification  or exemption
from  qualification  of  any of  the  Registrable  Securities  for  sale  in any
jurisdiction,  or the  initiation  or  threatening  of any  Proceeding  for such
purpose;  and (vi) of the  occurrence of any event or passage of time that makes
the financial  statements included in the Registration  Statement ineligible for
inclusion  therein  or any  statement  made  in the  Registration  Statement  or
Prospectus or any document  incorporated or deemed to be incorporated therein by
reference  untrue in any material  respect or that requires any revisions to the
Registration  Statement,  Prospectus or other  documents so that, in the case of
the  Registration  Statement or the Prospectus,  as the case may be, it will not
contain any untrue  statement  of a material  fact or omit to state any material
fact required to be stated therein or necessary to make the statements  therein,
in light of the circumstances under which they were made, not misleading.

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                  (e) Promptly deliver to each Holder and their Special Counsel,
without charge, as many copies of the Prospectus or Prospectuses (including each
form of prospectus) and each amendment or supplement thereto as such Persons may
reasonably  request.  The Company hereby  consents to the use of such Prospectus
and each  amendment  or  supplement  thereto by each of the  selling  Holders in
connection with the offering and sale of the Registrable  Securities  covered by
such Prospectus and any amendment or supplement thereto.

                  (f) Prior to any public  offering of  Registrable  Securities,
use its best  efforts  to  register  or qualify or  cooperate  with the  selling
Holders  and their  Special  Counsel  in  connection  with the  registration  or
qualification  (or exemption from such  registration or  qualification)  of such
Registrable  Securities for offer and sale under the securities or Blue Sky laws
of such  jurisdictions  within  the  United  States as any  Holder  requests  in
writing,   to  keep  each  such  registration  or  qualification  (or  exemption
therefrom) effective during the Effectiveness Period and to do any and all other
acts or  things  necessary  or  advisable  to  enable  the  disposition  in such
jurisdictions of the Registrable Securities covered by a Registration Statement;
provided,  that the Company  shall not be required  to qualify  generally  to do
business in any  jurisdiction  where it is not then so  qualified or subject the
Company to any  material  tax in any such  jurisdiction  where it is not then so
subject.

                  (g)  Cooperate  with the  Holders  to  facilitate  the  timely
preparation and delivery of certificates  representing Registrable Securities to
be  delivered  to a  transferee  pursuant  to a  Registration  Statement,  which
certificates  shall be free, to the extent permitted by the Purchase  Agreement,
of all restrictive legends,  and to enable such Registrable  Securities to be in
such denominations and registered in such names as any such Holders may request.

                  (h) Upon the occurrence of any event  contemplated  by Section
3(d)(vi), as promptly as reasonably possible, prepare a supplement or amendment,
including  a  post-effective  amendment,  to  the  Registration  Statement  or a
supplement to the related  Prospectus or any document  incorporated or deemed to
be incorporated  therein by reference,  and file any other required  document so
that,  as  thereafter  delivered,  neither the  Registration  Statement nor such
Prospectus will contain an untrue  statement of a material fact or omit to state
a  material  fact  required  to be  stated  therein  or  necessary  to make  the
statements  therein,  in light of the circumstances  under which they were made,
not misleading.

                  (i) Comply with all  applicable  rules and  regulations of the
Commission.

         4.  Registration  Expenses.  All  fees  and  expenses  incident  to the
performance  of or compliance  with this Agreement by the Company shall be borne
by the Company  whether or not any  Registrable  Securities are sold pursuant to
the Registration  Statement.  The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing fees
(including,  without  limitation,  fees and expenses (A) with respect to filings
required  to be made  with the  NASDAQ  and any  Subsequent  Market on which the
Common Stock is then listed for trading,  and (B) in compliance  with applicable
state  securities  or Blue Sky laws  (including,  without  limitation,  fees and
disbursements of counsel for the Company in connection with Blue Sky

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<PAGE>

qualifications or exemptions of the Registrable  Securities and determination of
the eligibility of the Registrable  Securities for investment  under the laws of
such  jurisdictions  as  requested  by the  Holders)),  (ii)  printing  expenses
(including,   without   limitation,   expenses  of  printing   certificates  for
Registrable  Securities and of printing prospectuses  requested by the Holders),
(iii) messenger,  telephone and delivery expenses of the Company,  (iv) fees and
disbursements of counsel for the Company and Special Counsel for the Holders and
(v) fees and expenses of all other Persons retained by the Company in connection
with the consummation of the transactions contemplated by this Agreement.

         5.       Indemnification

                  (a)  Indemnification  by  the  Company.   The  Company  shall,
notwithstanding  any termination of this Agreement,  indemnify and hold harmless
each Holder,  the officers,  directors,  agents,  brokers (including brokers who
offer and sell  Registrable  Securities  as principal as a result of a pledge or
any failure to perform under a margin call of Common Stock), investment advisors
and employees of each of them,  each Person who controls any such Holder (within
the meaning of Section 15 of the  Securities  Act or Section 20 of the  Exchange
Act) and the officers,  directors, agents and employees of each such controlling
Person,  to the fullest extent permitted by applicable law, from and against any
and  all  losses,  claims,  damages,  liabilities,   costs  (including,  without
limitation,   costs  of   preparation   and   attorneys'   fees)  and   expenses
(collectively,  "Losses"), as incurred, arising out of or relating to any untrue
or alleged  untrue  statement of a material fact  contained in the  Registration
Statement,  any  Prospectus  or any form of  prospectus  or in any  amendment or
supplement  thereto  or in any  preliminary  prospectus,  or  arising  out of or
relating to any omission or alleged  omission of a material  fact required to be
stated therein or necessary to make the  statements  therein (in the case of any
Prospectus  or form  of  prospectus  or  supplement  thereto,  in  light  of the
circumstances under which they were made) not misleading,  except to the extent,
but only to the extent,  that (1) such untrue  statements or omissions are based
solely  upon  information  regarding  such  Holder  furnished  in writing to the
Company by such Holder  expressly  for use  therein,  or to the extent that such
information  relates  to  such  Holder  or  such  Holder's  proposed  method  of
distribution of Registrable  Securities and was reviewed and expressly  approved
in writing by such Holder expressly for use in the Registration Statement,  such
Prospectus or such form of Prospectus or in any amendment or supplement  thereto
or (2) in the case of an occurrence of an event of the type specified in Section
3(d)(ii)-(vi),  the use by such Holder of an outdated  or  defective  Prospectus
after the Company has  notified  such Holder in writing that the  Prospectus  is
outdated  or  defective  and prior to the  receipt by such  Holder of the Advice
contemplated  in Section 6(e). The Company shall notify the Holders  promptly of
the  institution,  threat or assertion of any Proceeding of which the Company is
aware in connection with the transactions contemplated by this Agreement.

                  (b) Indemnification by Holders.  Each Holder shall,  severally
and not  jointly,  indemnify  and hold  harmless  the  Company,  its  directors,
officers, agents and employees, each Person who controls the Company (within the
meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act),
and the directors, officers, agents or employees of such controlling Persons, to
the fullest extent  permitted by applicable law, from and against all Losses (as
determined by a

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<PAGE>

court of  competent  jurisdiction  in a final  judgment not subject to appeal or
review)  arising  solely out of or based  solely upon any untrue  statement of a
material fact contained in any Registration  Statement,  any Prospectus,  or any
form of prospectus, or in any amendment or supplement thereto, or arising solely
out of or based  solely  upon any  omission  of a material  fact  required to be
stated therein or necessary to make the statements therein not misleading to the
extent,  but only to the  extent,  that such  untrue  statement  or  omission is
contained  in any  information  so  furnished  in writing by such  Holder to the
Company  specifically  for  inclusion  in such  Registration  Statement  or such
Prospectus  or to the extent that (1) such untrue  statements  or omissions  are
based solely upon information  regarding such Holder furnished in writing to the
Company by such Holder  expressly  for use  therein,  or to the extent that such
information  relates  to  such  Holder  or  such  Holder's  proposed  method  of
distribution of Registrable  Securities and was reviewed and expressly  approved
in writing by such Holder expressly for use in the Registration Statement,  such
Prospectus or such form of Prospectus or in any amendment or supplement  thereto
or (2) in the case of an occurrence of an event of the type specified in Section
3(d)(ii)-(vi),  the use by such Holder of an outdated  or  defective  Prospectus
after the Company has  notified  such Holder in writing that the  Prospectus  is
outdated  or  defective  and prior to the  receipt by such  Holder of the Advice
contemplated  in Section  6(e).  In no event shall the  liability of any selling
Holder hereunder be greater in amount than the dollar amount of the net proceeds
received by such Holder upon the sale of the Registrable  Securities giving rise
to such indemnification obligation.

                  (c) Conduct of Indemnification  Proceedings. If any Proceeding
shall be brought or asserted against any Person entitled to indemnity  hereunder
(an  "Indemnified  Party"),  such  Indemnified  Party shall promptly  notify the
Person from whom indemnity is sought (the "Indemnifying  Party") in writing, and
the  Indemnifying  Party  shall  assume  the  defense  thereof,   including  the
employment of counsel  reasonably  satisfactory to the Indemnified Party and the
payment of all fees and expenses  incurred in connection  with defense  thereof;
provided,  that the failure of any  Indemnified  Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant to
this  Agreement,  except  (and  only) to the  extent  that it  shall be  finally
determined  by a court of competent  jurisdiction  (which  determination  is not
subject to appeal or further  review) that such failure  shall have  proximately
and materially adversely prejudiced the Indemnifying Party.

                  An Indemnified  Party shall have the right to employ  separate
counsel in any such  Proceeding and to participate in the defense  thereof,  but
the  fees  and  expenses  of  such  counsel  shall  be at the  expense  of  such
Indemnified  Party or Parties unless:  (1) the Indemnifying  Party has agreed in
writing to pay such fees and expenses;  or (2) the Indemnifying Party shall have
failed  promptly to assume the defense of such  Proceeding and to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3)
the named  parties to any such  Proceeding  (including  any  impleaded  parties)
include  both  such  Indemnified  Party  and the  Indemnifying  Party,  and such
Indemnified Party shall have been advised by counsel that a conflict of interest
is likely to exist if the same counsel were to represent such Indemnified  Party
and the Indemnifying  Party (in which case, if such  Indemnified  Party notifies
the  Indemnifying  Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not

                                       -9-

<PAGE>

have the right to assume the defense  thereof and such  counsel  shall be at the
expense of the Indemnifying  Party).  The Indemnifying Party shall not be liable
for any settlement of any such Proceeding  effected without its written consent,
which consent shall not be unreasonably  withheld.  No Indemnifying Party shall,
without  the  prior  written  consent  of  the  Indemnified  Party,  effect  any
settlement of any pending  Proceeding in respect of which any Indemnified  Party
is a party,  unless such settlement  includes an  unconditional  release of such
Indemnified  Party from all  liability on claims that are the subject  matter of
such Proceeding.

                  All fees and  expenses  of the  Indemnified  Party  (including
reasonable  fees  and  expenses  to  the  extent  incurred  in  connection  with
investigating   or  preparing  to  defend  such   Proceeding  in  a  manner  not
inconsistent  with this  Section)  shall be paid to the  Indemnified  Party,  as
incurred, within ten Business Days of written notice thereof to the Indemnifying
Party  (regardless  of whether it is ultimately  determined  that an Indemnified
Party  is  not  entitled  to  indemnification  hereunder;   provided,  that  the
Indemnifying  Party may require such Indemnified Party to undertake to reimburse
all such fees and  expenses  to the extent it is finally  judicially  determined
that such Indemnified Party is not entitled to indemnification hereunder).

                  (d) Contribution. If a claim for indemnification under Section
5(a) or 5(b) is unavailable to an Indemnified  Party (by reason of public policy
or  otherwise),  then each  Indemnifying  Party,  in lieu of  indemnifying  such
Indemnified  Party,  shall  contribute  to the  amount  paid or  payable by such
Indemnified  Party  as a  result  of  such  Losses,  in  such  proportion  as is
appropriate  to  reflect  the  relative  fault  of the  Indemnifying  Party  and
Indemnified  Party in connection with the actions,  statements or omissions that
resulted in such Losses as well as any other relevant equitable  considerations.
The relative fault of such  Indemnifying  Party and  Indemnified  Party shall be
determined by reference to, among other things,  whether any action in question,
including any untrue or alleged untrue  statement of a material fact or omission
or alleged omission of a material fact, has been taken or made by, or relates to
information  supplied by, such Indemnifying  Party or Indemnified Party, and the
parties'  relative intent,  knowledge,  access to information and opportunity to
correct or prevent  such  action,  statement  or  omission.  The amount  paid or
payable by a party as a result of any Losses shall be deemed to include, subject
to the limitations set forth in Section 5(c), any reasonable attorneys' or other
reasonable  fees or  expenses  incurred  by such  party in  connection  with any
Proceeding to the extent such party would have been indemnified for such fees or
expenses if the  indemnification  provided for in this Section was  available to
such party in accordance with its terms.

                  The  parties  hereto  agree  that it  would  not be  just  and
equitable if  contribution  pursuant to this Section 5(d) were determined by pro
rata  allocation  or by any other method of  allocation  that does not take into
account the equitable  considerations  referred to in the immediately  preceding
paragraph.  Notwithstanding the provisions of this Section 5(d), no Holder shall
be required to contribute,  in the aggregate, any amount in excess of the amount
by which the  proceeds  actually  received  by such  Holder from the sale of the
Registrable  Securities  subject  to the  Proceeding  exceeds  the amount of any
damages that such Holder has  otherwise  been  required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission.

                                      -10-

<PAGE>

                  The indemnity and  contribution  agreements  contained in this
Section are in addition to any liability that the Indemnifying  Parties may have
to the Indemnified Parties.

                  (e) Non-Liability of Trustees and Shareholders.  A copy of the
Declaration of Trust of Acorn  Investment Trust is on file with the Secretary of
The  Commonwealth  of  Massachusetts,  and  notice  is  hereby  given  that this
agreement is executed on behalf of Acorn  Investment  Trust by officers of Acorn
Investment  Trust as officers and not  individually.  All  obligations  of Acorn
Investment  Trust  hereunder  shall be  binding  only  upon the  assets of Acorn
Investment  Trust (or the  appropriate  series thereof) and shall not be binding
upon any trustee,  officer,  employee,  agent or shareholder of Acorn Investment
Trust.  Neither  the  authorization  of any  action  by the  Trustees  of  Acorn
Investment  Trust  nor the  execution  of this  agreement  on  behalf  of  Acorn
Investment  Trust  shall  impose  any  liability  upon any  trustee,  officer or
shareholder of Acorn Investment Trust.

         6.       Miscellaneous

                  (a) Amendments and Waivers.  The provisions of this Agreement,
including  the  provisions  of this  sentence,  may not be amended,  modified or
supplemented,  and waivers or consents to departures from the provisions  hereof
may not be given,  unless the same shall be in writing and signed by the Company
and the  Holders  of at least  two-thirds  of the then  outstanding  Registrable
Securities.  Notwithstanding  the foregoing,  a waiver or consent to depart from
the provisions  hereof with respect to a matter that relates  exclusively to the
rights of Holders and that does not directly or indirectly  affect the rights of
other Holders may be given by Holders of at least a majority of the  Registrable
Securities to which such waiver or consent relates; provided,  however, that the
provisions of this sentence may not be amended, modified, or supplemented except
in accordance with the provisions of the immediately preceding sentence.

                  (b) No Inconsistent Agreements. Neither the Company nor any of
its  subsidiaries has entered,  as of the date hereof,  nor shall the Company or
any of its subsidiaries,  on or after the date of this Agreement, enter into any
agreement with respect to its securities that would have the effect of impairing
the rights granted to the Holders in this Agreement or otherwise  conflicts with
the provisions  hereof.  Except as and to the extent  specified in Schedule 6(b)
hereto,  neither the Company nor any of its subsidiaries has previously  entered
into any agreement  granting any registration  rights with respect to any of its
securities to any Person that have not been satisfied in full.

                  (c) No Piggyback on Registrations. Except as and to the extent
specified in Schedule  6(b) hereto,  neither the Company nor any of its security
holders  (other than the Holders in such capacity  pursuant  hereto) may include
securities  of  the  Company  in  the  Registration  Statement  other  than  the
Registrable  Securities,  and the Company  shall not after the date hereof enter
into any agreement providing any such right to any of its security holders.

                                      -11-

<PAGE>

                  (d) Compliance.  Each Holder covenants and agrees that it will
comply  with the  prospectus  delivery  requirements  of the  Securities  Act as
applicable to it in connection with sales of Registrable  Securities pursuant to
the Registration Statement.

                  (e)  Discontinued  Disposition.  Each  Holder  agrees  by  its
acquisition of such  Registrable  Securities that, upon receipt of a notice from
the Company of the  occurrence  of any event of the kind  described  in Sections
3(d)(ii),  3(d)(iii),  3(d)(iv), 3(d)(v) or 3(d)(vi), such Holder will forthwith
discontinue  disposition of such  Registrable  Securities under the Registration
Statement  until  such  Holder's  receipt  of the  copies  of  the  supplemented
Prospectus and/or amended Registration  Statement  contemplated by Section 3(h),
or until it is advised in writing (the  "Advice") by the Company that the use of
the  applicable  Prospectus  may be resumed,  and, in either case,  has received
copies of any additional or supplemental filings that are incorporated or deemed
to be incorporated  by reference in such  Prospectus or Registration  Statement.
The Company may provide  appropriate  stop orders to enforce the  provisions  of
this paragraph.

                  (f)  Piggy-Back  Registrations.  If at  any  time  during  the
Effectiveness Period there is not an effective  Registration  Statement covering
all of the Registrable Securities and the Company shall determine to prepare and
file with the  Commission a registration  statement  relating to an offering for
its own account or the account of others under the  Securities Act of any of its
equity securities, other than on Form S-4 or Form S-8 (each as promulgated under
the Securities Act) or their then equivalents  relating to equity  securities to
be issued solely in connection with any acquisition of any entity or business or
equity  securities  issuable in connection  with stock option or other  employee
benefit plans, then the Company shall send to each Holder written notice of such
determination and, if within fifteen days after receipt of such notice, any such
Holder  shall  so  request  in  writing,  the  Company  shall  include  in  such
registration  statement  all or any  part of such  Registrable  Securities  such
holder requests to be registered.

                  (g) Notices.  Any and all notices or other  communications  or
deliveries  required or permitted to be provided  hereunder  shall be in writing
and  shall be deemed  given and  effective  on the  earliest  of (i) the date of
transmission,  if such notice or communication is delivered via facsimile at the
facsimile  telephone  number  specified in this Section  prior to 6:00 p.m. (New
York City  time) on a  Business  Day,  (ii) the  Business  Day after the date of
transmission,  if such notice or communication is delivered via facsimile at the
facsimile telephone number specified in this Agreement later than 6:00 p.m. (New
York City time) on any date and earlier than 11:59 p.m.  (New York City time) on
such date,  (iii) the Business  Day  following  the date of mailing,  if sent by
nationally  recognized overnight courier service, or (iv) upon actual receipt by
the party to whom such  notice is  required  to be given.  The  address for such
notices and communications shall be as follows:

                  If to the Company:        Tidel Technologies, Inc.
                                            5847 San Felipe, Suite 900
                                            Houston, Texas 77057
                                            Facsimile No.:  (713) 783-6003

                                      -12-

<PAGE>

                                           Attn: Chief Financial Officer

                  With copies to:          Olshan Grundman Frome Rosenzweig &
                                           Wolosky LLP
                                           505 Park Avenue
                                           New York, New York 10022
                                           Facsimile No.: (212) 755-1467
                                           Attn: David J. Adler

                  If to  a  Purchaser:     To the  address  set forth under such
                                           Purchaser's  name  on  the  signature
                                           pages hereto.

                  If to any other Person who is then the registered Holder:

To the address of such Holder as it appears in the stock  transfer  books of the
Company or such other address as may be designated in writing hereafter,  in the
same manner, by such Person.

                  (h) Successors and Assigns.  This Agreement shall inure to the
benefit of and be binding upon the successors  and permitted  assigns of each of
the parties and shall inure to the benefit of each  Holder.  The Company may not
assign its rights or obligations  hereunder without the prior written consent of
each Holder.  Each Holder may assign their  respective  rights  hereunder in the
manner and to the Persons as permitted under the Purchase Agreement.

                  (i) Counterparts. This Agreement may be executed in any number
of  counterparts,  each of  which  when so  executed  shall be  deemed  to be an
original  and, all of which taken  together  shall  constitute  one and the same
Agreement.   In  the  event  that  any   signature  is  delivered  by  facsimile
transmission,  such  signature  shall create a valid  binding  obligation of the
party  executing  (or on whose behalf such  signature is executed) the same with
the same  force and  effect as if such  facsimile  signature  were the  original
thereof.

                  (j) Governing Law. All questions  concerning the construction,
validity,  enforcement and interpretation of this Agreement shall be governed by
and construed and enforced in accordance  with the internal laws of the State of
New York,  without  regard to the  principles of conflicts of law thereof.  Each
party hereby irrevocably submits to the exclusive  jurisdiction of the state and
federal  courts sitting in the City of New York,  borough of Manhattan,  for the
adjudication  of any dispute  hereunder  or in  connection  herewith or with any
transaction  contemplated  hereby or discussed  herein,  and hereby  irrevocably
waives,  and agrees not to assert in any suit,  action or proceeding,  any claim
that it is not personally  subject to the  jurisdiction of any such court,  that
such suit,  action or  proceeding  is improper.  Each party  hereby  irrevocably
waives  personal  service of process and consents to process being served in any
such suit,  action or  proceeding by mailing a copy thereof to such party at the
address in effect for  notices to it under this  Agreement  and agrees that such
service  shall  constitute  good and  sufficient  service of process  and notice
thereof.  Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law.

                                      -13-

<PAGE>

                  (k)  Cumulative  Remedies.  The remedies  provided  herein are
cumulative and not exclusive of any remedies provided by law.

                  (l)  Severability.   If  any  term,  provision,   covenant  or
restriction of this Agreement is held by a court of competent jurisdiction to be
invalid, illegal, void or unenforceable, the remainder of the terms, provisions,
covenants  and  restrictions  set forth  herein  shall  remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto  shall use their  reasonable  efforts to find and  employ an  alternative
means to achieve the same or substantially  the same result as that contemplated
by such term,  provision,  covenant or restriction.  It is hereby stipulated and
declared to be the  intention of the parties  that they would have  executed the
remaining terms, provisions, covenants and restrictions without including any of
such that may be hereafter declared invalid, illegal, void or unenforceable.

                  (m)  Headings.   The  headings  in  this   Agreement  are  for
convenience  of  reference  only and  shall not limit or  otherwise  affect  the
meaning hereof.

                  (n) Independent Nature of Purchasers'  Obligations and Rights.
The  obligations of each  Purchaser  hereunder is several and not joint with the
obligations  of any  other  Purchaser  hereunder,  and  no  Purchaser  shall  be
responsible  in any way for the  performance  of the  obligations  of any  other
Purchaser  hereunder.  Nothing  contained  herein or in any other  agreement  or
document delivered at any closing, and no action taken by any Purchaser pursuant
hereto  or  thereto,   shall  be  deemed  to  constitute  the  Purchasers  as  a
partnership,  an  association,  a joint venture or any other kind of entity,  or
create a presumption  that the  Purchasers are in any way acting in concert with
respect to such obligations or the transactions  contemplated by this Agreement.
Each  Purchaser  shall be entitled to protect and enforce its rights,  including
without limitation the rights arising out of this Agreement, and it shall not be
necessary  for any other  Purchaser to be joined as an  additional  party in any
proceeding for such purpose.

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                           SIGNATURE PAGES TO FOLLOW]

                                      -14-

<PAGE>

                  IN  WITNESS   WHEREOF,   the  parties   have   executed   this
Registration Rights Agreement as of the date first written above.

                                        TIDEL TECHNOLOGIES, INC.

                                        By: /s/ James T. Rash
                                            ------------------------------------
                                         Name:  James T. Rash
                                         Title: Chief Executive Officer

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                     SIGNATURE PAGES OF PURCHASER TO FOLLOW]

                                      -15-

<PAGE>

                               MONTROSE INVESTMENTS LTD.

                               By: /s/ William E. Rose
                                  ---------------------------------------------
                                  Name:  William E. Rose
                                  Title: Authorized Signatory

                               Address for Notice:

                               Montrose Investments Ltd.
                               c/o HBK Investments L.P.
                               300 Crescent Court, Suite 700
                               Dallas, Texas  75201
                               Facsimile: (214) 758-1221
                               Attn: Jeff Estes and Kim Rozman

      With copies to:          Robinson Silverman Pearce Aronsohn & Berman LLP
                               1290 Avenue of the Americas
                               New York, NY  10104
                               Facsimile No.:  (212) 541-4630 and (212) 541-1432
                               Attn: Eric L. Cohen, Esq.

                                      -16-

<PAGE>

                                                                         Annex A

                              Plan of Distribution

         The  Selling  Stockholders  and any of their  pledgees,  assignees  and
successors-in-interest  may, from time to time,  sell any or all of their shares
of Common Stock on any stock exchange,  market or trading  facility on which the
shares  are traded or in private  transactions.  These  sales may be at fixed or
negotiated  prices.  The  Selling  Stockholders  may  use any one or more of the
following methods when selling shares:

o        ordinary   brokerage   transactions   and  transactions  in  which  the
         broker-dealer solicits purchasers;

o        block trades in which the broker-dealer will attempt to sell the shares
         as  agent  but may  position  and  resell  a  portion  of the  block as
         principal to facilitate the transaction;

o        purchases  by  a   broker-dealer   as  principal   and  resale  by  the
         broker-dealer for its account;

o        an exchange distribution in accordance with the rules of the applicable
         exchange;

o        privately negotiated transactions;

o        short sales;

o        broker-dealers  may  agree  with  the  Selling  Stockholders  to sell a
         specified number of such shares at a stipulated price per share;

o        a combination of any such methods of sale; and

o        any other method permitted pursuant to applicable law.

         The Selling  Stockholders may also sell shares under Rule 144 under the
Securities Act, if available, rather than under this prospectus.

         The Selling  Stockholders  may also  engage in short sales  against the
box,  puts and calls and other  transactions  in  securities  of the  Company or
derivatives  of Company  securities and may sell or deliver shares in connection
with these  trades.  The Selling  Stockholders  may pledge their shares to their
brokers  under  the  margin  provisions  of  customer  agreements.  If a Selling
Stockholder  defaults on a margin loan, the broker may, from time to time, offer
and sell the pledged shares.  The Selling  Stockholders have advised the Company
that they have not entered into any agreements,  understandings  or arrangements
with any underwriters or broker-dealers regarding the sale of their shares other
than ordinary course brokerage arrangements, nor is there an underwriter or

                                      -17-

<PAGE>

coordinating broker acting in connection with the proposed sale of shares by the
Selling Stockholders.

         Broker-dealers  engaged by the  Selling  Stockholders  may  arrange for
other  brokers-dealers  to  participate  in sales.  Broker-dealers  may  receive
commissions or discounts from the Selling Stockholders (or, if any broker-dealer
acts as agent for the purchaser of shares,  from the purchaser) in amounts to be
negotiated.  The  Selling  Stockholders  do not  expect  these  commissions  and
discounts to exceed what is customary in the types of transactions involved.

         The  Selling  Stockholders  and any  broker-dealers  or agents that are
involved  in selling  the shares may be deemed to be  "underwriters"  within the
meaning of the Securities Act in connection with such sales. In such event,  any
commissions  received  by such  broker-dealers  or agents  and any profit on the
resale  of the  shares  purchased  by  them  may be  deemed  to be  underwriting
commissions or discounts under the Securities Act.

         The Company is required  to pay all fees and  expenses  incident to the
registration of the shares,  including fees and  disbursements of counsel to the
Selling   Stockholders.   The  Company  has  agreed  to  indemnify  the  Selling
Stockholders against certain losses, claims, damages and liabilities,  including
liabilities under the Securities Act.

                                      -18-JOINDER AND AMENDMENT TO
                          REGISTRATION RIGHTS AGREEMENT

                  JOINDER AND AMENDMENT TO REGISTRATION  RIGHTS  AGREEMENT dated
September 29, 2000 (the "Joinder  Agreement")  by and among Tidel  Technologies,
Inc., a Delaware  corporation (the "Company"),  Acorn Investment Trust on behalf
of its series Acorn Fund (the "Subsequent  Purchaser") and Montrose  Investments
Ltd. (the "Existing Purchaser").

                               W I T N E S S E T H
                               -------------------

                  WHEREAS,  the Existing Purchaser has entered into that certain
Convertible Debenture Purchase Agreement (the "Montrose Purchase Agreement") and
a Registration Rights Agreement ("Registration Rights Agreement"), each dated as
of  September  8, 2000,  by and among the  Company and the  Existing  Purchaser,
pursuant to which the Existing Purchaser purchased from the Company an aggregate
principal  amount of $15,000,000 of the Company's 6% Convertible  Debentures due
September 8, 2004.

                  WHEREAS,  the  Subsequent  Purchaser  has  entered  into  that
certain Acorn Purchase Agreement (as defined below) of even date herewith by and
among the Company and the Subsequent Purchaser, pursuant to which the Subsequent
Purchaser purchased from the Company an aggregate principal amount of $3,000,000
of the Acorn Debenture.

                  NOW,  THEREFORE,  in  consideration of the premises and of the
mutual  covenants and  agreements of the parties herein  contained,  the parties
hereby agree as follows:

                  Section 1.  Joinder.  Effective  immediately,  the  Subsequent
Purchaser is joined as a party to the Registration  Rights Agreement as a Holder
(as  that  term  is  defined  in the  Registration  Rights  Agreement),  and the
Subsequent  Purchaser  hereby  expressly  assumes  all rights,  liabilities  and
obligations of a Holder under the Registration Rights Agreement.

                  Section 2. Amendments.

                  (a) Section 1 of the  Registration  Rights Agreement is hereby
amended to restate the definitions listed below:

                      "Debentures"  means (i) the Convertible  Debentures issued
to the Purchasers in accordance  with the Purchase  Agreement and (ii) the Acorn
Debentures  issued to the  Subsequent  Purchaser  in  accordance  with the Acorn
Purchase Agreement.

                      "Warrants"  means  (i) the  Warrants  (as  defined  in the
Montrose  Purchase  Agreement)  and (ii) the  Warrants  (as defined in the Acorn
Purchase Agreement).

                  (b) Section 1 of the  Registration  Rights Agreement is hereby
amended by adding the definitions listed below:

<PAGE>

                      "Acorn  Debenture" means the 6% Convertible  Debenture due
September 8, 2004 in principal  amount of  $3,000,000  issued to the  Subsequent
Purchaser.

                      "Acorn Purchase Agreement" means the Convertible Debenture
Purchase  Agreement  dated as of the date  hereof by and among the  Company  and
Acorn Investment Trust on behalf of its series Acorn Fund.

                  (c) Except as modified  and amended  herein,  all of the terms
and conditions of the  Registration  Rights Agreement shall remain in full force
and effect.

                  Section 3. Capitalized Terms. Unless otherwise defined herein,
all  capitalized  terms  shall have the  meanings  assigned to such terms in the
Registration Rights Agreement, as amended hereby.

                  Section 4. Non-Liability of Trustees and Shareholders.  A copy
of the  Declaration  of Trust of the  Subsequent  Purchaser  is on file with the
Secretary of The Commonwealth of Massachusetts,  and notice is hereby given that
this agreement is executed on behalf of the Subsequent  Purchaser by officers of
the Subsequent  Purchaser as officers and not  individually.  All obligations of
the Subsequent  Purchaser hereunder shall be binding only upon the assets of the
Subsequent  Purchaser  (or the  appropriate  series  thereof)  and  shall not be
binding  upon  any  trustee,  officer,  employee,  agent or  shareholder  of the
Subsequent Purchaser. Neither the authorization of any action by the Trustees of
the  Subsequent  Purchaser nor the execution of this  agreement on behalf of the
Subsequent  Purchaser  shall impose any liability  upon any trustee,  officer or
shareholder of the Subsequent Purchaser.

                  Section 5.        Miscellaneous.

                  (a) Successors and Assigns. This Joinder Agreement shall inure
to the benefit of and be binding upon the  successors  and permitted  assigns of
each of the parties  and shall  inure to the benefit of each party.  The Company
may not assign its rights or  obligations  hereunder  without the prior  written
consent of each party.  Each party may assign their respective  rights hereunder
in the  manner and to the  Persons  as  permitted  under the  Montrose  Purchase
Agreement or the Acorn Purchase Agreement, as the case may be.

                  (b)  Counterparts.  This Joinder  Agreement may be executed in
any number of counterparts, each of which when so executed shall be deemed to be
an original and, all of which taken together  shall  constitute one and the same
Agreement.   In  the  event  that  any   signature  is  delivered  by  facsimile
transmission,  such  signature  shall create a valid  binding  obligation of the
party  executing  (or on whose behalf such  signature is executed) the same with
the same  force and  effect as if such  facsimile  signature  were the  original
thereof.

                  (c) Governing Law. All questions  concerning the construction,
validity,  enforcement  and  interpretation  of this Joinder  Agreement shall be
governed by and construed  and enforced in accordance  with the internal laws of
the State of New York, without regard to the

                                       -2-

<PAGE>

principles of conflicts of law thereof. Each party hereby irrevocably submits to
the exclusive  jurisdiction  of the state and federal courts sitting in the City
of New York, borough of Manhattan, for the adjudication of any dispute hereunder
or in  connection  herewith  or with  any  transaction  contemplated  hereby  or
discussed herein, and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding,  any claim that it is not personally  subject to the
jurisdiction  of any such  court,  that  such  suit,  action  or  proceeding  is
improper.  Each party hereby  irrevocably waives personal service of process and
consents  to process  being  served in any such suit,  action or  proceeding  by
mailing a copy  thereof to such party at the address in effect for notices to it
under this Joinder  Agreement and agrees that such service shall constitute good
and sufficient  service of process and notice thereof.  Nothing contained herein
shall be  deemed to limit in any way any right to serve  process  in any  manner
permitted by law.

                  (d) Notices.  Any and all notices or other  communications  or
deliveries  required or permitted to be provided  hereunder  shall be in writing
and shall be deemed given and effective as provided in the  Registration  Rights
Agreement.  The address for such notices and communications shall be as provided
in the  Registration  Rights  Agreement  with  respect  to the  Company  and the
Existing  Purchaser,  and with respect to Acorn,  to the address set forth under
Acorn's name on the signature pages hereto.

                                       -3-

<PAGE>

                  IN WITNESS  WHEREOF,  the parties  hereto have  executed  this
Joinder and Amendment to  Registration  Rights  Agreement as of the day and year
first above written.

                              TIDEL TECHNOLOGIES, INC.

                              By:  /s/ James T. Rash
                                   --------------------------------------------
                                   Name: James T. Rash
                                   Title: President and Chief Executive Officer

                              THE SUBSEQUENT PURCHASER:

                              ACORN INVESTMENT TRUST
                              on behalf of its series Acorn Fund

                              By:  /s/ Kenneth A. Kalina
                                   --------------------------------------------
                                   Name: Kenneth A. Kalina
                                   Title: Assistant Treasurer

                              Address for Notice:

                              Acorn Investment Trust
                              on behalf of its series Acorn Fund
                              227 W. Monroe St., #3000
                              Chicago, IL 60606
                              Facsimile: 312-634-1919
                              Attn: Treasurer

         With copies to:      Bell, Boyd & Lloyd LLC
                              Three First National Plaza, #3300
                              Chicago, IL 60602
                              Facsimile: 312-372-2098
                              Attn: Janet D. Olsen

<PAGE>

                              THE EXISTING PURCHASERS:

                              MONTROSE INVESTMENTS LTD.

                              By:  /s/ William E. Rose
                                   -----------------------------------------
                                   Name:  William E. Rose
                                   Title: Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}]]