Document:

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                                                                   EXHIBIT 10.22

            AGREEMENT REGARDING NCR TRANSACTION AND OTHER ASSET SALES

      THIS AGREEMENT, dated as of November 26, 2004 (the "AGREEMENT"), is by and
between Tidel Technologies, Inc., a Delaware corporation (the "COMPANY"), and
Laurus Master Fund, Ltd., a Cayman Islands company ("LAURUS").

                                    RECITALS

      WHEREAS, the Company has issued to Laurus that certain convertible note in
the original principal amount of Six Million Four Hundred Fifty Thousand Dollars
($6,450,000), dated November 25, 2003 (as amended, modified or supplemented from
time to time, the "CONVERTIBLE TERM NOTE");

      WHEREAS, certain events of default have occurred and are continuing under
the Convertible Term Note and related agreements (the "CONVERTIBLE TERM NOTE
FACILITY") and, notwithstanding the occurrence of such events of default and the
significant risk in extending additional funds to the Company at this time, the
Company has requested that Laurus reorganize the Convertible Term Note Facility
by, among other thing, extending additional financial accommodations to the
Company in amount equal to Two Million One Hundred Thousand Dollars
($2,100,000), and entering into that certain Purchase Order Finance and Security
Agreement by and between Tidel Engineering, L.P., any other Credit Party (as
defined therein) signatory thereto, and Laurus, dated as of the date hereof (as
amended, modified or supplemented from time to time, the "PO Agreement") which
when aggregated with the outstanding principal balance under the Convertible
Term Note Facility shall constitute a total facility of Ten Million Seventeen
Thousand Nine Hundred Eighty-Eight Dollars ($10,017,988) (the "REORGANIZED
FACILITY");

      WHEREAS, to induce Laurus to consider providing the Reorganized Facility
to the Company, the Company has informed Laurus that the Company has entered
into a letter of intent dated October 1, 2004 with NCR Corporation ("NCR") for
the sale to NCR of all of the Company's and its Subsidiaries' assets related to
its automatic teller machine business (the "NCR TRANSACTION"), the net proceeds
of which will be utilized to pay the indebtedness owing by the Company to Laurus
under the Reorganized Facility together with all interest, fees and other
charges related thereto;

      WHEREAS, to further induce Laurus to consider providing the Reorganized
Facility to the Company, the Company has informed Laurus that subsequent to
consummation of the NCR Transaction the Company and its Subsidiaries intend to
sell all or substantially all of their equity interests and/or other assets in
one or more transactions (each such equity and asset sale, an "ASSET SALE" and
all such Asset Sales, collectively, the "TOTAL ASSET SALE"), the net proceeds of
which will be utilized in part to pay the indebtedness owing by the Company to
Laurus under the Reorganized Facility together with all interest, fees and other
charges related thereto (it being understood that any assets of the Company
and/or any Subsidiary of the Company that are not sold in the NCR Transaction
shall be considered sold in an Asset Sale hereunder, with the exception of
assets sold in the ordinary course of the Company's and its Subsidiaries'
operations as in effect on the date hereof (each, an "ORDINARY COURSE ASSET
SALE"), so long as each

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Ordinary Course Asset Sale is consistent with the past practices of the Company
and its Subsidiaries); and

      WHEREAS, simultaneously with the execution of this Agreement and as part
of the Reorganized Facility, the Company shall issue to Laurus a convertible
note, dated the date hereof, in the original principal amount of Six Hundred
Thousand Dollars ($600,000) convertible into the Company's common stock, par
value $.01 per share (the "CONVERTIBLE NOTE");

      WHEREAS, simultaneously with the execution of this Agreement and as part
of the Reorganized Facility, the Company shall also issue to Laurus a term note,
dated the date hereof, in the original principal amount of One Million Five
Hundred Thousand Dollars ($1,500,000) (the "TERM NOTE"); and

      WHEREAS, as a condition to the issuance of the Convertible Note and the
Term Note by the Company to Laurus, and as a condition to the entering into of
the PO Agreement, the Company and Laurus desire to enter into this Agreement on
the terms and conditions set forth herein;

                                    AGREEMENT

      NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
promises hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

      1. In consideration of Laurus' agreement to provide the Reorganized
Facility to the Company on the terms and conditions set forth herein and in all
such other documentation evidencing the same, the Company shall pay to Laurus a
reorganization fee in the amount of $2,000,000, payable in accordance with the
terms of this Agreement (the "REORGANIZATION FEE"). The Reorganization Fee shall
be deemed fully earned on the date hereof, shall not be subject to rebate or
proration for any reason, and shall constitute an obligation of the Company to
Laurus secured by the collateral granted by the Company and its subsidiaries to
Laurus under any and all security agreements and pledge agreements at any time
entered into by the Company and/or any such subsidiaries in favor of Laurus, as
each of the same may be amended, modified and supplemented from time to time. In
addition, the Reorganization Fee shall be guaranteed by certain subsidiaries of
the Company pursuant to any and all guaranty agreements at any time entered into
by such subsidiaries in favor of Laurus, as each of the same may be amended,
modified and supplemented from time to time.

      2. Notwithstanding the foregoing, in the event that the Company requires
additional financing (an "Additional Loan") subsequent to such time as all of
the Laurus Obligations (as such term is defined herein) have been paid in full,
other than the Reorganization Fee, the Company shall be able to seek such
financing, subject to the following conditions:

            a. the Additional Loan may only be in the form of a non-convertible
bank loan in an aggregate principal amount not to exceed $4,000,000;

            b. Laurus shall have a right of first refusal, which shall be
exercised within four business days of written notice from the Company, to loan
such amount sought by the

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Company from any bank (an "Additional Lender") on the terms and conditions no
less favorable to the Company than the terms of the Additional Loan; and

            c. In the event that an Additional Lender loans the Additional Loan
to the Company, so long as there is no Event of Default outstanding at such time
with respect to the Reorganization Fee, Laurus agrees that the Additional Loan
shall be senior in right of payment to the Reorganization Fee, and Laurus
furthermore agrees to enter into a subordination agreement with the Additional
Lender on mutually agreeable terms that are reasonably standard in the banking
industry. Laurus agrees to negotiate the terms of such subordination agreement
in good faith. Notwithstanding anything to the contrary set forth in this
Section 2(c), the Company and Laurus agree that no term or condition of the
subordination agreement referred to in this Section 2(c) shall in any respect
limit any payments contemplated in the Convertible Term Note Facility, the
Reorganized Facility or in connection with the Reorganization Fee (as amended,
modified or supplemented from time to time).

      3. The Company acknowledges that the Reorganized Facility shall be
evidenced by the Convertible Term Note, the Convertible Note, the Term Note, the
PO Agreement, this Agreement and all documents, instruments and agreements from
time to time entered into in connection therewith, as each of the same may be
amended, modified and supplemented from time to time.

      4. (a) The Company hereby agrees that any Net Proceeds (as defined below)
that are received by the Company or any of its subsidiaries and/or affiliates
(each a "Tidel Party" and collectively, the "Tidel Parties") in connection with
the NCR Transaction shall be distributed in the following manner: (i) first, to
Laurus to repay the outstanding obligations (including, without limitation,
principal, interest, fees, default interest, premiums, etc., but excluding the
Reorganization Fee) owed by each such Tidel Party to Laurus in connection with
the Convertible Note, the Term Note, the Convertible Term Note, the Purchase
Order Agreement and any document related to any of the Convertible Note, the
Term Note, the Convertible Term Note, the Purchase Order Agreement or otherwise
(excluding the Reorganization Fee) (collectively, the "Laurus Obligations"), in
such order of application as Laurus shall determine in its sole discretion, and
(ii) second, to the extent that any Tidel Party receives Net Proceeds from the
NCR Transaction in excess of the amount of the Laurus Obligations, to such Tidel
Party.

            (b) The Company hereby agrees that any Net Proceeds that are
received by any Tidel Party in connection with any Asset Sale consummated on or
prior to the fifth anniversary of this Agreement (the "TERMINATION DATE") shall
be distributed in the following manner: (I) first, to Laurus to repay the Laurus
Obligations, in such order of application as Laurus shall determine in its sole
discretion, (II) second, to the extent that any Tidel Party receives Net
Proceeds from any Asset Sale in excess of the amount of the Laurus Obligations
(such amounts, "EXCESS NET PROCEEDS"), (A) to Laurus in an amount equal to
Applicable Excess Net Proceeds Percentage (as defined below) of the remainder of
(i) the sum of (the following clauses (x) and (y) of this clause (i), the "TOTAL
NET PROCEEDS") (x) the Net Proceeds attributable to such Asset Sale plus (y) the
aggregate amount of Net Proceeds attributable to the NCR Transaction and all
other Asset Sales consummated prior to such Asset Sale minus (ii) the sum of (x)
$7,267,988 plus (y) the aggregate amount received by Laurus pursuant to this
clause (A) on or after the date of this Agreement without giving effect to such
Asset Sale, and (B) to such Tidel Party in an

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amount equal to the remainder of such Excess Net Proceeds not distributed in
accordance with the immediately preceding clause (A); provided that,
notwithstanding the foregoing, in the event that the amount calculated pursuant
to the immediately preceding clause (A) is less than or equal to $0, all Excess
Net Proceeds attributable to such Asset Sale shall be distributed in accordance
with the immediately preceding clause (B). Any Excess Net Proceeds received by
Laurus shall be applied to reduce the obligation of the Company to pay the
Reorganization Fee. In the event that (I) Laurus receives Excess Net Proceeds in
an amount greater than the Reorganization Fee in accordance with clause (A) of
the first sentence of this Section 3(b), Laurus shall be entitled to retain all
of such Excess Net Proceeds in consideration of its agreements set forth herein
or (II) Laurus has not, prior to the fifth anniversary of the date of this
Agreement, received Excess Net Proceeds in an amount sufficient to pay in full
the Reorganization Fee, Tidel shall make a payment to Laurus in cash equal to
the remainder of (i) the amount of the Reorganization Fee minus (ii) the
aggregate amount of Excess Net Proceeds received by Laurus prior to the fifth
anniversary of this Agreement, by direct wire transfer to a bank account
designated in writing by Laurus to the Company, no later than 90 days after the
fifth anniversary of this Agreement. Upon payment in full of the Reorganization
Fee, the parties hereto agree that any and all warrants held by Laurus to
purchase Common Stock as of the date hereof and/or as a result of the
Reorganized Facility shall be canceled.

            (c) For purposes of this Agreement, (I) "NET PROCEEDS" shall mean,
with respect to the NCR Transaction or any Asset Sale, the remainder of (x)
gross cash proceeds received by any Tidel Party as consideration for the sale of
assets, equity interests or other property in connection with the NCR
Transaction or such Asset Sale (the "GROSS PROCEEDS"), minus (y) the sum of (I)
any trade accounts payable reasonably related to the assets sold in connection
with the NCR Transaction or such Asset Sale (solely to the extent that (x) such
trade accounts payable are not assumed by the buyer of the assets, equity
interests or other property sold in connection with the NCR Transaction or such
Asset Sale and (y) such trade accounts payable are reasonably related to the
assets, equity interest or other property sold in connection with the NCR
Transaction or such Asset Sale) (II) any indebtedness for borrowed money (other
than the Laurus Obligations) of the Company and its Subsidiaries that is
required to be repaid in connection with the NCR Transaction or such Asset Sale,
and (III) all reasonable cash expenses that constitute sale expenses, reasonable
legal fees, reasonable investment banker fees and state, local and federal
taxes, in each case, incurred in connection with, and directly related to, the
sale of assets in the relevant transaction (as determined by Laurus in its sole
discretion) and (II) "APPLICABLE EXCESS NET PROCEEDS PERCENTAGE" shall mean,
with respect to each Asset Sale, (x) in the event that the Total Net Proceeds
are less than $28,000,000, the percentage set forth in the table below opposite
the Total Net Proceeds at such time and (y) in the event that the Total Net
Proceeds are greater than or equal to $28,000,000, 56.80% plus 0.1% for each
$1,000,000 increment above $28,000,000 (for example, if Total Net Proceeds at
any time are $30,000,00, the Applicable Excess Net Proceeds Percentage shall be
57.0%):

<TABLE>
<CAPTION>
                Total Net Proceeds                       Applicable Excess Net Proceeds Percentage
                ------------------                       -----------------------------------------
<S>                                                      <C>
Less than $13,000,000                                                     55.50%

Greater than or equal to $13,000,000 and less than                        55.58%
$14,000,000
</TABLE>

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<TABLE>
<S>                                                                       <C>
Greater than or equal to $14,000,000 and less than                        55.87%
$17,000,000

Greater than or equal to $17,000,000 and less than                        56.01%
$18,500,000

Greater than or equal to $18,500,000 and less than                        56.10%
$19,500,000

Greater than or equal to $19,500,000 and less than                        56.30%
$22,000,000

Greater than or equal to $22,000,000 and less than                        56.50%
$25,000,000

Greater than or equal to $25,000,000 and less than                        56.70%
$27,000,000

Greater than or equal to $27,000,000 and less than                        56.80%
$28,000,000
</TABLE>

            (d) Commencing on December 31, 2004, the Company covenants and
agrees that, within ten days following the close of each fiscal quarter ended
December 31 or June 30, it shall deliver its projected revenue for the six-month
period immediately following the end of such fiscal period.

                  (ii) The Company hereby agrees that it shall accept an offer
to buy all or substantially all of the assets, equity interests or other
property of the Company and its Subsidiaries pursuant to one Asset Sale or a
group of Asset Sales so long as the aggregate Gross Proceeds offered in
connection with such Asset Sale or Asset Sales equals or exceeds 0.75 multiplied
by the Revenue (as hereinafter defined), unless the parties hereto mutually
agree that an offer for less Gross Proceeds is acceptable.

                  (iii) The "REVENUE" shall mean, for purposes of the Agreement,
the sum of (x) either (A) if the consolidated income statement of the Company
and its Subsidiaries for the last six fiscal months then ended is audited by a
reputable accounting firm acceptable to Laurus, the six-month trailing revenue
of the Company as so audited or (B) if the consolidated income statement of the
Company and its Subsidiaries for the last six fiscal months then ended is not
audited by a reputable accounting firm reasonably acceptable to Laurus, the
Unaudited Trailing Revenue (as hereinafter defined) plus (y) the Projected
Revenue (as hereinafter defined).

                  (iv) Within three (3) business days of receipt of a written
offer for an Asset Sale, the Company shall deliver a statement of the Company's
projected revenue for the upcoming six-month period (the "PROJECTED REVENUE,"
and such statement, the "PROJECTED REVENUE STATEMENT") and, if the consolidated
income statement of the Company and its Subsidiaries for the last six fiscal
months then ended is not audited by a reputable accounting

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firm reasonably acceptable to Laurus, the unaudited consolidated income
statement of the Company and its Subsidiaries for such six month period (the
"Unaudited Trailing Income Statement", and the revenue amount set forth in such
Unaudited Trailing Income Statement, the "Unaudited Trailing Revenue"), in each
case, to Laurus. In the event that Laurus disputes either the Projected Revenue
contained in such Projected Revenue Statement or, if applicable, the Unaudited
Trailing Revenue contained in the Unaudited Trailing Income Statement, Laurus
shall deliver a notice of dispute (a "Dispute Notice") to the Company within
three (3) business days of receipt of the Projected Revenue and/or, if
applicable, the Unaudited Trailing Revenue. Laurus and the Company shall
negotiate to agree upon a mutually agreed upon value for the Projected Revenue
and/or, if applicable, the Unaudited Trailing Revenue. If, within twenty (20)
business days of receipt of the Dispute Notice by Laurus to the Company, Laurus
and the Company are unable to come to agreement on the Projected Revenue and/or,
if applicable, the Unaudited Trailing Revenue, then they shall obtain the
assistance of a mutually-agreed upon investment banker, to whom each of Laurus
and the Company shall deliver their respective estimates of Projected Revenue
and/or, if applicable, the Unaudited Trailing Revenue, and such investment
banker shall decide which estimate shall prevail. If the Company and Laurus are
unable to mutually agree upon an investment banker, then they shall each choose
their own investment banker, and such two investment bankers shall appoint a
third investment banker, to whom each of Laurus and the Company shall deliver
their respective estimates of Projected Revenue and/or, if applicable, the
Unaudited Trailing Revenue, and such third investment banker shall review the
estimates of Projected Revenue and/or, if applicable, the Unaudited Trailing
Revenue, and decide which estimate shall prevail.

            (e) Any Net Proceeds required to be paid to Laurus in accordance
with the terms of this Agreement shall be wired directly to a bank account
designated in writing by Laurus to the Company on the date that such Tidel Party
is entitled to receive such Net Proceeds.

      5. The Company hereby agrees that, notwithstanding anything to the
contrary contained in this Agreement or any other agreement between Laurus and
any Tidel Party, neither the NCR Transaction nor any Asset Sale shall be
consummated without the prior written consent of Laurus including, without
limitation, the consent of Laurus to the amount and type of consideration to be
received by the Company in the NCR Transaction or such Asset Sale, as the case
may be).

      6. The terms and conditions of this Agreement shall inure to the benefit
of and be binding upon the respective successors and assigns of the parties.
Nothing in this Agreement, express or implied, is intended to confer upon any
party other than the parties hereto or their respective successors and assigns
any rights, remedies, obligations, or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement.

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

      8. All notices, requests, demands and other communications which are
required or may be given under this Agreement shall be in writing and shall be
deemed to have been duly given when (i) delivered personally or by facsimile
transmission (and a copy is mailed by regular

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mail within 24 hours of such transmission), in either case with receipt
acknowledged, (ii) three business days after being sent by registered or
certified mail, return receipt requested, or (iii) one business day after being
sent by prepaid overnight carrier, with a record of receipt, to the parties at
their addresses as provided in that certain Securities Purchase Agreement by and
between Laurus and the Company dated as of the date hereof.

      9. This Agreement constitutes the full and entire understanding and
agreement between the parties with regard to the subject matter hereof. Any term
of this Agreement may be amended and the observance of any term of this
Agreement may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the other
party to this Agreement.

      10. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be excluded from this
Agreement and the balance of the Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its
terms.

      11. This Agreement shall be deemed executed and delivered in the State of
New York.

This Agreement shall be governed by and construed in accordance with the laws of
the State of New York, except that body of law relating to choice of laws.

Each of the parties hereto hereby irrevocably submits to the exclusive
jurisdiction of the courts located in New York County, New York (the "COURTS")
in any action or proceeding arising out of or relating to this Agreement and the
transactions contemplated hereby (each, an "ACTION") and each of the parties
hereto irrevocably agrees that all claims in respect of an Action shall be heard
and determined in the Courts. Each of the parties hereto (i) acknowledges that
the Courts are the most appropriate forum for the resolution of any claims that
could be asserted in an Action, and (ii) hereby irrevocably and unconditionally
waives any objection that he or it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this
Agreement or any of the transactions contemplated hereby in the Courts. Each of
the parties hereto hereby irrevocably waives the defense of an inconvenient
forum to the maintenance of such action or proceeding and any other defense
relating to the choice of forum for an Action.

      12. Each of the parties hereto represents that it has consulted with
counsel of its own choosing in connection with the negotiation and execution of
this Agreement or has knowingly chosen not to do so.

                           [SIGNATURE PAGE TO FOLLOW]

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<PAGE>

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

                                          TIDEL TECHNOLOGIES, INC.

                                          By:____________________________
                                          Name:
                                          Title:

                                          Address: 2900 Wilcrest
                                                   Suite 205
                                                   Houston, Texas 77042

                                          LAURUS MASTER FUND, LTD.

                                          By:____________________________
                                          Name:
                                          Title:

                                          Address: c/o M&C Corporate Services
                                                   Limited, P.O. Box 309 GT,
                                                   Ugland House, South Church
                                                   Street, George Town, Grand
                                                   Cayman, Cayman Islands

CONSENTED AND AGREED TO:

TIDEL ENGINEERING, LP

By:______________________________
Name:____________________________
Title:___________________________

TIDEL CASH SYSTEMS, INC.

By:______________________________
Name:____________________________
Title:___________________________

TIDEL SERVICES, INC.

By:______________________________
Name:____________________________
Title:___________________________

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<PAGE>

ANYCARD INTERNATIONAL, INC.

By:______________________________
Name:____________________________
Title:___________________________

                                       9<PAGE>

                                                                   EXHIBIT 10.24

                              SETTLEMENT AGREEMENT

            This Settlement Agreement and release (collectively, the
"Agreement") is made and entered into as of this ____ day of June, 2005, by and
between Tidel Technologies, Inc. ("Tidel"), Tidel Engineering, L.P.
("Engineering" and together with Tidel, the "Company") and Michael F. Hudson
("Hudson"). The Company and Hudson are referred to herein collectively as the
"Parties."

      WHEREAS, the Company loaned $141,563 to Hudson pursuant to that certain
promissory note dated as of September 27, 2000, in a loan that matured on
October 1, 2002 (the "First Loan");

      WHEREAS, the Company loaned an additional $225,000 to Hudson, pursuant to
promissory notes dated October 25, 2000, December 19, 2000 and February 14,
2001, in the respective principal amounts of $50,000, $50,000 and $125,000, all
of which matured on October 1, 2002 (the "Second Loans", and together with the
First Loan, the "Loans");

      WHEREAS, payment of the Loans is secured by that certain Stock Pledge
Agreement ("Pledge Agreement") dated as of September 27, 2000 by and between
Hudson and Tidel;

      WHEREAS, the Company declared bonuses relating to incremental salary
payments to Hudson (i) on account of 2004 salary in the amount of $10,250, and
(ii) an additional bonus on account of 2005 salary in the amount of $20,500, due
to be paid June 30, 2005 (together, the "Salary Bonuses"), which Salary Bonuses
have not yet been paid to Hudson;

      WHEREAS, the Company entered into an Asset Purchase Agreement (the "APA")
dated as of February 19, 2005 by and among NCR Texas LLC and the Company
providing for the sale of certain assets of the Company related to the Company's
business of designing, manufacturing, assembling, marketing and selling certain
automated teller machines;

      WHEREAS, in consideration of Executive's work in entering into the APA,
and in connection with the proposed execution of that certain Employment
Agreement by and between Hudson and Engineering dated as of even date herewith
(the "New Employment Agreement"), Engineering declared a bonus payable to Hudson
in an amount equal to $30,000 (the "NCR Bonus"), which NCR Bonus has not yet
been paid to Hudson and will be applied in partial satisfaction of the Loans;

      WHEREAS, the parties desire to terminate the Employment Agreement dated as
of January 1, 2000 by and between Engineering and Hudson (the "Old Employment
Agreement") and to enter into the New Employment Agreement;

      WHEREAS, Hudson holds options to purchase 225,500 shares of Tidel's common
stock, par value $.01 (the "Common Stock"), pursuant to the Company's Long-Term
1997 Incentive Plan (the "Plan");

      WHEREAS, Hudson owns in his individual capacity (and not in an Individual
Retirement Account) 90,500 shares of Common Stock (the "Hudson Shares");

<PAGE>

      WHEREAS, the Loans have been due and payable since October 1, 2002, and
the Company desires to resolve the outstanding Loans;

      WHEREAS, Hudson claims that in 2000 and 2001 the Company, by and through
its then Chief Executive Officer, made certain promises to and agreements with
Hudson upon which Hudson relied to his detriment, by among other things, not
selling the Hudson Shares, and Hudson has certain claims against the Company
relating to such matter (the "Hudson Claim");

      WHEREAS, the parties desire to settle their dispute pursuant to the terms
described herein, including a general release of, inter alia, any and all claims
which Hudson has or may have against the Company;

      NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, IT IS AGREED AS FOLLOWS:

      1. Satisfaction of Loans. Upon execution of this Agreement and performance
of the covenants contained herein, and in consideration for the agreements and
covenants made herein, the Parties agree that all accrued and unpaid interest on
the Loans shall be cancelled and forgiven and all principal owed on the Loans
shall be deemed fully satisfied.

      2. Delivery of Hudson Shares. Upon execution of this Agreement, and in
consideration for the agreements and covenants made herein, Hudson shall deliver
the Hudson Shares to the Company. Hudson represents and warrants to the Company
that the Hudson Shares represent all shares of Common Stock he holds in his
individual capacity, and that he has not sold any shares of Common Stock since
January 1, 2004.

      3. Options. Notwithstanding any terms of the 75,000 Options (as defined
below) or the Plan to the contrary, Hudson's options to purchase 75,000 shares
of Common Stock for $.25 per share granted March 7, 2005 and expiring March 6,
2015 (the "75,000 Options"), to the extent they are not presently exercisable,
shall be accelerated and fully vest and become fully exercisable immediately
prior to the date of termination of his employment with the Company, whenever
that may occur. Any of the 75,000 Options which Hudson wishes to exercise must
be exercised within the earlier to occur of (i) 120 days following his
termination of employment with the Company or (ii) following the Company's
delivery of notice to Hudson of an impending (A) sale of all or substantially
all of the assets of Tidel or Engineering, or (B) sale of at least 50% of the
equity interests of Tidel or Engineering, or (C) a Change of Control as defined
in the Plan (any such event, a "Triggering Event"), then no less than 30 days
prior to such Triggering Event, or if notice from the Company is received by
Hudson less than 30 days prior to such Triggering Event, then ten days following
receipt of such notice. The Company's notice to Hudson hereunder shall briefly
identify the type of impending Triggering Event and its anticipated Closing
Date. Other than as provided hereby, no other terms or provisions of the 75,000
Options shall be amended or altered in any way. All other options to purchase
shares of Common Stock held by Hudson shall hereby terminate, effective as of
the date hereof.

      4. Salary Bonuses. Hudson and the Company agree that (i) any and all
applicable federal, state and local tax withholding obligations, and the
employee's share of any FICA tax obligations with respect to the payment of the
Salary Bonuses (the "Withholding Taxes") shall

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<PAGE>

be withheld by the Company from the Salary Bonuses and remitted to the proper
taxing authorities, and (ii) any remaining amounts of the Salary Bonuses owing
to Hudson after satisfaction of such Withholding Taxes shall be retained by the
Company in partial satisfaction of the Loans.

      5. Release of the Company by Hudson. Upon execution of this Agreement, in
consideration for the covenants and agreements made in this Agreement, Hudson
and his heirs, executors, administrators, successors and assigns (the "HUDSON
RELEASORS") hereby release and discharge Tidel, Engineering and each of their
present and former agents, representatives, shareholders, principals, officers,
directors, employees, partners, joint venturers, affiliates, parents,
subsidiaries, heirs, executors, administrators, successors and assigns (the
"COMPANY RELEASEES") from all actions, causes of action, suits, debts, dues,
sums of money, accounts, reckonings, bonds, bills, specialties, covenants,
contracts, controversies, agreements, promises, variances, trespasses, damages,
judgments, extents, executions, claims, and demands whatsoever in law, admiralty
or equity, whether known or unknown, which the HUDSON RELEASORS ever had, now
have or hereafter can, shall or may, have against the COMPANY RELEASEES for,
upon, or by reason of any matter, cause or thing whatsoever from the beginning
of the world to the day of the date of this Agreement, including any claims the
Hudson Releasors have under the Hudson Claims; provided, however, that this
release will not limit or release (a) Hudson's rights under this Agreement or
Hudson's rights under the New Employment Agreement, (b) Hudson's rights to
indemnification from the Company in respect of his services as a director,
officer or employee of the Company or any of their respective subsidiaries as
provided by law, any indemnification agreements to which Hudson and the Company
or any of their respective subsidiaries are a party, or the certificates of
incorporation or bylaws (or like constitutive documents) of the Company or any
of their respective subsidiaries, (c) subject to this Agreement, Hudson's rights
under the option agreements pursuant to which Hudson has previously been granted
the 75,000 Options or (d) any rights of Hudson under the Company's 401(k)
Retirement Plan (together, the provisions of clauses (a) through (d), the
"Exceptions").

      6. Release of Hudson by the Company. Upon execution of this Agreement, in
consideration for the covenants and agreements made in this Agreement, the
Company and its successors and assigns (the "COMPANY RELEASORS") hereby release
and discharge Hudson, and his heirs, executors, administrators, successors and
assigns (the "HUDSON RELEASEES") from all actions, causes of action, suits,
debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties,
covenants, contracts, controversies, agreements, promises, variances,
trespasses, damages, judgments, extents, executions, claims, and demands
whatsoever in law, admiralty or equity, whether known or unknown, which the
COMPANY RELEASORS ever had, now have or hereafter can, shall or may, have
against the HUDSON RELEASEES for, upon, or by reason of any matter, cause or
thing whatsoever from the beginning of the world to the day of the date of this
Agreement; provided, however, that this release will not limit or release (a)
the Company's rights under this Agreement or the Company's rights under the New
Employment Agreement, or (b) the Hudson Releasees for any acts of gross
negligence, willful misconduct, or fraud, or for illegal or dishonest acts, or
acts that subject the Company to third party claims.

                                        3
<PAGE>

      7. Discontinuance of the Claim. Upon execution of the Agreement, and in
consideration for the covenants made in this Agreement, Hudson hereby agrees not
to commence any action against the Company.

      8. Settlement. The Company denies that it has any liability to Hudson
whatsoever, and enters into this Agreement without admitting any of the
allegations made by Hudson.

      9. Employment; Board of Directors.

                  a. The Old Employment Agreement has terminated as of the date
hereof pursuant to and as provided in the New Employment Agreement. Hudson
acknowledges that other than as set forth in this Settlement Agreement,
including the Exceptions, and in the New Employment Agreement, the Company has
no other obligations to Hudson.

                  b. Effective upon the date hereof and the execution and
delivery of the New Employment Agreement, Hudson hereby resigns from the Board
of Directors of Tidel and each of its subsidiaries.

      10. Tax Treatment. The Parties agree that the transactions contemplated by
this Agreement shall be reported for all tax purposes consistent with the
following:

                  a. The Salary Bonuses in the total amount of $30,750 shall be
treated as wage compensation reported by the Company on IRS Form W-2, Wage and
Tax Statement.

                  b. The transfer of the Hudson Shares by Hudson to the Company
shall be treated as a payment of principal on the Loans in an amount equal to
the value of such Shares as of the date hereof.

                  c. In reliance upon the representations and warranties of
Hudson set forth below, the Company agrees that the satisfaction of the
remaining principal balance of the Loans shall not be reported by the Company on
any IRS Form W-2 or IRS Form 1099.

               Hudson represents and warrants to the Company that:

                        i. the forgiveness of the accrued interest of the Loans
should be treated as cancellation of indebtedness under Section 108 of the
Internal Revenue Code of 1986, as amended (the "Code");

                        ii. the satisfaction of the remaining principal amount
of the Loans (after application of the NCR Bonus of $30,000, the Salary Bonuses
net of the Withholding Taxes, and the delivery of the Hudson Shares) should be
treated as a payment by the Company to Hudson for the release and settlement of
the Hudson Claim; and

                        iii. the origin of the Hudson Claim is the Hudson Shares
which are capital assets within the meaning of Section 1221 of the Code, and the
settlement of the Hudson Claim and delivery of the Hudson Shares constitute a
sale or exchange such that, for tax purposes, the portion of the principal
satisfied in exchange for the release and settlement of the

                                        4
<PAGE>

Hudson Claim shall be treated to Hudson as a capital gain (or a reduction of a
capital loss).

      11. Non-Assignment. Hudson represents and warrants that there has been no
assignment or other transfer of any interest in any of the released claims to
any other person or entity not a party to this Agreement.

      12. Attorneys' Fees. The Parties agree that each side shall bear their own
respective attorneys' fees and costs in connection with this Settlement
Agreement.

      13. Final Agreement. This Agreement and the New Employment Agreement
supersede any prior agreement and statements, written or oral, and constitute
the complete, final and entire understanding of the Parties hereto, and no Party
shall be bound by any terms, covenants, conditions or representations not
expressly contained herein or therein in writing, all of which are agreed to be
immaterial and none of which were relied upon by any Party in entering into this
Agreement or the New Employment Agreement.

      14. Non-Modification. This Agreement may not be terminated, modified or
changed orally, and may be changed only by an agreement in writing signed by
both Parties.

      15. Notice. All notices, demands, requests, or other communications which
may be or are required to be given or made by any party to any party pursuant to
this Agreement shall be in writing, including by facsimile, and shall be deemed
to have been received on the date of personal delivery, on the third day after
deposit in the U.S. mail if mailed by registered or certified mail, postage
prepaid and return receipt requested, on the day after delivery to a nationally
recognized overnight courier service if sent by an overnight delivery service
for next morning delivery, and on the same day if transmitted by facsimile,
addressed as follows:

If to the Company:               Tidel Technologies, Inc.
                                 2310 McDaniel Drive
                                 Carrollton, Texas  75006
                                 Attn: Chairman of the Board

with a copy to:                  Olshan Grundman Frome Rosenzweig
(which shall not                  & Wolosky LLP
constitute notice)               Park Avenue Tower
                                 65 East 55th Street
                                 New York, New York 10022
                                 Attn: Adam W. Finerman, Esq.
                                 Telecopier No.: 212-451-2222

If to Hudson:                    Michael F. Hudson
                                 4513 Savino Drive
                                 Plano, Texas 75093

with a copy to:                  P. Gregory Hidalgo
(which shall not                 Vinson & Elkins L.L.P.
constitute notice)               2001 Ross Ave., Suite 3700

                                        5
<PAGE>

                                 Dallas, TX  75201
                                 Telecopier No.: 214-999-7959

      16. Mutual Drafting of Agreement. The drafting and negotiation of this
Agreement has been participated in by the parties for all purposes and,
accordingly, this Agreement shall be deemed to have been drafted jointly by the
Parties. The Parties have been advised, and have had the opportunity to consult
with and have this Agreement reviewed, by separate and independent counsel prior
to the execution of the Agreement.

      17. Binding Upon Affiliates. This Agreement and all obligations, benefits
and undertakings herein shall be binding upon, and shall inure to the benefit of
the Parties, their predecessors, administrators, successors, heirs, assigns and
anyone claiming by, through or under any of them.

      18. Counterparts. This Agreement may be executed in facsimile
counterparts, each of which shall be deemed to be an original. Such
counterparts, when taken together, shall constitute but one agreement.

      19. Survival of Provisions. The invalidity, illegality or unenforceability
of any provision of this Agreement pursuant to judicial decree shall not affect
the validity or enforceability of any other provision of this Agreement, all of
which shall remain in full force and effect. Furthermore, in lieu of any such
invalid, illegal or unenforceable provision there shall be automatically added
as part of this Agreement a provision as similar in terms to such invalid,
illegal or unenforceable provision as may be possible and be valid, legal and
enforceable.

      20. Authority. The Parties (other than Hudson) to this Agreement represent
and warrant that the officer or individual executing this Agreement on its
behalf has been duly authorized to do so and has the capacity to sign for and
bind the Party for which the officer or individual signs.

      21. Agreement Entered Into Voluntarily. The Parties agree that they have
entered into this Agreement voluntarily and knowingly, and that they have
reviewed this Agreement with counsel and fully understand its terms and
conditions.

      22. Governing Law. This Agreement shall be deemed made under and shall be
governed by the substantive laws of the State of Texas, excluding its conflict
of laws rules.

                                        6
<PAGE>

            IN WITNESS WHEREOF, Hudson and the Company have executed this
Agreement the day and year first above written.

TIDEL TECHNOLOGIES, INC.                 TIDEL ENGINEERING, L.P.

                                         By: Tidel Cash Systems, Inc.
                                             Its General Partner

By: ____________________________
Name: __________________________         By:____________________________
Title: _________________________         Name:
                                         Title:
MICHAEL F. HUDSON

__________________________________

                                       7

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